S1 Enterprise Concept Document: A Food Van Business Model

This document presents the development of a business model for a food van business called 'Mobi-food'. The initial concept was iteratively improved through peer group reflection and critical feedback, resulting in a more feasible and investor-ready model. The report details the initial concept, the feedback received, the identified issues, and the implemented improvement strategies. It highlights the importance of continuous evaluation and refinement in business model development.

S1 Enterprise Concept Document

Table of Contents
Introduction......................................................................................................................................3
1.0 Original Business Concept........................................................................................................4
2.0 Peer group reflection..................................................................................................................6
2.1 A pre-selected Working Party (e-WP) on-line discussion group..........................................6
2.2 A self-selected discussion group...........................................................................................7
2.3 Highlighted Issues...............................................................................................................10
2.4 Improvement Strategy.........................................................................................................10
3.0 Concept Improvement Reiteration...........................................................................................11
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
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Introduction
In this study, a business design has been made and different opportunities and odds that can be
faced by the organization are discussed. The study shows in what manner the panels are shedding
their viewpoints towards the business ideas. Within this study Business Model Canvas of the
thought business was documented, which helps in making the research more efficiently. The
study shows that how this business can make proper activities in the market and what will be the
targeted audience of the firm. Within this study, reflection of the study from the viewpoint of
third person is made, which will help the reader to understand the study more effectively.
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Partners
Van lenders
Gas providers
Vegetable suppliers
Logistic Suppliers
Activities
To serve the customers
with quality food
To provide customers
food within budget
Resources
Financial
Material
Human
Technological
Customer
Relationship
With online feedback team
Through words of mouth
Advertisement
Channels
Print media
Digital media
Customer
Segments
Customers from all
income level
Customers from all
age group
Customers from all
backgrounds
Costs
Labour pay roll
Legal fees
Advertisement and promotion
Lenders Payrolls
RevenueStream
Partnership
Angel investors
Personal Loan
Value Proposition
Employment to the economy
Pocket friendly products and
services
Fresh foods
1.0Original Business Concept
The business concept is made with the help of “Business Canvas Model”. This will help in
understanding the structure and the framework of the business in an explained
manner(Zolnowski, et al., 2014).The Business Canvas Model helps in classifying the nine key
areas of the business. The chosen business for this study is a food-van business. The name for
this company is ‘Mobi-food’.
Table: Business Canvas Model
(Source: Created by the researcher)
Discussion
The above table shows the various key areas with the help of which the planned business is
going to execute the business process. The above graph explains the various partners that will
help the organization in executing the business process in the required manner. Then the table
shows the various activities that the business plans to execute in the market. Then comes the
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resources, this shows the various monetary and martial supports that are required by the business
to run the company. Value proposition shows the scope that the business is making in the society
and to the targeted customers. In this table, customer relationship shows how this business is
going to communicate with its customers in order to build the brand image and customer
relationship. This graph then discusses the various channels that will be used by the organization
to make connection with the targeted customers. The extreme left box of the table discusses the
segmentation of the customers, which allows the business to make proper pricing and product
development. The below two boxesof the tableshows,costs and the revenues that are related to
this business. The cost box discussed the various expenses that the business need to bear in order
to execute the activities and the revenue box shows the inflow of cash that are needed to run the
business activities in the desired manner.
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2.0 Peer group reflection
2.1 A pre-selected Working Party (e-WP) on-line discussion group
After the ideation of the business idea and accomplishing its business model canvas, the business
concept was discussed within a study group, which was reviewed and feedback was received
from various viewpoint. The critics have found out various obstacles that the business owner
must figure out before executing the business activities. This business plan has been discussed
through ‘Minerva’. Thishas received reviews from various experts.
Business Proposal
This business is a fresh idea with fresh market. The business deals with mobile food facility in
various parts of London, UK. ‘Mobi-food’ is a company of 15 Van, which will be delivering
Indian and Thai cuisines in 15 different locations. The business has its working hour of 16 hours
in a day with two shifts and twoshifts in the menu.This business targets the locals and the office
goers. The other targeted customer of this organization can be the alone stayer and school goers.
The business provides authentic Indian and Thai food to the customers in a budget friendly way.
This allows the business to get customers from all the income groups. On the other hand, Mobi-
food provides a little amount of employment in the economy. The company uses only fresh food
materials and have a live kitchen; this allows ensuring that the foods are getting prepared in the
proper manner.The chosen business will be making proper connection and promotion to the
targeted and this will be helping the organization in making effective impact on the market.To
target the audience in an influencing manner, the organization will be promoting through various
digital social media platform and through hoardings. Mobi-food will be building relation with its
targeted customers through online feedback pages, which will be helping in understanding the
issues that are being faced by the customers.
Critical Reflection andRecommendation
The company can generate a huge profit if the marketers of the business understand the tastes
and preferences of the targeted locations.Mobi-food can increase its activities in other parts if
this plan succeeds.To make it a success it is very much essential to understand the demand of the
business type and the food culture that the business is about to provide. This business plan can be
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a failure if the marketer of the company fails to do so. An expert stated that an organization cans
only success if it can understand the need of the customers. The other problem that was
identified by the experts was the exhaustion of fuel during serving the customer. This issue can
be helped out if there is extra space for fuel in the van.
Another issue that was identified by the critics was the fire management. The organization must
keep in mind while executing their business activities this essential area. This identified issue can
create a huge disaster to the society. While business activity is beingpreceded, organization must
know what to be produced and whom to be served. The proper segmentation of the location
should be done or else the organization can fail in executing proper activities. ‘Idea of running a
food van is a great concept’, acclaimed by an expert but according to him, the business can face
many obstacle while operating, and one of the essential part in which the business can make a
failure is keeping the records of all data of the employees and the customers. The organization
must adopt proper software to records the data, which can help in distributing the wages
accordingly. The organization can face problem during transaction process. For example, a
customer can fall short in cash and may want to pay through card or any digital platform. The
organization must implement such technologies to avoid those obstacles. Proper optimization of
the feedback site must be done in order to get the feedbacks and reviews in the best possible
manner, this can help Mobi-food in understanding their customers more and through this, the
employees and their behaviour towards the customers can be understood.
2.2 A self-selected discussion group
Discussion Forum
The ‘food-van’ business model is also uploaded on the ‘Business Discussions’ blog. The
‘Business Discussion’ blog is a privately created discussion blog on business ideas and
comprises of member from several colleges around UK. The food business model has been
communicated on to the blog using the Business Canvas Model. A short description of the
business is provided to make the members of the blog understand the business itself and the
purpose. Further, the objective of discussion is also mentioned in the blog to ensure relevant and
productive discussion among the members.
Review of the NVP and Critical Feedback
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According to the feedback collected from the 75 participants in the discussion forum, it is clear
that the business idea is excellent and feasible in the existing Mobile Food Business market. The
members decide that the New Product Venture has all the key elements of a business, but is
essential to understand the Strengths and weakness of the business to establish the feasibility. It
has also been pointed out that in order to analyse the strengths and weakness of a business, the
SWOT model have to be used.
According to the ‘SWOT’ of this business, it can be identified that the list of the stakeholders
includes the critical parties that is essential to start the business(Kiel, 2014). These stakeholders
provide the key ingredient such as the gas, Van and, vegetables. However, the members cannot
directly relate Logistics as a part of the business model. On the contrary, one of the members
points out that the investors who will be providing the necessary capital for the business can be
one the crucial business partners. The vendors also include the meat suppliers, Spices, and the
employees can be the other crucial partners.
The activities of the business model include the main functions of the business. It is clear to the
members that this business will serve food that has high quality and are economic. However, this
is also defined by the purpose or objectives of a business. The feedback clearly points out that
the list of activities will include the tasks or actions that will be performed by the business.
Examples of activities have also been suggested through the forum. They may include, preparing
food, packaging of food, providing ‘Home-Delivery’, or Promotion of business. The points
defined in the business model canvas however, has the tone of business objectives. The members
of the discussion forum suggests that the activities has to be precise and in terms of tasks.
The resources defined in the BMC have been argued to be clear. From the model, one can
understand the key resources essential for the business is Human resources, Money, Material,
and Technology. However, the Materials or the Physical assets are not clearly defined and has
been very generic. The participants of this discussed points out that the lists of resources also do
not make it clear as the nature of materials and technology. The BMC should objectively define
the resources in order to make it more relevant and easy to evaluate. In order to increase the
effectiveness of the model, the resources can also be specific(Armstrong, et al., 2015).
The Value Proposition is the key values that the business will offer(Armstrong, et al., 2015). The
feedback of the model reveals that the value proposition has been good except from the first
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point. The value proposition is provided to the potential customers. The participants of the
discussion cannot fathom how the Employment to the economy will help to sell the products off
the van. The business model should include values that will encourage the customers to purchase
the product(Kiel, 2014). Further, the value proposition is also the competitive advantage that the
organisation has in the competitive market. Hence, the NPV concept has to be improved in the
value proposition section.
The model points out that the customer relationship will be maintained through the online
feedback team. This has to be in accordance to the activities of the business. The model does not
mention about any online activity except that the food will be prices economically and delivered
with quality(Joyce & Paquin, 2016). Hence, the feedback from the discussion forum is justified
that the strategy for customer relationship has to be more relevant according to the scope of the
business operation(Joyce & Paquin, 2016). One of the members points out that this relevance is
crucial to ensure the business is feasible for implementation.
The Channels of Communication has been vigorously criticised by the discussion forum. The
channels of Communication include ways to reach out to the customers. The channels in this
case, are primary identified after taking into consideration the relevant customer segment that the
business will target. In this model the relevant customer segment, include the entire mass who
may come across the Food van. However, the cost factor is also crucial towards determining the
feasible channel. The digital platform is more relevant for consumers who may engage
themselves into online purchasing. On the other hand, the mass media is highly cost intensive
and reaches out to the irrelevant consumers as well. Hence, the forum suggests that the possible
channels may include localised poster promotion, BTL Activity, and leaflet
distribution(Armstrong, et al., 2015). This will essentially help to keep the costs under budget
and increase the effectiveness of the communication.
The costs and Revenue stream has been considered precise and relevant for the business. The
cost component for this small-scale business includes labour pay, lender pay, advertisement,
promotion, and legal fees. However, the cost also includes the supplier accounts. It can be argued
that the suppliers are essentially in a long terms business relationship who may indulge
themselves into periodic payment. Further, the cost daily raw materials are a critical rotational
cost that is variable and has significant influence over the profitability of the business.
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2.3 Highlighted Issues
From the feedback received on the business model, the following problems are identified:
 The list of partners has irrelevant stakeholders who are not justified in the business
model.
 The Activities’ list has not be developed properly and needs re-modification.
 The List resource is more generic than specific.
 The value propositions identified in the model has certain proposition that is irrelevant
towards selling the product to the end-user.
 The customer relationship lacks relevance with the business operations.
 The channels of distribution are unrealistic for the business.
 The cost structure has to be more precise, which is lacking.
2.4 Improvement Strategy
From the critical discussion on the problems, points out by the feedback, the following strategy
can be adopted to identify the possible improvements:
 The problems have to be evaluated from various perspectives.
 The possible solutions can be derived through secondary market research on other
relevant businesses.
 The issues can be critically analysed to brainstorm relevant solutions and test their
feasibility.
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Revenue Stream
Partnership
Angel investors
Personal Loan
Recurring revenue from daily profits
Costs
Labour pay roll
Legal fees
Advertisement and promotion
Lenders accounts
Supplier Accounts
Pricing Structure
Resources
Venture Capital
Physical Resources (Van, Kitchen Supplies, Utensils, Storage cupboard, Tables, chairs, cooking gas, transport fuel and backup power generator)
Human Resources
Technological resources (Online Payment system)
Value Proposition
Pocket friendly Food Items.
Fresh foods
Flexible payment Option
Take Away service
Sit and Eat service
Large scale catering service in parties and events
Mobile stall service in special events
Eco-friendly packing
Customer Relationship
Account Management for the Business Customers.
Real-time offers
Customer Segments
Customers from all income level
Customers from all age group
Customers from all backgrounds
Partners
Van lenders
Gas providers
Vegetable suppliers
Meat Suppliers
Spices Suppliers
Packaging materials Suppliers
Investors
Employees
Activities
Preparation of food for the customers
Packing of Food for ‘Take Away’
Catering Events and Parties
Conducting Promotional activities
Addressing Customer Grievances
Channels
Poster promotion
BTL Activity
Leaflet distribution
3.0 Concept Improvement Reiteration
The issue pointed out through the discussion forums has been incorporated using the
improvement strategies. The feedback is incorporated in the second iteration of the business
Model.
From the feedback provided through the discussions, the changes in the model are as follows: -
 The Partner section includes Spice suppliers who will supply the weekly spices and
supplementary cooking ingredients. The packaging suppliers who will provide the daily
suppliers of eco-friendly packaging materials. The Meat suppliers who will provide the
daily requirement of Meat. The investors who has invested in this venture. The
Employees who are crucial partners of the business.
 The activities section now identifies the critical activities. They include preparation and
delivery of food for immediate consumption or as a takeaway. The Van business will also
cater Events and undertake promotional activities. Further, the business also address
customer grievances in terms of food or packaging.
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 The Value Proposition excludes the ‘benefit of employment’ and incorporates the Take
away service through Eco-Friendly pricing, sit and eat service and catering services.
 The customer segments stays unchanged.
 The customer relationship is maintained through Management of accounts for business
customers and through real-time offers for non-business customers.
 The resources element is now defined objectively by specifically mentioning the various
physical resources and technological resources required in the business.
 The cost factor now includes the pricing strategy of the products and the key cost
elements in the business.
 The channels of activities are re-developed and includes Poster Promotion, leaflets and
BTL activities.
 In the revenue streams, the daily profits are added to the model.
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Conclusion
This report concludes the development of the Business Model Canvas through brainstorming and
peer-review and further research. The new model developed is more feasible and appropriate to
attract crucial investors for executing the business. It can be stated that the improvement comes
through critical evaluation and periodic evaluation of the business model. This model in the
second iteration has hence addressed the critical mistakes that can possible render the business
model irrelevant.
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References
Armstrong, G., Kotler, P., Harker, M. & Brennan, R., 2015. Marketing: an introduction. London:
Pearson Publications.
Joyce, A. & Paquin, R., 2016. The triple layered business model canvas: A tool to design more
sustainable business models. Journal of Cleaner Production, Volume 135, pp. 1474-1486.
Kiel, I., 2014. Entrepreneurial marketing. London: McMillan.
Tollin, K., Christensen, L. & Wilke, R., 2015. Sustainability in business from a marketing
perspective. Journal of Strategic Marketing, 23(6), pp. 471-496.
Zolnowski, A., Weiß, C. & Bohmann, T., 2014. Representing Service Business Models with the
Service Business Model Canvas--The Case of a Mobile Payment Service in the Retail Industry.
System sciences (HICSS), 2014 47th Hawaii International Conference, pp. 718-727.
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