BUSI 1301 BUSINESS MODEL (Research Paper Sample)

BUSI 1301 Business Model Student’s Name: Institutional Affiliation: Course Code: Professor’s Name: Date: BUSI 1301 Business Model Step 1: Situation Analysis Business Identity * Top Churro is a food truck factory designed to provide fresh churros and beverages, including smoothies, at any day time. Fresh churros are one of the world's best and most popular desserts. They provide the best dessert experiences of a lifetime. The factory will give fresh churros and beverages such as coffee, chocolate, Mexican atole, and smoothies in food trucks and strategic areas. Customers * Target audiences are kids, teenagers, and adults who are not vegan because the main ingredients for churros are flour, butter, eggs, and milk. Fresh churros are affordable and can be bought by any person with minimal income. The prices are low and affordable to everyone who loves churros. Collaborators * The collaborators of this business include suppliers, employees, and business partners. Some employees will be incorporated in selling the products from the food trucks, while others will manage online ordering services. The materials for the products can be easily purchased from a supermarket or by making orders from retailers. Therefore, our primary suppliers are reliable retailers and other food stores. Business partners will aid in operating the business and ownership. Competition Various competitors in the industry include; * Toro Restaurant * Lolly’s Bakery * La Sultana Bakery Climate * The economic environment of the business is highly expanding and is suitable for business activities in the food industry. Its growing economy will offer the business expansion opportunities, although market changes may influence the business operations. Technically, the economic environment is favorable for expansion strategies to gain a competitive advantage. * Technology is also expanding rapidly in the food industry, and employing it in producing churros and beverages will be an added advantage. The factory will consider purchasing high-quality technology machines like advanced instant coffee makers to ensure the customers acquire the best products and services. Step 2: Form of Business * The company will be managed through a general partnership since several trucks will be used to manage the business. Thus, it will require considerable capital to start. The partners will help in funding and management of the company to reduce the burden. * The primary advantage of this partnership is that the partners will be responsible for the business’ profits or losses. Typically, a general partnership is easy to form. The main disadvantage is the partnership is easy to dissolve due to minimal protection. Step 3: Customer Value * Top Churro is committed to providing the best and most consistent superior churro experience and personalized, outstanding services passionately to the customers. Our churros will be unique, although they require a simple technique to make. Many companies make them straight and spiral-shaped, but we will include the star-shaped churros in our menu and use a secret ingredient to distinguish them from other churros. * Since many people love churros, we will ensure that the products are available on-demand and engage in community programs bound to change society, especially in conserving and sustaining the environment and climate change. Step 4: Channels (Distribution of Product/Service) * The churros and beverages will be sold on stationed trucks, whereby customers will be served from the trucks. Home delivery services and online order programs will be availed as the business grows. We may incorporate delivery trucks in the business or use Uber Eats services to ensure that our customers receive their products through online orders. Step 5: Critical Success Factors * Funds Finances are vital for any startup business to thrive. Funding fuels the business thus, the company will require several funding sources to enable it to survive before it starts making profits. Lack of funds may prevent it from starting or result in its collapse. The funds will cater for the purchases of trucks, food products, and licenses, pay the employees and cater for other expenses required. Therefore, money will be an essential aspect of this plan. * Highly trained and motivated employees Any food business requires skilled personnel with the knowledge and hygiene of handling foods. Technically, Top Churro will require highly trained individuals with experience in the food and beverage industry to operate the trucks and provide top-notch services to customers. * Brand Marketing Top Churro will work towards building the brand’s image and reputation by providing the best quality products. Considering that many people, especially children, love and purchase churros, we will build the reputation and trust of our brand by ensuring that the products are available on-demand, thus, attracting many customers to gain a competitive advantage in the market. Business branding is critical because it gives the customers a memorable impression. It will enable them to know what to expect from our company. Our Churro experience will be consistent at all our food trucks, ensuring that the customers receive the same taste but different from other churro outlets. We will be determined to make the brand the best option for the consumers when they require to purchase fresh churros and beverages. Step 6: Competitive Advantage * Apart from using the company's brand to market our products, we will use social media platforms like Facebook, WhatsApp, and Instagram to market our company and products to attract customers. We will also print flyers to distribute to the people and customers to spread awareness of our product. Aggressive marketing of our products will help reach many customers and make them aware of the products, increasing sales and gaining a competitive advantage. * In addition, we will maximize the products and make them unique for consumers to differentiate them from our competitor's products. This will enable us to gain public trust and enhance our brand's reputation, gaining a competitive advantage. * Also, our products will incorporate some offers and promotions like buy one get one free on specific days of the week. This strategy will help to boost the company's sales. Technology is considered the best innovator globally; thus, Top Churro will adequately utilize technology to make various advancements in product production and customer service. Competitive Landscape Table The table provides a competitive analysis of the company and other competitors in the food industry. S represents a strong aspect of the company; A represents the average, and W represents a weak aspect. Aspect Top Churro La Sultana Bakery Lolly’s Bakery Toro Restaurant Products S S S S Quality S S S S Service S S S S stability A S A S Location S S S S Advertising W A A S Price A A A S Selection W W A S Reliability S S S S Company reputation S S S S Appearance S S A S Image S S S S Step 7: Customer Relationships * In every business, customers are considered the business' growth drivers. Therefore, maintaining a long-term relationship with the customers will enable the company to continue thriving in the industry. A dedicated and loyal customer base is more effective than constantly attracting one-time shoppers (Angamuthu, 2015). * Building strong and long-term customer relationships will help the factory in different aspects like reduced marketing efforts, reduced customer attrition, increased sales, essential insights to establish better strategies, and word-of-mouth marketing. Benefits of Strong Long-term Customer Relationships * Reduced Customer Attrition Various organizations lose twenty to eight percent of their customers annually based on statistics. Once the number goes high, the company will be required to apply more strategies to attract new customers. New customers are hard to attract and retain; hence, strong customer relationships will ensure their retention. * Reduced Marketing Efforts Regardless of how good a company is at marketing, attracting new customers will always be a challenge since it requires effort and money to succeed. However, convincing existing customers to purchase other products from the company is easier because they know about its products and services (Angamuthu, 2015). There is a high chance of selling products to existing consumers than selling to new customers. Therefore, strong customer relations will keep the consumers coming back for more purchases. * Increased Sales An existing customer is likely to make repeated purchases and can purchase more products than a new customer. In addition, an existing customer would most likely buy a new product from the company compared to new ones. Therefore, maintaining long-term relations with consumers is an added advantage for the organization in sales. * Word of Mouth Marketing Satisfied customers tend to be loyal and provide testimonials about the company products while endorsing the brand's products to their friends and families. These types of endorsements and referrals build and enhance the brand's reputation. Building a solid relationship with customers will enable them to recommend their friends, families, colleagues, and other acquaintances to try the company's products (Angamuthu, 2015). This aspect will help to market the company’s product without much effort. * More Insights to make Better Strategies Strong customer relationships enable the customers to provide insights about their preferences and recommendations. Listening to their views and opinions can help make ...