Author: Robert Sanga Haungo
1) Value proposition
- The
“Online Asian Foods” is for you if you are interested in having high quality
foods right at home. We bring you the best Asian dry foods packages at your
doorstep. We are the only specialize one in Møre & Romsdal county. Just
visit our website, choice the products right from your home or come and visit
us in person at the heart of Kristiansund. We guarantee quick home delivery service
of any order products to our customers at reasonable prices.
2) Customer segments
- Delivery
of dry foods packages from the “Online Asian Foods” will be limited for
customers in Møre og Romsdal county. The customers covering areas will increase
to the national level after larger customers in Norway better know the store.
The store will be for those whoever likes to taste Asian foods. However, Asian
women married to Norwegian men, (age between 20 to 65 year old), who reside in
a small municipality like Smøla, Tingvoll, Sundalsøra, Oppdal, etc will be
specifically targeted. The customers will have an option to buy foods both
offline and online. This will certainly reduce customers traveling time to a
bigger municipality where Asian foods are available to purchase in person only.
3) Customer relationships
- The “Online Asian Foods” would be purely base on
Asian communities in Møre og Romsdal county. The store would also be suitable
for Norwegian and all the other nationalities, irrespective of their diverse cultures
and religions background. Customer will have option of purchasing food products
in person as well. This means the store will be base on “Click-and-mortar”
principles of Electronic business.
As part
of self-service, customers will have option to choice the food products online
and then make payment directly. Both
online and offline personal assistance with regards to inquiry of products will
also be available. However, online version of customer services through live
chat and telephone will be available only during the store opening hour i.e,
Monday to Saturday from 9:00 AM to 22:00 PM. Other than that the customer can
either send direct e-mail or place an order directly from the store website,
which will be process on the next opening day.
The
store will make sure to send a sample test product for new customers if needed.
Quality service for customers will be
the main highlight of the store. English, Norwegian, Burmese, Indian (Hindi),
and Chin language from Myanmar would also be use as medium of communication to
the customers. This would certainly minimize language barrier as the business
ideas developer Robert Haungo is good in speaking those different languages.
4) Channels
- The
store website www.onlineasianfoodscom.wordpresss.com will be a basic tool to connect and
advertise the Asian Foods from the store. Customers will have an option to
place order directly through the website or make inquiry of products through
telephone. In addition, Facebook and group mail will be operated and actively
use to attract more customers.
“Norway
Post” will be the channels use for home delivery for those who had placed order
through the store website from a distant place. However, the owner of the store
will make sure to drive and deliver if a big order is received than use postal
service. This delivery method would be use in exceptional cases. For example: When a person from Oppdal make a
big order then it would be better to personally make home delivery. In that
case, it would also be possible to make additional delivery to
Frei, Tingvoll, Sundalsøra etc because these small towns are located on
the way to Oppdal.
5) Key partners
- Priority
will be given to directly connect with the Asian food vendors from Myanmar.
That’s because Norwegian governments have agreement to reduce import tax from
Myanmar as the country is regarded as under developed. The store would also
have partnership with Asian foods supplier from Oslo in case of urgent needs.
The
store would try to establish good contact with similar stores throughout Norway
if there is any. Community base customers would be emphasis. Individual
bloggers, Facebook group, local Newspapers, Radio & TV would be use as
often as possible to introduce the store and it products to a larger audience.
6) Activities
- As to
establish good contact with Asian food vendors the store owner Robert Haungo
would travel to Asian countries like Myanmar, India, China, Japan, Thailand,
Vietnam etc. After gathering all the necessary information about different
vendors and dry food products availabilities from Asia, the owner would then
make inquiry about direct import opportunities to Kristiansund. A good
logistics solution will make sure the continue flow of dry food packages from
the vendors to the store and from the store to customers.
The
second step will be to register the store with Brønnøysund registration. Only after
completing official registration of the store, the “Online Asian Foods” webpage
would be built. The store webpage would not requires to be so advanced but expert
web builder would be hired just to make sure that customer can choice the right
food products and make payment smoothly. That’s for online part of the store.
Then the
third step is to obtain attractive location where the customer can purchase
Asian foods in person. The store would make sure to rent a place at Amfi
Faktura, Storkaia brygge that is located in central Kristiansund. This well-known
locality would definitely help the store to have a better contact with larger
customers.
Finally,
marketing and advertisement will play a very important role. The store will make
sure to sale quality food at a reasonable price to attract customer. This would
imply that the cost of all activities, such as procurement, warehousing,
transport & logistics etc. should be minimize so that the end product that
is the actual dry food packages be affordable to customer.
7) Resources
The
first part is human resources. A very qualify human resources would certainly
be the most important resource in delivering value proposition of the store. The
success of the store would depends on the main resource person communication
and transport networking skills. That’s because the store would be base on
importing products from Asia and then sale them to customers in Møre &
Romsdal county.
The
second part is material resources. Delicious and easy to prepare, high quality
Asian food products will be the first and most important material resources
without which the store can’t be run. A discount sale would be make if the
store have difficulties in sale of products before products best use periods.
The
third part of resource requirement will relates to management of products. A
place for warehousing of the imported products, car for transportation, landline
phone, smart phones, computers, internet, website for the store, a well-known
locality for renting the store which has a good electricity and water
connections, good lighting system for the products, shelves, tables, chairs,
cleaning materials, refrigerator, etc. would then be needed.
8) Cost structure
The
estimated budget for running the “Online Asian Foods” is estimated to be one
million Norwegian Kroner. The store will need that sum of money as startup
capital. It may takes minimum two or three year for the store to be beneficial.
As it
will be a family store runs by the owner and his family, the salaries cost for
employees, some activities and resources cost will not be calculate in the
budget. That is because the owner is going to invest those expenses. This means
the cost structure will be accounted for things that the store actually need to
spend for running the business.
The store
will use fixed cost & variable cost in calculating total expenditures. The
estimated cost structure for the store can be divide in smaller units as
follow:
Fixed costs:
|
Quantity
|
NOK
|
Brønnøysund
registration per year
|
1
|
6 000,-
|
Additional
customer service provider per year
|
1
|
30 000,-
|
Apartment
renting cost for store per month
|
1
|
10 000,-
|
Website
maintaining cost per year
|
1
|
10 000,-
|
Warehousing
cost per year
|
1
|
100 000,-
|
Shelves
|
4
|
20 000,-
|
Tables
|
2
|
2
000,-
|
Chairs
|
4
|
2 000,-
|
Cleaning
materials
|
3
|
1 000,-
|
Samsung
RS7567THCWW refrigerator
|
1
|
9 990,-
|
Lighting
system for the store
|
4
|
3 000,-
|
Used
transport car (Iveco ML75E184,0 177HK)
|
1
|
149 000,-
|
IMAC 21.5" MK142H/A AIO
(Desktop Computer)
|
1
|
12 490,-
|
EPSON
XP-750 Multifunction printer
|
1
|
1
699,-
|
Huawei Mate 8 with dual-Sim, 6” screen
(Iphone)
|
1
|
5
690,-
|
Total fixed costs
|
-
|
362 869,-
|
Variable costs:
|
Quantity
|
NOK
|
The
administrator travel cost to Asian countries
|
2
round trips
|
20 000,-
|
Variety
of Asian dry foods packages investment cost
|
3000
packages
|
400 000,-
|
Goods
transport cost between Asia & Norway per year
|
3
round trips
|
30 000,-
|
Goods
transport within Kristiansund & Møre og Romsdal
|
3000 x
12
|
36 000,-
|
Products
packages cost per year
|
2500 x
12
|
30 000,-
|
Electric
bills per year
|
2000 x
12
|
24 000,-
|
Various
advertisements cost per year
|
1000 x
12
|
12 000,-
|
Internet
& mobile connection fee per year
|
549 x 12
|
6 588,-
|
Insurance
cost for the store & materials per year
|
1000 x
12
|
12 000,-
|
Total variable costs
|
-
|
570 588,-
|
Thus:
Total fixed costs 362
869,-
Total
variable costs 570
588,-
Estimated total fixed & variable cost 933 457,-
9) Revenue stream
The
store will makes income mainly from sales of physical products in Møre &
Romsdal county. That’s by sales of dry food packages from Asia. The store will
makes relatively good profit since the store will be directly importing
products from Asian vendors.
Then it
will go on in collaborating with other stores so that it may able to takes
commission. This mean if the “Asian Online Foods” goes short of some products
then the store will make arrangements to get those products to customers from
other stores. These activities may not generate a lot of income but
prioritizing and providing customers need is important.
After
two or three year the store will be well known to a lot of customers. It may be
interesting for other online companies to come and advertise their products
through the “Asian Online Foods” website and network. The store will be then
accepting such advertisements as to generate extra income. It is important for
the store to be known to customer at a larger level.
Task 2: The Balanced
Scorecard
A success of business is greatly depends on how
well the balanced scorecard is handle by the company. Check and balance is
important. Below are the main objectives of the “Online Asian Foods” which are
follow by the four major components the balanced scorecard known as: 1)
Customer issues, 2) Internal efficiency measures, 3) Financial, and 4)
Innovation.
Objective of the
“Online Asian Foods”
- The store will serves as the one that
provides high quality Asian foods to those who are residing in Møre og Romsdal
county. The customers will have the option to buy those products online or in
person at the store located in Krisitiansund. The store will try to serves
minimum 10000 customers after two or three year of starting the business. This
will increase after the store is better known to lager customers. More
customers mean more revenue stream for the store and more quality Asian foods
for those who like to have them at home.
By stating the above objectives the store has
specific covering areas for customers, i.e. those who are residing in Møre
& Romsdal county, the number of customer serve can be measurable, action
can be taken according to the targeted customers, it’s relevant foods supply
system for those who love Asian foods and then it has certain timeframe i.e.
two to three year in achieving the targeted objectives and eventually increase
the performance.
Four major components
of the objective
1) Customers issues
- Customer
satisfaction will be the first priority of the store. To understand and serve the customer better
the store will open “customer feedback” mail box both for online and offline
customer. This would enable the customers to have free choice of commenting
whatever they may feel about the store.
Customer rating system for delivery time, quality of foods, prices of
the food, variety of food choice, quality of customer services etc. will be
developed after one year of getting open feedback and trying to improve on
those open comments from the customer.
The
store will systematically work to reach customer at larger level. As a result
of this plan, aim would be made to reach extra customer each year. Measurement
would be made on which medium of communications are most effective in reaching
the customer. If group mail on Facebook is effective then the store will work
more on it. And make a target to serve at least 2000 extra customer each year.
This would imply that by five year, the store would certainly be well known to
most of the customer in Møre & Romsdal county.
2) Internal efficiency measures
- The
store will makes sure to have efficient flow of food supply directly from the
vendors. This may not be easy until and unless the store has a good networking
system. That’s the main reason why the owner himself will be traveling to those
Asian countries and establish good contact with the actual vendors.
Value
stream mapping for information and flow of the products will be taken
carefully. By this way, the store will able to update immediately if problems
should arise in transport. Alternative option of getting products from
the other stores and vendors will be made as to ensure good delivering system
for covering customer needs.
Zero
tolerance policy for none delivery of order products would be the target of the
store. This policy will ensure that the customer get what they pay for at the
right time and at the right place.
3) Financial
- The
financial target of the store is to increase the revenue by 25% in 12 months.
This may seem uneasy to reach but financial target is of course flexible. By
having such target, only by then, the success of store can be measure.
To
achieve the target allocating budget to support business is important. No extra
credit would be taken if until and unless that can create profitable income in
a short period of time. To achieve efficient financing system, the store will
start up the business only with those products which will generate immediate
income.
The
store will work on to balance the budget. This means the store will not be
spending more than the income that the store will be generating with startup
capital within two or three year. This literally means a careful decision will
be taken for extra investment.
The
store will work hard on maintaining good warehousing system, which will check
up and prioritize the products according to the demand of customers. The store
will use local newspaper, radio and social media like Facebook, individual
bloggers as to promote the products. In this way, the store will able to hold
the capital, balance the budget and at the same time make some profits.
4) Innovation
- The
store will look forward to use the most innovative logistics solution as to
provide the best products to customer at reasonable cost. This means the store
will gives great emphasis on both information and material flow by using the
latest technology.
A good
payment system would be developed on the website. This will enable the customer
to make payment online. The encrypted technology system will be use so that the
customer will feel safe to make payment online.
The
store website will be updated frequently and good transport system in
delivering customer order will be set up. The most innovative payment terminal
will be made available for all customers.
Delivery products to customer at the right
time, right place, and right quality with right price will be achieved by
innovative logistics solution of the store.
References:
1) Lecture notes & assignment from Mweiumo, Edward Deodat (2016), Molde
University College, Specialize in Logistics.
2) Chaffey, D (2014). Digital Business and E-Commerce
Management: Strategy, Implementation and practice. 6/E. Pearson.
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