Business Model of Zume Pizza

This paper analyzes the business model of Zume Pizza, a company that relies on technology to provide their products to customers. It discusses key partners, resources, activities, value propositions, customer relationships, channels, customer segments, cost structure, revenue streams, inter-relationship, critical success factors, influential factors, and recommended changes.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

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Table of Contents
Business Model:.........................................................................................................................3
Key Partners:..........................................................................................................................3
Key Resources:.......................................................................................................................4
Key activities:.........................................................................................................................4
Value Propositions:................................................................................................................4
Customer Relationships:........................................................................................................5
Channel:.................................................................................................................................5
Customer Segments:...............................................................................................................5
Cost Structure:........................................................................................................................5
Revenue Streams:...................................................................................................................6
Inter-relationship:.......................................................................................................................6
Critical Success Factors:............................................................................................................6
Influential Factors:.....................................................................................................................7
Change:......................................................................................................................................8
References:.................................................................................................................................9
Appendix:.................................................................................................................................11
Business Model Canvas:......................................................................................................11

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The modern business world is facing tough competition due to the entry of
considerable number of new organizations. As an impact of the globalization, many of the
organizations are seen to concentrate on expanding their business across the barrier of the
nations (Osipov & Skryl, 2016). In the modern business context, the impact of the technology
and the effect of the incorporation of the innovative techniques in the business operations is
seen to be significant (Ramdani, Chevers & Williams, 2013). The impact of the business
model on the success of the modern business organizations is observed to be notable. The
paper is focused in the description of the various elements of the business model of one such
organization which depends on the technology in a significant manner in providing their
products or the services to the customers. The paper analyses the business model of Zume
Pizza. The paper describes the inter-relationship between the various elements of the model
and along with that, identifies the critical success factors for the organization. Apart from
this, the paper discusses regarding the factors that have the potential to affect the business
operations of the chosen organization and also recommends some crucial changes that are
much needed for the betterment of the business activities of the chosen organization.
Business Model:
Key Partners:
The key partners of the selected organization are generally the investors of the
organization. Softbank with a contribution of 375 million US dollars along with Jerry Yang
and SignalFire for their massive contribution in the 6 million fund creation of the company,
are considered to be prime partners of the selected organization (Signalfire.com, 2019).
Along with that, the Australian Foods Standards is considered to be an important partner of
the selected organization for monitoring the quality in the products of the organization
(Foodstandards.gov.au, 2019). Apart from that, the local government of the areas that the
company serves such as San Jose, Sunnyvale, Palo Alto, Menlo Park, Mountain View,

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Atherton along with East Palo Alto are observed to be crucial partners of the elected
organization.
Key Resources:
One of the prime resources of the selected organization is the workforce of the
company. The considerable number of skilled employees of the organization along with the
new recruitments in the form of the robots are considered to be key in the success of the
organization. Apart from that, more than 56 number of GPS equipped automated vans are
seen to be crucial in the success of the organization in delivering the food products to the
customers with significant amount of speed (Zumepizza.com, 2019). In addition to this, the
company has the modern facilities in place for the processing of the food products which
satisfies the desired quality ratings while consuming the least amount of time. Apart from
this, the strong cash flow of the selected company contributes to the improvement of the
business operations.
Key activities:
The selected organization serves the customers with the best quality pizza, salad and
tasty cookies (Zumepizza.com, 2019).
Value Propositions:
The selected organization serves the customers with their products which are
manufactured with a precise consideration to the health standards of the customers.
The selected organization has the reputation of processing their food products in the
least possible time.
The mentioned organization serves the customers at a significantly affordable prices
and as the youth generation is the main targeted segment of the customers, the pricing of the

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products and the services of the customers is comparatively lower than the competitor
organizations (Zumepizza.com, 2019).
Customer Relationships:
The selected organization communicates to the customers through the e-mails. The
customers with the e-mail subscription are observed to achieve the news or the information
regarding the discount or the new products of the organization through the formal mails.
Apart from this, the official website of the selected organization also plays a crucial role in
the formation of effective customer relationship. This enables the company to share the
information regarding their food products or the news regarding the weekly discounts.
Channel:
The selected organization conducts their business through the restaurants and along
with that, the organization operates their business through their official website as well
(Zumepizza.com, 2019).
Customer Segments:
The targeted segment of the customers is primarily the youth generation. The
Australian people belonging to the age group of 16-35 are the main area of focus for the
selected organization. In addition to this, the organization targets the customers with an
average income of 10000 Australian dollars (Zumepizza.com, 2019). Apart from this, the
company is seen to target the customers with the adequate level of knowledge on the usage of
the technology, specifically in case of ordering food products in online. The company prefers
both male and female customers for their products.

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Cost Structure:
The selected organization is seen to experience 13% of their revenue as the
administration cost in the year 2016 and they faced 19% of their revenue as selling and
distribution of the cost in the same year as well (Zumepizza.com, 2019).
Revenue Streams:
The selected organization is expecting a generation of 2 million as revenue in the year
2019 which is having a rise of 3.8 % from the sum of revenue of 2016 (Owler.com, 2019).
Inter-relationship:
As it is pretty evident, that the selected organization had the intention of serving the
customers with the top quality food products. Adding to this, the senior level management of
the selected organization was able to understand the need of increasing the speed in the
processing of the food products and the impact of that on the preferences of the modern
customers. Hence, the collection of a significant fund with the help of the above mentioned
investors of the organization, the mentioned organization was able to develop their
infrastructure in preparing the food products with the consumption of the least possible time.
Apart from this, the selected organization was seen to apply a significantly competitive
pricing strategy which enabled it to target the youth generation for the sales of the products.
The appropriateness of the strategy is pretty evident with the increasing sales of the products
of the company which is visible with the above mentioned increasing percentage of growth.
Critical Success Factors:
One of the most prominent factors in the success of the company is seen to be the
urge of innovation from the part of the senior level management of the organization. The
company introduced automated robots for the processing of the food products which was a
significant step from the part of the senior level management of the organization in increasing

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the speed in the processing of the food products (Judal & Bhadania, 2015). This was of great
significance for the company in increasing the level of satisfaction amongst the customers
owing to the speedy services of the organization (Judal & Bhadania, 2015).
Apart from this, the skills and the competencies of the employees of the organization
were seen to be significant for the selected organization in improving their services. As the
organization had the liability to produce the food products at a significantly less time, the
experiences and the level of competency required for the employees were notably high (Bal,
Kooij & De Jong, 2013). Hence the higher authority of the organization were seen to invest a
significant amount in the conduction of the training and the developmental activities for
meeting the developmental needs of the employees. This was significant from the part of the
organization in influencing the customers for the repetitive purchases which had the potential
to improve the financial stability of the selected organization (Bal, Kooij & De Jong, 2013).
Influential Factors:
One of the highly influential factor for the selected organization is the sourcing of the
raw materials for the processing of the food products that the selected organization offers to
the customers of the organization. The ethical and appropriate sourcing of the raw materials
have potential to improve the quality in the products of the selected organization (Notarnicola
et al., 2017). This is in need to be managed by the higher authority of the organization in an
effective manner for the improvement of the business operations of the organization.
Apart from this, one of the major issue that the organization is in need to take care of,
is the unrest amongst the employees or the people of Australia regarding the increasing
introduction of the robots inside the workforces (Chen et al., 2013). This has significant
impact on the employees as they have started feeling insecure with their jobs. However, they
are the most important part of the workforce and that provides the need to the management of

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the organization in meeting the concerns of the employees for maintaining the sustainability
of the business operations of the selected organization.
Change:
The much required change that the organization needs to introduce is a significant
expansion in the product chain. The selected organization is facing the diverse requirements
of the customers where the customers are seen to ask for products that could have been sold
with the products that the organization currently offers to the customers. However, with the
incapability of providing those products from the part of the organization, the company loses
customers for their products as well. Hence the increment of the product chain is seen to be
significant for the selected organization. This will certainly enable the selected organization
to serve a larger number of customers which is pretty effective in increasing the sales of the
organizations.

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References:
Bal, P. M., Kooij, D. T., & De Jong, S. B. (2013). How do developmental and
accommodative HRM enhance employee engagement and commitment? The role of
psychological contract and SOC strategies. Journal of Management Studies, 50(4),
545-572.
Chen, X., Xie, J., Ji, J., & Sui, Z. (2013). Toward open knowledge enabling for human-robot
interaction. Journal of Human-Robot Interaction, 1(2), 100-117.
Foodstandards.gov.au (2019). Home. Retrieved from
http://www.foodstandards.gov.au/Pages/default.aspx
Judal, A., & Bhadania, A. G. (2015, January). Automation in Dairy and Food Processing
Industry. In Proceedings of the International Conference of Advanced Research and
Innovation (pp. 490-495).
Notarnicola, B., Tassielli, G., Renzulli, P. A., Castellani, V., & Sala, S. (2017).
Environmental impacts of food consumption in Europe. Journal of cleaner
production, 140, 753-765.
Osipov, V., & Skryl, T. (2016). The strategic directions of the modern Russian economic
development. International Business Management, 10(6), 710-716.
Owler.com (2019). Zume Pizza Competitors, Revenue and Employees - Owler Company
Profile. Retrieved from https://www.owler.com/company/zumepizza
Ramdani, B., Chevers, D., & A. Williams, D. (2013). SMEs' adoption of enterprise
applications: A technology-organisation-environment model. Journal of Small
Business and Enterprise Development, 20(4), 735-753.

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Signalfire.com (2019). SignalFire. Retrieved from https://www.signalfire.com/
Zumepizza.com (2019). Order Delicious Pizza and Have it Delivered Zume Fast. Retrieved
from https://zumepizza.com/

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Appendix:
Business Model Canvas:

Running head: MANAGEMENT
Key Partners
Softbank.
Jerry Yang and
SignalFire.
The local
government of the
areas that the
company serves
such as San Jose,
Sunnyvale, Palo
Alto, Menlo Park,
Mountain View,
Atherton along with
East Palo Alto.
Australian Foods
Standards.
Key Activities
Producing pizza, salad and
tasty cookies.
Value Propositions
The selected
organization serves the
customers with their
products which are
manufactured with a
precise consideration to
the health standards of
the customers.
The selected
organization has the
reputation of
processing their food
products in the least
possible time.
Customer
Relationship
e-mail
communication,
communication
through the
company website.
Customer Segment
 Age group of 16-35
 Average income of
10000 Australian
dollars per annum.
 Male and Female
both.
 Monthly salary
ranging above 5
thousand Indian
rupees.
Key Resources
Skilled employees.
Automated Robots.
The company introduced
automated robots for the
processing of the food
products which was a
significant step from the part
of the senior level
management of the
organization in increasing
the speed ion the processing
of the food products.
GPS Equipped vans.
Channels
Restaurants nad
company website.

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Strong cash flow.
Modern facilities equipped
restaurants.
Cost Structure
13% of the revenue was the administration cost in the year 2016 and they faced 19% of
their revenue as selling and distribution of the cost
Revenue Stream
Rise of 3.8 % from the sum of revenue
of 2016

Running head: MANAGEMENT