MGMT20143: ANWE Business Model, Success & Risk Analysis

This report provides a comprehensive analysis of Allied Natural Wood Exports (ANWE), a product marketing and logistics organization focused on Australian wood products. It delves into ANWE's business model using the Business Model Canvas, examining customer segments, key partnerships, value propositions, key activities, channels, revenue streams, cost structure, key resources, and customer relationships. The report also explores interrelationships, critical success factors, downside risks like forest fires and financial decisions, and potential business model changes. It concludes with recommendations for ANWE, including forest fire prevention campaigns and a shift towards customer segmentation, aiming to enhance its strategic planning and overall business sustainability. The report suggests understanding innovative concepts and focusing on specific market strategies for future growth.

Running head: THINK BIG
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Name of the Student
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Author Note:

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Executive Summary
Allied Natural Wood Products is a globally recognized product marketing and logistics
organization. It aims to improve the method in which various Australian wood products are
marketed throughout the different regions. In the coming future, this organization focus on
hardwood and softwood plantation development, new wood processing technology and
innovation as its ultimate strategy. The organization is very much focused to develop business in
two regions that are New South Wales (NSW) and Victoria. ANWE focus on certain number of
opportunities which is used for business diversification and growth. ANWE easily manages
harvesting and processing of various supply high quality woodchips. ANWE is planning to
partner with Australian Marshalling Pty LTD which is known to be forest management provider
that has been operating for more than 20 years.

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Table of Contents
Introduction..........................................................................................................................2
Business Model....................................................................................................................2
Building Blocks...............................................................................................................3
Customer Segment...........................................................................................................3
Key partners.....................................................................................................................3
Value proposition.............................................................................................................4
Key activities...................................................................................................................4
Channels..........................................................................................................................4
Revenue Stream...............................................................................................................5
Cost Structure..................................................................................................................5
Key Resources.................................................................................................................5
Customer Relationship.....................................................................................................5
Interrelationships.................................................................................................................6
Critical success factors........................................................................................................6
Downside Risk.....................................................................................................................7
Business Model Changes.....................................................................................................7
Conclusion...........................................................................................................................8
Recommendation.................................................................................................................8
References..........................................................................................................................10
Appendix 1 – Allied natural wood Exports business model canvas....................................0

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Introduction
Allied natural wood Exports (ANWE) is known to be a world class company engaged in
marketing and logistics. ANWE generally focus on export of woodchip and other kinds of
products to various international markets (Yadav & Mahara, 2018). It is inclusive of some
natural and plantation growth of wood products from various public and private growers.
Focusing on the wealth experience in the different forest industry, the ultimate goal of this
organization is to improve the method by which different food products are exported and
marketed in Australia. The goal of this organization is to look into hardware and software
plantation as a new kind of word processing technology and key strategies for the future (Koebel
et al., 2016). The organization is looking for new opportunities which can be used for the
development of business in NSW (New South Wales) and Victoria.
In the coming pages of the report, an idea has been provided regarding the business
model of Allied Natural Woods Exports. After that various aspect has been discussed like
interrelationships, critical success factors, downside risk and business model changes. The last
section of the report mainly deals with a list of recommendation for this organization.
Business Model
Allied natural wood Exports (ANWE) focus on strategic planning which can be used for
the development and operation of world-class products (Antwi-Boasiako, Boadu & Frimpong-
Mensah, 2017). The organization focuses on providing forest owners with world-class logistics
and various marketing resources.

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Building Blocks
Nine building blocks of this organization have been discussed in the coming pages.
(Appendix 1- Allied natural wood Exports Business Model)
Customer Segment
Customer segmentation is known to be a well-known practice used for dividing the
customer base into individual groups (Morrison & Golden, 2018). The groups are divided into
specific ways or methods known as marketing, gender, interest and spending habits.
Eastern Victoria New South Wales
Income Average $ 40,000 Average $ 30,000
Consumer Classification ABC1 Nd
Average cost of furniture $120-$1000 $130-$800.
Other characteristics Nd Homeowners, credit card
users, frequent travelers,
major amount are married.
Key partners
Proper access to mailing list and newspaper and reference from the third party are
considered to be important aspects which can be used for development of brand awareness
(Lewis, 2015). The access helps in proper generation of sales traffic.
Website type New Existing Customer

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Customer
General Website 15% 8%
Loyalty and cashback website 12% 12%
Value proposition
Allied natural wood Exports (ANWE) comes up with a vision that is to be a strategic
partner by various suppliers with a first legal choice by various stakeholders. The organization
comes up with a vision to easily achieve growth through superior customer service and proper
commitment. The organization comes up with support and commitment to the forest owners with
the transparent and unified approach (Lim et al., 2017). Apart from this, the organization aims at
providing stable and reliable furniture to various high quality and ethical manufacturers.
Key activities
Some reliable method which can be used for mailing and delivering finished items after it
has been accepted over the internet (Kill, 2016). A direct mail method of advertisement that is
“match back” method which is offered to various customers and is generally rented by making
use of a particular code.
Channels
Allied natural wood Exports (ANWE) comes up with a certain number of strategy like
 To easily grow by establishing a strong position in branded and value which is
added to the market.
 It also focuses on making sustainable and reducing cost which has been involved
in the whole procedure.

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 It also aims in reducing risk and generation of huge amount of cash.
 It also aims in proper kind of acquisitions and proper generation of required value.
Allied natural wood Exports (ANWE) aims to provide support to each and every store
helps in providing global support to sales. Major nation of the world can easily buy support the
sales of various products. The data has been provided for the year 2016.
Eastern
Victoria
NSW (New South Wales)
Sales $ 1,00,000 $2,00,000
Shops for selling wood products 14 26
Revenue Stream
In 2016, there was an increase in revenue from $9844,000 to $ 2725000. So a result the
total amount of change which can be seen is of value 261%. The net value of assets which is
tracked at the month of June 2016 is $ 27,446,181 which is about an increase in the value of $ 2,
359,503 from the year 2015.
Cost Structure
Stock cost is considered to be 40 percent of the given selling price of the product. Proper
distribution and selling of products are considered to be around 30 percent of the total revenue
which is provided (Xia et al., 2015). On the contrary, the administration cost is around 20 percent
of the total value.

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Year 2016 2015 2014
Australian Turnover $ 3,00,000 $ 2,50,000 $ 2,25,000
Key Resources
Match back and proper advertisement are considered to be important aspects which can
help this organization in achieving success in the near future.
Customer Relationship
Mailing to the customer on regular basis and providing customers with certain offers are
considered to be an important aspect which is supported by the help of internet.
Interrelationships
Allied natural wood Exports (ANWE) is considered to be an ultimate employer who is
engaging a large number of people by direct and indirect means. This is considered to be world
class organization which focus on enhancing and improving the ways in which Australian food
products are easily managed and marketed in different regions of the world (Midgley, Stevens &
Arnold, 2017). ANWE is agreed to provide some of the existing support which runs on existing
supply agreement. The ultimate goal of this organization is to easily improve and improvise the
way by which Australian products are manufactured and marketed. The organization is
committed for proper growth of business which focuses on looking into the stakeholders like
NSW, harvesting and haulage contracts, local council and business. This particular organization
which focuses on purchasing of products which are from certified sources. It is also inclusive of

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various environmental and sustainable claims which are supported by the publicly available
standard body.
Critical success factors
The match back method can be considered to be an effective method which can be used
for linking the various customer characteristics. This particular process will help in having an
idea regarding the mailing list. It will also provide offer related to composition and purchase
volume.
The organization is located in a suitable place which is mainly committed to providing
safety to the environment (Wood & Ker, 2015). Apart from this, it also aims at providing a
proper environment and local communities in which this operate. With the passage of time, the
organization has expanded and easily developed to provide a certain number of employment
opportunities. It has ultimately led to retaining skills to a large number of people who are present
in that region.
ANWE easily understands the responsibility to various aspects like environment,
supplier, and staff members. The business model of this organization has been designed in such a
way that it can easily provide things to all the stakeholders which come up with a sustainable
future.
The organization is committed to easily purchase all kinds of timber from legal sources
and managed forest only (Kashio & Coppen, 2015). Apart from this, the organization is focusing
to easily seek compliance from various suppliers by easy operation of diligence system. The
organization also recognizes a certain number of certification of forest chain and management

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which will help in proper forest management. The organization will give priority to various
products which are from only certified sources.
Downside Risk
In the last few years, the owners of ANWE (Allied natural wood Exports) have easily
withdrawn and distributed a huge amount of money which can effect in easily growing and
investing.
The exporting of large volume has affected the silviculture in different regions of new
south Wales and eastern Victoria (Auty, 2017). The value of effect totally depends on various
aspects like weather risk, man-made risk, and biological risks.
A forest fire can be considered as one of the risks which affects the growth of this
organization. Fires caused by lighting have become prominent in the last few years. A forest fire
can be considered as one of the important threat to Allied natural wood Exports.
Business Model Changes
I would like to make some changes in the exporting behavior of this organization. I
would like to understand the fact the what kind of job is needed for improving the purchase of
woods. By making use of strategic planning the organization is focusing to easily manufacture
the various world-class product. The manufactured product can be considered to be very
commercially focused and should remain on the international platform (Auty, 2017). The
organization aims at focusing on a certain number of competitive forest market which comes up
with better logistics and marketing resources. All the desired changes are required in the
organization so that they can easily provide a better kind of customer service, better quality, and
lastly commitment.

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Conclusion
From the above discussion, it can be easily stated that this report is all about Allied
natural wood Exports. In the above pages of the report, an idea has been provided regarding the
business model of this organization. In the business model, five important aspects have been
discussed in details that are building blocks, interrelationship, critical success factor, downside
risk and business changes model has been discussed in details. ANWE is engaged in providing a
variety of products which are engaged in providing a full range of paper products. ANWE can
easily supply other kinds of raw materials like Plywood, MDF and other kinds of fiber products.
This organization is planning to partner with Australian Marshalling services which is an
established forest management providers and has been operating out of Eden for more than 20
years. This particular partnership with help ANWE to easily reduce various kinds of cost and
driving efficiencies. ANWE also encounters processing opportunities, development and
technology implementation as a proper kind of strategy in the upcoming days.
Recommendation
 To conduct a campaign which will help in preventing or minimizing the forest
fires.
 Moving from prosperity driven to a customer segmentation model.
 Understanding the fact that whether the innovative concept is applied to zero
competition rates.

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References
Antwi-Boasiako, C., Boadu, K. B., & Frimpong-Mensah, K. (2017). Termite resistance of
Klainedoxa gabonensis (kruma), a tropical lesser-utilised-species for commercial
utilisation. International Wood Products Journal, 8(2), 120-126.
Auty, R. M. (2017). Natural resources and small island economies: Mauritius and Trinidad and
Tobago. The Journal of Development Studies, 53(2), 264-277.
Kashio, M., & Coppen, J. (2015). Non-wood forest products: the major constraints of their
utilization.
Kill, J. (2016). The role of voluntary certification in maintaining the ecologically unequal
exchange of wood pulp: the Forest Stewardship Council's certification of industrial tree
plantations in Brazil. Journal of Political Ecology, 23(1), 434-445.
Koebel, B. M., Levet, A. L., Nguyen-Van, P., Purohoo, I., & Guinard, L. (2016). Productivity,
resource endowment and trade performance of the wood product sector. Journal of
Forest Economics, 22, 24-35.
Lewis, D. K. (2015, February). Oklahoma's forest ecosystems: Their current condition and
potential contribution. In Proceedings of the Oklahoma Academy of Science (Vol. 81, pp.
31-40).
Lim, C. L., Prescott, G. W., De Alban, J. D. T., Ziegler, A. D., & Webb, E. L. (2017).
Untangling the proximate causes and underlying drivers of deforestation and forest
degradation in Myanmar. Conservation Biology, 31(6), 1362-1372.