FUNDAMENTALS OF ENTREPRENEURSHIP (ENT300)

BUSINESS OPPORTUNITY

“GCIBO LOCALE VENTURE”

PREPARED BY:
FACULTY & PROGRAMME: DIPLOMA OF ELECTRICAL ENGINEERING (POWER)
SEMESTER : 4 (J4EE1124A1)
PROJECT TITLE : CIBO LOCALE CAFE
GROUP MEMBERS : MUHAMMAD AKMAL BIN JOHARI (2018420372)

PREPARED FOR:
MR.AHMAD NUR MISUARI BIN IBRAHIM

SUBMISSION DATE: 20/05/2020

Table of Contents
1.0 Executive Summary ...................................................................................................................... 4
2.0 Business Model Canvas .......................................................................................................... 7
2.1 Customer Segments ............................................................................................................ 7
2.1.1 Students ......................................................................................................................... 7
2.1.2 Families .......................................................................................................................... 7
2.1.3 Workers or employees ................................................................................................. 8
2.2 Value Proposition.................................................................................................................. 9
2.2.1 High performance ......................................................................................................... 9
2.2.2 Convenience ................................................................................................................. 9
2.2.3 Price.............................................................................................................................. 10
2.3 Channels .............................................................................................................................. 10
2.3.1 Online website............................................................................................................. 10
2.3.2 Physical Outlet ............................................................................................................ 10
2.4 Customer Relationships..................................................................................................... 11
2.4.1 Special Offers .............................................................................................................. 11
2.4.2 Customer feedback .................................................................................................... 12
2.5 Revenue Stream................................................................................................................. 12
2.5.1 Sales............................................................................................................................. 12
2.6 Key partner .......................................................................................................................... 13
2.6.1 Supplier ........................................................................................................................ 13
2.6.2 Runner.......................................................................................................................... 14
2.7 Key activities ....................................................................................................................... 14
2.7.1 Preparation .................................................................................................................. 14
2.7.2 Marketing ..................................................................................................................... 15
2.8 Key resources ..................................................................................................................... 15
2.8.1 Modal ............................................................................................................................ 15
2.8.2 Kitchen supplies ......................................................................................................... 15
2.8.3 People (staff) ............................................................................................................... 16
2.9 Cost structure...................................................................................................................... 16
2.9.1 Fixed cost..................................................................................................................... 16
2.9.2 Variable cost ................................................................................................................ 17
3.0 Conclusion ............................................................................................................................... 17
4.0 References .............................................................................................................................. 19
5.0 Business Model Canvas ........................................................................................................ 20
1.0 Executive Summary

Cibo Locale Cafe is a local cafe which serve a malaysia local food for all type
of people located in Kota Damansara. The name of Cibo Locale Cafe comes from an
Italian phrase which bring meaning of Local Food Cafe. Positioned as a high-value
dining experience with interesting and fresh meals offered in the range start from
RM10 per person price category, this cafe serves to families, singles and business
clientele.

Cibo Locale Cafe roars into Damansara Uptown with modernised locally
inspired specialities like the Roti Tiger (house-baked panini-style toast, crispy-
creamy with butter and kaya, plus cheese and roasted almond bits, like eating bread
with an apam balik stuffing) and the Kopi Tiger ( estimates in range price of RM18
which is make by siphon-brewed coffee that showcases Johor's Liberica dark roast,
packing a punch that's tempered with sides of brown sugar syrup and evaporated
milk). Familiar favourites like sticky-fingered, coconut-filled kuih koci pulut hitam also
pepper the selection from this cafe.

This business opportunity outlines the launch of a moderately upscale full-

service cafe. This establishment named Cibo Locale Cafe is owned and operated by
a young student who had become one of the successful men who have over 7 years’
experience in managing successful upscale cafe since he was a boy. By gaining
experiences and knowledge after lend a little hand in his father's business, he gets
an idea to start up a local food cafe in order to fulfil customer needs.
2.0 Business Model Canvas
2.1 Customer Segments

Customer segmenting is the practice of dividing a customer base into

groups of individuals that are similar in specific ways, such as age, gender,
interests and spending habits. There are a few things to consider when
determining your Customer Segments for example who are your business
solving the problem for, who are the people that will value my value proposition
and we can consider are they any other business. If so, what are the
characteristics of those business. Another thing to gauge and understand is
your market size, and how many people there are in the Customer Segment.
This will help you understand your market from a micro and macro
perspective. A great place to start understanding your customer is to create
customer personas for each of your Customer Segments.

2.1.1 Students

Customers for example students are commonly tending spend money

on foods that is low price instead of the expensive one. They more likely
to choose lesser price food but the preparation of the food still focusing
on the best quality. As for our cafe, we marketed our foods and
beverages with an average price which also comes with excellent
quality. The reason is to give the customers the idea of having an
affordable and reasonable foods as well as being satisfied with what
they have spent on. Students can come to the cafe to spend their time
alone or with friends as the surroundings might quite cosy and casual.

2.1.2 Families

This cafe is located in an urban area which are quite strategic and
surrounded by a lot of houses, offices and other institutions. This make
the location become one of the most focal point for residents who lives
near the cafe or people that might be in the area of cafe. They are
confirmed on have a demand to get food and beverages as both of
them are one of the common things that people want in their daily life or
we can call as essential things. Either it is a need or it is just their wants.
Our cafe provides a suitable surrounding with an adequate equipment
for a family to have a meal starting from breakfast, lunch and dinner for
a large amount or small quantities.

2.1.3 Workers or employees

The next stage of customers that this cafe is aiming for is workers and
employees. This cafe provides a casual and relaxed atmosphere and
welcoming people to come by groups as they can have an informal
meetings and conversation about anything. This make the cafe become
more group friendly. For those who quite busy on the work and need a
rush, this cafe might give a help as they can just have a walk in through
the cafe or if they still does not have time for that, fortunately our cafe
also provide delivery service so that they do not have to worry about
lunch or breakfast anymore. While having a busy day, get some
refreshment such as coffee and tea that our cafe serve might be a good
solution for them to become energetic and more focus on their work.
2.2 Value Proposition

The Value Proposition is foundational to any business or product. It is

the fundamental concept of the exchange of value between your business and
your customer or clients. Generally, value is exchanged from a customer for
money when a problem is solved or a pain is relieved for them by your
business. For example, if you are selling your product or service to another
business, you are a key partner in them achieving their Value Proposition for
their customers. It is important to have context around the goals the company
is trying to achieve for their Customer Segments and where your business,
product or service fits in the value chain.

2.2.1 High performance

Cibo Locale Cafe is a cafe where our cafe provides a high-quality

performance either in service or in preparation of foods. By using a
high-quality product, our cafe successfully manages to produce a good
and best performance of food and beverages for our customers that
might not available at any other cafe. For example, our customers can
only get to feel a crunchiness of our Roti Tiger and a fresh Kopi Tiger
just if they bought both menu from Cobi Locale Cafe as both of them
are our main menu from this cafe. The cleanliness and quality are also
our priority to make sure only good products have been serve to the
customers.

2.2.2 Convenience

Services that provide by Cibo Locale Cafe is running to suit the

convenience of customers to make sure our customers get a
satisfactions and enjoyments when they are dealing with us. Our cafe
offered to the customers with catering service that cover for all events
such as social gathering, birthday party, company gathering and more.
In addition, our cafe will make everything happen as the customer wish
as long as the customer feel satisfied with the service. Besides, for
 those customers who need a delivery, our cafe also provides a delivery
service.

2.2.3 Price

Cibo Locale Cafe provides a high-quality foods and beverages at a

reasonable and affordable range value of price. So that customers can
get best quality at best price as our main purpose is to serve a good
quality foods and beverages that everyone able to afford and purchase.

2.3 Channels

Channels are defined as the avenues through which your customer

comes into contact with your business and becomes part of your sales cycle.
This is generally covered under the marketing plan for your business. Example
of channels is social media, public speaking, viral marketing and Sales and
promotions for commission. Understanding how to reach your customers is so
crucial to your business.

2.3.1 Online website

Online website is established so thrusters or our customers can

purchase their foods and beverages luckily just by online. Thus, it will
give the convenience towards the customers to purchased our foods
and beverages if they cannot go for walk in service. The payment
method that we accepted is through credit or debit card, NFC mobile
payments, other payment application such as Boost and Touch n Go
and cash on delivery method. Our employees will take the orders and
prepare the food before being shipped to the customers by our key
partners such as GRABFOOD or Foodpanda.

2.3.2 Physical Outlet

Cibo Locale Cafe choose to open a cafe at a residential and urban area
as the location quite strategic and surrounded by many people and
 other institutions. Food and beverages produce by our cafe will be sold
in the store that can be easily spotted to allow the customers to find the
cafe which they can easily search on apps like WAZE or GOOGLE
MAP. Customer just can come over and walk in to the cafe to have a
service. As a start-up business, the rental price of the store should be in
appropriate price where some money can be saves to settle the
electrical and water bills.

2.4 Customer Relationships

Customer Relationships is defined as how a business interacts with its

customers. Some examples are in person, events, phone and online. This helps
clarify the points of engagement between you and your customer and the modes used
to relate to your customers. This will also help you start to define your operations as a
business and also help you identify opportunities for automation.

2.4.1 Special Offers

Every customer love offers and discounts because of that the most
significant way to keep relationship with our customers is by offering
them special discount such as BUY ONE GET ONE FREE, cashback,
loyalty points, package deals and student discount. Accordingly, more
customers are eager to having a service from our cafe.
 2.4.2 Customer feedback

Customer feedback is the information, insights, issues, and input

shared by your community about their experiences with your company,
product, or services. This feedback guides improvements of
the customer experience and can empower positive change in any
business. Having clients or customers feedback is one of the significant
things as their fulfilment is our need. Consequently, our customers can
give their reviews and feedback on our online website or during in the
store. Through this strategy, we can keep on improving our
administrations now and again by investigating their feedbacks and
reviews.

2.5 Revenue Stream

Revenue Streams are defined as the way by which your business

converts your Value Proposition or solution to the customer’s problem into
financial gain. It is also important to understand pricing your business
accordingly to pain of purchase in exchange for the pain of solving the problem
for your customer. There are many different revenue models here for
examples are fee for service, pay per product and fixed rate.

2.5.1 Sales

Cibo Locale Cafe is depending on the sales that gained from selling the
foods and beverages to our customers. In order to gain more sales, our
marketing and financial department should have more promotions to get
more profits. Our cafe also can gain more profit from the customers that
make a reservation for birthday party or company gathering as they
need to pay for the place provided. The target for our cafe monthly
sales is to gain minimum of RM30 000.
2.6 Key partner

Key Partners are a list of other external companies/suppliers/parties you

may need to achieve your key activities and deliver value to the customer. This
moves into the realm of ‘if my business cannot achieve the value proposition
alone, who else do I need to rely on to do it?’. An example of this is ‘if I sell
groceries to customers, I may need a local baker to supply fresh bread to my
store’. They are a key partner to achieve the value my business promises to
the customer.

2.6.1 Supplier

Our key partner for the Cibo Locale Cafe is supplier as the supplier is a
business that provides a product or a service to another entity. The
important role in a supplier is they need to provide high quality products.
A supplier is also someone who acts as an intermediary between the
manufacturer and retailer, ensuring that communication is forthcoming
and stock is of sufficient quality. For our cafe, Cibo Locale Cafe need a
lot of supplier as our cafe is not focusing on one menu only. Therefore,
Cibo Locale Cafe need groceries, ice, coffee, tea, bread and many
other suppliers. Groceries supplier is the one who provide fresh
ingredients to Cibo Locale Cafe to serve out our foods. This supplier will
provide and supply only fresh and good ingredients to the company.
Besides, the coffee supplier will supply coffee to the Cibo Locale Cafe
as coffee is one of the most important things that needed, Cibo Locale
Cafe will get the best and the freshest coffee seed from the supplier and
they will supply the seed or powder to Cibo Locale Cafe once in a
week.
 2.6.2 Runner

To make sure every order was received by the customers by on time,

our cafe also have a relationship business with GRABFOOD or
Foodpanda as they can provide a delivery service for us.

2.7 Key activities

The Key Activities of the business or product are the actions that your
business undertakes to achieve the value proposition for your customers. For
example, is consulting, baking, driving and designing.

2.7.1 Preparation

As one of the start-ups moderate upscale full-service cafe, preparation

is the most vital part to be consider as this key activity play a main role
in order to make sure the business undertakes to achieve the value
proposition for our customers. All foods and beverages are serve as
soon as an order has been made for the heavy menu but for light
menus such as kuih muih will be served and displayed in advance. All
the food orders will be prepared by our best employees or kitchen team
which they are using only selected, best quality, fresh and good
condition ingredients to prepare the orders. Every employee needs to
ensure and take care of their hygiene standards before preparing the
orders.
 2.7.2 Marketing

Social media is the biggest platform that allow companies to promote

their products to the users of social media. Our cafe is using online
advertisement as an advantage to promote our products. The online
platform our cafe is using is Instagram and Facebook where there are a
lot of users using that platform nowadays. Both of these social platforms
have more users compared to others.

2.8 Key resources

Key resources means the resources your business requires to

do business. These resources are what is needed practically to
undertake the action or activities of your business such as office
space, people (staff), oven, electricity and many more.

2.8.1 Modal

This cafe requires RM200 000 in start-up funding of which the

owner of this cafe will contribute RM50 000 as paid in capital.
A conventional loan for RM 150 000 will complete the start up
financing. Start up funds will be utilized to pay all general and
administrative costs for the first six months of operation.

2.8.2 Kitchen supplies

The modal requires for kitchen also will be consider to make

sure the operation of the cafe will running smoothly as soon
as the cafe is open such as stove, oven, refrigerator and
others.
 2.8.3 People (staff)

Employees are very important to start a cafe business that

provides food and drinks to customers where these workers
play a key role for a cafe. Their job is to make sure that all of
our customers' needs and wants are met so that our
customers get the right service.

2.9 Cost structure

Cost structure is defined as all costs and expenses that the company
need to pay while running the business. These cost can be calculated easily
based on defining key resources, key activities and key partnership. Cost
structure can be divided by two parts which is fixed cost and variable cost.
Fixed cost is the same regardless of production output as example rental
payments, insurance payments and more. Besides, variable cost is vary based
on the amount of output as example cost of the ingredients, electricity, water
and phone bill.

2.9.1 Fixed cost

In business, fixed cost is not depend on the level or volume of product

has been produced by the company. It was fixed such as rental
payments, salary and more. For Cibo Locale Cafe, this cafe need to pay
for the salary and the license fees for every month. The salary will be
given to the employees or staff that contribute to the cafe. They will get
their payment at end of every month. Besides, this cafe need to pay for
the licenses fees to the City Council. It required to pay every month.
 2.9.2 Variable cost

Variable cost is vary based on the amount of output. It was vary every
month like electricity, phone bill and more. For this cafe, phone bill and
electricity. This cafe used company phone for the delivery service and
reservation process. It ease the runner and the staff that pick up for
order as it will not use their own phone even it will use company’s
phone. Then, electricity cost is for the electric source. Electricity is used
while prepare the foods and beverages as our cafe will be open starting
from 8 am until 10 pm. This might use a lot of electricity.

3.0 Conclusion

For the conclusion, there is no doubt that establishing a business require

patience and willingness to achieve the success. Business are more than selling the
products but it is a teamwork task where the leaders and their employees work
together as a team. Each of the members of a company are encouraged to state their
opinion where it will potentially help the growth of the company. There are plenty of
challenges that a business will face in order to become well known company. The
leaders are responsible to lead their team to face the risk in business. For an example
of getting scammed by fake suppliers or new competitors in the business.

Business Model Canvas is an important tool where a business should have a

proper management in handling to allow the consistency to become a part of other
big competitors. Every single blocks in business model canvas are providing the
information that can be use as preference.

For the Cibo Locale Cafe, it has produce a something new on the menu that
called Roti Tiger which this menu is make from house-baked panini-style toast,
crispy-creamy with butter and kaya, plus cheese and roasted almond bits, like eating
bread with an apam balik stuffing. This menu is serve for the people who love to start
their day with a refreshing meals with the crunchiness of the bread. This business
model canvas help Cibo Locale Cafe a lot on how to start up and brainstorms the
business. Based on the business model canvas that Cibo Locale Cafe has created
under value proposition, this product can be delivered to the customer if they cannot
come directly to the stall as Cibo Locale Cafe has provided a relationship with our
delivery service key partner as our value cafe is convenience.

Lastly, our team are working hard to create the best, cosy and relaxed
atmosphere in the cafe and provides a high-quality performance either in service or in
preparation of foods. By using a high-quality product, our cafe successfully manages
to produce a good and best performance of food and beverages for our customers
that might not available at any other cafe.
4.0 References
 20 Special Offer Ideas for Marketing My Business. (n.d.). Retrieved
from https://www.google.com/amp/s/blog.jdrgroup.co.uk/digital-
prosperity-blog/special-offer-marketing-ideas?hs_amp=true
 Scout, H. (n.d.). Customer Feedback: Why It's Important 7 Ways to
Collect It. Retrieved from https://www.helpscout.com/blog/customer-
feedback/amp/
 Sheda. (2019, October 17). How To: Business Model Canvas
Explained. Retrieved from https://medium.com/seed-digital/how-to-
business-model-canvas-explained-ad3676b6fe4a
 Denis. (2018, October 9). The Business Model Canvas Explained, with
Examples - EPM. Retrieved from
https://expertprogrammanagement.com/2018/10/business-model-
canvas-explained/
 Key Partners. (2014, August 8). Retrieved from
https://bmcintroduction.wordpress.com/key-partners/
 Corrigan, K. (2020, April 6). Supplier. Retrieved from
https://www.oberlo.com/ecommerce-wiki/supplier
 Corporate Finance Institute. (2020, January 8). Revenue Streams.
Retrieved from
https://corporatefinanceinstitute.com/resources/knowledge/accounting/r
evenue-streams/
5.0 Business Model Canvas