Deconstructing the Business Model of Abundant Produce Commercial Co.

This report provides an in-depth analysis of Abundant Produce Commercial Company's business model, focusing on its key partners, activities, value propositions, customer relationships, channels, customer segments, cost structure, revenue streams, and key resources. It explores the interrelationships between these elements and identifies critical success factors, such as Plant IP collaboration, horticultural production, and social media marketing. The report also addresses downside risks, including IT non-compliance and potential health issues related to product quality. Furthermore, it suggests business model changes and emphasizes the importance of evaluation checklists and market research for enhancing the company's overall performance. The report concludes by highlighting the role of technological innovation and strategic partnerships in attracting customers and ensuring the production of high-quality seeds and skincare products.

Running head: THINK BIG
Deconstructing the business of Abundant Produce Commercial Company
Name of the student:
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Executive summary
Thinking big is always fruitful in terms of expanding the scope and arena of the business.
However, risks are inevitable issues, which acts as an obstacle in the process of expansion.
These aspects prove true for all of the companies and organizations including Abundant
Produce Pvt Ltd. Technological innovation helps the staffs to attract more clients and
customers towards the brand image. High quality agricultural tools assists the farmers to
produce seeds, which contain high values. Herein lays the effectiveness of the lab tests,
which ensures the quality of the seeds. In case of the skincare products, extraction process is
followed for ensuring the preservation of the originality.

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Table of contents
Introduction................................................................................................................................3
Business model...........................................................................................................................3
Interrelationships........................................................................................................................6
Critical success factors...............................................................................................................7
Downside risks...........................................................................................................................8
Business model changes.............................................................................................................8
Conclusion..................................................................................................................................8
References................................................................................................................................10

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Introduction
Founded in 2015, Abundant Produce Commercial Company is Australia’s only ASX
listed company. As a matter of specification, it is a hybrid plant breeder, dealing with the
agri-science research for developing commercial valuable property. Its headquarters is in
New South Wales. Being a subsidiary of Abundant Natural Health Pty Ltd, the company
deals in plants seeds and skin care products (Abundantproduce.com, 2018). Therefore, it can
be said to operate under the Food, Beverage and Tobacco industry. Currently, the company
holds 13.45 million market capital in Australia. Its shares in the Australian market is 54.91
million.
Mention can be made of the growing sweet tomatoes, which has brought innovation
within the business. Here, the focus is on taste and quality, bearing in mind the climactic
conditions. Assistance from the Sydney scientists enables the staffs to commercialize the new
varieties of crops having high food value (Abundantproduce.com, 2018).
Business model
The business model of Abundant Produce is focused on plant science, which is
directed towards seeking high values for enhancing the production. Market research helps in
searching for the prospective opportunities towards maximizing the profit margins and the
shareholder values (Günzel & Holm, 2013).
Building blocks
Deconstructing the business of Abundant Produce Commercial Company would be
easier through the consideration of the building blocks in the business model. These blocks
are as follows:
Key partners

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The company partners with the universities, as the scientists are required for testing
the quality of the produced seeds and the skincare products. Apart from this, the company
indulges in partnership with food growers like Abundant Seeds and Abundant Natural Health.
Key activities
The company, in assistance with the research institutions indulge in research for
molecular biology, plant pathology, agronomy and chemistry for the production of high
valued food crops. Along with this, natural ingredients are extracted for producing the
cosmetic products. Attempts are made for commercializing the natural products into the
global market (Abundantproduce.com, 2018).
Value propositions
Breeding of the plants is done better yield and resisting the occurrence of diseases. In
this process, focus is placed on temperature, tolerance power, taste, texture, color and
artificial genetic modification of the plants. Agility is one of the greatest strengths, which
enables the company to satisfy the needs, demands and requirements of the clients. Tracking
the quality of the produced products is assistance towards fulfilling the demands for flavour
(REFER TO APPENDIX).
Customer relationships
Producing quality seeds and cosmetic products provide enough opportunity to the
research houses to invest in the services of Abundant Produce. Maintaining consistency in
seeking the opportunities to maximize the profit margin and shareholder value, enhance the
parameter of customer relationship. Risk assessment is one such exercise, which assists in the
process of globalization and commercialization (Joyce & Paquin, 2016).
Channels

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Within the research process, the company also seeks prospective channels through
which effective communication can be established with the clients and the customers. Typical
example of this are the official website, social networking sites like Facebook, Instagram,
LinkedIn and YouTube. These channels helps the staffs in enhancing the trafficking of the
audience towards the brand image (Abundantproduce.com, 2018).
Customer segments
Abundant Produce follows behavioural segmentation for identifying the target
audience. After plant breeding, the company adopts the process of surveys and feedbacks for
gaining the approval of the customers. This process helps in gaining insight into the specific
needs, demands and requirements of the customers. Mention can be made to the food
growers, to whom seeds and cosmetic products are sold. In this transaction, focus is placed on
the type and nature of the orders placed by the customers (Trimi, & Berbegal, 2012).
Cost structure
Figure 1: Cost structure of Abundant Produce

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From the above table, it can be seen that the price of the products of Abundant
Produce has encountered variable prices. This variety aligns with the demand and supply of
the clients and customers regarding the seeds and the cosmetic products. Volume of the
market shares was maximum on 30thJuly 2018. Numerically, it was 148,680. Percentile
depicts -6.122% change from the earlier records. From the chart, it can be said that the
company practices variable pricing method, which helps in gaining awareness about the
purchasing power of the stakeholders and shareholders (Abundantproduce.com, 2018).
Revenue streams
Discounts, offers and schemes on the seeds and the cosmetic products are the means
for attracting the clients and the customers. However, for this, the staffs consider the cash
flow statements. According to the announcement on 23rd April 2018, cash flow of the quarter
was $147000, which is much lower to that of the last quarter, where the cash flow depicted a
value of $672000. Total expenditure was $683000, which seemed appropriate in terms of the
$735000 budget (Abundantproduce.com, 2018).
Key resources
Highly efficient technologies help in the production of high valued food crops. These
technologies also prove fruitful in terms of extracting the natural ingredients for the
production of quality cosmetic and skincare products. Typical example of this are the food
processors. Apart from this, resources like test tubes help in assessing the quality of the seeds
and the skincare products (Abundantproduce.com, 2018).
Interrelationships
Using highly efficient technologies helps the staffs of the Abundant Produce in the
production of high valued food crops and skincare products. Through market research, the
staffs seek efficient ways and means for executing the business activities. Social media

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marketing assists the staffs in increasing the trafficking of the audience towards the brand
image. Emailing the cash flow statements to the directors inform them about the expenditure
and the additional resources, if needed. This emails improves the communication with the
stakeholders and shareholders, enhancing the parameter of corporate social responsibility.
This partnership helps in introducing effective discounts, schemes and offers for the
customers. Partnership with the research institutions help in gaining awareness regarding the
ways and means of satisfying the needs, demands and requirements of the stakeholders and
shareholders (Trimi & Berbegal, 2012).
Critical success factors
Hard efforts put in by the staffs of Abundant Produce results in the achievement of
success. Within this, mention can be made of Plant IP, where the staffs collaborate with that
the senior research institutions like University of Sydney. The collaboration results in
research into the fields of molecular biology, plant pathology, agronomy and chemistry.
These researches enhances the awareness of the staffs towards creation of high valued food
crops. Field experiments help the staffs in acquiring information about extracting natural
ingredients from the neutraceutical industries for the production of cosmetic products
(Abundantproduce.com, 2018). This is in response to the compromise with the health of the
customers for the sake of accumulating greater share in the competitive market.
Horticultural production assists the farmers in efficient execution of the agricultural
activities. Social media marketing has globalized the outreach into more countries. This
globalization has sufficed the need for healthy, fresh fruits and vegetables. Herein lays the
appropriateness of the quality tests, which has catered to the health issues of the stakeholders
and shareholders. Mention needs to be made of the partnership with Abundant Health Pty
Ltd, which has bestowed quality skincare products on the customers (Abundantproduce.com,
2018).

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Downside risks
Non-complaince with the IT legislations compels the staffs of the Abundant Product
Commercial Company to encounter the instances of cybercrimes. Under such situation, it
becomes difficult for the staffs to execute the activities of enhancing the parameter of
corporate social responsibility. Reference can be cited of the credit risk, liquidity risk, interest
rate risk and equity price risk among others. Even the new systems and policies have failed to
minimize the level of these risks. However, changes in the management procedures have
proved successful in reducing the credit risks. Typical examples in this direction are judicious
use of the systems for achieving grants and approvals (Abundantproduce.com, 2018).
Lackadaisical attitude towards the execution of quality tests is also a severe risk in
terms of the health issues of the customers. This negligence aggravates the complexities,
compelling the staffs to receive complaints from the customers regarding the provision of
poor services.
Business model changes
Evaluation with the help of the checklists is crucial in terms of assessing the extent to
which the changes have been made. Sharing these checklists with the directors would
improve the communication within the departmental units. Along with this, it would inform
the higher authorities about the ways and means adopted for executing the business activities.
Sending the seeds to the laboratory would result in tests for their texture, colour, features and
quality. The reports of the tests can be sent to the higher authorities for completing the next
round of interactions. Market research for adopting efficient quality technologies would
enhance the standards and quality of the business activities of Abundant Produce Pvt Ltd.

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Conclusion
The assignment proves successful in providing an insight into the business of
Abundant Produce Pvt Ltd. Usage of business model helps in deconstructing the ways and
means through which the business activities are carried out. Technological innovation is the
keystone towards attracting the clients and the customers towards the brand image.
Partnership with the research institutions results in enhancing the production of efficient
quality seeds and skincare products.

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References
Abundantproduce.com (2018), About us, Retrieved 2nd August 2018 from
https://abundantproduce.com/about/
Günzel, F., & Holm, A. B. (2013). One size does not fit all—understanding the front-end and
back-end of business model innovation. International Journal of Innovation
Management, 17(01), 1340002.
Honee.com.au (2018), About us, Retrieved 31st July 201 from
https://www.honee.com.au/Home/AboutUs
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Trimi, S., & Berbegal-Mirabent, J. (2012). Business model innovation in
entrepreneurship. International Entrepreneurship and Management Journal, 8(4),
449-465.

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Appendix
Key
partners
Key
activities
Value
propos
itions
Custo
mer
relati
onshi
ps
Chan
nels
Customer
segments
Cost
structure
Revenue
streams
Key
resourc
es
Universi
ty of
Sydney,
research
instituti
ons,
Abunda
nt Seeds,
Abunda
nt
Health
Pvt Ltd
Plant IP,
plant
breeding,
extractio
n of
natural
ingredie
nts for
the
producti
on of
skincare
products
Breedi
ng of
sweet
tomat
oes
Socia
l
netw
orkin
g
sites
Socia
l
medi
a
Food
growers
Variable Discounts,
schemes and
offers
Agricu
ltural
gtools