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ENT530 PRINCIPLES OF ENTREPRENEURSHIP

UNIVERSITI TEKNOLOGI MARA


MALAYSIA FAKULTI PENGURUSAN
PERNIAGAAN

BUSINESS MODEL CANVA

PRINCIPLES OF ENTREPRENEURSHIP (ENT530): BUSINESS MODEL CANVA

FACULTY : BA – FACULTY OF BUSINESS AND


MANAGEMENT
PROGRAMME : BA242 – BACHELOR OF BUSINESS
ADMINISTRATION (HONS.) FINANCE
SEMESTER :4
NAME : NIK FARINA AZLIN BINTI OMAR
GROUP : BA242 4B
LECTURER : HASNUN ANIP BIN BUSTAMAN

SUBMISSION DATE
3rd DECEMBER 2020
ENT530 PRINCIPLES OF ENTREPRENEURSHIP

ACKNOWLEDGEMENT
Bismillahirahmanirahim. In the name of Allah, the almighty ad the merciful, with his
blessings I can complete this business model canvas assignment successfully. I would like to
express my deepest gratitude to several people who are helping me achieve this business model
canvas assignment as well as it is. Throughout this whole semester, we have been briefing on
this task, and what we need to learn and do. First, I would love to show my thankfulness to Sir
Hasnun Anip bin Bustaman for giving guidance to me. Without proper guidance by an
educator, this task will become complicated to finish. I also thank Universiti Teknologi Mara
(UiTM) Kota Bharu for allowing us to learn Principles of Entrepreneurship for this semester.

This subject has helped me to expand my knowledge and understanding that is useful
in my future. Besides that, I want to praise many people especially my friends who promote
my business to their family and friends. Without contributions from all of them, none of this is
would be possible.

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TABLE OF CONTENTS
TITLE PAGE .............................................................................................................................. i
ACKNOWLEDGEMENT ....................................................................................................... ii

TABLE OF CONTENT ............................................................................................................iii


LIST OF FIGURES .................................................................................................................. iv
LIST OF TABLE ...................................................................................................................... iv
EXECUTIVE SUMMARY ..................................................................................................... v

1.0 INTRODUCTION.............................................................................................................. 1

1.1 COMPANY BACKGROUND ..................................................................................... 1

1.2 PROBLEM STATEMENT ............................................................................................... 2

1.3 SWOT ANALYSIS ............................................................................................................ 3

1.3.1 SWOT ANALYSIS (FLOWER CHIP) ..................................................................... 4

1.3.2 SWOT ANALYSIS (PURE SEED) ......................................................................... 5


1.4 OPPORTUNITY RECOGNITION .................................................................................. 6
1.5 PURPOSES OF BUSINESS MODEL CANVAS PREPARATION .............................. 7
2.0 BUSINESS PROPOSAL ................................................................................................... 8
2.1 BUSINESS MODEL CANVAS (BMC) .......................................................................... 8
2.2 DETAILS OF BMC ........................................................................................................... 9
2.2.1 CUSTOMER SEGMENTS................................................................................... 9
2.2.2 CUSTOMER RELATIONSHIPS ....................................................................... 10
2.2.3 CHANNELS ....................................................................................................... 10
2.2.4 VALUE PROPOSITIONS .................................................................................. 11
2.2.5 KEY ACTIVITIES ............................................................................................. 11
2.2.6 KEY RESOURCES ............................................................................................ 12
2.2.7 KEY PARTNERS ............................................................................................... 12
2.2.8 COST STRUCTURE .......................................................................................... 13
2.2.9 REVENUE STREAMS ...................................................................................... 13
3.0 CONCLUSION ................................................................................................................ 14
4.0 APPENDICES .............................................................................................................15-21

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ENT530 PRINCIPLES OF ENTREPRENEURSHIP

LIST OF FIGURES
Figure 1: Logo of Flore by Nf.................................................................................................... 1
Figure 2: Income Statement Flore Sdn Bhd ............................................................................. 15

Figure 3: Balance Sheet Flore Sdn Bhd ................................................................................... 15


Figure 4: Company’s Layout ................................................................................................... 16
Figure 5: Flore’s Product ......................................................................................................... 17
Figure 6: Bouquet’s Customization ......................................................................................... 18

Figure 7: Facility Requirements............................................................................................... 29

Figure 8: Turnitin Result .......................................................................................................... 20

Figure 9: Declaration Form ...................................................................................................... 21

LIST OF TABLES
Table 1: Swot Analysis For Flower Chimp Sdn Bhd ................................................................ 5

Table 2: Swot Analysis For Pure Seed Sdn Bhd........................................................................ 6

Table 3: Business Canva Model (Bmc) ..................................................................................... 9

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EXECUTIVE SUMMARY

Flore is a business which incorporated in 2018 which founded by Nik Farina Azlin binti
Omar that delivers flowers fresh ready stock and custom made bouquet. Flore offers a variety
types of flowers to choose from such as roses, lily, sunflower, baby breath, tulip and many
more. The main product sold by Flore are fresh cut flowers and flower bouquet. The aim of our
company is to provide immense amount of satisfaction towards our customers.

Since Flore is operating online and offline our target market is nationwide and for mass
customer. Specifically, it may focuses more on corporate company, bridal, holidays, birthdays,
and anniversaries. Mostly these people purchase flowers to convey messages. Moreover, one
of the competitive advantages of Flore is by providing both of the services in producing ready
stock fresh cut flowers and custom made bouquet flowers to the customers. Flore also offer
affordable price towards the customers so they won’t feel hesitate to purchase. Unlike other
competitors, our company use high quality of fresh flowers.

Lastly, Flore consist of one administrative manager, marketing manager and a florist
designer in running our business. Nik Farina Azlin binti Omar as owner and florist designer,
Achmad Syahfi-Qal as Marketing Manager and Husna Sofia binti Abdul Rahman as
Administrative Manager.

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1.0 INTRODUCTION

1.1 COMPANY BACKGROUND

Figure 1: Logo flore. BY NF

My company name is "flore" which it's bloom in Latin. Bloom also represents the state
of the flowers. On top of that, bloom also defines a form of beauty and freshness. We choose
this to show that we only sell fresh flowers. The earth tone color on the logo's background is
used to express calmness, serenity, and contentment for customers to feels whenever the
customers support our business. To be the number one store that provides fresh flowers in
Malaysia is our vision, and the mission is to ensure that people can get the highest quality of
flowers at an affordable price. Our company's goals are to expand our business by opening new
branches.

Flore Sdn Bhd is a sole proprietorship type of business founded by Nik Farina Azlin in
2018. Nik Farina had an experience in working with a nursery for two years in Shah Alam. She
discovered an inner love for flowers and took this opportunity to open her nursery since it is
hard to find fresh flowers around Selangor. All of her flowers are ready stock and can be
delivered immediately after purchase. This is because the business was conducted as an online
and offline business through social media platforms and other channels.

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1.2 PROBLEM STATEMENT

Flowers are extensively used in human lives to fulfill those purposes: certain people
use flowers as interior decorating and help lift our moods. Thus, it illustrates that flowers can
be used for different reasons based on each person's needs and preferences. Many of the target
customers will use for event decorations, such as weddings and business events, and may
request their fresh flowers' customization. At the same time, most people would like to get fully
prepared flowers with a simple pattern.

Next, it will cause challenges for clients who have particular preferences and locate
a shop that caters to all of these categories. People find it hard to buy fresh flowers at a
reasonable price, as fresh flowers are very pricey.

As a result, flore would have all the clients' services, making it easy and simpler for
them to shop. Not only can it be personalized or ready for stock, but it is sold at a reasonable
price. Besides that, it doesn't take a very long production time to hit the end customers
effectively. These flowers are freshest in quality.

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1.3 SWOT ANALYSIS

SWOT Analysis is a valuable technique for an agency or enterprise to measure and


examine their market results. SWOT is the term for Strengths, Weaknesses, Opportunities, and
Threats. This analysis was introduced in the 1960s by Albert Humphrey. By performing the
SWOT review, the manager will recognize and clarify the strengths, weaknesses, opportunities,
and threats of the company. An excellent company will build its strengths and improvise on its
weaknesses. It will be a recommendation for businesses to compare and observe the pros and
cons of their business. Therefore, SWOT analysis allows companies to make contingency
management, define an organization's key strengths, and consider past, current, and future
strategies using history and up-to-date data.
Moreover, there will be 2 SWOT analysis that will be carried out, which is for
competitors that are in the same industry and have similar main products with flore. The first
competitor would be Flower Chimp, producing unique designs, while the second competitor
would be Pure Seed that produces fresh flowers.

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1.3.1 SWOT Analysis (Flower Chimp)


STRENGTHS WEAKNESSES

 Well-established  Limited designs


 Unique designs  Does not take custom-made orders
 Available in 4 country
OPPORTUNITIES THREATS

 Attract customers from another  Expensive


country
 Expand their business to other
countries
Table 1: SWOT Analysis for Flower Chimp Sdn. Bhd

Flower Chimp Sdn. Bhd is a Malaysian flower delivery service founded in 2016 by
Maximilian Lots and Niklas Frassa. Flower Chimp is based in Solaris Dutamas. Flower Chimp
offers flower deliveries in Malaysia and closes in countries like Indonesia, Singapore, and the
Philippines. In December 2018, Flower Chimp came out with a new design: live Christmas
trees online. Christmas is just a few days away, and for those who haven't got any Christmas
tree or want a different kind of firs, you guys can give a live fir tree a try. According to Niklas
Frassa, the live fir trees are very different from the plastic ones. Flower Chimp's success in
selling unique designs.

Subsequently, the weakness of Flower Chimp Sdn. Bhd is the limited design they
produced. As well as not taking custom-made orders, the company only focuses on making
designs only on one theme. Besides, Flower Chimp has an ample opportunity to attract
customers from other countries. They could also expand their business to other
countries by promoting the uniqueness of their design. Lastly, this company's threat is that the
price offered by the company is quite expensive, starting from RM600-RM1000.

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1.3.2 SWOT Analysis (Pure Seed)


STRENGTHS WEAKNESSES

 Open for custom-made orders only  Expensive


 Knowledgeable and skilled  Minimum 50 orders
employees
 Well-established
 Fresh flowers
OPPORTUNITIES THREATS

 Attracts large companies and  No production when there is no


organizations demand
 Operational risk

Table 2: SWOT Analysis for Pure Seed Sdn. Bhd

Pure Seed Sdn. Bhd is founded in May 1998 and specialized in customization service
based in Subang. The company only provide custom made orders only from customers.
Moreover, Pure Seed is providing mass introduction because they have knowledgeable and
skilled employees in the business. This lead to efficient mass production with fewer errors
and mistakes made—meanwhile, the first weakness of Pure Seed Sdn. Bhd is the customers
need to purchase in bulk quantities, which most of them don’t need that much of flowers.
Moreover, the minimum order for the flowers is 50, and the price is pricey.
The opportunities for Pure Seed is it may attract large companies and organizations to
collaborate more with their custom made order since it is made to produce in a bulk quantity.
Lastly, when a company stimulates mass production, there is a possibility of having high
operational risk. Thus, this could lead to the company being unable to deliver the product and
meet its expectations promptly. Moreover, since the company is only open to customer orders,
they will only make production when there is demand. Therefore, this is a threat for them since
they would lose many customers who wanted readystock fresh flowers.

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1.4 OPPORTUNITY RECOGNITION


Based on the SWOT Analysis for both rivals, I have observed that both businesses
do not completely satisfy their requirements. Flower Chimp Sdn. Bhd only generates a
minimal design, whereas Pure Seed Sdn. Bhd only gives custom orders. It fails to recognize
two categories of buyers, of which the first group needs to widen ready-made flowers, while
the second group wants custom-made flowers. To provide both offerings in a business, I think
this is an excellent opportunity for Flore to sell both types of products in my business. I offered
ready stock and custom-made flowers for every occasion. There will be varieties of the kinds
of fresh flowers that customers can choose. Therefore, it would be convenient for customers to
shop for all types of flowers, and they also can have various options in selecting the right
flowers according to their moods and needs.
By having offline store already benefits the company with gaining more customers
visiting the store and purchasing the items, but the online store is also essential as it helps the
company to attract more customers through various platforms. Next, online shopping is more
convenient and cheaper than in-store. For customers who prefer online shopping they can
purchase our flowers via social media and website. Besides, they can quickly get new
information and get to shop 24 hours. Moreover, by having offline store it will ease the
customer purchasing and the customer will instantly get gratification. When buyers purchase
flowers in store, they can choose exactly what they need and no waiting required. With the
Internet's aid, Flore will use social media to reach customers, such as Facebook and Instagram.
Therefore, both online and offline stores are beneficial to the company Thus, Flore will operate
online and offline, which can attract all types of customers at any location to order and purchase
our flowers.
Furthermore, Flower Chimp and Pure Seed Sdn. Bhd. are both selling their products at
an expensive price ranges from RM30-80 per bunch. Flore will sell at an affordable price, but
the quality of the flowers is also in high-quality conditions. Therefore, my company aims to
serve the best quality of flowers with both ready stock and custom-made services at an
affordable price to customers and meet the customers' expectations and satisfaction.

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1.5 PURPOSES OF BUSINESS MODEL CANVAS PREPATION


Business model canvas is a business technique used to imagine key building blocks before
beginning a business, including clients, the path to market, value proposition, and financing.
Business model canvas is also known as BMC, a system that describes how a business works
(Business Model Canvas Explained, 2020).
This canvas consists of nine different components: customer segment, customer
relationship, channels, value proposition, key activities, key partners, key resources, cost
structure, and revenue streams. It was founded in 1974 by Alexander Osterwalder. As a result,
this business model canvas is commonly used as a guide to support emerging entrants in the
business field.
The purpose of the planning of a business model canvas is as a development strategy
of an enterprise that is required to measure the efficacy of such a company's activity.
Before pursuing the business market, we need to know if our business can satisfy the customer's
demand and our business objectives. As a result, we can identify our target market by consumer
segments, which will address the customer's challenges and deliver successful products to suit
their needs. Next, it is also a guide for setting, organizing, handling, managing, and
monitoring our company for day-to-day management, budgeting, financial forecasts,
plans, and long-term goals. It will also help in generating more opportunities and recognize
the inside and the outside of the market. It will also help us handle the key activities to run the
company at peace and make the business more manageable and more effective.
Besides, the purpose of designing the business model canvas is to improve any flaws
that occur by contrasting the firm's current results with its master plan. It is crucial to
monitor whether all the circumstance is beneficial or detrimental. This might deter us from
taking such an unacceptable action that would result in failure or hardship. Therefore it will
lead the company to become more cohesive and well run. Finally, to show the business's
financial strength, particularly when applying for loans, and to persuade the lender to provide
funds or other financial institutions. This could allow the company to boost its financial results
by solely monitoring the business's financial operations.

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2.0 BUSINESS PROPOSAL


2.1 BUSINESS MODEL CANVAS (BMC)

Table 3: Business Canvas Model Diagram

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2.2 DETAILS OF BMC


2.2.1 CUSTOMER SEGMENTS
Customer segments are essential to the organization's business model, and the key is to
ensure that the functionality of the product is matched with the characteristics and preferences
of the segment. To efficiently segment the consumer, we must better consider who and what
sort of customer meets the latest product delivered by both current and potential needs. The
company should also evaluate and review its company by understanding its strengths and
disadvantages and reflecting on the target market and any other customers who might draw and
benefit from the product. This will allow the company to identify better and appreciate its
clients and have a strategic marketing strategy for its target consumers.

For Flore, the target client or demographic is the plurality for people who have always
desired a sign of love, calmness, serenity, and contentment. Most of all, Bridal will use fresh
flowers as a token of devotion. New flowers look and sound richer than artificial flowers. New
flowers have a fragrance about them that will make the room feel fresh and uplift the mood.
Next, anthomania is extravagant love for flowers. So, they usually purchase flowers to reduce
stress and anxiety. Besides, flowers genuinely create happiness. Since our business runs online
and offline, it would reach everywhere since there is no limit on a particular area for online
shopping. But for offline shopping there will be particular locations.

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2.2.2 CUSTOMER RELATIONSHIPS


A business must ensure that the relationship formed with its customer is well taken care
of to enable them to make frequent transactions and create loyalty to their brand. The
entrepreneur must consider what his or her consumers want and need, happiness, or
disappointment with the product so that potential changes can be made to satisfy the customers'
needs. Flore build their customer relationship by providing online customer service, customer
feedback and customer loyalty programme. The company's online customer service is designed
to benefit buyers who may have problems purchasing or buying our flowers. This could help
the customer to feel much more comfortable and well-treated so that they won't feel puzzled or
difficult while making a purchase online. In addition, Flore's customer feedback platform is
designed to provide buyers with comments, reviews and insights into the goods they have
purchased and to enhance their customer experience. Lastly, to develop a better relationship
with the customer, our company offered customer loyalty programme which is membership
card. Any customer that earn our membership card offered as low as RM5 would become a
permanent member and get monthly newsletter, discounts and vouchers.

2.2.3 CHANNELS
Channels are the tools or technologies used by an entrepreneur to distribute goods or
services to buyers. Flore will use online and offline communication to engage with buyers via
social media, website and courier services. For customers who wants to purchase the flowers
or bouquet online platform they can use Facebook and Instagram as a social media site to
decompose products and to approach and engage consumers to make orders or other inquiries.
For example, in order to create a personalized bouquet, the customer would prefer Facebook
to contact us for more details and consultation on the designs. Instagram will be used for
commercial reasons, such as the latest updates and product details. In the meantime the Flore
website is now available for buyers to reach. The layout of the website would be more
functional and accessible for self-purchase buyers. Finally, courier systems are used as a way
of distributing the goods ordered to consumers. J&T Express is the parcel delivery business
used.

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2.2.4 VALUE PROPOSITIONS


The goal of Flore is to solve consumers' dilemma who can buy both custom and ready-
to-wear flowers in one store. As a result, our company offers and serves all buyer options,
readily available, and personalized bouquets. Ready stock of fresh flowers is available and
ready to purchase and will offer more than 20 varieties of flowers. Besides, our business only
supplies fresh flowers so that any time our flowers are purchased, we can cherish our buyers'
day. Also, Flore gave the customer a range of flowers to choose from, such as baby breath,
roses, sunflower, lily, tulip, and many more. All the items sold by our company are fresh and
new, worth purchasing for everyone.

2.2.5 KEY ACTIVITIES


Key business activities are what the company should do to ensure that the business
model achieves its objectives and succeeds. For Flore, our company focuses on marketing,
administration, designing, and selling custom bouquets to customers. To promote Flore flower,
many research and observations have been made to ensure that our marketing tools are as
efficient and reachable to the target customers. Social media such as Facebook and Instagram
are used to make daily updates and promotional activities to attract buyers. Online advertising
is designed to attract more potential customers and to promote our business to new viewers.
Besides, the planning and management of the entire essential operation is also an important
business process.
Therefore, it is necessary to coordinate administrative procedures and systems and
ensure a smooth and adequate flow of information within the company to keep business
operations at ease. Flore also focuses mainly on the design of custom bouquets requested by
customers and our custom bouquets. This is to encourage customers to purchase our flowers,
which is our business's primary objective to sell a wide range of flower types with many
selections for the buyer could choose from.

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2.2.6 KEY RESOURCES


Key resources are the next component of the business model canvas. Flore's primary
services are workers and facilities tools. Our business consists of two staff, the marketing
manager and the administrative manager. The marketing manager oversees marketing practices
such as tracking daily alerts and web advertising to generate demand for our company's
product. However, our company's florist designer, which is the owner of the company will
concentrate exclusively on making custom designed bouquets for customers. Having an
accomplished and experienced florist designer in our business allows us to produce a trendy
style that meets our customers' needs. Mobile phones, modern computers, printers, printers,
floral equipment, and packing tools are used in our everyday activities. This made our
processes easy to process and saved a lot of time producing the products for customers.

2.2.7 KEY PARTNERS


Key partners are the relationships you have established with other business,
government, or non-consumer entities that help your business model work. By recognizing our
partnership, the entrepreneur can function efficiently smooth as possible as it can reduce risk
and grow our business in the future. Flore's key partners are the supplier and courier Service
Company. MyFresh Flowers of the Sdn. Bhd. is the supplier of fresh flowers to our company.
Myfresh Flowers has more than 20 years of experience in flower handling. They supply locally
and imported fresh cut flowers.
Our company also used J&T express as our courier services company to handle all
delivery services to our customer that purchase flowers online. It helps the delivery process be
faster and more manageable, as everything can be made online, and most of the J&T stores are
available all over Malaysia. This makes it a successful and recommended courier service
company to be used in Malaysia.

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2.2.8 COST STRUCTURE


The cost structure leads to particular categories of expenditures paid by a business,
which usually consists of fixed and variable costs. Each company must have understood its
business's cost structure because it would list all the supplies and equipment needed by the
company. Flore's cost structure consists of marketing expenses, staff compensation, equipment
and supplies, utility costs, store rent and administrative costs. Any of the advertising expenses
borne are printed advertising materials and the expense of running Facebook ads. However,
the machinery and tools cost is all the machines used to manage business activities such as
laptops, smartphones, and flower tools. Packaging can be made of eco-friendly gift wraps,
wrapping paper, and biodegradable cellophane. Also, utility and operating expenses consist of
leases, insurance, legal fees, and electricity bills.

2.2.9 REVENUE STREAMS


The revenue stream is a revenue flow for a business or corporation that usually consists
of on-going revenue or service revenue. Revenue streams in Flore are created by flower
purchases, design fees, and membership fees. The key earnings come from the selling of fresh
flowers, both prepared and custom-made bouquets. Promotions, vouchers, and discounts are
made to motivate and draw potential and current buyers in the repeat purchases to gain more
profits. Also, due to the design's complexity, each design demanded by the customer would
have incurred a certain number of costs. The quotation price will be offered based on the final
design and the number of flowers demanded in the bouquet. Last but not least, subscription
costs are paid as consumers sign up for our membership. To get the latest alerts, sales,
discounts, and exclusive coupons from Flore, consumers can access our membership and enjoy
many perks and rewards. The subscription fee is as low as RM5, with no expiry date that is
good and beneficial to all consumers.

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3.0 CONCLUSION
By completing this business model canvas (BMC) for Flore, I can conclude that I
learned a lot in understanding the importance of running a business and my business's critical
area. As well as gaining more knowledge in entrepreneurship, it helps me organize my business
by acknowledging the opportunities and risks that I might encounter in the future. It helps and
guided me in developing my understanding of handling and running my business more
appropriately.
This business model canvas can be used to produce a business proposal. All of the
information provided can be used to develop a good business plan since we can figure and
analyze the problems, risks, weaknesses, and potential in our business, which can help us
recognize the consequences of every decision making. This business opportunity's main goal
was to develop a strategic management plan and create changes and modifications to improve
Flore to become a successful business in the future.
We will ensure that we will satisfy our customers with excellent service and the quality
of our product. Moreover, we will also try our best to increase and improve our customer
service and quality from time to time. To engaged and meet every customer's wants and needs
are our short-term goals. This will enable us to compete with other companies that produce
custom made bouquet and ready stock fresh cut flowers.
In conclusion, this business opportunity has a large possibility to reach its goals since
the development activities are possible to incarnate with future benefits of the business. It also
makes us realize our business's potential to expand and achieve our goals in the future.

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4.0 APPENDICES

1. COST STRUCTURE

Figure 2: Income Statement Flore Sdn. Bhd

Figure 3: Balance Sheet Flore Sdn. Bhd

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2. COMPANY’S LAYOUT

Figure 4: Company’s Layout

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3. PRODUCTS

Figure 5: Flore’s Products

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4. BOUQUET CUSTOMIZATION

Figure 6: Bouquet’s Customization

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5. FACILITY REQUIREMENTS

Figure 7: Facility Requirements

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6. TURNITIN RESULT

Figure 8: Turnitin Result

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7.0 DECLARATION FORM

Figure 9: Declaration Form

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