Passel Business Model Deconstruction: MGMT20143 Assessment 1

Desklib provides past papers and solved assignments. This report analyzes Passel's business model.

THINK BIG: MGMT20143
ASSESSMENT 1
BUSINESS MODEL DECONSTRUCTION
COMPANY NAME: Passel

Abstract
In this study it has been mentioned that how the Passel introduces its business approaches in
order expand the business & diversify the business across the country as well as using the
appropriate models of business (Zolnowski, et.al., 2014,). The study of business models and
thinking big helps to get the quick overview of Passel. The customer segmentation of Passel
surprisingly comprised logistic functionality, brick & mortars delivery, connecting retailer’s
strategies, etc. Furthermore, value propositions were also outlined. The revenue generation
and the interrelationship of the companies are also identified. In between, the report has
outlined the key success factors of Passel how it applies the key business drivers in order to
diversify its business in other area of market. The first and foremost is the administration of
the diligence customer services Process that brings confidence in the investors. In addition, it
has also identified many strategies that accelerate other business activities like the cost
effective strategy in technology and market variables. On the basis of these business activities
identification, some recommendations has also provided for the company follows:
 Passel is required to incur more cost for the advancement of its technologies in order to
facilitate the superior class of services in minimum possible time (Zolnowski, et.al.,
2014,). Therefore, implementation of Eden alternative TM is imposes greater
improvements in interdependence and satisfaction of retailers.
 In order to apply strategic implementation they conduct overall review of the performance
on the basis of output, services, workforce and cost every year so that organization can
experience high quality results and tremendous changes.

Contents
Abstract......................................................................................................................................2
Introduction................................................................................................................................4
Company’s Background.............................................................................................................4
Business Model..........................................................................................................................4
Key Interrelationships................................................................................................................6
Critical Success Factors.............................................................................................................6
Downside Risks..........................................................................................................................6
Business Model Changes...........................................................................................................7
Conclusion..................................................................................................................................7
Recommendations......................................................................................................................7
References..................................................................................................................................9

Introduction
Business models classifies that how the business are generating revenues and productivity. It
is basically a systematic activity to provide satisfaction to customer, absolute return on
investment of stakeholders and providing contracts to their suppliers at minimum costs. In the
event of globalizing the business, Passel is taking big steps to explore the business. The
business model of this organization comprises its strategies applied over management and
orientation of market in order to set up the channel of distribution. Moreover, it has been
observed that how its interrelationships affect the business environment of Moneyplace in
long run. In addition, the overall report outlines the suggestions are required in the business
model and providing some recommendations for the company.
Company’s Background
Passel is basically a company founded in 2016 by Marshall Hughes in order to facilitating the
services of logistics to retailers and help them to tapping into the new market across the
country (Sinfield, et.al., 2012). The diversification of Passel is in several cities of Australia as
crowding sourcing, bricks & mortar retailers, speedy retailers and delivery the old fashioned
way. There are exploring the business to connect the retailer chain in the one market to deals
with them for getting the delivery of their products from the retailers. Their business
increases the number of home deliveries as compared to the earlier traditional method of
logistics. It has come to see that the delightful service is provided to the customers for their
convenience and making the home deliveries as a routine.
Business Model
Passel is pointing out on the areas of their market that bring customers at a crowd sourced
platform that allows people to shop, provide logistic services to the retailers and when they
done with shopping, money has transformed. The business model of Passel is based on the
technologies and service towards customer satisfaction (Osterwalder & Pigneur, 2010). The
business plan is focused on six crucial aspects:-
Cost effectiveness: Higher profitability in minimum cost
Delivery solutions: personalization and sharing economy
Operations performance: operating customer relationship management effectively
Exploration: Positive results that would minimise risks for future projects

Latent Capacity: Limited challenges and attractive returns
Technology: Improvising methods, minimizing cost and better outputs
Key Partners
 stakeholders
 Investors
 The
partnership
with Brauz
 Equipment
distributors
 Local &
regional
communities
Key Activities
 Logistics
 Exploration
 Distribution of
products
 Marketing and
customer
service
 Crowd
sourcing
Value Proposition
Emerging customers
for a new market
place of home
deliveries.
Building up good
relations with the
intermediaries and
interrelationships for
better growth of
business.
Customer Relationships
 Customer Service
 Providing
homogenous
services and
building up trust
 Recognition and
reputation of brand
 Customer
relationship
management
Customer
Segments
Bricks,
mortars,
regular retail
items and
any other
durable
products.
Key Resources
 Raw materials
and resources
 Technological
tools and
equipments
 An adequate
number of
workforce
 Advanced
transportation
vehicles
 Effective
recognition
Channels
 Website
 Delivery
Management Team
 Logistic team
 Corporate buildings
and offices,
 Passel private
limited company

and dealing
with customers
Cost Structure
 Direct cost
 Variable and fixed cost
 Supply and production cost
 Tangible and intangible cost
 Salaries
 Logistic development cost
 Project recommendation cost
 strict project cost
Revenue Streams
 Distribution of commodities
 Services accommodations
 Facilitating logistics services
 Real-time orders
Key Interrelationships
The key interrelationships are playing greater role in Passel organization to make them grow.
There are several partner with whom Passel is collaborating. The biggest interrelationship
partner is Brauz. It is basically a brick and mortars distribution company which help Passel to
diversify its business in several cities. Pookipodia is the fashion partner which is also a
diversifying industry for Passel. The additional partner which they support is Frankston
Foundry; some of the above are the fashion industries which brings old fashion back in the
country (Lewandowski, 2016).
Critical Success Factors
The significant business activities for the logistic organizations connect the retailers on
country basis. Logistic networks are gradually getting the success in their functional area
such as:
Competitive fees: In this market, the automobiles and transportation charges are probably
increased. The services are truly superior and truly worthy but the par pricing strategy is very
essential.
Monitor cash flow: It is very important to ensure the profit and holding the cashbooks and
check books to maintain the accounting software under the supervision of skilled
accountants.

Track environmental data: Some of the factors are not controlled by the organizations in
environmental situation (Lewandowski, 2016). Therefore, the management of Passel is
required to determine all the key drivers of business environments.
Pricing policy: There are several customers who expect out of the box services at reasonable
prices so they could deal for long time and became retain with the service industries.
Employee performance: The employees are root of the organization so timely education to
them about tools and technologies are very vital in critical success factors.
Downside Risks
Downside risks are those factors where any organization can get out of situation by their in
the long-run. There are several downside risks are the identified which are affecting the
performance Passel such as instability, economic crises, operational & strategic risks,
conflicts that are related to the transportation and logistics. These risks are responsible for
making the organization unstable in the market. The transportation industries face downside
issue mainly in increasing globalizing (Joyce & Paquin, 2016). The downside risks are
subjected to absolute losses and repelling customers.
Business Model Changes
Business models are the plans for the companies which they administrate to generate revenue
and increase profitability. Similarly, Passel does the same strategies but still managers found
several strategic business models that are essentials. That signifies the real meaning of
marketing with the products & services introduces in the marketing. The profitable variations
are more likely to follow and upgrade the traditional concepts. The technological
advancements are more beneficial for logistics in order to deliver the products in minimum
time (Joyce & Paquin, 2016). The digitization and digitalization is the services are very
essential for the development and sustainability of the business.
Conclusion
The report of business models signifies the various aspects of logistics management styles
and key business drivers that how they are gradually increasing their market Australia. Passel
undertakes all the activities which are required to perform for the absolute profits and high
class of revenue. All the sufficient business activities provide a language to communicating
the nature of the business (Dijkman, et.al., 2015). Hence, business models are the way to
experiment organized business.

Recommendations
 Passel is required to invest on the market orientation with the research and development
rather than making replication of resources in order to carry out better insight of the
exploration.
 The Stockholders, vendors, customers, and business partners are required to coordinate
and collaborates each other in order to conquer the risk and bringing up the suggestion
box is a good way to resolve the problems.
 Passel is required to incur cost maximization in advancement of technologies and
transportation tools, especially in their operational management (Dijkman, et.al., 2015).
Managers must use their highly advanced techniques and analytical techniques in order to
use the tools and equipments.
 Effective coordination between management and workforce uphold their workers in order
to retain employees in the company and eliminate employee turnover.

References
Dijkman, R. M., Sprenkels, B., Peeters, T., & Janssen, A. (2015). Business models for the
Internet of Things. International Journal of Information Management, 35(6), 672-678.
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.
Lewandowski, M. (2016). Designing the business models for circular economy—Towards
the conceptual framework. Sustainability, 8(1), 43.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for
visionaries, game changers, and challengers. John Wiley & Sons.
Sinfield, J. V., Calder, E., McConnell, B., & Colson, S. (2012). How to identify new business
models. MIT Sloan Management Review, 53(2), 85-90.
Zolnowski, A., Weiß, C., & Böhmann, T. (2014, January). Representing Service Business
Models with the Service Business Model Canvas--The Case of a Mobile Payment Service in
the Retail Industry. In 2014 47th Hawaii International Conference on System Sciences (pp.
718-727). IEEE.