Entrepreneurship Assignment: Business Model and Risk Analysis

This assignment solution analyzes the business model of the 'Sound of Music School,' addressing key aspects like its core value proposition and how it's articulated through different business model components. The solution utilizes the NVC business modeling framework, emphasizing high-quality services and targeting corporate and individual clients. It also identifies significant risks inherent in the business model, including financial, operational, compliance, and competitor risks. The assignment proposes mitigation strategies for each risk, such as budget planning, operational maintenance, copyright policies, and maintaining product quality. References to relevant academic sources are included to support the analysis.

Running head: ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Entrepreneurship and Small Business Management
Name of the Student:
Name of the University:
Author note:

1ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Q1. What is the core value proposition of your proposition of your proposed business
model? How is your value proposition articulated through the different components of
your business model?
The company has adopted the NVC business modelling framework. This framework
helps in obtaining the benefits to the organization by providing ideas which helps in the
development of the organization. The ideas can be united with the help of this model and this in
turn helps in the economic development of the organization.
Sound of Music Company is well known for providing high quality services in less
amount of time. It hires highly experienced teachers from different organizations for part time
arrangements such that the standard of services of the organization to the consumers remains
efficient. Various trainees with knowledge of latest technologies in the music industry help in the
advancement of the organization. The organization mainly targets corporate clients, although, the
prime focus of the sound of music school remains business to consumer’s sales. This is the value
proposition of the organization (Patala et al. 2016).

2ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Company
Teacher Engagement
Service Management
Client Management
Client Engagement
Payment
The range of the customers of the company is mainly aspiring musicians, celebrities,
college students, public figures, school students and many more whereas, the corporate clients
includes choirs and school musician bands. The value proposition of the company helps in
providing high quality services to these clients in a very cheaper rate, which benefits the
customers as well as the company. The company remains up-to-dated with the latest systems
such that the needs of the consumers remain intact (Zeleti, Ojo and Curry 2016).

3ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Q2. What are the significant risks inherent in your business model? How would you
mitigate them?
Music is an important aspect in our everyday life which fuels the creativity and helps in
the enhancement of the leaning. Any business is prone to risk while implementing new
technologies. Those risk has to be identified from beforehand in order to prevent them from
occurring. There are many risks associated in the organization and they are mainly, risks due to
the loss of finance or the financial risk, risks due to competitors, compliance and operations. All
the risks holds a priority for the organization and they have to be removed or mitigated at any
cost to improve the infrastructure of the organization. The risks of the organization also involves
people who are associated with it. Thus a risk matrix is created such that the problem can be
identified and solution can be identified such that occurrence of the similar problem is prevented
in the organization.

4ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
The possible risks that has been identified in the usage of the NVC model in the business
are mentioned as follows,
[1] Financial Risk: For the implementation of the model, the school may suffer financial loss
which is harmful. The impact of the risk is high on the organization and the situation is
most likely to occur in an organization
[2] Operational Risk: These risks occurs due to the failure of proper customer services. These
causes severe damage to the organization and the situation is likely to occur is not
maintained properly (Aven 2016).
[3] Compliance Risks: The Sound Of Music is an institute related to the music industry.
Copyright in the industry is prevalent, thus the compliance risk needs to be mitigated to
prevent the mal-practices in the industry. This is a high impact on the product with a
medium likelihood.
[4] Competitor Risk: The risk of the competition decreases the quality of the product. Thus
quality of the product must be maintained (Almeida et al. 2017).
Impact
High [3] [1], [2]
Medium [4]
Low
Low Medium High
Likelihood
Table showing the severity of the risk in the organization
Table for mitigation of the risk in the organization:

5ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
Sl. No. Risk Mitigation
1 Financial Risk  Preparation of a proper budget
planning before the beginning
of the project.
 Gantt chart must be created to
identify the area of deficit,
such that the
2 Operational Risk  The maintenance of the
devices properly reduces the
risk of failure of the
operations.
4 Compliance Risks  To prevent the risk of
copyright, Copyright policies
must be implemented.
5 Competitor Risk  The product quality makes the
product’s demand high in the
market.

6ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT
References:
Almeida, H., Hankins, K.W. and Williams, R., 2017. Risk management with supply
contracts. The Review of Financial Studies, 30(12), pp.4179-4215.
Aven, T., 2016. Risk assessment and risk management: Review of recent advances on their
foundation. European Journal of Operational Research, 253(1), pp.1-13.
Patala, S., Jalkala, A., Keränen, J., Väisänen, S., Tuominen, V. and Soukka, R., 2016.
Sustainable value propositions: Framework and implications for technology suppliers. Industrial
Marketing Management, 59, pp.144-156.
Zeleti, F.A., Ojo, A. and Curry, E., 2016. Exploring the economic value of open government
data. Government Information Quarterly, 33(3), pp.535-551.