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Business Model Canvas - Ent530

operation management (Universiti Teknologi MARA)

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PRINCIPLES OF ENTREPRENEURSHIP (ENT530): BUSINESS MODEL CANVAS

FACULTY & PROGRAMME : FACULTY OF BUSINESS ADMINISTRATION

BA244 OPERATION MANAGEMENT
SEMESTER : 4
PROJECT TITLE : BUSINESS MODEL CANVAS
NAME : MOHAMAD FAIZ NAJMI BIN NOORISHAM
LECTURER : PUAN NORLAILA IBRAHIM

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Acknowledgement
The completion of this assignment could not have been done without the participation
and assistance of so many people whose names may not all be enumerated. Their
contributions are sincerely appreciated and gratefully acknowledged. However, I would like
to express their deep appreciation and indebtedness particularly to the guidance from our
lecturer, Puan Norlaila binti Ibrahim. Her support and assistance have given the biggest
impact to the completion for my assignment. I also would like to show my gratefulness to my
lecturer for giving us this opportunity by sharing some information about the BMC with me
and my classmate. It gives awareness and guidance to me, so I have the capabilities to
complete this research smoothly and with minimum obstacles.

Last but not least, to all relatives, friends and others who in one way or another
shared their support, either morally, financially and physically, we are very thankful. Above
all, I am so grateful to the Great Almighty, the author of knowledge and wisdom, for his
countless love.

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TABLE OF CONTENT

PAGE
TITLE PAGE i
ANKNOWLEDGEMENT ii
TABLE OF CONTENT iii

EXECUTIVE SUMMARY vi

1. INTRODUCTION
1.1 Company Background
1.2 Purpose of business model canvas preparation
1.3 Problem Statement
1.4 SWOT analysis (two competitors)
1.5 Opportunity recognition

2. BUSINESS PROPOSAL
2.1 Business Model Canvas (BMC)
2.2 Details of BMC

3. CONCLUSION
4. APPENDICES

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Executive Summary
The Wide-Awake Cafe is a new cafe that operated in Kuala Lipis. It is the cafe that
being managed by Bumiputera. The name of this company is come out from the imagination
by me by imagine the environment in the café which is comfort and cozy. It shows that how
me positioning my products in customer’s mind until they can remember my cafe’s name,
which is simple and easily to pronounce.

As for the business, I am providing a special, delicious and nutritious healthy dessert
for young working adults and family who want to take sweet course after their meal. This
dessert is suitable to be consumed for people because it has many flavors that suit people
throat. Not only focus on people who are going for dessert, my café also provides cake for
party and ceremonies.

The target market for my product is broad as it can caters different generation needs
but the ideal customer for this product is young working adults and family in Kuala Lipis. My
cafe is located close to Train Station. Not that only, my cafe location also in middle of the
town. I targeted these two groups because this group of people is usually the ones to make
party and ceremonies. These 2 groups of people also enjoy eating unhealthy food like fast
food and processed food which stripped off all the nutrients their body need. The gender
target is not limited to men or women only but for both genders. My target market also
included working adults in any industry. Whether a teacher, lecturer, or even a clerk, all types
of occupations can enjoy this product as their sweet course after having their meal.

Business plan is necessary to all entrepreneurs. It is prepared to a group of people

which are owners itself, banker, creditor, suppliers, customers and employees. This business
plan consists of marketing, operational, organizational and financial plan.

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INTRODUCTION
NAME OF BUSINESS

The Wide-Awake Cafe

NATURE OF BUSINESS

The Wide-Awake Cafe’s name actually comes from the refreshes that suitable for my
type of product which is dessert. Dessert is the sweet course eaten at the end of a meal that
consists of healthy ingredients such as fruit, raisin, brown sugar and so on. These are
among the main ingredients to make a healthy snack bar. Along with side ingredients such
as honey, almond and even chocolate chips, this dessert is definitely the best solution
towards those who want to find sweet course after having their meal. It is high in calories,
low in sugar and contains a full package of nutrition that will result in healthy eating and
excellent diet. This dessert provides refreshes towards those who want to eat it after having
meal. Ideal for lunch and also for dinner. This dessert will also help to fill our stomach if we
do not want to eat heavy meal.

This dessert acts like a form of sweet course that is easy to eat anywhere and
anytime. This healthy dessert allows people to still get the nutrients needed. Also suitable for
those who are in diet terms as this dessert will keep them full for a long time. This dessert is
suitable to be consumed for people who usually skip meals and also who are looking forward
towards eating healthy. Not only focus on people who are going for a diet program, also
suitable as a replacement of breakfast to fuel up the energy.

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Location

The Wide-Awake Cafe is located at Bangunan LKNP, Jalan Besar, Kuala Lipis, 27200 Kuala
Lipis, Pahang.

Location of The Wide-Awake Café

The premises of The Wide-Awake Café

DATE IF BUSINESS COMMENCEMENT

21 May 2020

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FUTURE PROSPECTS OF THE BUSINESS

Once the business is well recognized, I plan to improve and upgrade the quality of
products and services. I also plan to hire more workers in our business and train them
properly during training institutions. In addition, I would like to find high quality resources to
improvise our products.

As a conclusion, this business has a good future prospect by fulfilling the needs and
wants of working young adults and people in Kuala Lipis.

VISION AND MISSION

Vision

To be recognized as one of the top dessert cafes in my cities because of the

outstanding and unique dessert provided.

Mission

To satisfy my customers with a high quality of dessert through our focus on great
tasting and other nutrition foods and superior service. Furthermore, I want to be the dessert
provider for individuals, families and businesses in the healthy dessert version. We are being
part of our communities through service and preservation of our landmark buildings. In
everything we do, we strive to act with honesty, openness, fairness and integrity.

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Purpose of Business Model Canvas Preparation

Starting a small business is not an easy task. It seems like there are a million steps I
have to do before run a business. I need to register your business, set up my own website,
work out my budget, figure out my marketing plan, make some research and make a good
relationship with my manufacturers and suppliers. I also need to create my business plan
and my business model. So, there are many steps that need to be done before start a
business. A business model canvas is simply a design for the successful operation of a
business. It can be my first step before start a business. Business model canvas is a great
tool to use to improve the focus and clarity of what my business is trying to achieve.

Business model canvas have open up my mind to set up my business. I can clearly
see my mission and vision over there. Business model canvas is also made my business
plan systematically. I can always refer with my business model canvas to follow the plan. I
must stick with my plan. So, business model canvas has set up your business plan.
Business model canvas many benefits to new entrepreneur. Business become more
organize and systematic. The business model canvas is a great tool to help in understand a
business model in a straightforward, structured way. Using this canvas will lead to insights
about the customers serve, what value propositions are offered through what channels, and
how my company gain profits. I can also use the business model canvas to understand my
own business model or that of a competitor.

Business Model Canvas helps entrepreneurs to keep focus on key building blocks to
save time and succeed. It helps to track my progress in various key elements of my
business. It helps to narrow down my thought process and gives me way to hit the goal in
short time.

The BMC provides a very clear foundation and direction for the conversation at hand,
whether done in a corporate offsite with the executive team or done around the board room
table.

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Problem Statement

In order to be number one dessert cafe in country and world there are many
challenges faced by me relate to meeting changing consumer demands. The phase of
technological improvement is running at an exponentially increasing rate. While this has
been true for several decades, the phase today makes capital investment in technology as
much an asset as a handicap because a competitor may wait for the next-generation
technology, which may only be a year away, and then use it to achieve an advantage. Of
course, waiting to be that competitor can be equally risky.

Another problem was because of uncertainty in demand and the need to stay lean,
companies are carrying smaller inventories than ever. At the same time, uncertainty in
supply, driven by wildly changing commodity prices, an apparent increase in weather-related
problem and increasing competition for raw materials makes supply chain planning more
challenging than ever. Smaller suppliers that, five years after the global financial crisis, still
struggle to get the credit they need to keep up with their larger customers’ demand
exacerbates an already unwieldy situation.

Consumers change their behaviors all the time, with new preferences and emerging
fads dominating many buying decisions is another problem occurs. The food manufacturers
must develop products to meet these demands in ever-shorter timeframes in order to reduce
the problem happen again in future. We work closely with customers to understand their
individual needs and goals besides be efficient when it comes to developing new recipes
and getting products out to market.

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SWOT Analysis

SWOT Analysis based on two competitors (Best Friend Café and Khalis Bakery).

Strength

Strength of Best Friend Cafe is it have known for a long time. The bakery was run for
five years. So, this cafe got many regular customers. Recommendation from regular
customer is also one of the ways they gain the customer. Many good reviews I can said from
this cafe. This café served variety food and suitable for the children. The management of this
cafe is also efficient as I can see systematic placement and design of this cafe. I also can
say that their manager is smart and responsible. Their staff also happy working there
because I can see good bonding between manager and staff. I also can state that their
manager is really concern about children favorites. The café served many kinds of cake and
will design it that fulfill children favorite cartoon. So, children will like the design and want that
cake.

Strength of Khalis Bakery is the bakery that have café in it. So, Khalis provide the
café for the customer that waiting for their cake to be finish or to take away. This café have
many varieties of cake and they can provide a place for birthday party. This café also
provides good care of their worker and the worker happy to work at there. This café also
provides any design cake that fulfill customer need and wants. So, many customers want to
custom their cake went there. Khalis Bakery also provide many kinds of cakes and flavor.
So, customer can choose many flavors of cake.

Weaknesses

Every business must have their own weaknesses. Same goes to Best Friend Café.
One of the weaknesses is they got space problem. We can see that this cafe has run for a
long time and have many experiences. Their customer is believing that the manager can
solve their problem. The café not have many spaces to get many customers at one time.
So, they can only serve few customers. This will make disadvantage to their café. The other
problem is they only target children not target many older people. This will make them hard
to get many older customers.

Khalis Bakery also have their own weaknesses. This bakery cannot attract more
customer because of surrounding that not comfortable. It is because of the heat from the
bakery places. It makes the customer waiting for their cake feel uncomfortable. The bakery

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space also limited because the space is share by the café and bakery. If the customer want
to make their birthday party, the shop need to close for the customer. So, the other customer
needs to wait to make their order. This will make the café revenue decrease.

Opportunity

Opportunity for this Best Friend Cafe is well-known as café for children. All the good
review is an opportunity to attract more customer. Regular customer is also the opportunity
this cafe become more well-known. Provide the best services will lead to satisfaction of
customer. Recommendation from regular customer that are satisfied with this cafe services.
Their manager is from Kuala Lipis, so it also helps to enhance the business. Good customer
services also one of the opportunities for this cafe become well-known. They serve their
customer respectively and equally. The target for kid cake is good choice and make them
different from others.

Opportunity for Khalis Bakery is based on café and bakery. This café also provides
good service to their customer. The manager also took student after SPM to do part time and
can get full time job. So, many people can get job at the bakery. This will be advantage to
the café. Other than that, the customer also can find any flavor they want and request any
design of cake at the café. They also serve the customer in good and quality way. This will
make sure that the café is one of the top cafés in Kuala Lipis.

Threat

Threat in Best Friend Cafe is not many than other company. Threat on competitors.
There are many cafés open in Kuala Lipis. So, customer have many choices to go to the
café at the area. The café needs to think the way to make the café different from the other
cafes. So, they make a kid café and their target is kids. If they can attract the kid, they can
attract their parent. The café also not provide delivery to customer home. So, it a
disadvantage for them because there is café that had delivery option.

In Khalis Bakery, the threat is almost the same with Best Friend Cafe. They do not
make delivery option for the customer. So, customer need to go to the town to take itself.
They also had lot of competitors, so, they come with the idea to make bakery and café at
one time to make them different with other. Khalis Bakery also had problem with the worker.
It is because part time worker only works a few hours and sometime they need to find back
up worker to fulfill the space of job.

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Opportunities Recognition

The first problem is meeting changing consumer demands. The problem to be solved is to
develop a long-term technology strategy while remaining flexible enough to take advantage
of unforeseen technology developments. The technology is important to make human work
and force reduce. So, in a café they need to be fast and serve the food in time to make the
customer did not wait too long.

Another problem was because of uncertainty in demand and the need to stay lean,
companies are carrying smaller inventories than ever. The problem to be solved is to
develop a supply-chain strategy that not only ensures the lowest costs, but also minimizes
the risk of crippling supply-chain disruptions. Lower the cost of the dessert will make
advantage to my café compare to another café. It is because customer will find the
reasonable price of dessert to buy. So, the café needs to lower the price of the dessert to
attract more customer.

Consumers change their behavior all the time, with new preferences and emerging fads
dominating many buying decisions is another problem occurs. The Wide-Awake Cafe will
solve problem regarding the health of the dessert. Customers want healthier products
because of their diet. As a result, the study about health product is more important to make
sure the customer satisfied with every product that has produce. This means that food
manufacturer or my cafe itself need to develop products with reduced sugar and replace with
brown sugar, trans and saturated fats, and without compromising on flavor. As I mentioned
before, my business is use brown sugar and low fat and contains a full package of nutrition
that will result in healthy eating and excellent diet.

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Business Proposal
Business Model Canvas

8.Key partners 6. Key activities 2.. Value 5. Customer relationship 1. Customer segm
propositions
 Great  Friendly  Consumer
 Supplier customer  Fast service  Adults
 Employees services quality  Quick service  Kids
 Dedicated service  Direct sales  Elders
serving  Consisten  Communication  Foodies
 Marketing t on social  Communit
 Promotion high network
quality  Approach of
foods communities

7. Key resources  Varieties 4. Channels

flavor
 Factory  Advertisement in
 Affordable
 Office WhatsApp
price
 Machine  Brochures
 Labors

9. Cost structure 3. Revenue stream

 Raw material  Cash

 Machine Maintenance  Internet sales
 Labors wages and salaries  Production
 Packaging
 Distribution

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Detail of Business Model Canvas

I have developed a business model canvas that described the whole business of The
Wide-Awake Café. The items in this model are customer segments, value propositions,
customer relationship, channels, revenue stream, key activities, key resources, key partners
and cost structure.

When it comes to customer segments, my cafe considered to target people at any

stages of ages. It offers all variety of business and people come to eat the dessert in dine in
or take away. In a more segmented focus market, this company focuses on community
especially family in Kuala Lipis. This is because they set low prices of my products and
services which suits their budget for dessert and cakes.

Besides that, my cafe has its own value proposition that makes it a cafe business.
Fast service and high quality are my main priorities as I use modernized machines and good
raw materials quality in upholding those standards. I also prioritize fast and accurate service
order to achieve good and constructive feedbacks from the customers. Next, I am targeting
to be a cafe which provide high quality services with cheaper prices. Other value
propositions that I have are variety flavors and it is flexible as the customers can design their
cake as they like.

There are few ways that my cafe has generated through revenue streams. First, it is
through their cash. For instance, selling cakes, cookies and variety type of dessert. Other
than that, I collected the revenue from internet sale. The other revenue stream for my café is
from production, packaging and distribution.

The distribution of their products promotion come from few channels. The few
examples are advertisement via WhatsApp and brochures. My café is customer direct
oriented where they produce and sell the products after the customers placed their orders.
My cafe developed a customer feedback system like distributing suggestion forms for
customer to give constructive feedbacks via WhatsApp.

In relations to the customer relationships, my cafe outfits personal assistance type of

customer relationship where the workers are ready to help their customer to design the cake,
take order and deliver solutions if the customer occur any problem.

The key activities of The Wide-Awake Cafe mostly related to the dessert cafe.
Examples such as great customer service, dedicated service and marketing service.

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Furthermore, there are numerous key resources that the company primarily use in
my cafe. Such as, Office, Machine, Factory and Labors.

Furthermore, there are few key partners that this company has. One of the key
partners is the supplier. This is because my café needs to get supply of the raw material to
make my product. In terms of employees, my café needs to have good and best employees
to make my café run in good condition and did not make the customer wait.

In every business, they have their own cost structure. For my cafe, their main cost is
raw materials because my café of dessert and cake. Flour, butter and brown sugar can be
illustrated as the example for my raw materials. Their secondary cost is the machine’s
maintenance. It is significant for me to maintain their machinery to avoid default products
which bear me more costs. Moreover, labors wages and salaries are also an important cost
for my cafe. That is why me as the manager uses banking to distribute the detailed wages
and salaries for their labors.

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Conclusion
The Wide-Awake Cafe involves in dessert and cake cafe. Original, honey, dark chocolate,
white chocolate and mixed fruit cakes and dessert are produced in my bakery every day. I
will make sure that my customers will only get the high quality of dessert and cakes which
are made by my own recipes. After doing some research, I conclude that there is a high
demand of my products from the people. Therefore, I see this as an advantage to grab the
opportunities of making large profit. It is also an added advantage because in Kuala Lipis
there are not many cafés that served the customer in dine in or take away option. I only
provide products from fresh raw materials and halal product to my customers and it is my
pleasure to satisfy their needs and wants. As conclusion, I am confident that I am able to
cater to the needs of our target market. I hope that I can have the best dessert café in Kuala
Lipis and Pahang state. In future, I am hoping that I be able to expand my business into
several branches in Malaysia. Furthermore, I also hope that my cafe can enter the
international market in years ahead. I will give all of our efforts to ensure these dreams come
true.

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Appendices

Location of The Wide-Awake Café

The premises of The Wide-Awake Cafe

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Business Model Canvas

8.Key partners 6. Key activities 2.. Value 5. Customer relationship 1. Customer segm
propositions
 Great  Friendly  Consumer
 Supplier customer  Fast service  Adults
 Employees services quality  Quick service  Kids
 Dedicated service  Direct sales  Elders
serving  Consisten  Communication  Foodies
 Marketing t on social  Communit
 Promotion high network
quality  Approach of
foods communities

7. Key resources  Varieties 4. Channels

flavor
 Factory  Advertisement in
 Affordable
 Office WhatsApp
price
 Machine  Brochures
 Labors

9. Cost structure 3. Revenue stream

 Raw material  Cash

 Machine Maintenance  Internet sales
 Labors wages and salaries  Production
 Packaging
 Distribution

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