MGMT20143 Report: Business Model Analysis of Alt Resources

This report provides a comprehensive analysis of Alt Resources, an Australian mineral exploration company, utilizing the Business Model Canvas framework. The report examines the company's key partners, activities, resources, value proposition, customer relationships, channels, customer segments, cost structure, and revenue streams. It identifies critical success factors such as customer segmentation, continuous investment improvement, and expansion strategies, while also acknowledging downside risks like the need for increased revenue and the impact of global economic changes. The analysis explores interrelationships between the canvas blocks and suggests potential changes to the business model, such as predictable revenue streams and direct customer segmentation, to enhance the company's mission. The report concludes with recommendations for Alt Resources to focus on customer segmentation and provide value to shareholders, ultimately aiming to navigate challenges and ensure continued success in the mining industry.

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Execute Summary
The report conducts an analysis of the business canvas model used by Alt Resources in order
to identify the features that may have a significant impact in the success of the organisation.
The nine blocks of the business canvas model is analysed so that the capabilities of the
organisation can be understood. The analysis is based on the information that is collected by
conducting research on the model. At the same time, the report takes into account the
relationship that exists between the nine blocks of the canvas model and at the same time
develop plans to make changes in the business model. The downside risks and the critical
success factor that exists within the company are highlighted in the report so that a proper
analysis of the model can be made.

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Table of Contents
Introduction...........................................................................................................................................3
Business model......................................................................................................................................3
Key partners............................................................................................................................3
Key activities..........................................................................................................................4
Key resources.........................................................................................................................4
Value proposition...................................................................................................................4
Customer relationships...........................................................................................................4
Channels.................................................................................................................................4
Customer segments.................................................................................................................4
Cost structure..........................................................................................................................5
Revenue stream......................................................................................................................5
Interrelationships...................................................................................................................................5
Critical success factor............................................................................................................................6
Downside risks......................................................................................................................................6
Changes in the business model..............................................................................................................7
Conclusion and Recommendation.........................................................................................................7
Bibliography..........................................................................................................................................9

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Introduction
Alt Resources is an Australian based mineral exploration company that was
established in 2014. Within 2015, it managed to add several projects so that the portfolios of
assets and significant shareholders can be valued. The operations of the company are located
in the jurisdictions of Western Australia and New South Wales (Altresources.com.au, 2018).
The focus of the company is mainly on the god metals that are available in the natural
environment. The company owns 70% of the interest in the gold metal base of Paupong and
Myalla, situated in Lachlan Orogen, New South Wales (Altresources.com.au, 2018). Alt
Resources undertook an aggressive exploration program in 2016 that can be related to the
Au-Cu-Ag system that stretches across 60 square kilometers. Alt Resources has received
support from the Government in undertaking funding initiatives for New Frontiers
Cooperative Drilling for the past two years (Altresources.com.au, 2018). It was also awarded
grant for diamond drilling every year since its inception.
The report focuses on the manner in which Alt Resources can remain successful in the
business and ensure that its competitors remain at bay from the company. A business canvas
model is analysed so that the capabilities of the company can be identified. At the same time
critical success factor and any changes, required in the business model is identified.
Business model
Key partners
The key business partners of Alt Resources are the Cooperative networks and the
support received from the Government. This can help in the expansion of the company in a
global context.

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Key activities
The key activities include ensuring that the performance of the employees are
optimised by providing proper necessary training so that the employees can be developed to
use the latest technologies whenever required.
Key resources
Alt Resource strives to make better performance so that the virtualisation of materials
can be used to continue with the business of the company. At the same time, it helps in the
regeneration of natural resources.
Value proposition
The value proposition comprises of the use of latest technologies as well as providing
incentives to the employees for a good job at the mining field. Moreover, increased market
share can help in creating more value for the company.
Customer relationships
The products of Alt Resources are normally directed at rich customers as the minerals
are usually sold at a high price. At the same time in the modern world, social marketing
strategies need to be adopted by the company.
Channels
Alt Resources uses direct marketing to gain accessibility to its potential customers.
Customer segments
The focus is mainly on the exporting of the items so that revenue can be generated for
the profit of the organisation.

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Cost structure
The cost structure is based on the balanced spending of the finances so that
considerable profit can be utilised for developing the organisation
Revenue stream
The revenue stream is generated from the performance of the employees and the
valuation of the mining materials that are mined by the company.
Interrelationships
Alt Resources Limited is the owner of 70% interest in Paupong and Myalla gold base.
Therefore, the prospect of the company to increase its market share is at a high propensity.
About 50% of the sales results in profit given the fact that the company does not use direct
marketing with its customers. The value proposition of the company makes it easier for it to
link with the potential target buyers so that channel of distribution can be sorted based on the
availability of the people. Osei-Kyei and Chan (2015) is of the opinion that cost and revenue
can be attributed through the profit making prospects that are possessed by the company. A
gain of 60 square kilometer of the mining land is another factor that can be linked with
establishing relationships with the potential customers and therefore, ensures that the cost
structure of the company varies.
At the same time, identifying key partners for gaining key resources is another
important aspect that can link the success of Alt Resources. In the case of Alt Resources, the
business partners are the stakeholders of the company and the fact that it receives support
from the Government makes it possible for it to continue maintaining its dominance in the
market. In this regard, critical success factor of the company can be identified so that the
mission of the company can be aligned.

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Critical success factor
As stated by Cochrane (2014) the critical success factor provides an opportunity for
organisations to achieve its mission. In the case of Alt Resources, the mission is to expand its
business and ensure that the company continue to aid the economy by mining valuable gems
that can be used for export. Therefore, customer segmentation is required so that the trade
relations between the countries can be taken into account. The process of continuing with the
improvement of the investments can help Alt resources to improve its business process.
Lowering the cost of the materials used for mining can help the company to build a proper
relationship with the suppliers. Therefore, there can be reduction of errors in the mining
system and inventory facilities can be provided so that the mines can be kept safely.
The process of continuously improving the investment can help Alt Resources to
undergo changes in the company (Altresources.com.au, 2018). For example, gaining the
support of the local people can help in enhancing the minim level and ensure that the business
horizons are expanded within the country. At the same time, considerations need to be made
about expansion of the company beyond the jurisdiction of New South Wales as well as
Western Australia. This can provide Alt Resources with an increased opportunity in the
market for global expansion.
Downside risks
Alt resources has been in operation for four years and within a very short span of time
the company have managed to become successful in the mining business in Australia. The
fact that the aim of the company is to expand itself and its assets in international market
provides for a cause of risk. This is mainly because movement to a foreign market require the
company to have a vast resource of revenue (Yu et al., 2015). The analysis has shown that the
revenue of Alt resources needs to improve so that the company can make necessary changes.

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These changes include expanding its horizons from the jurisdictions of New South
Wales and Western Australia, so that it can gain access to other states of the country like
Queensland or Tasmania. At the same time, changes in the global economic condition can
provide the company with a cause for concern. As stated by Freedy and Hobfoll (2017) the
exit of UK from the British union may have a significant impact on the growing business
around the world. Therefore, the liberal manner in which the Government of Australia
provides support to the company need to reduce so that the economy of the country can be
protected. Therefore, strategies to mitigate the risks need to be taken by Alt Resources.
Changes in the business model
The changes that can be made in the business model are that the revenue stream can
be made predictable. For example, currently the performance based and the valuation base
system provides Alt Resources with concern based on the profitability of the organisation.
However, direct marketing and channelling of the supply chain can ensure that the revenue
stream of the company increases. At the same time specific customer, segmentation in the
form of traders can be handled directly so that direct cost of the company can be incurred.
The fact that Alt Resources is planning to undergo a disruptive innovation in the form of
expansion in and around Australia require positive value proposition. Therefore, it can be
said that evaluation of the business canvas model of Alt resources provides an idea about the
capability of the company and the manner in which it can be changed to ensure that the
mission of the company is attained.
Conclusion and Recommendation
The analysis is based on the information collected from the application of the business
model canvas relate to Alt resources Limited. The analysis suggests that the company is
hugely successful in the mining business and have even received support from the Australian

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Government to continue its mineral digging with the help of grants. However, the future of
the company can be at risk and the company may be available for making disruptive
innovations. Therefore, certain recommendations can be suggested so that the company can
cope up with the changes.
One such recommendation is the fact that Alt Resources can focus more on the
customer segmentation. The fact that it mines gold, diamonds and other rich minerals,
provides the company with an opportunity to interact with the customers directly and ensure
that more revenue can be generated with the direct sale of the mineral. At the same time,
value to the shareholders needs to be provided so that it can continue to invest and grow in
the mining industry of Australia.

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