Business Model Canvas Iteration and Reflection - Espresso Services

This assignment presents a detailed Business Model Canvas (BMC) project for Espresso Services cafe, focusing on new coffee flavors and home delivery. The project includes three iterations of the BMC, reflecting on key partners, activities, value propositions, customer segments, and cost structures. The student analyzes customer behavior, identifies key assumptions, and reflects on the business idea's history, potential market segments, and marketing strategies. The project also covers the pitch, assumption testing, and action learning set, providing insights into venture funding, competition, and the importance of understanding customer preferences. The analysis covers the evolution of the business model, incorporating changes based on customer feedback and market analysis to refine the cafe's offerings and strategies. The project aims to demonstrate the application of the BMC to test the viability of a new business idea, evaluate its strengths and weaknesses, and identify potential challenges and opportunities for growth.

Creating a Winning Business
Project 2 Workbook
Business Model Canvas - Iteration and Reflection
Student Id: [type here]
Lecturer: [type here]
Submission Date Deadline: [ type here ]
NOTES
1. You should stick to one page for each of the parts. To achieve this, you may reduce the font size if needed (no smaller then 8) and you can delete the
guidance words in italics
2. Make full use of the Guide questions in italics in the Workbook
3. For Versions 2 and 3 of your BMCs – you ONLY need to show the changes from the previous version
BUSINESS IDEA
Page 1
Espresso Services cafe is innovating their business with new coffee flavours in market. This will help cafe to increase customer and provide them with
better services with home delivery of coffee. This will help customers to be satisfied and help cafe to improve the sales and profitability effectively. New
flavours will be decided according to effective research of customer's behaviours and it also helped them to provide better understanding about their
culture, beliefs.

Page 2

Cost Related Revenue Related
Key Partners
Espresso Services is a large chain of coffee
house in South UK.
Key partners of cafe are entrepreneur or
owner as business organization is sole
proprietor. The franchisee holder of the
business is also key partners.
Farmers are the key suppliers which provide
all the raw materials for making coffee at
very low prices.
Employees are the partners as they help
business to grow by giving their support and
handwork.
Transporters are also partners which help to
deliver all the raw materials to the
destination.
Key Activities
Espresso services ned to analyse the
behaviour of customers with the help of
research which will also provide business a
brief understanding about all factors which
can impact the quality of new business idea.
Business need to provide quality
atmosphere in cafe to increase customer
satisfaction and make them loyal to cafe.
Training of employees is also very essential
to increase efficiency of business for growth.
Value Propositions
New coffee flavours will increase the
product differentiation and provide better
options for customers. Premium quality of
coffee with peaceful environment. With the
help of new technology waiting time also
reduced to provide fast delivery. Ethical
environment to increase goodwill of
business and increase customer loyalty.
Marketing & Sales Communication
Discounts for loyal customers will attract
them try new flavours of coffee. Smart
payments digital payment. Special seating
for family and couples to provide better
experiences and motivate them to come to
cafe more often.
Customers between 16 and 40 will be
targetted to promote new product in the
market and promote sales.
Social media advertising is very effective as
it will reach maximum customers with
minimum cost.
Customer Segments
Espresso Services will divide customers on
basis of age, lifestyle, personality to
formulate effective marketing strategy and
attract them to cafe.
Key Resources
Furniture and fixtures, coffee machines,
quality raw materials, efficient employees,
peaceful environment, effective
infrastructure.
High equipped technology for accounting,
customer's feedbacks, increased satisfaction
of customers due to high frequency.
Location of cafe in marketplace to attract
more customers and increase sales.
Product & Service Delivery
Channels
Social media, online delivering system, Cafe,
Mobile applications are the areas of delivery
of services and products to customers.
Cost Structure
Salaries of employees, electricity bills, rent of property are the fixed cost of espresso services.
Production cost, transportation cost, promotion cost, taxation, raw materials are variable cost which have to be
evaluated before formulation of pricing policies as this decrease the risk and increase profit margins.
Revenue Related
High quality coffee with extra flavour will be sold at higher prices and it will also increase satisfaction level of
customers. Business will also generate income by distributing franchisee in different markets, sales of products of
business owned cafe is major part of revenue and help the business to grow effectively.
Page 3

Explain the history behind your idea:
I have noticed coffee is very important for employees and many meeting of corporates are done in coffee house and
it is very difficult for them to locate any effective place which they can work and also enjoy their coffee. So I came up
with this idea to design my cafe in such a manner which will provide maximum options for all the types of
environment in one coffee house. If a couple wants to have coffee and need to alone I have designed some extra
private rooms which can also be used for meetings and also help to provide better environment. This also gave me
idea to produce different types of flavours in coffee for coffee lovers which will also support the sales of espresso
services cafe. It also helped me to understand that it will provide many options for customers to choose to accord to
their culture, beliefs, mood, feelings, values and it will also attract maximum customers. My focus was to provide
better quality of coffee to customers with lower prices so that I can I expand my business across nation. It also
provided me a vision to segment the customers on basis of age, lifestyles, income level, education level to make
effective marketing strategies and promote cafe efficiently.
Reflection:
Reflection is the part of report which help to summarize all the aspects covered in the report and make them more
effective. Reflection is the understanding which shows report writer opinions about the content of report.
Action learning et are the effective techniques which are used to solve the problems which creates dilemmas. These
techniques help individual to understand the problem and also provide them base to start from fresh to increase
their learning to achieve their goals. This also provide a different perspective to understand the problem to solve it
effectively.
Assumptions:
The main assumption of my business idea is that all the customers are middle class and upper middle class.
That the competition in the market is low and customers do not have other options for coffee.
I have also assumed that electricity and other fixed cost are stable and does not change to impact the profit margins
per product.
I assumed that young customers between 16 and 25 are more frequent users of coffee than any other products in
the market.
End of page 3
Page 4

Cost Related Revenue Related
Key Partners
Coffee house partnerships with the existing
players to increase market share and to
cover whole market.
Social media sites are the parters after the
successful launch of new idea and it will also
help business to increase customers.
Investors which are ready to fund the
business due to effective idea.
Key Activities
Promotional activities, free sampling of
coffee to understand the customer
behaviour. Increasing efficiency of
employees to maximize profits.
Value Propositions
This will help customers to develop effective
bond with the company and help the
company with suggestions and advices.
It will help company to develop better
position in market to increase customer
satisfaction.
Marketing & Sales Communication
Company will provide information about
healthy benefits and also some live
examples to support their statements. Loyal
customers will also help to promote new
healthy coffee ideas by mouth promotions
which is very effective.
Customer Segments
Age segments from 40 to 60 with the green
coffee due to health benefits. Customers
which are more health conscious will be
targetted to increase sales of the company.
Key Resources
Coffee beans of higher quality for better
essence and tastes. Natural flavours for
security of health of customers. Electricity
consistency effective furnitures for comfort
if customers.
Green coffee beans to provide health
benefits for health conscious customers.
Product & Service Delivery Channels
With the help of competitors acquisitions it
will increase coffee houses in market and
also increase the market coverage by mobile
applications for ordering at home.
Cost Structure
Green coffee also helped to save money of customers by keeping low prices of product and increasing value of
customers towards company.
Green coffee beans from farmers will be fixed cost.
Revenue Related
Health benefits will increase revenue of business as customers will be attracted easily. This will also decrease of cost
operations.
Page 5

Pitch:
I have analysed that old age customer are more heath conscious and do not prefer coffee and other drinks. This has
decease d the market segments of my business. I have gained knowledge about the new type of coffee which will
help to attract health conscious customer. Green coffee is very effective in loosing weight and also de not increase
sugar level it also protects customers from diseases because of its herbal contents. I have learnt that it is very
important to understand customers to make new development in business which will also grow effectively and
promote the sales.
I have also used venture funding to increase my capital and provide better growth to business. This also helped me
to support my business idea and provided better fluidity to it. Venture capital funding also reduces risk and provide
them with shares of business without any repayment. They also provide an option to buy all the shares with the
current business value ad market equity.
It also helped me to improve the quality of products and infrastructure of the cafe which helped to increase the
healthy environment and create understanding about customers behaviour and make them more satisfied in the
market. It also helped me in providing quality resources in the business all the employees are trained and skilled to
promote sales and increase brand value of business. Espresso also gained popularity and I have been understanding
them, because of effective strategies which facilitated the growth of business.
Assumption Testing:
I have increased the prices of my products and services to see if the competition factors is impacting the sales of my
business. I also evaluated the electricity bills to compare the fluctuations, so I can determine the overall cost of
operations in business and formulate budget.
I have also understood that indirect competitors a also impact business operations and sales. So I have to determine
all the potential resources available as the backup to reduce the risk of competition and macro factors of business
environment.
Comment on your Action Learning Set:
I have received some advices form customers about quality of coffee and it also helped to to increase my knowledge
abut all the types of grades which are available in coffee in market. This also made me educate about coffee making
procedure which will effectively increase the preference of customers and make them loyal to espresso services
coffee house.
End of page 5
Page 6

Cost Related Revenue Related
Key Partners
Shareholders, franchisee owners, licence
owners, stakeholders, government,
agriculture industry, these the key partners
of Espresso services coffee house. They will
help business to grow effectively and
provide more effective solutions to improve
goodwill of company to attract more
investors and create more trust for
customers and investors and financial
institutions in the market.
Key Activities
Business need to educate customers about
new product which will help to promote
customer satisfaction. Purchase of new
business in market will help to grow and it
will also increase the opportunity of cross
border expansion. To develop infrastructure
which will also help old age customers to
relax and feel comfortable in the cafe. Old
music will also help to provide better
experience.
Value Propositions
Green coffee with new addition of flavours
and toppings will also attract young age
group to try the coffee and it will also help
to promote coffee house in all market and
attract all segments of customers. This will
develop effective and healthy environment
for customers which are having bad day and
employees are also efficient to provide
priority to customers and make them
choose to accord to their mood.
Marketing & Sales Communication
Marketing campaigns, hoarding, newspaper
advertisements, social media advertising,
radio will help business to market new
coffee product in market and attract more
customers.
Customer Segments
Young and old customers both are targetted
in this strategy and it will also help them to
increase the sales of company.
Key Resources
Research and development is very
important In business to innovate products.
Talented and skilled human resources and
capital to perform actions to implement
innovation into reality.
Product & Service Delivery Channels
Takeaway services for customers in hurry.
Time management will help to increase
efficiency in operations.
Cost Structure
No cost will be increased and it will decrease the prices of products and services offered to customers.
Employees will be increased to develop the business efficiency and it will also innovate the products. Technological
up-gradation will promote satisfaction but increase cost of business.
Revenue Related
With the help of healthy and taste coffee it will help business to increase customer base to increase sales and
profitability.
Due to increased market segment it will also increase goodwill and customer retention and customer loyalty will also
be increased.
End of page 6
Page 7

Iterative Journey:
I have analysed the market research planning to understand customer's behaviour and it also helped me to develop
some effective strategic planning. I have seen that customers are more health conscious and do not drink coffee.
This has also deceased the sales of coffee, so I have developed a product with the help of research and development
in market. This also helped business to increase the growth rate to expand in new countries to establish and also get
more information about the customer's behaviours. I have also tested the behaviour of customers on the basis of
culture, values, attitudes which helped to understand the market trend and also evaluate the potential of
competitors. The assumption which I have made it also changed the business framework and policies to decide the
efficient output. Assumptions also helped me to identify customers to make effective marketing strategies and
evaluate the efficiency of products and services. It also helped me to be confident and do all the activities with
assessment of competitors strategies and also using their strategies to benefit our business.
I also learned that my customers are health conscious and want to eat healthy so it helped me to analyse the organic
coffee beans and also green coffee beans for healthy customers with very low prices.
Competitor Insight:
Direct competitors are businesses which are having similar natures of business and similar nature of products with
some changes to differentiate customers. Indirect competitors are alternative or substitute or complimentary
products which have indirect impact on business.
My business direct competition is with all the business which sells coffee as their product. My indirect competitors
will be tea as coffee can also be substituted with tea and it will impact the sales of my business.
I have used product differentiation in the market which will also help customers to increase their options and
increase customer retention in the company.
Cost & Risks:
Governmental policy fluctuations, economy fluctuations, change in taste and preference of customers, decrease in
efficiency of technology due to new technology in market. Rivalry is also one of the major factors which can increase
risks and challenges in growth of my business. I will need to adopt venture funding, angle funding as it has lower risk
and there is not liability to repay the amount back.
Page 8

References
List of Web Resources (at least 3) Academic Sources (at least 3)
Current competition in beverages market: https://adoreboard.com/blog/cx-focus-
top-5-uk-coffee-chains
Analysis of current competition: https://adoreboard.com/blog/cx-focus-top-5-uk-
coffee-chains
Differentiate one’s own business from others: https://www.carpigiani.co.uk/5-ways-
differentiate-coffee-shop-competition/
Joyce, A. and Paquin, R.L., 2016. The triple layered business model canvas: A
tool to design more sustainable business models. Journal of Cleaner
Production, 135, pp.1474-1486.
Mat Aji, Z., Yusop, N.I., Damiri, R.D. and Mohd, H., 2018. Business Model
Canvas for Smart Tailor Platform.
Cottrell, S., 2017. Critical thinking skills: Effective analysis, argument and
reflection. Macmillan International Higher Education.
Page 9

End of page 8

Business Model Canvas Version 3: Final personal career & action plan
Continuing personal career development: reflection and action plan
Critically reflect on your experience and challenge faced and the abilities you have developed:
Communication skill- this skill helped me to do research about the project and gather all the information. It
helped me to understand the literature and provided me with better knowledge to perform the task. It provided
clarity in vision and formulated effective knowledge for making this project. The result of communication skill
was it helped me to achieve my goals in expressing my understanding.
Analytical skill- this skill was helpful for me in taking decisions about the report. It helped me to achieve my task
by increasing the quality of report. I also improved my analytical skills for formulating effective study and making
right decision.
Time Management- this provided a brief understanding about importance of divide the time. Helped me to
complete my project on time.
Personal action planning: now you have evaluated your abilities in the previous section and in consideration of your
future career action plan:
Interpersonal skills- it will help me to develop my moral value and increase my ethical code of conduct. I will improve
my skills by helping other, developing empathy and show my feeling to other, appreciating them about them work. I
will determine my results by balanced score card. it will take me 3 months to develop these skills.
Innovative skills- this will help me to innovate and increase my creative thinking to make new effective report. I will
have to think new every day, make a list of new ideas which can be positive. Promote positive thinking with the help
of exercise. I will you benchmark method to evaluate my growth and it will also take me 2 moths to be efficient in
this skill.
End of page 9
Page 11

APPENDIX:
List your MAIN assumptions How did you test the assumption? Summarise the results of testing.
All the customers are middle and upper class
GDP of UK is continuously increasing which clearly explains that disposable
income of people are increasing continuously. Other than this a survey was
conducted which clearly explained that coffee is loved by most of the
people. Analysis of GDP and survey helped me in approaching to this
assumption that middle and upper class people can easily spend few euros
for their preferred coffee. This makes middle- and upper-class people main
target segment of the coffee shop.
According to the survey approximately 60 percent of people prefer healthy,
flavoured coffee. More than 55 percent of people were ready to spend
money for their healthy flavoured coffees and if overall survey results were
analysed then overall comments and feedback for our coffee shop products
were positive.
competition in the market is low and customers do not have other options
for coffee
For this a secondary research was conducted and current competition in
the market was analysed. According to the results of this research there
are not much brands that provide healthy flavoured coffee options to
customers. There is no doubt that there are many global brands that
provides different flavoured coffee options to customers but there are very
few brands that provide health flavoured coffee to customers.
According to the results of secondary research there are less than 10
brands that provide different flavoured coffee to customers and if healthy
flavoured coffee is concerned then there are only 2 to 3 brands that
provide healthy coffee options to customers even though they do not
provide variety in those options. This research clearly explains that
competition in this market is quite low and customers do not have much
options for coffee.
young customers between 16 and 25 are more frequent users of coffee
than any other products in the market
For this another survey was conducted which helped us in exploring
customer segments and age group of customers who are frequent users of
coffee. This survey helped us in exploring types of coffee liked and loved by
which age group of customers.
As per the results of this survey customers between 16 and 25 years are
frequent users and lovers of coffee. Many of this age group of customers
are quite health conscious and prefer healthy products. More than 55
percent of people prefer healthy flavoured coffee and approximately 70
percent of people love to have healthy coffee as compared to other
products available in the market.
Page 12