Deconstructing Babcock Australia's Business Model Canvas

This report analyzes the business model canvas of Babcock Australia Holdings Pty Ltd, focusing on the relationships between the nine building blocks and identifying critical success factors for sustainable success. It examines the company's customer segments, key partners, value proposition, key activities, channels, revenue streams, cost structure, key resources, and customer relationships. The report also assesses the downside risks and proposes changes to the business model to enhance its effectiveness. A reflection is included to provide insights into potential improvements and risk mitigation strategies from a management perspective.

Running head: BUSINESS MANAGEMENT
Business Management
Name of the Student
Name of the University
Author note

1BUSINESS MANAGEMENT
Executive Summary
The report has helped in the analysis of the different kinds of business model canvas of the
Babcock company which is situated in Australia. Furthermore, the key relationships between
the nine building blocks has been analysed which has helped in identifying the risks and the
changes which can be done in order to reduce the risks effectively. Lastly, the reflection has
been provided in order to analyse if the business was mine to gain more knowledge on the
different measures which can be taken as to reduce the risks in the future.

2BUSINESS MANAGEMENT
Table of Contents
I. Introduction.............................................................................................................................4
II. Business Model Canvas ofBabcock Australia holdings pty Ltd...........................................5
A. Building Blocks.....................................................................................................................7
1. Customer segments.........................................................................................................7
2. Key partners....................................................................................................................7
3. Value proposition............................................................................................................7
4. Key activities...................................................................................................................7
5. Channels..........................................................................................................................7
6. Revenue streams..............................................................................................................7
7. Cost structure..................................................................................................................7
8. Key resources..................................................................................................................7
9. Customer relationships....................................................................................................7
B. Key Relationships across Nine Building Blocks...................................................................7
C. Identification of critical success factors to achieve sustainable success...............................8
D. Contribution to downside risk...............................................................................................9
E. Changes required to be done..................................................................................................9
III. Conclusion..........................................................................................................................10
IV. Recommendations..............................................................................................................10
Appendix..................................................................................................................................11
Appendix 1...........................................................................................................................11
Appendix 2...........................................................................................................................11

3BUSINESS MANAGEMENT
References................................................................................................................................12

4BUSINESS MANAGEMENT
I. Introduction
The report throws a light on analysing the business model canvas of Babcock
Australia holdings pty Ltd which is situated in Australia. Furthermore, the various kinds of
relationships between the nine types of building blocks is required to be identified and
analysed in an effective manner which helps in the identification of the critical success
factors which will be helpful for the organization.
Furthermore, the main aim along with the purpose of the report is to analyse along
with understand the various kinds of contribution to reduce the risks effectively and this will
assist in bringing different kind of changes that can be applied to the business model to gain
more success. The different changes are required to be analysed effectively in the business
canvas model if the business was mine.
Overview of Babcock Australia holdings pty Ltd
Babcock Australia holdings pty Ltd is the multinational corporation which is being
headquartered in the United Kingdom("Babcock International", 2018). The company
respectively specialises in managing the different kinds of complex projects such as
infrastructure and assets as well. The main business of the company is with the different
public bodies along with the other departments in UK. The area which is served by the
respective company is worldwide and the number of employees who are working in the
organization are 35000 and the revenue earned by the company is UK£4,547.1 million till the
year 2017.
Management team of Babcock Australia holdings pty Ltd
There are different team members in the team of Babcock Australia holdings pty Ltd
who are helpful in managing the different kinds of activities in an effective manner. Mike

5BUSINESS MANAGEMENT
Turner is one of the essential persons who is the major person who was taking care of the
different departments effectively. Under Archie Bethel, who is the CEO of the company,
there were more than 15 employees who worked and this helped the company in becoming
successful in regards to the other competitors in the entire market.
The company is operating in the service sector which provides the customers with
different kinds of highly skilled engineering support which will improve the entire capability
of the organization and this helps in managing the different activities (Bocken et al., 2014).
Babcock Australia holdings pty Ltd is one of the companies in London which helps the
customers in providing with different kinds of support of civil services and this helps the
company in managing the different activities effectively as well.
Products and services offered by Babcock Australia holdings pty Ltd
There are different products and services which are being offered by Babcock
Australia holdings pty Ltd in which this helps in focusing on providing various civil and
infrastructure kind of services which mainly focused on providing satisfaction to the
customers by providing them with different services in which they are specialised(Metallo et
al., 2018). There are different marine, land and aviation services provided by Babcock
Australia holdings pty Ltd with the implementation of the advanced technology along with
different engineering services which is effective in nature.
II. Business Model Canvas ofBabcock Australia holdings pty Ltd
Key Partner
Environmental
consultants
Automotive
Key Activities
Large scale
development
of marine and
aviation
Value
Proposition
Maintain the
expansive
view
Customer
Relationships
Word of
mouth
generation
Customer
Segments
Public and private
marine and
logistics

6BUSINESS MANAGEMENT
companies services and
activities
Understandin
g the specific
demands of
the different
customers for
the services
Providing the
customers
with the
different
services with
proper usage
of the
advanced
technology
Reduced cost
of the energy
Act as proper
and accurate
supplier
along with
provide the
service
support
instantly as
well
organizations
Key
Resources
Channels
Sale through
the different
suppliers
Cost Structure
 Material Costs
 Development along with construction of
the manufacturing parts
 Process Engineers
Revenue Streams
 Logistics along with automotive
engineers and manufacturers in the
company
 Providing accurate consultancy services
to the energy efficient renovation of the
different kinds of renovation of the
different products and services

7BUSINESS MANAGEMENT
A. Building Blocks
1. Customer segments
2. Key partners
3. Value proposition
4. Key activities
5. Channels
6. Revenue streams
7. Cost structure
8. Key resources
9. Customer relationships
B. Key Relationships across Nine Building Blocks
Proper key relationship is essential in nature between the nine building blocks of the
Business Model Canvas of Babcock Australia holdings pty Ltd which helps in managing the
different kinds of issues in an effective manner (Güemes-Castorena& Toro, 2015).
Customer relationships is the heart of business canvas model which helps in managing
the customer management and this increases the overall efficiency of the organization as
well. Babcock Australia holdings pty Ltd focuses mainly on the entire market such as marine,
aviation and the land activities which helps in managing and focusing on the different kinds
of needs which will improve the services provided by them.
Furthermore, this has been seen that the value proposition is the other reason in which
this has been analysed that the company gain more competitive advantage in comparison to
the other competitors in the market by providing specialised services to the different
customers which will be effective in nature (Souto, 2015). Proper evaluation of the problems

8BUSINESS MANAGEMENT
of the customers is essential in nature which will insist and affect the company in a positive
manner.
The third perspective is channels of the respective company in which the
communication is required to be ascertained as this helps in delivering the value proposition
to the different customers in the entire market (Toro-Jarrín, Ponce-Jaramillo &Güemes-
Castorena, 2016). The main channels of the respective organization Babcock Australia
holdings pty Ltd is social media along with different network of the different suppliers in the
market which will help in managing and gaining competitive advantage as well.
Furthermore, the customer relationship is required to be maintained efficiently by
Babcock Australia holdings pty Ltd in which they will be delivering various services such as
providing with engineering services for the logistics company along with for the marine
services as well (Schaltegger, Hansen &Lüdeke-Freund, 2016).
The cost and revenue structure of the Babcock Australia holdings pty Ltd is value
driven in nature as this assisted in providing services to the customers effectively. The
revenue stream includes the brokerage fees along with the different brokerage fees which will
be charged by the company towards their customers in the market as well (Klang,
Wallnöfer&Hacklin, 2014).
C. Identification of critical success factors to achieve sustainable success
The different kinds of critical success factors as to achieve the sustainable success are
as follows:
 Babcock Australia holdings pty Ltd is required to increase the overall market share
with the current customers and this assist in providing huge options to different
customers as to gain competitive advantage (Joyce & Paquin, 2016).

9BUSINESS MANAGEMENT
 Babcock Australia holdings pty Ltd has to identify and analyse other requirements
along with extra essentials which will be provided to the customers which will be
more service oriented in nature.
 Furthermore, the company needs to adopt proper upgradation of the technological
advancements which will be successful in nature for becoming more competitive
D. Contribution to downside risk
Downside risk is the estimation of the potential for the security wherein there is
decline in the value when there will be changes in the market. Babcock Australia holdings pty
Ltd is required to analyse conditions of the entire market as to perform different kinds of
activities efficiently which will help in overcoming the issues. Babcock Australia holdings
pty Ltd needs and required to downside the risk by usage of diversification management
(Carayannis, Sindakis& Walter, 2015).
E. Changes required to be done
If the business was mine, there would have major changes that is required to be done
wherein there would be proper implementation of key channels would have been increased as
this would have supported the goals which have been set up by the company. There are
different key resources which are required to be increased to a huge extent which will help
the company in succeeding in the entire market effectively.
Furthermore, this has been seen that in the present scenario, the logistics company is
in huge demand and this has affected the company in a positive manner. The revenue streams
of company can be improved with the help of changing the different key resources and
capabilities effectively.

10BUSINESS MANAGEMENT
III. Conclusion
Therefore, this can be concluded that BMC is essential and this is required the
business to be more successful in nature and make it more effective. There are different kinds
of techniques which are used by the company in solving the different issues effectively.
However, there are few changes which are required to be made in order to improve the
business activities.
IV. Recommendations
Therefore, it can be recommended that BMC of the respective organization has to be
improved which will help the company in managing the different difficulties effectively.
Furthermore, the key relationships between the different the nine building blocks are required
to be analysed effectively as well.

11BUSINESS MANAGEMENT
Appendix
Appendix 1
Appendix 2

12BUSINESS MANAGEMENT
References
Babcock International. (2018). Retrieved from https://www.babcockinternational.com/
Bocken, N. M., Short, S. W., Rana, P., & Evans, S. (2014). A literature and practice review to
develop sustainable business model archetypes. Journal of cleaner production, 65,
42-56.
Carayannis, E. G., Sindakis, S., & Walter, C. (2015). Business model innovation as lever of
organizational sustainability. The Journal of Technology Transfer, 40(1), 85-104.
DaSilva, C. M., &Trkman, P. (2014). Business model: What it is and what it is not. Long
range planning, 47(6), 379-389. (DaSilva &Trkman, 2014)
Foss, N. J., &Saebi, T. (2017). Fifteen years of research on business model innovation: how
far have we come, and where should we go?. Journal of Management, 43(1), 200-227.
(Foss &Saebi, 2017)
Güemes-Castorena, D., & Toro, M. A. (2015, August). Methodology for the integration of
Business Model Canvas and technological road map. In Management of Engineering
and Technology (PICMET), 2015 Portland International Conference on (pp. 41-52).
IEEE.
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.
Klang, D., Wallnöfer, M., &Hacklin, F. (2014). The business model paradox: A systematic
review and exploration of antecedents. International Journal of Management
Reviews, 16(4), 454-478.

13BUSINESS MANAGEMENT
Metallo, C., Agrifoglio, R., Schiavone, F., & Mueller, J. (2018). Understanding business
model in the Internet of Things industry. Technological Forecasting and Social
Change.
Schaltegger, S., Hansen, E. G., &Lüdeke-Freund, F. (2016). Business models for
sustainability: Origins, present research, and future avenues.
Souto, J. E. (2015). Business model innovation and business concept innovation as the
context of incremental innovation and radical innovation. Tourism Management, 51,
142-155.
Toro-Jarrín, M. A., Ponce-Jaramillo, I. E., &Güemes-Castorena, D. (2016). Methodology for
the of building process integration of Business Model Canvas and Technological
Roadmap. Technological Forecasting and Social Change, 110, 213-225.