Business Strategy and Micro-Enterprise Activity

The assignment provides an analysis of F&S's business strategy using the Business Model Canvas. It identifies key partners such as H&M and Zara, core activities including marketing and human resource management, key resources like human resources and factory resources, value proposition in the form of 5KG jeans, customer relationship through strong relationships with customers, channels for communication and distribution, customer segments such as overweight people and fitness freaks. It also highlights the importance of operations and HR department in retaining employees and discusses issues and challenges faced by micro-enterprises in global markets.

Micro - enterprise activity
through a project based study

Background:
F&S is the new startup which is indulged in online clothing, and
the most innovative product sell by them is 5KG jeans which
helps in looking the people skinnier.

Business Canvas Model:
This model can be used as a strategy tool in case of new startups by F&S. For the
purpose of strategy these model state nine categories for the Business Model Canvas
and these categories are stated below:
 Key partners
 Key activities
 Key resources
 value propositions
 Customer relationship
 Channels
 Customer segments
 Cost structure
 Revenue Streams

Key partners:
New startups must ensure key partners in other
countries while conducting business overseas and
ensure association with other partners. It not only
help the new startups in understanding the
business environment and competitors, but also
them in arranging the resources without any
issues. In this context following are the business
which can be considered by the F&S for alliance:
 H&M
 Zara
 Da Milano

Key Activities:
It is important for the F&S to get proper knowledge
about the core activities of the company, and this
also ensure good value proposition. This mainly
help in creating the value for the organization and
also ensure good relationship with the customers
of the organization. core activities of the F&S
includes:
 Marketing
 Human resource management
 Operations management (Valkjarvi, 2012)

Key Resources:
Resources are those objects which help the
organization in conducting their operations
Following are the most important resources
of the F&S:
 Human resources
 Factory resources such as raw material.

Value Propositions:
It mainly includes the purpose for which
company’s conduct its business, and this is
the purpose through which requirements of
the customers are fulfilled. It help the
organization to distinguish from its
competitors. In case of F&S, 5KG jeans
which help the people in looking skinnier as
compared to their actual size is the value
proposition.

Customer Relationship:
This is important area of the organization
because it helps the organization in
capturing the existing market and also
ensures long term profit to the company.
strong relationship with the customers
ensures the loyalty of the customers and
also strong base (Baden-Fuller & Morgan,
2010)

Channels:
Following are the important channels which
must be considered by the F&S:
 Communication channels
 Distribution channels such as retailers,
wholesalers, etc.
 sales channels.

Customer Segments:
There are number of customers groups
which are related with the organization and
these groups are considered as customer
segments. In this case F&S can consider the
different groups of customers such as:
 Overweight peoples.
 Models
 Fitness freaks
 Gyms

Cost Structure:
In context of ensuring the insight cost
structure, and for understanding what is the
minimum turnover must be for the purpose
of making profit. Following are some of the
characteristics which must be considered
by the F&S:
 Economy scale
 Cost which is both fixed and variable.
 Profit advantages (Griffith, 2011).

Revenue Streams:
This area of the business canvas model
ensures clear picture of the revenue model
of the organization.

Cost structure – it consider Economy scale
Cost which is both fixed and variable.
Profit advantages.
Key
Partners
Key
partners of
F&S can
be H&M,
Zara, etc.
as they
help the
F&S in
establishin
g
business.
Key
Activitie
s
It include
core
activities
of the
organizati
on.
Value
Proposition
purpose for
which
company’s
conduct its
business and in
the present case
it is 5KG jeans
Customer
Relationshi
p
Most
important
area which
must be
considered
by F&S
organization
focus.
Key
resource
s
Human
resource,
Factory
resources
, etc.
Channels
It includes
sales,
distribution,
and
communicati
on channels.
Revenue Stream-This area of the business
canvas model ensures clear picture of the
revenue model of the organization.
Customer
Segments
It includes
different groups
of customers
such as
Overweight
peoples.
Models,
Fitness freaks,
and Gyms.

Operations & HR
This is the most important department of the organization, and this is the area
which required not only effective but also efficient strategy because this is the
department which not only handle human resources but also responsible to
retain them. F&S must ensure that they also hire some local employees of UK
because through this they can understand the market well. It is necessary for
F&S to concentrate on the strategic utilization of the employees and also the
measurable impacts of the employees program over other business.

Issues and challenges:
Following are some issues and challenges faced by micro-
enterprise in global markets:
 Existing competitors of the market.
 Changes occurred in the culture of UK.
 Changes occurred in the general policies, business laws and
regulations.
 Big brands and well-known organizations in this industry.

Conclusion:
This paper mainly focus on the business
strategy and main components, as this help
the organization in exploring the market in
better manner.

References:
Griffith, (2011). The Importance of Human
Resource Management. Available at:
https://www.griffith.ie/blog/importance-human
-resource-management
. Accessed on 14th march 2018.
Valkjarvi, M. (2012). Business Plan For A
Fashion Brand. Available at:
https://www.theseus.fi/bitstream/handle/1002
4/43336/Valkjarvi_Mira.pdf?sequence=1&isAll
owed=y
. Accessed on 14th march 2018.
Baden-Fuller, CH. & Morgan, M. S. (2010).
Business Models as Models. Long Range