The Business Model Canvas

Question: Describe about the Business Model-Canvas? Answer: Introduction Business model is a textual representation of the organization that helps in graphical representation of the organization to show its operations, financial arrangements etc. This model is a subsection of strategies and development of a business that involves the designing of the methods applied (This assignment deals with the business model of Juice Drink that is a partnership business. This is well explained through Business canvas Model. Business Model-Canvas Otto Scharmer, C. and Kaeufer, K. (2010). In front of the blank canvas: sensing emerging futures. Journal of Business Strategy, 31(4), pp.21-29. Figure 1: Business Canvas Model (Source: Rytknen and Nenonen, 2013, pp. 140 The Business canvas Model is a strategic model that helps in developing as well as documenting the business models that already exist. This contains certain parts that are well described below- Infrastructure: A good business model has key activities, key resources as well as partner network that help in creating value to the customers. The requirement of the key resources such as human, physical, intellectual as well as financial resources are chalked out for a good business model (Weber, 2005) Offering: The offering is mainly focused on the value proposition that is totally based on the price as well as efficiency along with overall experience and outcome of the customers. The Juice Drink offers value proposition through its quality, brand, cost reduction and price (Otto Scharmer and Kaeufer, 2010) Customers: In order to build up a strong business model, the company always needs to focus on the needs and requirements of the customers. The Juice Drink initially segments the market according to the category of the customers it wants to target. The target markets are- niche market, Mass market, Multisided Market, Segmented Market and Diversify (). The customer relationships are also essential to maintain for creating a good customer relationship that ultimately favors the business to a considerable extent. Channels: A good channel system is also essential since the company produces the goods that can be easily reached to the customers. The better the service will be, the better the company will have a strong business model ( Customer Relationship: A good service to the customers enhance the customer relationship since for the customers, the products are thereby produced (Otto Scharmer and Kaeufer, 2010). Finances: Juice drink takes into consideration the cost structure that includes the fixed cost, variable cost, economics of Scope and Economics of Scale (Debelak, 2006). Revenue Streams: This section deals with the income that is made from each of the customers. This is done through assets sale, brokerage sale advertising, licensing as well as subscription fees . Benefits of Business Model The Business Model Canvas facilitates a large surface area where the people jointly sketches as well as discusses the business models that helps in understanding, creativity, analysis and discussion. This also the company a good competitive advantage over other business plans for growth as well as helps in bringing financial sustainability (. This model helps in bringing a consistent profit to the organization and also measures the profit that is made every month. In addition to this, this also helps in building a good cash reserve for the company that helps the company in future. References Debelak, D. (2006). Business models made easy. [Irvine, CA]: Entrepreneur Press. Otto Scharmer, C. and Kaeufer, K. (2010). In front of the blank canvas: sensing emerging futures. Journal of Business Strategy, 31(4), pp.21-29. Rytknen, E. and Nenonen, S. (2013). The Business Model Canvas in university campus management. Intelligent Buildings International, 6(3), pp.138-154. Weber, A. (2005). Data-driven business models. Mason, Ohio: Thomson. Weber, A. (2005). Data-driven business models. Mason, Ohio: Thomson. Otto Scharmer, C. and Kaeufer, K. (2010). In front of the blank canvas: sensing emerging futures. Journal of Business Strategy, 31(4), pp.21-29. Debelak, D. (2006). Business models made easy. [Irvine, CA]: Entrepreneur Press. Otto Scharmer, C. and Kaeufer, K. (2010). In front of the blank canvas: sensing emerging futures. Journal of Business Strategy, 31(4), pp.21-29. Debelak, D. (2006). Business models made easy. [Irvine, CA]: Entrepreneur Press. Weber, A. (2005). Data-driven business models. Mason, Ohio: Thomson. Weber, A. (2005). Data-driven business models. Mason, Ohio: Thomson.