SCA Property Groups: A Business Model Canvas Analysis

This report analyses the sustainability of SCA Property Groups in Australia using the 9 building blocks business model canvas. It also discusses the success, risks, strengths, and weaknesses of the company.

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Executive Summary
SCA Property Groups is considered to be a well known real estate business organisation
originated in Australia. The Company successfully expands its business in both Australia and
New Zealand. Anthony Michael Grainger Mellowes is the CEO and the Executive Director of
the Company. The report is going to implement the 9 building blocks business model canvas in
order to create an understanding regarding the sustainability of the company. Besides this, the
success, risks, strength and weaknesses are also incorporated into the discussion in order to make
the report more accurate and authentic. It can be concluded that there is huge possibility for the
SCA Property Groups to establish a better set up and market holding in Australia.

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Table of Contents
Introduction......................................................................................................................................4
Discussion........................................................................................................................................4
Description of the company.........................................................................................................4
Business model canvas................................................................................................................5
Customer segments..................................................................................................................5
Value proposition.....................................................................................................................5
Channels..................................................................................................................................6
Customer relationship..............................................................................................................6
Revenue streams......................................................................................................................6
Key resources...........................................................................................................................6
Key activities...........................................................................................................................7
Key partnership........................................................................................................................7
Cost structure...........................................................................................................................7
Relationship in nine building blocks...........................................................................................7
Success factors.............................................................................................................................8
Downside risk..............................................................................................................................8
Changes in business model..........................................................................................................8
Recommendation.............................................................................................................................9
Conclusion.......................................................................................................................................9

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Reference.......................................................................................................................................10
Appendices....................................................................................................................................12
Appendix 1.............................................................................................................................12
Appendix 2.............................................................................................................................13
Appendix 3.............................................................................................................................13
Appendix 4.............................................................................................................................14
Appendix 5.............................................................................................................................15

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Introduction
SCA Property Groups is considered to be a well known real estate business organisation
originated in Australia. The Company successfully expands its business in both Australia and
New Zealand. Anthony Michael Grainger Mellowes is the CEO and the Executive Director od
the Company (SCA Property Group, 2018). In fact, the company has two types of business
operations, one is known as the Australasia Property Management Trust and the other is familiar
with the name of Shopping Centres Australasia Property Retail Trust. The Company has its
headquarters in Sydney, New South Wales (NSW) (About, 2018). In this context, the purpose of
this report is to figure out the important aspects that are responsible to create better
organisational activities of SCA Property Groups in Australia. The report is going to implement
the 9 building blocks business model canvas in order to create an understanding regarding the
sustainability of the company. Besides this, the success, risks, strength and weaknesses are also
incorporated into the discussion in order to make the report more accurate and authentic.
Discussion
Description of the company
SCA Property Groups is belonged to the real estate business industry providing real
estate investment trust owned portfolio for the sub-regional and neighbourhood shopping centres
and retail assets. The company was a part of the Woolworths Limited and has been taken over by
2012 (Woolworths Limited, 2018). In this regard, the objective of the SCA Property Groups is to
provide its investors the privileges of geographically diverse portfolio and a more defensive non-
discretionary segment of the real estate market. Moreover, securing the interests of the tenants

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and follow a regular distribution of long term leases to distributors is also a part of the SCA
Property Groups. As a matter of fact, the real estate industry in Australia is very lucrative and
promising in terms of its size and annual revenue earnings. According to Annual Report 2017
(2018) the annual revenue earning of the industry is $16 billion with a business operation around
40,000 locations. Therefore, the SCA Property Groups is looking for achieving its success from
the early days of its operations.
Business model canvas
The role of a business canvas model in business is to analyse the value of the organisation
and portrays it to the customers in such a way so that the clients get attracted with the business of
that organisation (Amanullah et al., 2015). In this context, the 9 building blocks concept is a
highly recognised and creative set up that the organisations are often use for their business
purposes. The 9 segments are as follows,
Customer segments
It is responsible to set the target audience or the customers in order to offer them with the
products and services. This is considered to be one of the most important parts of any business
house to conduct flawless business activities in an intense competitive market (Metallo et al.,
2018). In this regard, the customer segments of the SCA Property Groups is primarily based on
the income of the customers.
Value proposition
Value proposition can be identified as a strategic measure based on which an organisation can
build up its value so unique. In fact, the value proposition is entitled to deliver a strong message
to the potential customers about the offer of products and service given by that organisation that

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are unique and different from the others (Iacob et al., 2014). As per Appendix 4, it can be seen
that the SCA Property Groups has a great number of operations around 77 areas in Australia.
Channels
Channels are considered to be the medium through which the company can deliver its
unique value proposition. It can be through advertising or creating a strong customer
relationship. Public relation is also an essential part of the channels (Orellano, 2017).
Customer relationship
It is very essential and can be referred as the most important aspect of any business.
Organisations often plan to set some new customer relationship mechanisms so that it will be
beneficial for the company to sustain in the market. (Clark & Hazen, 2017)
Revenue streams
The effectiveness and the rationality of the value proposition rely on the revenue status of the
company (Metallo et al., 2018). In fact, the revenue streams measure the success of the business
organisation by showing the revenue details and profits. The revenue of the SCA Property
Groups can be seen in its financial performance which is increased by 4.9% in the recent years
(Appendix 2).
Key resources
Resources can be identified in various manners. There are different types of resources that a
company can be utilised. As a whole resources help a company to continue its business
operations profoundly.

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Key activities
Prioritizing the business activities is another pivotal aspect that every company should possess.
As a matter of fact, key activities generate more profit for the company than other regular
business operations.
Key partnership
In fact, it is impossible for a company to continue its business alone. It requires the help of some
business partners that can bring success and security for the company.
Cost structure
It encapsulates all the expenses and business dealings in financial terms that can help to expand
the business and business related activities. The cost structure of the SCA Property Groups is
based on their operation, rental and property expenses (Appendix 5).
Relationship in nine building blocks
In case of the SCA Property Groups, the company is strictly followed up the 9 building
blocks business model. For example, in case of key activities the SCA Property Groups primarily
puts focus on the real estate business. Moreover, the company has a strong partnership with
Woolworths Limited (About, 2018). Each Woolworths shareholder receives one unit in SCA
Property Groups for every five Woolworths share. Moreover, the company aims to create a better
communication with its clients through day to day relationship and public relations. Securing the
customer benefits is considered to be one of the major factors for gaining the trust of the
customers and in return the SCA Property Groups succeeded to increase its capital to $472
million (Asx.com.au, 2018).

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Success factors
Promotion of the product is considered to be as essential factor for the steady growth of a
business organisation. In this regard, the SCA Property Groups also puts enormous emphasis on
its dynamic products. As per the company website, it can be seen that the company has a
dynamic network with 77 neighbourhood and sub-regional retail shopping centres in Australia
(Asx.com.au, 2018). Most of this property centres are concentrated into the east and south east
part of Australia.
Moreover, the support from the big partners like Coles and Woolworths is considered to be a
significant factor for the growth of the company. In fact, SCA is reckoned with the largest owner
of neighbourhood centres in Australia.
Downside risk
Recently, the company is facing retention in business. As per the Company report in
2018, it can be seen that the gross property income of the company has been increased since
2017 with a decreasing rate of 0.8% (Reports and Presentations, 2018). As a matter of fact, the
Net Operating Income of the Company is accounted with a shortage of 3.5% in compare to the
previous year (Annual Report 2017, 2018). As a matter of fact, the portfolio occupancy is also
identified with a consistent manner. There is no such change in the portfolio occupancy from
June 2016 to December 2017.
Changes in business model
As far as the changes it can be stated that there are some importance of creating a better
understanding of the consumer behaviour. As a result of this, it is important for the SCA
Property Groups to deal with it properly.

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Innovation is considered to be another important aspect the company has to deal with. Based on
the company report, it can be stated that since 2016 the company does not change or diversify its
production. It can have a detrimental impact in the intense competitive market.
Recommendation
 Using customer behaviour analysis tools or mechanism in a robust manner.
 Better understanding of the market scenario.
 Product diversification.
Conclusion
It can be concluded that there is huge possibility for the SCA Property Groups to
establish a better set up and market holding in Australia. The support from the big partners and
the lucrative real estate market in Australia subsequently create chances for the company to
sustain its business in a long run. However, the company should diversify its product and makes
an attempt to maximise customers by understanding the customer responses.

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Reference
Amanullah, A., Ab Aziz, A., Hadi, F. A., & Ibrahim, J. (2015). Comparison of Business Model
Canvas (BMC) Among the Three Consulting Companies. International Journal of Computer
Science and Information Technology Research, 3(2), 462-471.
Asx.com.au. (2018). Scp Shopping Centres Australasia Property Group. [online] Available at:
https://www.asx.com.au/asx/share-price-research/company/SCP [Accessed 2 Aug. 2018].
Clark, T., & Hazen, B. (2017). Business Models for Teams: See how Your Organization Really
Works and how Each Person Fits in. Penguin.
eBook Viewer. (2018). Retrieved from
http://www.scaproperty.com.au/booklet/#d=1&p=1&m=1
Iacob, M. E., Meertens, L. O., Jonkers, H., Quartel, D. A., Nieuwenhuis, L. J., & van Sinderen,
M. J. (2014). From enterprise architecture to business models and back. Software & Systems
Modeling, 13(3), 1059-1083.
Metallo, C., Agrifoglio, R., Schiavone, F., & Mueller, J. (2018). Understanding business model
in the Internet of Things industry. Technological Forecasting and Social Change.
Orellano, M., Neubert, G., Gzara, L., & Le-Dain, M. A. (2017). Business Model configuration
for PSS: An explorative study. Procedia CIRP, 64, 97-102.
SCA Property Group - About. (2018). Retrieved from http://www.scaproperty.com.au/about/
SCA Property Group - Investor Centre. (2018). Retrieved from
http://www.scaproperty.com.au/investor/

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SCA Property Group - Reports and Presentations. (2018). Retrieved from
http://www.scaproperty.com.au/investor/reports/
Scaproperty.com.au. (2018). Annual Report 2017. [online] Available at:
http://www.scaproperty.com.au/Resources/pdf/2017%20Annual%20Report%20(SCP).pdf
[Accessed 2 Aug. 2018].
Woolworths Limited - creating a new stapled security 2012. (2018). Retrieved from
https://www.ato.gov.au/General/Capital-gains-tax/In-detail/Events-affecting-shareholders/
Specific-events---previous-years/Woolworths-Limited---creating-a-new-stapled-security-2012/?
page=2

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Appendices
Appendix 1
9 building blocks business model canvas
(Done by the author)

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Appendix 2
Financial performance in the early 2018 financial year
(Annual report 2017, 2018)
Appendix 3
Portfolio occupancy
(Annual report 2017, 2018)

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Appendix 4
Portfolio overview
(Annual report 2017, 2018)

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Appendix 5
Profit and loss 2017
(Annual report 2017, 2018)