HCS Coffee Shop: BMC Analysis, Peer Feedback, and Improvements

This report presents a Business Model Canvas (BMC) analysis for HCS Coffee Shop, a new venture planning to establish a coffee shop business. The report details the original business concept, outlining key partners, activities, value propositions, customer relationships, customer segments, channels, key resources, cost structure, and revenue streams. It emphasizes the importance of strategic management and BMC for achieving profitability. The report includes a peer group reflection, incorporating feedback and suggestions for improving the BMC, such as attracting more suppliers, improving customer experience, and enhancing customer segments. The report concludes with an improved and iterated BMC model, incorporating these suggestions to refine the business strategy and increase the likelihood of success for the coffee shop.

Enterprise

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1. Original business concept...................................................................................................1
2. Peer group reflection..........................................................................................................5
3. Improvement reiteration of BMC.......................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Enterprise is required that strategic management should be enhanced so that profits can
be accomplished with ease. Present report deals with HCS which is planning to start its new
venture and attain profits. Furthermore, BMC model has been made with further iterations by
taking feedbacks from teammates. Thus, model provides good overview of business strategies to
lure customers.
1. Original business concept
The BMC (Business Model Canvas) is one of the useful concept in the NVP (New
Venture Proposal). Organisation is able to have clarity regarding strategies that will be made by
it to achieve goals in effective manner. BMC model is lean start up template for formulating new
business models (Business model canvas. 2018). It is termed as a visual chart as it highlights nine
modules useful for complying with organisation. The HCS (Huda Coffee Shop) which is
planning to launch its coffee shop business has to develop its BMC so that new venture can be
started off well and goals can be achieved easily. BMC for coffee shop is prepared below-
Key Partners
 Licenses and
Franchisees
 Suppliers
 Farmers
 Retailers
 Wholesale
distributors
 Yahoo
 Morning
newspaper
MSN
Key Activities
 New markets
 Process of
Production
 Distribution to
organisation's
retail location
 Market through
grocery shops
 Market books
 Music
 Licensing of other
products such as
food items
 Marketing
Value Propositions
 Smell the taste of
coffee and feel
refreshing- HCS
is here to make
you enjoy
moments of life
 Simplifying
process of food
ordering
 Taste
 Consumer
Experience
 Exotic furniture
Customer
Relationships
 Quality
coffee
beans to
provide
joy
 Song of
the day
 Presence
on social
media
Consumer
Segments
 All
generation
customers
 Serial
coffee
drinkers
Key Resources Channels
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 One coffee shop
in UK
 "Garden grounds”
for environmental
friendly
atmosphere
 Fair trade
products
 Recycling of
paper
 Grocery
shops
 Website
 Social
media
 Mobile
order and
applicatio
n for
payment
Cost structure
 Production
 Distribution
 Marketing
 Taxes
 Pay fixed expense as a Franchisor
Revenue Streams
 Selling food items and
beverages
 Licensing
The above BMC is useful in evaluating that business will be able to sell its products to
customers by satisfying them up to high extent. HCS which would run its business as a coffee
shop will provide various line items in relation to coffee such as food and beverages in order to
attain greater customer base and thus, meeting objective regarding good quantum of profits by
giving higher level of satisfaction. Furthermore, several points can be discussed below included
in BMC-
1. Key Partners-
The key partners include those which will be used by organisation so that it will be able
to provide coffee to customers. In this point, suppliers, farmers, retailers are included from which
item would be distributed. Morning newspaper such as MSN is chosen so as to promote store
and garner customer attention. Key resources that HCS may acquire from the partners are skill to
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attract and lure consumers so that sales may be increased in a better way. Internet partners such
as Yahoo is chosen to effectively promote products online and to create buzz among coffee
lovers.
2. Key Activities-
These are required to perform so that customers may be attracted and sales can be
injected with ease. It means that main objective of organisation is to open up a coffee shop, then
provide services and goods for imparting satisfaction up to a high extent (Caetano and et.al,
2017). Furthermore, distribution to retail store will be managed in that manner by which
customers are provided with speedy services leading to enhancement in satisfaction level.
Market books along with music will be provided so that customers may visit and attain desired
contentment quite effectually. Furthermore, marketing is key aspect by which people may be
attracted by performing certain tactics such as advertising and promotion etc.
3. Value Propositions-
It is one of the important element of BMC module as organisation earns profits because
of its name in market by which customers are magnetized and sales are injected. Since, it is start
up business, value propositions will be nil as HCS is about to serve to people and then,
attainment will be made. It is required that taste of coffee, customer experience need to be
enhanced so that consumers may be attracted in a better way. This means that it would require
implementing well-structured strategies by which firm may create its positive image in the public
and as such, value propositions will be enhanced.
4. Customer Relationships-
The relationship with customers should be in that way by which they become loyal
towards shop and as such, enhancement of profits would be easily attained in a better way. It is
essentially required so that customers are attracted towards particular brand and sales are
effectively generated. This would be helpful for HCS as without attaining positive image in the
market particularly with relation of buyers, it cannot achieve desired level of sales. Hence,
consumers should be provided with better services and relationship can be enhanced by using
social media, song of the day and good quality of coffee for enhancing satisfaction level up too
many heights (Plenter, Fielt, Hoffen, Chasin and Rosemann, 2017).
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5. Consumer Segments-
It is one of the key module in BMC is to provide customers valuable services. The
segmentation is required so that potential customers may be identified. This would help to attain
profits as segments of consumers will be made and it will helpful for firm to analyse demands
and preferences of targeted consumers. Hence, service takers would be delighted and further,
HCS will attain desired profits catered to specific segments of buyers and thus, it will be able to
garner revenue by satisfying them in the best possible manner. Furthermore, organisation would
be able to have strong base specifically to particular segments. Hence, all customers are targeted,
however, segment relating to serial coffee drinkers are made and organisation would effectively
attain profits (Beckett and Dalrymple, 2017,).
6. Channels-
There several channels through which customers may be provided with value added
services and they can be delighted up to a high extent. Furthermore, organisation can deliver
various services through channels such as grocery shops and social media will be used in a better
way. Customers will be attracted towards firm as fast, quick and efficient services would be
provided to them leading to enhancement of satisfaction level among them. The channels will be
helpful to coffee shop as it may be able to channelise its retail shop through such channels like
social media and related elements which will maximise sales of new venture and it may
effectively attain good quantum of profits and thus, market share will be strengthened in a better
way (Koçoğlu, Akgun and Keskin, 2017).
7. Key Resources-
There are various key resources which will maximise profits of company as customers
will get attracted due to fair products sold by firm as it will use various resources such as
recycling of paper is done in order to save environment in effective manner. Furthermore, fair
trade items will be sold by organisation so that customer may become loyal and profits can be
generated with much ease. The concept of Garden Grounds will be used so that firm may not
harm environment and Eco-friendly atmosphere may be maintained. Hence, these resources are
required to be utilised by firm so that HCS may garner customer attention and profits can be
produced.
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8. Cost structure-
The cost structure are used in order to attain clarity with regards to expenses that will be
incurred by HCS coffee shop in carrying out costs. The characteristics of costs are fixed, variable
costs which are incurred in for operational tasks in a better way. Furthermore, it can be said that
firm will pay fixed cost as a Franchisor. Moreover, production, distribution and marketing will
be done and expenditures would be suffered by firm. Hence, costs are taken into consideration so
that expenses may not exceed over revenue (Pedersen, Gwozdz and Hvass, 2018).
9. Revenue Streams-
There are various revenue streams which will be attained by coffee shop in order to carry
on operational tasks in effective manner. Furthermore, licensing will be used to generate income
from the customer segment such as charging for utilising intellectual property. Moreover, HCS
will sell foods and beverages to earn more revenue and use the same for future activities in
effective way. Thus, it may maximise its share in market by satisfying customers up to a high
extent.
2. Peer group reflection
The reflection is an important task in relation to address issues with peer teammates and
then, resolving issues so that NVP may be success and objective can be met with much ease. I
had discussed regarding BMC module will be helpful in getting better revenue to the company
and customers will become happy with services. However, there are various feedbacks which are
provided by the teammates which I think that are required to be included in the BMC so that
NVP may effectively attain desired objectives in the best possible manner. These are essentially
required so that customers may be provided with better quality of coffee in effective manner.
I have identified regarding key partners that firm is required to attract more suppliers so
that it may effectively start its operations and garner more consumers within the shortest possible
time. Furthermore, I have proposed that in order to get more customers, Power-mat should be
there so that customers may be able to charge wirelessly and related they carry compatible
devices as it is much needed so that firm may effectively garner their attention and sales will be
maximised in a better way. Furthermore, I' have seen that value propositions such as better
quality of coffee beans to be taken from farmers is not included and teammates have given
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feedback on it. The strategy to resolve the same is that effective part of compensation should be
provided by HCS so that it may attain the best quality of coffee beans and as such, customers'
will become committed towards firm. Although, it will incur cost to firm but on the other side,
profit will be achieved which is the ultimate objective of firm.
On the other side, I have discussed with Working Party online discussion group which
the flaws have been identified that BMC should include better atmosphere to be provided to
customers. Furthermore, customer relationships can be enhanced by giving them free Wi-Fi
access so that they become loyal and furthermore, they should be provided with good technology
while making payment just by waving phone through scanner. Customer segments should be
enhanced as people who passes nearby will be targeted to lure towards coffee shop. Key
resources are required as I have gone through the same and thus, automated machines are needed
to be installed so that safety reasons can be made with relevance to the workers and customers
who visits firm. Channels are required to be improved so that people may be provided faster
services. The payment through mobile facility should be imparted as I personally believe
customers may be benefited with technology (Gonçalves and da Silva, 2017).
Furthermore, cost structure need to be enhanced as it is required that compensation to
farmers should be given for gaining quality coffee beans. The costs will increase but will be
fruitful to customers. On the other hand, economies of scale is needed to be included in BMC of
HCS coffee shop as it means that maximum production can be attained at least possible cost
beneficial for firm in achieving more profits. Revenue streams are to be strengthened so that firm
may attain additional revenue and thus, media items and services is another crucial way of
garnering revenue for future operational tasks.
3. Improvement reiteration of BMC
Key Partners
 Licenses
 Suppliers
 Farmers
 Retailers
Key Activities
 New markets
expansion to gain
and enlarge
customer base
Value Propositions
 Live taste of
coffee and feel
refreshing
throughout whole
Customer
Relationships
 Quality
coffee
beans to
Consumer
Segments
 All
generation
customers
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 Wholesale
distributors
 Yahoo
 Morning
newspaper
MSN
 Getting more
resources such
as Power-mat
from Duracell
 Process of
Production of
coffee
 Distribution to
organisation's
retail locations in
nearby markets
 Marketing
through grocery
shops
 Market books
 Music
 Licensing of other
products such as
food and related
products
 Marketing
day- HCS is here
to make you
enjoy moments
 Simplifying
process of food
ordering
 Taste
 Consumer
Experience
 Exotic furniture
 Better
atmosphere
 Better Quality of
coffee to enhance
customer's
experience
provide
joy
 Song of
the day
 Presence
on social
media
 Providing
access to
Organisat
ion's Wi-
Fi to
attract
customers
 Providing
app for
making
payment
by
waving
mobile
through
scanner
 Spreading
happiness
by
welcomin
g
customers
gently
and
 Serial
coffee
drinkers
 Whomsoe
ver who
passes by
shop
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politely
asking
them their
orders
Key Resources
 One coffee shop
in UK and other
in nearby
locations
 "Garden grounds”
for environmental
friendly
atmosphere
 Fair trade items
 Paper recycling
 Facilities to pay
through mobile
phone
 Machines for
safety reasons
Channels
 Grocery
shops
 Website
 Social
media
 Mobile
order and
applicatio
n for
payment
 Food
service
merchand
isers
Cost structure
 Production
 Distribution
 Marketing
 Taxes
 Pay fixed expense as a Franchisor
 Compensation to farmers
 Facilities to customers
 Economies of scale
Revenue Streams
 Selling food items and
beverages
 Licensing
 Media services and items
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The above BMC model is prepared by taking feedback from the teammates and peer
groups so that HCS may be able to garner profits and achieve success. All elements have been
revised by taking and implementing feedbacks and thus, improved model has been outlined. The
key partners are revised and power-mats are included to lure customer. Furthermore, value
propositions have been constructed by adding better atmosphere and good quality of coffee
beans. Customer relationships are improved by elevating free internet access to them, mobile
payment facility such as just waving phone to make bill payment has been included. The
channels are improved along with cost structure. The compensation will be paid to farmers in
order to gain quality beans. Economies of scale has been included to enhance sales at least cost
possible. Revenue streams are enhanced as well. Thus, reiterated BMC would be helpful for
HCS in attaining objectives and thus, profits would be maximised in appropriate manner.
CONCLUSION
Hereby it can be concluded that organisation should use BMC model in order to outline
strategic management of firm and attainment of goals. HCS coffee shop will be able to garner
good amount of profits by achieving customer's satisfaction within short time. It will gain good
market share as well. The suppliers and mediators should be provided with better payment so
that they may provide faster services.
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REFERENCES
Books and Journals
Beckett, R. C. and Dalrymple, J., 2017, December. Business Model Value Capture: an Activity
Theory Perspective. InISPIM Innovation Symposium (pp. 1-13). The International Society
for Professional Innovation Management (ISPIM).
Caetano, A. and et.al, 2017. Representation and analysis of enterprise models with semantic
techniques: an application to ArchiMate, e3value and business model canvas. Knowledge
and Information Systems, 50(1), pp.315-346.
Gonçalves, R. F. and da Silva, M. T., 2017, March. System Thinking and Business Model
Canvas for Collaborative Business Models Design. In Advances in Production
Management Systems. Initiatives for a Sustainable World: IFIP WG 5.7 International
Conference, APMS 2016, Iguassu Falls, Brazil, September 3-7, 2016, Revised Selected
Papers(Vol. 488, p. 461). Springer.
Koçoğlu, İ., Akgun, A. E. and Keskin, H., 2017. The Role of Business Model Development in
the Ex-Post Creation of Online Entrepreneurial Opportunity. In Key Challenges and
Opportunities in Web Entrepreneurship (pp. 1-32). IGI Global.
Pedersen, E.R.G., Gwozdz, W. and Hvass, K. K., 2018. Exploring the relationship between
business model innovation, corporate sustainability, and organisational values within the
fashion industry. Journal of Business Ethics, 149(2), pp.267-284.
Plenter, F., Fielt, E., Hoffen, M., Chasin, F. and Rosemann, M., 2017. Repainting the business
model canvas for peer-to-peer sharing and collaborative consumption.
Online
Business model canvas. 2018. [Online]. Available through: <http://diytoolkit.org/tools/business-
model-canvas/>.
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