Elaboration of Business Model of Zume Pizza

This paper elaborates on the business model of Zume Pizza, analyzing key blocks such as key partners, key activities, customer segments, value proposition, channels, revenue streams, customer relationships, cost structure, and key resources. It also explores the inter-relationships between these blocks and identifies critical success factors and impactful factors. Recommendations for improvement are provided.

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

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Executive Summary:
The paper is focused in the elaboration of the business model of a chosen company in the
form of Zume Pizza. The paper analyses the various blocks of the model such as Key
Partners, Key Activities, Customer Segments, Value Proposition, Channels, Revenue
Streams, Customer Relationships, Cost Structure and Key Resources. In addition to this, the
paper presents the inter-relationship between the above mentioned various blocks. Along with
that, the paper identifies the critical success factors and the impactful factors of the business
such as the usage of the robotics in the processing of the foods products or meeting the
training and he developmental needs of the employees. In addition to this, the paper provides
some of important recommendations for the improvement in the business conduction of the
mentioned organization.

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Table of Contents
Business Model and Building Blocks:.......................................................................................3
Key Partners:..........................................................................................................................3
Key Activities:.......................................................................................................................4
Customer Segments:...............................................................................................................4
Value Proposition:..................................................................................................................4
Channels:................................................................................................................................4
Revenue Streams:...................................................................................................................5
Customer Relationships:........................................................................................................5
Cost Structure:........................................................................................................................5
Key Resources:.......................................................................................................................5
Inter-relationships:.....................................................................................................................5
Critical Success Factors:............................................................................................................6
Impactful Factors:......................................................................................................................7
Changes:.....................................................................................................................................8
Business Model:.........................................................................................................................8
References:...............................................................................................................................11

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The paper is focused in the elaboration of the business model of a chosen business
organization, Zume Pizza. The mentioned organization is one of the new entries into the
Australian pizza processing industry. The chosen organization was established in the year
2015 by Alex Garden and Julia Collins (Zumepizza.com, 2019). The paper identifies nine
different aspects of the business model of the mentioned organization along with the
interrelationships between the various aspects. Apart from that, the paper provides significant
information regarding the critical success factors of the business conducted by the chosen
organization. Adding to this, the paper provides brief information regarding the factors that
have the potential to affect the business conduction of the mentioned organization along with
the changes that are required into the business model for the improvement of the business of
the mentioned organization with a precise focus on the revenue of the mentioned
organization.
Business Model and Building Blocks:
As mentioned, Zume Pizza conducts a profitable business in the pizza processing
industry. The organization has the basis in Australia from the inception which provides a
comparative edge to the chosen organization in terms of targeting the customers.
Key Partners:
The key partners of the organization are Jerry Yang, SignalFire along with Softbank
for the purpose of investment (Signalfire.com, 2019). Apart from that, the Food Standards
Australia is one of the important partner of the organization in terms of monitoring the
quality of the foods that the chosen organization serves to the customers on behalf of the
national government of Australia (Foodstandards.gov.au, 2019) Apart from that, the local
government of the Mountain View, Palo Alto, East Palo Alto, Atherton, Menlo Park, San
Jose and Sunnyvale are considered to be major partners of the chosen organization.

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Key Activities:
The organization sells optimum quality products such as Pizzas, Salas and Cookies
(Zumepizza.com, 2019). The organization also experiences the prestige of being one of the
fastest in terms of processing of the food products and the delivery of the food products.
Customer Segments:
The targeted segment of the customers is mentioned below:
Zume Pizza Customers (Australia)
Sex Male and Female both.
Income 63%greater than the A$7000 monthly.
Age 17-47 Years
Other Characteristics Credit and Debit Card Users, Online
customers
(Information Source: Zumepizza.com, 2019)
Value Proposition:
 Provide the best quality food products to each and every customers.
 Make sure that the customers wait least amount of time for the processing of the food
products.
Channels:
The organization has several restaurant stores in Mountain View, Palo Alto, East Palo
Alto, Atherton, Menlo Park, San Jose and Sunnyvale along with that, they conduct online
business.

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Revenue Streams:
In 2019, the company has an estimated target of 2 million dollars revenue with precise
focus on preparing the organization for increasing the sales at 6% rate in the each of the next
4 years (Zumepizza.com, 2019).
Customer Relationships:
The company has a significantly strong team of employees in place for creating and
sending the mails which contains information regarding the current offers and the new
products that the mentioned organization is going to introduce into the market. Apart from
that, the mentioned organization is seen to use the internet advertisements for the sharing of
the information to the customers.
Cost Structure:
Distribution and the selling cost of the organization is seen to be 28% of the total
revenue of the mentioned organization and at the other end, administration cost for the
mentioned organization is calculated to be 15% of the total revenue (Zumepizza.com, 2019).
Key Resources:
The required resources are the store facilities, the employees of the organization along
with the robots that the mentioned organization uses for the speedy processing of their
products.
Inter-relationships:
It is visible that the chosen organization requires a significant amount of investment
for providing quality food products to the customers along with producing them with notable
amount of urgency. The company is seen to accumulate funds from different organizations

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such as SignalFire and Softbank which enables the company to produce food products such
as Pizzas, Salas and Cookies and serve the customers of Mountain View, Palo Alto, East Palo
Alto, Atherton, Menlo Park, San Jose and Sunnyvale. The company targets the customers
belonging to the age group of 17-47 Years, both male and female with A$7000 monthly
salary and more importantly the customers who uses Credit and Debit Cards and purchases
through online. However, the organization sells the products in stores for the customers who
prefers to purchase in offline. The company is able to use their human resource along with
the robots for the processing of the quality foods which can provide delight to the customers
(Tenorth & Beetz, 2013). Adding to this, the company is seen to use various channels of
communication such as mail subscription and online advertisements for the exchange of the
information regarding their products to the customers. All of these enabled the company to
expect a generation of revenue of 2 million dollars in the year 2019.
Critical Success Factors:
One of the crucial factor for the organizations operating in the mentioned business is
the achievement of the preferences of the customers. As it is pretty evident that the customers
of the modern generation are significantly busy with their life, the usage of robotics help the
organization in providing quality foods with the consumption of least possible time (Tenorth
& Beetz, 2013). This plays an important role in increasing the customer satisfaction which
provides a significant edge to the organization in the market competition. Adding to this, the
sourcing of the raw materials for the products of the mentioned organization, will be a key
aspect for the success of the organization and in the generation of quality food products for
the customers of the organization (Chiu & Hsieh, 2016).
In addition to this, the improvement in the marketing communication from the part of
the chosen company with the existing communication framework of the organization will be

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crucial in the success of the organization as it will enable a larger number of customers to be
aware of the products of the mentioned organization (Misirlis & Vlachopoulou, 2018).
Impactful Factors:
One of the significant factor in the organization’s business model is the management
of the operations. As mentioned earlier, the modern customers have lesser amount of time for
investing in the processing of the foods, the mentioned organization is one of the very few
companies in the nation with the usage of the robotics for the speedy processing of the foods
(Tenorth & Beetz, 2013). The usage of the robotics technology is notably crucial from the
part of the organization in making sure that the company be able to provide an innovative
solution to a major issue of the modern restaurant industry (Iqbal, Khan & Khalid, 2017).
Adding to this, the company is in need to increase their business operations with a precise
focus on the offline stores. The increment in the opening of the new outlets will certainly
enable the organization to reach out to a larger number of customers with the products of the
organization and that will be significant in the generation of an improved revenue for the
organization (Buttriss, 2013).
Apart from this, the conduction of the training and the developmental activities from
the part of the mentioned organization will be crucial in enabling the employees of the
organization to be capable of meeting the diverse needs and food preferences of the
customers. Apart from the existing business model, a significant increment in the product
chain of the chosen organization has the potential to improve the business of the mentioned
organization. In addition to this, the increment in the product chain of the organization will
enable the organization to target a larger number of customers and will be capable of
maintaining the varying requirements of the customers of the organization (Popp et al., 2014).

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The increment will provide the scope of retaining the customers to the organization and at the
same time will provide the chance to increase the revenue for the organization.
Changes:
The business expansion is one of the major change that is required for the
improvement of the business operation of the company. Adding to that, the increment in the
number of the outlets of the mentioned organization will enable to the company to use their
resources in a better manner. Apart from that, the company is in definite need of considering
the scope of improvement of the customer relationship management. This will be significant
for the organization to have the idea of the views and the opinions of the customers regarding
the products of the mentioned organization.
Apart from this, the improvement in the customer relationship management will
enable the organization to receive the requirements of the customers in a better manner which
will help them in designing quality food products with a precise consideration on the varying
needs of the customers (He, Zha & Li, 2013). This will certainly increase the customer
loyalty amongst the customers of the organization and will position the com-any in the
market in a better manner. Adding to that, the increment in the product chain of the
organization is considered to be a much needed change for the mentioned organization in
order to make sure that the requirements of the customers are met in an efficient manner.
Along with the products of the same genre which the company serves, the addition of the
various beverage products will be significant for the success of the mentioned organization.
Business Model:
Key Partners
 Jerry
Yang.
Key Activities
Selling
optimum
Value
Propositions
Customer
Relationship
Customer
Segment
 Male and

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 SignalFir
e.
 Softbank.
 Food
Standards
Australia.
 The local
governme
nt of the
Mountain
View,
Palo
Alto, East
Palo
Alto,
Atherton,
Menlo
Park, San
Jose and
Sunnyval
e.
quality Pizzas,
Salas and
Cookies.
o Provide
the best
quality
food
products
to each
and
every
customer
s.
o Make
sure that
the
customer
s wait
least
amount
of time
for the
processi
ng of the
food
products
.
Mail
Subscriptions
and Internet
Advertisement
s.
Female
both.
 63%great
er than
the
A$7000
monthly.
 17-47
Years
 Credit
and
Debit
Card
Users,
Online
customer
s
Key Resources
 Store
facilities
.
 Modern
technica
l
equipme
Channels
Offline and
Online Stores.

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nt for
the
processi
ng of the
foods
and the
delivery
along
with the
human
resource
s and
robots.
Cost Structure
28% of the total revenue as Distribution and the
selling cost.
15% of the total revenue as Administration
cost.
Revenue Stream
Increment of sales at 6% rate in the each
of the next 4 years.

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References:
Buttriss, J. L. (2013). Food reformulation: the challenges to the food industry. Proceedings of
the Nutrition Society, 72(1), 61-69.
Chiu, J. Z., & Hsieh, C. C. (2016). The impact of restaurants’ green supply chain practices on
firm performance. Sustainability, 8(1), 42.
Foodstandards.gov.au. (2019). Home. [online] Available at:
http://www.foodstandards.gov.au/Pages/default.aspx
He, W., Zha, S., & Li, L. (2013). Social media competitive analysis and text mining: A case
study in the pizza industry. International Journal of Information Management, 33(3),
464-472.
Iqbal, J., Khan, Z. H., & Khalid, A. (2017). Prospects of robotics in food industry. Food
Science and Technology, 37(2), 159-165.
Misirlis, N., & Vlachopoulou, M. (2018). Social media metrics and analytics in marketing–
S3M: A mapping literature review. International Journal of Information
Management, 38(1), 270-276.
Popp, J., Lakner, Z., Harangi-Rakos, M., & Fari, M. (2014). The effect of bioenergy
expansion: food, energy, and environment. Renewable and Sustainable Energy
Reviews, 32, 559-578.
Signalfire.com. (2019). SignalFire. [online] Available at: https://www.signalfire.com/
Tenorth, M., & Beetz, M. (2013). KnowRob: A knowledge processing infrastructure for
cognition-enabled robots. The International Journal of Robotics Research, 32(5), 566-
590.

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Zumepizza.com (2019). Order Delicious Pizza and Have it Delivered Zume Fast. [online]
Available at: https://zumepizza.com/