Syrose J. Buban 12- HUMSS-Petrach L.A.S 4.

1 ENTREPRENEURSHIP

Practice Exercise: (individual work)

Activity #1: Developing a Business Model

Group No. 1 Entrepreneurial Venture: Small Business (Milk Tea Shop)

Business model

Chosen component:
Revenue streams

Description:
Revenue streams are the various sources from which a business earns money from the sales of
goods or provision of services. The types of revenue that a business records on the types of activities
carried by the business. Generally speaking, the revenue accounts of retail businesses are more,
diverse as compared to businesses that provide services. It is also the source of revenue of a
company or organization. In business, a revenue streams is generally made up of either recurring
revenue, transaction-based revenue, project revenue, or service revenue. In government, revenue
streams often refers to different types of taxes. Revenue streams is a key performance indicator for
all business. As a financial analyst, analyzing a company’s performance in terms of revenue is
always one of the crucial tasks. Therefore, an analyst must able to recognize the different revenue
streams from which the company generates cash and interpret the revenue figures on financial
statements.
When a financial analyst looks at financial statements, the revenue number reflects the amount
recognized by the company when goods are sold or services rendered, regardless of whether cash is
received at that last time. Performance prediction differs between different revenue streams. Out of
the four revenue streams discussed, recurring revenue is the most predictable income to business
because it is expected that the cash inflow remains consistent with stable customer base.

Aeron Zedrick Bobis 12- HUMSS-Petrach L.A.S 4.1 ENTREPRENEURSHIP

Practice Exercise: (individual work)

Activity #1: Developing a Business Model

Group No. 1 Entrepreneurial Venture: Small Business (Milk Tea Shop)

Business model

Chosen component:
Customer Relationship

Description:
It is a process in which a business or other organization administers its interaction with
customers, typically using data analysis to study large amounts of information. It is all about
managing interactions with previous, current, and potential customers. Companies that manage their
customer experience strategy. That strengthens customer retention and promotes customers
acquisition. It’s the way in which your company communicates and deals with existing customers. It
maybe in different communication channels, including a company’s website, telephone, email, live
chat, marketing materials and more recently, social media. It allow businessmen to learn more about
their target audiences and how to best cater for their needs, thus retaining customers and driving
sales growth.
When it comes in increasing profits, it’s tempting to concentrate on making new sales or
pursuing bigger accounts. But attention to your existing customer, no matter how small they are, is
essential to keeping your business is following up in a way that has positive effect on the customer.
What’s crucial here is that the stage of a customer relations in the back of their minds, no matter
what positions they hold.

Darwin Sayago 12- STEM-Galileo L.A.S 4.1 ENTREPRENEURSHIP

Practice Exercise: (individual work)

Activity #1: Developing a Business Model

Group No. 1 Entrepreneurial Venture: Small Business (Milk Tea Shop)

Business model

Chosen component:
Channels

Description:
A marketing channel consists of the people, organizations, and the activities necessary to
transfer the ownership of goods from the point of production to the point of consumption. It is the
way products get the end-user, the consumer; and is also known as a distribution channel. A market
channel is a useful tool for management, crucial to creating an effective and well-planned marketing
strategy.
Another less known form of marketing channel is the “Dual Distribution Channel”. This
channel is a less traditional form that allows the manufacturer or wholesaler to reach the end user by
using more than one distribution channel. The producer can simultaneously reach the consumer
through a direct market, such as website, or sell to another company or retailer that will reach the
consumer through another channel, i.e., a store. An example this type pf channel would be
franchising
Riezel Casim 12- ABM- Pacioli L.A.S 4.1 ENTREPRENEURSHIP

Practice Exercise: (individual work)

Activity #1: Developing a Business Model

Group No. 1 Entrepreneurial Venture: Small Business (Milk Tea Shop)

Business model

Chosen component:
Key Resources

Description:
Key resources can be physical, financial, intellectual, or human. A microchip manufacturer
needs capital-intensive production facilities, whereas a microchip designer depends more on human
resources. Key resources can be owned or leased by the company, or acquired from key partners.
Key resources is the building block describing the most important assets needed o make a
business model work. Every business model requires them, and it is only through them that
companies generate Value Propositions and Revenues. Key resources can be physical, financial,
intellectual, or human. It is a list of which crucial responses or the main inputs you need to carry out
your key activities to create your value proposition.
Myrene Bonavente 12- ABM-Pacioli L.A.S 4.1 ENTREPRENEURSHIP

Practice Exercise: (individual work)

Activity #1: Developing a Business Model

Group No. 1 Entrepreneurial Venture: Small Business (Milk Tea Shop)

Business model

Chosen component:
Key Partner

Description:
Key partnerships are the network of supplier and partners that make the business model work.
Companies forge partnerships to optimize their business models, reduce risk, and/or acquire
resources.
Key partners are the relationships that you have with other business, governmental, or non-
consumer entities that helps your business model work. These can be the relationships that your
company has with your suppliers, your manufacturers, businesses partners, etc. These partnership
that you will undoubtedly create will be forces that help your business succeed in areas that would be
inefficient for you to do yourself.
Brent Ivan Campollo 12- STEM-Galileo L.A.S 4.1 ENTREPRENEURSHIP

Practice Exercise: (individual work)

Activity #1: Developing a Business Model

Group No. 1 Entrepreneurial Venture: Small Business (Milk Tea Shop)

Business model

Chosen component:
Cost Structures
Description:
Cost structures defines all the costs and expenses that your company will incur while
operating your business model. There are two main categories of cost structure the value-driven and
cost driven cost structures. Let me define cost structures it creates more value in the product itself,
not necessarily producing the product at the lowest possible cost. An example of this is Prada, and
Rolex, this brands creates more value in the product, because it was made with high-quality
materials editions. Cost driven minimizing the costs of the product or service as much as possible.
Example of this are Walmart and Southwest Airlines.
To calculate cost structure we need to associate fixed, variables ongoing, and one-time
expenses for each group. Examples are product-related costs, customer-rated costs, and employee-
rated costs. There are seven ways to improve the cost management strategy. First define your fixed
and variable expenses, it generates a list of all previous month’s transactions, organized by a vendor
for easy reference. Then, next to each vendor, write “fixed“ or “variable”. Second, enter your budget
into accounting software, create a cost management strategy, reduce variable costs, reduce fixed
expenses, reduce your break-even point and lastly, invest in expense tracking software. Again, the
cost structure is one of the building blocks of a business model, and it also represents how businesses
spend the majority of their resources to keep generating demand for their goods and services.

Jessa Carinan 12- HUMSS-Petrach L.A.S 4.1 ENTREPRENEURSHIP

Practice Exercise: (individual work)

Activity #1: Developing a Business Model

Group No. 1 Entrepreneurial Venture: Small Business (Milk Tea Shop)

Business model

Chosen component:
Key Activities

Description:
Key activities are any activities that your business is engaged in for the primary purpose of
making a profit. Business activities include operations, marketing, production, problem-solving, and
administration. It represent what company must do to make the business model work.
These activities can be producing a product or providing a service, or a mix of both. For
example, if your business focuses on production of a product, your activities may include learning
more about the customers and new production techniques to improve the product. For example, you
are producing chairs. One of your activities maybe to doing market research to find out if customers
are happy with your chairs or if you need to update the model to better fit their needs.
Jovann G. Brojan 12-Petrach L.A.S 4.1 ENTREPRENEURSHIP

Practice Exercise: (individual work)

Activity #1: Developing a Business Model

Group No. 1 Entrepreneurial Venture: Small Business (Milk Tea Shop)

Business model

Chosen component:
Value Proposition

Description:
A value proposition is a promise of value stated by a company that summarizes how the
benefits of the company’s product or service will be delivered, experienced and acquired.
Essentially, a value proposition specifies what makes the company’s product or service attractive,
why a customer should purchase it, and how the value of the product or service is differentiated from
similar offerings.
Generally, the value proposition is addressed to the company’s target customer or target
market segment. The proposition takes the form of a short, clear, and concise statement of the
tangible and intangible benefits that will be delivered to customers. The perfect proposition must
quickly transmit the values to potential customers. Without the needs for further explanation. Each
proposition must be unique as it is a method to communicate the differentiation points of a company
to target customers.
Lorenz Carullo 12- HUMSS-Petrach L.A.S 4.1 ENTREPRENEURSHIP

Practice Exercise: (individual work)

Activity #1: Developing a Business Model

Group No. 1 Entrepreneurial Venture: Small Business (Milk Tea Shop)

Business model

Chosen component:
Customer Segment

Description:
Customer segmentation is the practice of dividing a customer base into groups of individuals
that are similar in specific ways relevant to marketing, such as age, gender, interests and spending
habits. Companies employing customer segmentation operate under the fact that every customer is
different and that their marketing efforts would be better served if they target specific, smaller groups
with messages that those consumers would find relevant and lead them to buy something. Companies
also hope to gain a deeper understanding of their customers’ preference and needs with the idea of
discovering what each segments finds most valuable to more accurately tailor marketing materials
towards that segment.
Customer segment relies on identifying key differentiators that divide customers into groups that
can be targeted , information such as a customers’ demographics ( age, race, religion, gender, family,
size, ethnicity, income, education, education level), geography( where they live and work),
psychographic ( social class, lifestyle and personality characteristics).