Business Model Innovation: A Feasibility Study of Boat Restaurant

This report investigates the feasibility of a new business idea, a boat chain restaurant named "Food & View", using the business model canvas and value proposition canvas. The concept combines coastal views with multi-cuisine dining experiences on boats, targeting tourists in Australia. The report details the problem the business addresses, the benefits it offers (new experiences, increased profit, enhanced opportunities), and its feasibility, including organizational structure, sources of finance, and forecasted revenue. It also outlines the business model, emphasizing the importance of customer satisfaction and strategic partnerships, and identifies critical success factors such as increased tourist volume and the unique combination of food and scenic views. The conclusion highlights the potential for business growth and increased tourism in Australia through this innovative approach.

Running Head: Innovation in business 1
Think Big

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Contents
Introduction......................................................................................................................................3
The Problem.....................................................................................................................................3
Benefits............................................................................................................................................4
Feasibility........................................................................................................................................6
Organizational structure...................................................................................................................6
Sources of finance............................................................................................................................6
Forecasted revenue.......................................................................................................................7
Business Model................................................................................................................................7
Critical success factors....................................................................................................................8
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
The report investigates the new business by using the nine component business model canvas as
well as value proposition canvas to decide the critical success factors along with the feasibility of
a competency model in Boat Chain Restaurant. This report will analyze the target market of the
new market and proposing a plan not to resolve a problem in specific, but to connect with
customers in a different way for a new business idea. Along with that this research will include
the description of the new business idea and the reason behind choosing this idea. The business
model will be elaborated under this report.
The Problem
Tourism is a biggest industry of Australia that contributes in huge manner in the economy of the
country. The huge cuisine, splendid beaches and wilderness are things that tourists look forward
to when they explore Australia (Johnson, Christensen & Kagermann, 2008). It has been found
that the country has breathtaking beaches and the coastal life is more than food or the beach. It is
necessary for the tourism industry to provide extra and innovative services to the tourist of the
country as number of tourists visit Australia every year. Tourists look forward to the more
relaxing environment over there as it is the experience that fetches them towards the coastline
and country. It is required for the tourism to bring together the amalgamation of mouth-watering
delicious food and serene waters to provide a better and different experience those tourists
remember.
About the new business idea

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It has been found that the attracting tourists are the easiest way to get the attention of various
tourists towards the rich heritage and nature of Australia. The new business idea for this
assignment is the link of two striking concepts in which firstly, the coastal view and calm
beaches and along with the knowledge of having multi-cuisine restaurants. This idea is referred
to as the Chain of Boat Restaurants where a lot of facilities will be provided to the tourists.
Customers of this restaurant can sit back and enjoy a boat ride along with that they can have food
at the same time. It would be considered as the multi-cuisine restaurant in which kitchen would
be entailed which would away from the shore. There would be a facility for the tourists in which
they can place an order at the stall situated near the beaches and get the facilities of a
combination of the attractive idea in their respective boats. There would be a facility to place an
order via phone that can link to the counter at the shore. There would be space of 6-8 chairs and
2-3 tables on per boat. An appropriate name for this innovative idea would be “Food & View”.
However, the menu would be limited for this innovative idea. It is required for the business to
keep special attention towards the hygiene and ensuring that waste should not be disposed of
anywhere by the shore.
The main aim of this innovative idea is to bring the attention of a number of tourists towards the
delicious foods and beach view which would contribute to the economic growth of the country. It
would enhance the business opportunities to expand business in other places as well and amplify
the revenues of the new business (Gibler, Manuel Casado-Díaz, Angeles Casado-Díaz,
Rodríguez & Taltavull, 2009).

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Benefits
The new business idea will bring a huge profit for the company as well as a country because it is
a different idea in comparison toa normal restaurant. Mitchell, Williamson & Chung, (2015),
elaborated that the value proposition keeps huge importance for the business and it is required
for getting growth to know more about the latest trends as well as demands of the customers. The
benefits associated with this new business idea will be elaborated below which would be helpful
in making a clear understanding of the new business idea.
New experience
This innovative idea would be helpful to give a new experience to the tourists of Australia that
can increase the interest of them to visit again at the same place (Johnson, Christensen, &
Kagermann, 2008). Along with that, it can do work as promotional advertisement such as word
of mouth which would increase the sales of the business potential. Food &View will provide
daily services to the tourists; the new business would also increase the taste for food which
would attract a number of customers towards the services.
Increase profit
The new restaurant would increase the profit of food as well as tourism industry as the major
objective of this research is to develop the efficiency of the business and amplify the facilities for
tourists by providing them a huge range of services at one place. This innovative idea would be
able to bring the attention of the tourist towards the new destination with food facility which
would amplify the profits for the business (Joyce & Paquin, 2016).
Enhance opportunities

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It has been evaluated that the business can expand in new place after getting success in Australia.
The new innovative idea is not only related to the food industry but also the tourism industry
(Ruhanen, Whitford & McLennan, 2015). It has been evaluated that the rate of tourists is
increased in Australia in the comparison of last year. This innovative concept will not only bring
the attention of those coming from out but also it brings the attention of local people.
Feasibility
It has been analyzed that the term Feasibility elaborates the suitability as well as capability of a
business. Feasibility can be considered as the operation plan review criterion. This business
would be able to attain the decided target as it helps in improving the efficiency of the business
(Rohrbeck, Konnertz & Knab, 2013). It is vital for the business to set the realistic aims and
create on them, along with that it is required for Food & View to analyze the market and the
customers beforehand. The leading value of Food & View is the food and the service and the
differentiating value is the experience that it provides.
Organizational structure
Department Number of employees
Catering Department 10
Research Team 10
Chef and Waiters 12
Finance and Accounts 2
Sales Team 4
Marketing and PR 4

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Sources of finance
The business does not require a massive assumption as it is essentially a service. However, the
business would need a preliminary outlay as below:
Particulars Approximate expenses
recruitment cost and salaries of employees AUD 30000
Infrastructure AUD 50000
Maintenance AUD 20000
Expenses on the sales team AUD 5000
Advertisement and promotion activities AUD 10000
Office overheads AUD 1500
Total AUD116500
Forecasted revenue
Year Expected Costs Expected Revenue
Year 1 AUD 75000 >AUD 50000
Year 2 AUD 55000 >AUD 75000
Year 3 AUD 50000 >AUD 90000
Business Model
Spieth, Schneckenberg & Ricart, (2014),elaborated that the use of business model would be
helpful in describing the importance and value of the customers. It has been clearly recognized
by this model that customer is more important for the business with a propensity to buy. It is

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required for the business to have confidence in the expertise as well as in the quality. The role of
the value proposition in this business is high because the satisfaction of the customer is keeping
huge importance for the business. The partners of the company would be stakeholders and
community of Australia. The business will use various promotion strategies in order to attain the
target of the company. Lower process strategy will be helpful for the company to achieve the
objectives of the company.
Critical success factors
It has been found that the company would attain huge profits from this innovative business as it
helps in improving the productivity. The business would bring a huge change in both industries
which would increase the revenues of the business and amplify the opportunity to expand the
business globally (Upward and Jones, 2016). The major critical success factor is the increased
volume of the tourists in Australia and the combination of this concept that can amplify the
importance of this place (Wu, 2015). Tourists will get what they want from the places in
Australia. It is vital to understand that as human beings we are all curious. If one would get good
food from the restaurant, there is always a second time. Considering Food & View has 5 boats
and is operational from 11 am to 7 pm daily. It has been expected that this business would be
increased as promotion increases and a plenty of customers will definitely come back.
Conclusion
From the above discussion, it can be concluded that the role of the business model in starting up
a new business is huge as it helps in increasing the number of tourists in Australia. This would
increase the potential growth of the business. The report has entailed the depth information about
the new innovative business which is Food &Views Multi cuisine Restaurant.The discussion has

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been made on the business model along with the organizational culture in order to increase the
better understanding about a new start-up. Critical success factors have been elaborated under
this paper as well.

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References
Gibler, K. M., Manuel Casado-Díaz, J., Angeles Casado-Díaz, M., Rodríguez, V., & Taltavull, P.
(2009). Late life second move housing choices of international retiree
migrants. International Journal of Housing Markets and Analysis, 2(2), 190-210.
Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing your business
model. Harvard Business Review, 86(12), 50.
Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing your business
model. Harvard Business Review, 86(12), 50.
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.
Mitchell, R. J., Williamson, A., & Chung, A. Z. (2015). Comparison of injuries experienced by
international tourists visiting Australia and Australian residents. Asia Pacific Journal of
Public Health, 27(2), NP1683-NP1694.
Rohrbeck, R., Konnertz, L., & Knab, S. (2013). Collaborative business modelling for systemic
and sustainability innovations. International Journal of Technology Management
22, 63(1-2), 4-23.
Ruhanen, L., Whitford, M., & McLennan, C. L. (2015). Indigenous tourism in Australia: Time
for a reality check. Tourism Management, 48, 73-83.

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Spieth, P., Schneckenberg, D., & Ricart, J. E. (2014). Business model innovation–state of the art
and future challenges for the field. R&d Management, 44(3), 237-247.
Upward, A. and Jones, P., 2016. An ontology for strongly sustainable business models: Defining
an enterprise framework compatible with natural and social science. Organization &
Environment, 29(1), pp.97-123.
Wu, M. Y. (2015). Driving an unfamiliar vehicle in an unfamiliar country: Exploring Chinese
recreational vehicle tourists’ safety concerns and coping techniques in Australia. Journal
of Travel Research, 54(6), 801-813.

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Appendix
Key Partners Key activities Value
Proposition
Customer
relations
Customer
segments
 Hotel owners
 Technology
Partner
 Corporate
Travel
Managers
 Providing
good quality
of food
 Uniqueness in
food and
services
 Customer
experience
 Enhance
technology
 Freshly
cooked
 Multi-
cuisine
 Beautiful
dining
setup
 Customer
services
 Ease of
joining
 Tourists
 Reduction
of risks
 Market
intelligence
 customer
services
Key Resources Channels
 Human
resources
 Financial
resources
 Advertisem
ent tools
 Websites