I attached marking rubric and example of assignment.My topic is UPTAKE, here it's website link.https://www.uptake.com/
MGMT20143 (HT2, 2018) THINK BIG 1. EXECUTIVE SUMMARY The purpose of this report is to deconstruct the business model of Wide Open Agriculture Limited, which belongs to food and agricultural industry in Western Australia Wheatbelt region. It makes chances to advancement and broadened regenerative cultivating that can optimistically affect both natural and rural communities. WOA is under the debts of their key partners and can face economical down turn in the future. There are few recommendations if the company will follow then they will become more successful: · Sample farming of imported fruit and vegetables will train the local farmers. · Recruit their own trainer as key resources. · Enhance their channels to get access to metropolitan areas. Table of Contents 1. EXECUTIVE SUMMARY1 2. INTRODUCTION3 3. BUSINESS MODEL CANVAS3 3.1 KEY PARTNERS3 3.2 KEY ACTIVITIES3 3.3KEY RESOURCES4 3.4 VALUE PROPOSITIONS4 3.5 CHANNELS5 3.6 CUSTOMER SEGMENTS5 3.7 CUSTOMER RELATIONSHIPS5 3.8 COST STRUCTURE5 3.9 REVENUE STREAMS5 4. INTER RELATIONSHIPS5 5. CRITICAL SUCCESS FACTORS6 6. DOWNSIDE RISKS6 7. BUSINESS MODEL CHANGES6 8. CONCLUSION6 9. REFERENCES10 2. INTRODUCTION Wide Open Agriculture Ltd (WOA) is a vertically coordinated food and farming organization that recovers biological systems and revives diversified farming in Western’s Australia wheat belt region (Wide Open Agriculture, 2018, para. 1). The company is newly founded in 2015 by Ben Cole and Anthony Maslin. Fresh, processed and highly nutritious food products are provided by the food brand “Food for Reasons” introduced by Wide Open Agriculture. The services provided by WOA aims to secure the productivity for long term by restoring the ecosystem and moreover it positively affects the environment. The policies introduced by WOA’s ‘COMMONLAND FOUNDATION’ is a 4-return framework (4-R) which deliver returns in social capital, natural capital, financial capital sector and inspiring wheat belt communities (Commonland, 2018, para. 3). An agricultural plan to keep the natural vegetation well protected, development of biological cropping practices and cereal production is established. 3. BUSINESS MODEL CANVAS A business model depicts the justification of how an association makes, conveys, and captures value (Osterwalder & Pigneur, 2013, p. 14). The nine building blocks of WOA Limited is explained by using Osterwalder & Pigneur’s business model canvas (see Appendix 1) 3.1 KEY PARTNERS An equal contribution by the investors, common land foundation, warehouse distributors, cereal & livestock farmers, and farmer market association at the primary level enhance the organization. Being one of the largest shareholders in the company, Commonland Foundation is associated with the economic and environmental organization. Farmer market association comprising of the cereal and livestock farmers are the primary producers for the food and agricultural company. 3.2 KEY ACTIVITIES ‘Food for Reasons’ is a developed brand for marketing channel. Food for Reasons distinguishes sales in 3 ways that is · Direct online sales- sales is provided to consumers via www.foodforreasons.com · Retail sales · Wholesale buying- store is located at Market City, Canning Vale in metropolitan areas of Perth. Figure 01 Source: (Wide Open Agriculture, 2018) 3.3KEY RESOURCES The key resources are supposed to work simultaneously for the positive outcome. Skilled farmers farm the land with newly innovated farming equipment in order to maintain diversified farming. 3.4 VALUE PROPOSITIONS Valuing the resources is the most prominent business model for restoring the economy, revitalizing the wheatbelt, ensuring long term productivity and moreover encouraging and inspiring the diverse vibrant communities. A unique business framework is adopted to deliver 4 returns such as: · Financial return- The focus is to maintain and accomplishing the long-term profit plans. · Social return- The core of this return is to provide new jobs, business activity, education and entrepreneurial opportunities to the communities of Australian Wheatbelt. · Natural return-The focus is to maintain the natural resources like soil health, water quality and biodiversity. Regenerative farming is focused to accomplish the natural growth. · Inspirational return- Inspirational return is to focus on providing the farmers and wheatbelt communities a sense of hope and unity in which the WOA operates. Regenerative cropping methods in combination with 100% organic resources and availing the products and facilities to local and worldwide communities is an innovative scheme introduced by the company. 3.5 CHANNELS Availing the products and facilities to the customers worldwide is done by retailers, grocery store and also through website. Online buying is done to market the products through www.foodforreasons.com. Grocery stores are put up at Market City, Canning vale in Perth. 3.6 CUSTOMER SEGMENTS Environment & Health conscious people, young families and leading chefs are the main customer segments of WOA. The company is also trying to find out the new customer segments in main cities of Australia, Singapore and Hong Kong. 3.7 CUSTOMER RELATIONSHIPS WOA conducts farm tours to create relationships between the users and producers. Customers directly engage with the farmers in the farming activities and learn more deeply about the importance of regenerative farming. 3.8 COST STRUCTURE Landscape, farming (cropping, irrigation and harvesting), wages, equipment, transportation and packaging add up to the main costs. Apart from that, WOA has to pay the loans before the deadlines. 3.9 REVENUE STREAMS According to the audit ended on 31 Dec 2017, revenue collected from the market of produce such as vegetable and fruit selling, and packed products are referred to be $89,636 whereas the total comprehensive value including the profit/loss for the year is $612,006, explained appendix 02 (Table 01) 4. INTER RELATIONSHIPS Wide Open Agriculture is a food and agricultural based company which primarily focus on the products and the cropping practices used to grow the vegetables and fruits. The company has constructed a 5186 retractable roof protected cropping system to practice regenerative farming methods. A variety of seasonal vegetables and fruits are produced at a large scale. Various customer segments such as chefs, farmers and families are made aware of the advantages of the regenerative cropping system by farm tours, direct engagement and free trails. An authoritative food brand “Food for Reasons” avails the customers the benefits and products through the 4-R framework. The company’s strategic plan is to purchase land and produce premium processed healthy and organic products in association with the regenerative farmers which ultimately delivers the inspirational return to the consumer, providing the social capital and most important is to revive the biodiversity which act as the key resources for the production through natural return. The medium of availing the products to the customers is done through retailers, website and wholesalers. All the cost for these activities are funded by Commonland Foundation, Bugs & Biology Grower Group and other key partners. 5. CRITICAL SUCCESS FACTORS According to Chudleigh, Bond & Wood (1994), the level of success of any industry is measured by the current value of production and its simple average of growth. Wide Open Agriculture aims to utilize market research in Australia, Singapore and Hongkong to find out appropriate range of fresh & packaged, value-added products for marketing of these products into new markets in Australia (Sydney, Melbourne, Brisbane), Singapore and Hongkong. The best way to expand the marketing and distribution of the products can effectively happen through social media, in-store promotions, broachers and public relations in Australia, Singapore and Hongkong. As the product of WOA is 100% organic, so it will beneficial for the community from health point of view and contribute towards sustainability. 6. DOWNSIDE RISKS The company has taken the loan from Commonland Foundation of worth £100,000 which is repayable on February 2021, £225,000 repayable on January 2022 and £305,000 repayable on January 2023. These loans are interest free up to the deadlines. Therefore, company must generate enough revenue in order to return these amount on time otherwise there will be a risk of financial loss. There is a land purchase agreement of the company with East Kulinbah. That has to be returned $123,879 in the form of monthly instalment with outstanding interest of worth $465. Hence, there will be a significant financial risk in case of any failure of payment. 7. BUSINESS MODEL CHANGES I would suggest to add sample farming as their key activity. This will be helpful to train their farmers at small scales and gain significant knowledge regarding variety of fruits and vegetables. WOA should recruit its own trainers as key resources. It will decrease outsource training cost and farmers can gain valuable knowledge at any time. As their customers are limited to a nearby region. In order to expand the business to the other cities and countries they should enhance their channels. This will be helpful to reaching the customers. 8. CONCLUSION Wide Open Agriculture Limited is a food & farming company with innovative ideas of 4-Returns framework using regenerative farming system and 100% organic brand with customer inspiration. The company can face some financial risks if the debts will not be repaid on time. However, the establishment of R&D department and in-house training will be beneficial to foster the future growth of the business. 9 12073246MGMT20143 Table 1 Source: (Strategyzer, 2018) Appendix 01: Table2 Source: (Wide Open Agriculture, 2018)Appendix 02: 9. REFERENCES Chudleigh, P., Bond, K., & Wood, I. (1994). Lessons from history - Success factors in the development of new agricultural industries [Australia]. Agricultural Science, (3), 21-25. Commonland. (2018). Four-returns. Retrieved From https://commonland.com/en#tab-four-returns Osterwalder, A. & Pigneur, Y. (2013). Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Hoboken, New Jersey: Wiley. Strategyzer. (2018). The business model canvas. Retrieved From https://strategyzer.com/canvas/business-model-canvas Wide Open Agriculture. (2018). Investigating Accountant’s Report. Retrieved From https://www.graincentral.com/.../WOA_Prospectus_Final-ilovepdf-compressed-1.pdf Wide Open Agriculture. (2018). Prospectus. Retrieved From https://www.graincentral.com/.../WOA_Prospectus_Final-ilovepdf-compressed-1.pdf Wide Open Agriculture. (2018). Who we are. Retrieved From http://www.wideopenagriculture.com.au/about/who-we-are