Coursework 3093

This posting is to recap some of the things mentioned during the first week of lecture.

Coursework for BBDM3093 consists of the following:
CW1 Uploading of Executive Summary to Facebook (20 marks - group assessed)
CW2 Business Model Proposal (40 marks - group assessed)
CW3 Presentation of the proposed business model (40 marks - individually assessed)

Assume that you are writing this business model to a rich aunt of yours whom you hope to impress. You are contemplating the possibility that she may become your angel investor, since you have quite a pretty close relationship with her. Hopefully, she may come back to you for a more detailed business plan later. Your aunt is a simple woman and educated only up to secondary school level. She has accumulated her wealth through a combination of hard work, business acumen, and sound investment principles - a very down-to-earth, straight-talking woman - just say it as it is.Your business model proposal write-up to her should be written in simple, direct, and easy-to-understand style. You are not doing a piece of academic writing to be submitted to your professor. Do not indulge yourself in a fit of theoretical frenzy and write about all sorts of strategic theories which serve no purpose other than to drive your dear aunt to the madhouse.

You should discuss your business model proposal based on four areas:

• core strategy
• strategic resources
• partnership network
• customer interface

Most important element to be discussed under core strategy would be your basis for differentiation. How do you differentiate your business from your competitors? Differentiation is important - otherwise, why should consumers buy from you? They buy from you because you are different - you are able to provide them with something that your competitors don't. I'm a Dell customer because I want to pay only for components that I need. I'm a Maybank account holder because it provides convenience by having the largest network of ATMs. I study in TARUC because I have no choice!! (1. LOL, private joke with one group of students - please ignore! 2. Or is it because TARUC is so strongly differentiated that you don't really have to look at our competitors?). Differentiation can be in many forms - in terms of the design of the product, service given to customers, distribution channels, payment methods, etc. Use your creative thinking. Take a walk - go to a shopping mall, observe the many businesses there, ask yourself how you can do things differently and add-value for customers.

Under strategic resources, there should be a good discussion on core competencies. It refers to what you can do best that your rivals cannot match. It is your core competency that gives your business the competitive advantage to achieve more sales. Your core competency may be a tangible or an intangible asset. Ensure that this core competency is possessed only by you and not your competitors, at least in the short run. Of course, your core competency could be eroded in the long run. Therefore, it is in the interest of a business to create new core competencies from time to time in order to defend or grow its market share.

Partnership network considers the relationship between your business and suppliers, as well as other business partners. Emphasis here should be on how you intend to build relationship between your suppliers and you. Sound relationships with suppliers will ensure that you get your raw materials or other merchandise at fair prices and punctual delivery schedules. You may also wish to establish networking with environmental groups, consumer associations, government agencies, educational institutions, etc. All these relationships are crucial to ensure that there are no negative effects on your revenue.

Similar to partnership network, the last section, customer interface considers the many ways that you connect with your customers. You may want to use a mix of various social media platforms to connect with customers. It is advisable also to consider the use of CSR initiatives to create a positive corporate image. Building relationships with customers is important because they are your best promotional tools. Satisfied and delighted customers will help promote your products to their friends. Word-of-mouth, I would say, is the most effective promotional tool. Why do I buy a Myvi car? Because my friend told me it's good - not because of any advertisement I watched.

Therefore, guys, put on your thinking cap - think creatively. Open your eyes, observe the many business models around you. Come up with your own unique model. Don't procrastinate. Start working on your assignment now. Any questions you have, you can put in the comments section below, and we can have a discussion here. Cheers, enjoy your weekend!!