Business Proposal and Reflection

Assessment 2
Executive Summary
ISUZU is a Japanese company, manufacturing commercial vehicles and diesel engines.
This business proposal details about the new business proposal of ISUZU to increase customer
satisfaction in terms of service quality. It has been observed that the customers of the company
are facing issues related to long term protection of vehicles. Especially, they are facing issues
related to road side assistance. Thus the main idea of this business proposal is that the company
can provide this road side assistance facility for life time. The main resource of making money as
per this supply chain model will be the customers. The company will charge some extra amount
from the customers at the time of the purchase of the product. The company will provide them
assistance whenever required with that amount through third party dealers. With the use of
various marketing tools such as CRM, SAAS, business agile tools, text analyses, click cracking
and social media the company will remain in touch with the customer to know about the
feedback of the idea. This business venture will help the company to be at top among all
competitors.

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Contents
Executive Summary.....................................................................................................................................1
1. Introduction.............................................................................................................................................3
2. Business model description.....................................................................................................................3
3. Value proposition development..............................................................................................................5
4. Business operations development...........................................................................................................5
5. Supply chain development......................................................................................................................6
6. Financial value capture............................................................................................................................6
7. Competitive advantage............................................................................................................................7
8. Strategic fit..............................................................................................................................................7
9. Uncertainty related to customer desirability, technical feasibility and financial viability........................7
10. Conclusion.............................................................................................................................................9
11. References...........................................................................................................................................10

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1. Introduction
Every business model is established by the firms to create value for the customers and to
generate maximum value from that return. Thus the main components of business models are
value proposition of firms for customers, stakeholders and partners of the business and
requirement of processes and resources to deliver this value to the customers. A good business
proposal reflects how the business plan will solve the problem of the customers. This business
proposal details about the new business proposal for ISUZU which is a Japanese company,
manufacturing commercial vehicles and diesel engines. This report contains detailed analyses of
business proposal by throwing light on the business model description, value proposition
development, business operation development, supply chain development, competitive
advantage, financial value capture, strategic fit and solution to the uncertainties related to
customer desirability, technical feasibility and financial viability.

2. Business model description

From the detailed study of reports of the company, it has been observed that the
customers of the company are facing issues related to long term protection of vehicles.
Especially, they are facing issues related to road side assistance [ CITATION Fla18 \l 1033 ]. Thus
the main idea of this business proposal is that the company can provide this road side assistance
facility for life time. The customers will have to pay a small amount of charges at the time of
purchase of vehicle. The company can use that money to contact with the third party dealers for
this road side assistance in every city [ CITATION AOs14 \l 1033 ] . It will create value for the
customers. The following components describes about the business model in detail.

 Key Partners: The main partners of this business model will be the consumers, all
internal and external stakeholders and third party dealers who will provide the services.
Partnership with third party dealers will help the company to provide easy road side
assistance to the customers in every city [ CITATION Pas10 \l 1033 ].

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 Consumers To provide easy To provide To maintain All the
road side protection of long term customer
Stakeholders assistance to the vehicles in case relationship using vehicles
customers of emergency, with the of ISUZU
Third party especially to customers
focus on
dealers providing long
term road side
assistance to
Customers Customers
the customers
Third party Retailer
dealers to
provide services Third party
dealer

No extra cost. The company will cover all the cost The revenue of the company will increase as
from a small amount of extra charge at the time of per the increase in sale of the vehicles of
sale of product company

 Key activities: The main activities as per this business proposal will be to provide long
term protection of vehicles to the customers. The company would contact with third party
dealers to provide life time road side assistance to the customers in case of any
emergency.
 Key resources: The key resources for this new idea will be the customers who will pay a
onetime small amount at the time of purchase and the third party dealers who will
provide services to the customers in case of emergency [ CITATION Sch19 \l 1033 ].
 Value proposition: The main value proposition of this idea is to provide protection of
vehicles in case of emergency, especially to focus on providing long term road side
assistance to the customers.
 Customer relationship: This idea will help the company to maintain a long term
relationship with the customers because most of the customers complain about the
problem of road side assistance [ CITATION Sre14 \l 1033 ].
 Channels: The customers will have to register their request with the company. The
company will immediately contact the third party dealer and they will provide the quick
services to the customers as and when required.

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  Customer segment: The targeted customer segment for this business proposal will be all
the customers using the vehicles of the company.
 Cost Structure: All the cost of this life time road side assistance will be covered through
a small amount of extra charges at the time of purchase of product. The company will
charge this amount from every customer but all the customers will not demand for road
side assistance at the same time [ CITATION Tan19 \l 1033 ]. Thus the company will be able
to use that money for hiring third party dealers to solve the problem of the customers.
 Revenue stream: This idea will increase the sales of the vehicles of company and the
revenue of the company will also increase with every sale of vehicle.

3. Value proposition development

Through value proposition, the company can maintain long term relations with the
customers and can attract new customers. The development of value proposition consists of
requirement of new resources and capabilities for the innovation of new services. Customers,
stakeholders and third party dealers will be the main resources of ISUZU for creating this new
value proposition. The main idea is to provide life time road side assistance to the customers
without charging any cost [ CITATION Tel19 \l 1033 ] . The company can charge a small amount at
the time of purchase of product and can make a budget to contact with third party dealers in
every city. It is obvious that all the customers will not ask for road side assistance. But this
service provided by the company will help in creating value for all the customers.

4. Business operations development

For this new business operation, the company needs to measure the scalability of the
business. The company can follow the step by step procedure to measure the scale of the
business and to know about the requirement of resources and capabilities to complete the
business operations. The first step to measure the scale of the business is to evaluate and plan.
The company should evaluate the existing sales and revenue of the company so that total
expenditure and total revenue with the introduction of this new business operation can be
estimated. The second step is to explore the resources to finance this business operation. The
company will not have to bear any extra cost [ CITATION Wad19 \l 1033 ].

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 The company can easily provide these services to the customer by collecting an extra
small amount at the time of purchase of product. The third step is to market for this new value
proposition. The company will have to plan for proper marketing process to attract the
customers. The company can use technology to make people aware about this new business
operation [ CITATION AOs10 \l 1033 ]. Online advertisements can help a lot in the development of
this business operation. The last step of measuring the scalability of the business is to
strategically outsourcing the business operations. The employees of the company can help a lot
in outsourcing of the business operations.

5. Supply chain development

The company can create an efficient supply chain development model with the help of its
existing business partners. For this new business operation, the company needs support from
customers, stakeholders and employees of the company. Thus the company will have to make an
overview of the company before taking decision regarding this new operational development
[ CITATION BAu17 \l 1033 ]. The company can have estimate about annual total revenue and total
expenditure by analyzing the data of the previous years. The research background of the
company will be helpful to identify the determinants of varying revenue and expenditure. The
company also needs to analyse the social, economic, cultural and political aspects of this
business venture before creating this new supply chain model.

6. Financial value capture

The main resource of making money as per this supply chain model will be the
customers. The company will charge some extra amount from the customers at the time of the
purchase of the product. The company will provide them assistance whenever required with that
amount through third party dealers [ CITATION Erk18 \l 1033 ] . But it is obvious that all the
customers will not demand for such services at the same time. It may be possible that the
customers do not need this service at all. Thus it will increase the benefits of the company. Thus
the extra cost bear by the company will be covered from the amount paid by the customers
[ CITATION Gol17 \l 1033 ].

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7. Competitive advantage
The major competitors of the company are Volvo, Ford, Daimler and Volkswagen. All
these companies are providing emergency protection as well as road side assistance to the
customers but their services are for limited period. Later on the customers need to pay for it
again [ CITATION Kry19 \l 1033 ]. Thus the customers remain dissatisfied in case of requirement of
emergency protection. That is why this business proposal is based on the core capability of
providing life-time road side assistance through third party dealers in every city. It will help the
company to be favorite choice of customers among all competitors by providing this unique
benefit of life-time road side assistance.

8. Strategic fit
ISUZU has won the award of “Best of the Best” in 2018 for high customer satisfaction in
case of product quality. Customer satisfaction is the key factor which is continuously promoting
the sales of the company. It reflects that in case of product quality and durability, the company
has already won the hearts of the customers [ CITATION Lam17 \l 1033 ] . By adding this new
business venture, the company can become a top name among the list of its competitors. Thus we
can say that this idea is compatible with the parent organization.

9. Uncertainty related to customer desirability, technical feasibility and

financial viability
In every innovation process, desirability, feasibility and viability play an important role.
These three factors assure for the successful completion of this business venture and satisfaction
of customers. Feasibility refers to reduction in cost and maximum revenue. Technical feasibility
refers to provision of on the time road time assistance to the customers in effective and efficient
manner and desirability refers to provision of services as per desire of customers. Financial
viability refers to increased profit of the company by introducing this new business venture
[ CITATION Pal18 \l 1033 ].

Argumentation to support the use of tools and techniques

The main target of the company behind every new innovation is the satisfaction of the
customers. Thus it becomes essential for the company to use appropriate tools and techniques to
measure customer satisfaction [ CITATION Men15 \l 1033 ].
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 Various companies use SAAS platform to appoint third party to get their work done
[ CITATION Rum13 \l 1033 ]. Social media platform can help the companies to get the accurate data
regarding satisfaction of the customers [ CITATION Sin19 \l 1033 ]. Through business agile tools
companies can measure the intelligence level of customers [ CITATION Wan19 \l 1033 ]. Mobile
apps can also help to assess the customer intelligence for estimating the success of the project of
the company[ CITATION Dur15 \l 1033 ].

Application of tools and techniques

 ISUZU can use CRM tool to maintain effective relationship with the customers.
 The company can assess the traffic on the website of the company through click cracking
tools.
 Through text analyses, the company can provide facility of filing complaints and
suggestions to the customers.
 Mobile applications can make the process of customer feedback easy.
 SAAS can help to get the work done through third party.
 Through business agile tools, the company can have access to real time customer
intelligence.
 The company can convert the voice messages of the customers into text through speech
analytic tool.
 Social media platform can also play an important role in getting the feedback of the
customers.

Reflection

This business proposal has helped me to assess the knowledge about practical application
of marketing tools and techniques. Previously I studied everything theoretically. I was very weak
in practical implementation of these tools and techniques. But this task has increased my
knowledge regarding business models and its components. Now I am strong enough to create
business proposal for any company. The problem identification part has increased my knowledge
about various companies, their business models and their working process. In short, this business
proposal has improved my practical knowledge about marketing concepts.

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10. Conclusion
To conclude, this innovative idea can help the company in attaining the top position in
the market. The company has already won the award of “Best of the Best” in 2018 in terms of
customer satisfaction for product quality. The only need is to focus on the service quality aspect.
This business venture will help the company to be at top among all competitors.

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