A business model describes the rationale of how an enterprise creates, delivers, and captures value. Tom’s Shoes is a for-profit footwear company founded on a socially entrepreneurial idea. The primary principle behind Tom’s Shoes is that for every pair of shoes sold, one pair will be given to a child in need. The business model of Tom Shoes is unique and unlike any other enterprise. Not only does the company offer high quality shoes to its consumers, it also gives them a sense of pride in taking part of a socially conscious process. When an individual purchases a pair of shoes from Tom’s Shoes, a portion of the customer’s money goes to manufacturing and delivering a second pair for a child that otherwise would go without any shoes. Tom’s Shoes serves two distinctive customer segments, the first one being the consumers; the individuals that actually purchase the footwear and the second segment including the recipients of the shoes; the children in need. Generally speaking, the consumer segments served by Tom Shoes can be divided into two categories: people who want to give back and people that are in need. Customer relationships are maintained through the high quality of the product offered and social value provide in the act of giving. Moreover, Tom Shoe’s employs a unique delivery system in which each pair of shoes are hand placed on the feet of each child. This approach also builds and sustains important customer relations. The distribution channels in which the footwear company operates include the Tom’s Shoes website and the delivery process that creates value by ensuring that the shoes end up on the feet of children in true need. Revenue streams for Tom’s Shoes embrace profit, recognition, social value, sustainability, and the satisfaction of giving. The key resources for a venture are the assets required to offer and deliver the key elements of the venture. The key resources for Tom’s Shoes is that of its staff (both in fashion and production), its consumers (those purchasing its shoes and aiding with profits), and those delivering its shoes to the developing nations (transportation). Key activities of a business, whether it is a commercial enterprise or social entrepreneurship, are the actions and processes that, if not performed correctly, will dismantle a venture. The key activities for Tom’s Shoes are production and manufacturing of two shoes when one is purchased. One of the manufactured shoes goes to the consumer purchasing the shoes and the other pair goes to the individual in a developing country that is in need of shoes to protect their feet. Also another key activity for Tom’s Shoes is that of transportation and delivery. Without the transportation and delivery that Tom’s Shoes uses to deliver its shoes, the individuals in need of these shoes will not receive them. Without its production/manufacturing and its transportation/delivery Tom’s Shoes would not be able to operate as a social entrepreneur. The partner network of a venture includes those individuals and companies outside the venture, which offer other resources and abilities to the venture. Key partners for Tom’s Shoes are its staff (both designers and production), its marketing resources, transportation agencies, its services rendered, and the local governments of the developing nations it serves. The cost structure of an enterprise is to determine the cost of what the venture is delivering. The cost structure for Tom’s Shoes is the purchasing of its resources to produce its products, its transportation costs for actually delivering its value, and the cost of a for-profit business. Posted by Catherine Langley and Morgan Vickers
A business model describes the rationale of how an organization creates, delivers and captures value. IKI ( Idara khidmat insani) is a nonprofit organization working for the welfare of women and children in remote areas. The goal of IKI is to provide ground for women where they can be independent to support their kids and provide education to children. The business model of IKI is unique they are not only providing education and vocational training centers, but they are also helping women to establish themselves. IKI is working in those areas of Azad Kashmir, Pakistan, where women are not allowed to work outside the house, vocational training centers have been made in such areas where these women are trained to make carpets, embroidery, stitching and grow indoor vegetables. In these rural areas parents can’t afford to send their kids to school, there is a lot of trend among such families to make kids beg for money and food. IKI was able to open private schools only for such kids, with permission of their parents/ guardians they are made to quit work and join IKI schools where they are paid to take classes. In these cases IKI did not only provide programs but they made sure what is going to attract poor parents as well as help their homes keep running. Key resources are assets required to offer and deliver key elements of venture, in case of IKI there key resources are vocational centers, women and children they are serving, place where they running their school from, the staff which is properly educated to teach children and women. Key activities make the venture work, for IKI their key activities are offering women classes to learn making carpets, embroidery, stitching and indoor vegetables. These are the items which are then sold in the market and the profit goes to students and the funds are recycled. Distribution channels the carpets and the clothes made are sold through exhibitions in big cities. Customer segments (who is being served) IKI is serving rural areas, it is not only helping women and children but they are working for the uplifting of rural areas. Key partners consist of those individual and companies outside the venture, which offer other resources and abilities to the venture. IKI is mostly being supported by Azad Kashmir government and local administration of rural areas, its staff, and local people by offering their land and services; it is also supported by other nonprofit organizations that do not have access to such areas. Cost structure how things are paid for the cost for IKI is to run those vocational centers and buy raw material required to make carpets, embroidery and clothing. After the sales funds are split among students and rest of the funds are recycled. Fund raising events are also organized to support the firm. Posted by Ayesha Khan, Ashley Hall, Tony Anyansi and Adam Stiles
A business model is the best way to describe how the social entrepreneur creates, delivers, and captures its value that is provided to the community. The business model will allow the entrepreneur to create a business strategy if they notice that one or more areas need immediate attention. In class we spoke about the different sections in a business model that are considered and evaluated to make sure that the social entrepreneur is fulfilling its value. The following are the sections in a business model: value proposition, customer relationships, customer segments, revenue streams, distribution channels, key resources, cost structure, key partners, and key activities. The Interactive Resource Center (IRC) provides services to the people of Guilford County who are in need of assistance and this was all created by volunteers (VALUE PROPOSITION). The IRC is a different support system than a homeless shelter, because it is centered on making the homeless employable. The IRC provides food service and even a barbershop experience. When the homeless arrive they have a sign-up sheet as to what basic needs they are looking for. The IRC connects with workers and leaders of churches and civil organizations, city council members, and is currently pursuing a staffing agency which can assist the community with available jobs (CUSTOMER RELATIONSHIPS). They do not discriminate towards race, gender, or age and target the homeless and less fortunate who have little skill and have made poor decisions to be able to get on their feet (CUSTOMER SEGMENT). The IRC receives funding from donations and grants (REVENUE STREAMS). The city of Greensboro wants to be able to donate some revenue that they have to allow its people to benefit. When the IRC began thinking about a staffing agency for the participants, it created ideas like building a facility to help the people of Greensboro relax and build a garden or just enjoy themselves. The staffing agency will help the IRC stay sustainable because it will have to offer more counseling and services to its people (COST STRUCTURE). There are available computers in their facility that allow applicants to acquire knowledge in the area they are pursuing (KEY RESOURCES), and there is also available professionals who are awaiting for the applicants to assess their needs and find ways to fix them and prepare them for the real world (KEY ACTIVITIES). The IRC has the opportunity to connect with local colleges for a water barrel business and be able to reach out to the Social Services of Guilford County for assistance in Human Resources that can give potential entrepreneurs advice (PARTNER NETWORK).
A business model is the particular way in which a business organization ensures that it generates income, one that includes the choice of offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies also how an organization creates, delivers and captures value. Salvation Army is an organization that is a good example for a social entrepreneur business model. They first have their customer segments which is simply who is being served. The people being served in stage of the business model range from those strung out on drugs, homeless, to gambling. The list goes on to all who they serve but their main business customer segments here in Greensboro are homeless & less fortunate economic deprived individuals, and those who are addicted to something. Linked to the social value creation Salvation Army value proposition satisfies its customer needs by providing resources to their customer segments, providing food and shelter, as well as programs that will serve the need for these individuals. Distribution channels for Salvation Army would be store sales, and the donation centers. Customer relationships are established and maintained through always providing these services to individuals who are at need, as well as creating value and revenue streams that successfully allows the organization to make money but still serve its purpose in creating value in the community. The key resources are assets required to deliver key elements of the business, the Salvation Army has several different elements in its business plan that they want to cater to, but looking locally, key resources would include giving the customer segments a chance to better themselves through the programs offered, but also providing ways that the customer segments can give back to the organization itself. The Key activities that makes this business work is simply sponsorships, donations, thrift store sales, and community partners that help with different programs. A key partnership include partnering with different organizations such as Goodwill, churches, and other social entrepreneurs within the community who all have the same value creation and serves some of the same people. Lastly, the cost structure is set up to make sure that the value created that Salvation Army delivers doesn’t exceed its cost on return. The Salvation Army has set up several business entities within the company that generates revenue as well established many partnerships to sustain its business ventures.
Chris Ruffin, Whitney Buchanan, James Brady, Dennis Andrews
When considering what a business model is, it is important to note that there are certain aspects to this concept. Especially in the case of social entrepreneurs, a business model specifies how the venture “creates, delivers, and captures value.” (Channelle James, 10-25-10) As we have learned, creating value can eventually have a social impact on the community or even the world. Tom’s Shoes is an excellent example of how they give back to the world. A business model exemplifying what exactly Tom’s Shoes do in the sense of customer relationship, cost structure, key activities, etc. is important when understanding A Business Model. For further understanding, here is break down of a business model of Tom’s Shoes.
Value proposition for Tom’s shoes consists of providing new shoes for those in need of them in the correct size. They make an effort to create shoes that would be functional with those who would be wearing them in a style that fits in with their requirements for a shoe. Customer relationships when it comes to Tom’s shoes are created through advertising, making those who purchase the shoes aware that their chose of shoe could be helping someone. Tom’s shoes functions with their customers as people will always be in need of shoes and will become associated with replacing their old Tom’s with new Tom’s. The different customers that tom’s shoes serve are those who purchase the shoes, and also those who are receiving a pair of shoes. Distribution Channels, the value that Tom’s shoes creates through their interaction with the customer is the way in which they personally interact by placing the shoe on the person receiving the free pair of shoes. This creates a specific image of tom’s shoes to those buying the shoes and those receiving them. Revenue streams. Tom’s creates revenue by producing shoes that are cheap enough to produce two of at a reasonable price for a customer. Cost of producing the shoes is broken down into different areas, most of the costs going to shipping, traveling to place the shoes on the feet of those who need them. Then the cost of creating the shoes needs to be factored in along with advertising, labor and material costs. Some of these costs are linked with the key resources needed with Tom’s shoes that contain Fabric and other shoe parts, volunteers, designers, delivery, finding and investing resources. Key activities of Tom’s shoes include finding those in need of their shoes, Market research, advertising, maintaining customer recognition and Tom’s shoes web space. Partnerships are a key factor with Social Entrepreneurships; Tom’s shoes will rely on partners to help keep Tom’s shoes alive. Some of these partners may include Fabric Producers, Distribution services and tailor services for those creating their shoes.
Posted By: Rebecca Austell, Megan Binns, Craig Shannon,and Erich Von Landsberg
When considering what a business model is, it is important to note that there are certain aspects to this concept. Especially in the case of social entrepreneurs, a business model specifies how the venture “creates, delivers, and captures value.” (Channelle James, 10-25-10) As we have learned, creating value can eventually have a social impact on the community or even the world. Tom’s Shoes is an excellent example of how they give back to the world. A business model exemplifying what exactly Tom’s Shoes do in the sense of customer relationship, cost structure, key activities, etc. is important when understanding A Business Model. For further understanding, here is break down of a business model of Tom’s Shoes. Value proposition for Tom’s shoes consists of providing new shoes for those in need of them in the correct size. They make an effort to create shoes that would be functional with those who would be wearing them in a style that fits in with their requirements for a shoe. Customer relationships when it comes to Tom’s shoes are created through advertising, making those who purchase the shoes aware that their chose of shoe could be helping someone. Tom’s shoes functions with their customers as people will always be in need of shoes and will become associated with replacing their old Tom’s with new Tom’s. The different customers that tom’s shoes serve are those who purchase the shoes, and also those who are receiving a pair of shoes. Distribution Channels, the value that Tom’s shoes creates through their interaction with the customer is the way in which they personally interact by placing the shoe on the person receiving the free pair of shoes. This creates a specific image of tom’s shoes to those buying the shoes and those receiving them. Revenue streams. Tom’s creates revenue by producing shoes that are cheap enough to produce two of at a reasonable price for a customer. Cost of producing the shoes is broken down into different areas, most of the costs going to shipping, traveling to place the shoes on the feet of those who need them. Then the cost of creating the shoes needs to be factored in along with advertising, labor and material costs. Some of these costs are linked with the key resources needed with Tom’s shoes that contain Fabric and other shoe parts, volunteers, designers, delivery, finding and investing resources. Key activities of Tom’s shoes include finding those in need of their shoes, Market research, advertising, maintaining customer recognition and Tom’s shoes web space. Partnerships are a key factor with Social Entrepreneurships; Tom’s shoes will rely on partners to help keep Tom’s shoes alive. Some of these partners may include Fabric Producers, Distribution services and tailor services for those creating their shoes.
When considering what a business model is, it is important to note that there are certain aspects to this concept. Especially in the case of social entrepreneurs, a business model specifies how the venture “creates, delivers, and captures value.” (Channelle James, 10-25-10) As we have learned, creating value can eventually have a social impact on the community or even the world. Tom’s Shoes is an excellent example of how they give back to the world. A business model exemplifying what exactly Tom’s Shoes do in the sense of customer relationship, cost structure, key activities, etc. is important when understanding A Business Model. For further understanding, here is break down of a business model of Tom’s Shoes.Value proposition for Tom’s shoes consists of providing new shoes for those in need of them in the correct size. They make an effort to create shoes that would be functional with those who would be wearing them in a style that fits in with their requirements for a shoe. Customer relationships when it comes to Tom’s shoes are created through advertising, making those who purchase the shoes aware that their chose of shoe could be helping someone. Tom’s shoes functions with their customers as people will always be in need of shoes and will become associated with replacing their old Tom’s with new Tom’s. The different customers that tom’s shoes serve are those who purchase the shoes, and also those who are receiving a pair of shoes. Distribution Channels, the value that Tom’s shoes creates through their interaction with the customer is the way in which they personally interact by placing the shoe on the person receiving the free pair of shoes. This creates a specific image of tom’s shoes to those buying the shoes and those receiving them. Revenue streams. Tom’s creates revenue by producing shoes that are cheap enough to produce two of at a reasonable price for a customer. Cost of producing the shoes is broken down into different areas, most of the costs going to shipping, traveling to place the shoes on the feet of those who need them. Then the cost of creating the shoes needs to be factored in along with advertising, labor and material costs. Some of these costs are linked with the key resources needed with Tom’s shoes that contain Fabric and other shoe parts, volunteers, designers, delivery, finding and investing resources. Key activities of Tom’s shoes include finding those in need of their shoes, Market research, advertising, maintaining customer recognition and Tom’s shoes web space. Partnerships are a key factor with Social Entrepreneurships; Tom’s shoes will rely on partners to help keep Tom’s shoes alive. Some of these partners may include Fabric Producers, Distribution services and tailor services for those creating their shoes.
“A business model describes the rationale of how an enterprise creates, delivers, and captures value” (Osterwalder, 14). A business model is a blueprint that contains structured elements which emphasize how an enterprise attains success. The structures elements often includes customer segments, value proposition, channels, customers relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. It's a framework aimed at the creation of economic, social and other types of value. In providing an example of a business model for a social entrepreneur, we will be focusing on Grameen Bank. The reason we have chosen to apply the business model theory to Grameen Bank is because they operate a social enterprise with a mission that has provided both accessibility and opportunity for the underprivileged people, especially women, to develop new possibility to prosper their lifestyles.
Grameen Bank key resources are loans coming from non-profit organizations, and most importantly the borrowers themselves which their share have represented 95% of equity for the bank. (Grameen Bank web site, Grameen Bank at a glance, 2010). There are circumstances where Grameen Bank receives loans from for-profit organizations, in that case, the interest rates are distributed at reasonable scale and based on the borrower potential of repayments. For their key activities, Grameen Bank specializes in granting loans to the underprivileged. Women are highly preferred because they are studied to be more stable borrowers and more family oriented.
In this organization, the key partners would be the banks, which lend the money and the customers, those who borrow money. This organization serves the customers by lending them small amounts of money, that is the customer segment. The value proposition is the grant of small loans that would allow customers to start small businesses or any type of activities and improve the quality of living.Then, when we talk about the cost structure, for the Grameen bank case, we have to take into account the social value that creates the key activity, and the cost will be useful. Those who lend the money have to trust there borrower. The real cost would be to not trust the borrower, and not allowing them a chance to invest the money.
A revenue stream refers to the methods by which money comes in. The Revenue Stream produced by Grameen bank is derived from the 90-some percent return on loans. The borrowers are so grateful for these small, yet life-changing loans that they are more than willing to pay the bank back. This produces the revenue that the bank requires for sustainability.
For Grameen Bank, Customer Segment and Customer Relationship are tied together. It is owned by the borrowers of the bank and it works exclusively for them. Borrowers of Grameen Bank own about 95 percent of the total equity of the bank (the remaining 5 percent is government owned). This means that the customer relationship is directly tied to the success of the bank and its segment is the poor who only require a small amount of money to start their own business, continue running their existing business, etc. The Distribution Chanel is a very simple one: loans. A loan-seeking individual comes to the bank and requests a loan, once they receive the loan, the have a certain number of months to repay with a simple interest rate.
Grameen bank, established a loans office in a social environment where small loans were unheard of. This has caused the borrowers to be extremely grateful for the opportunity to improve their lives and, as such, produced over 90 percent returns on loans. Their business model is simply powerful and powerfully simple.
Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Hoboken, NJ: Wiley.
A business model describes the rationale of how an enterprise creates, delivers, and captures value. Tom’s Shoes is a for-profit footwear company founded on a socially entrepreneurial idea. The primary principle behind Tom’s Shoes is that for every pair of shoes sold, one pair will be given to a child in need. The business model of Tom Shoes is unique and unlike any other enterprise. Not only does the company offer high quality shoes to its consumers, it also gives them a sense of pride in taking part of a socially conscious process. When an individual purchases a pair of shoes from Tom’s Shoes, a portion of the customer’s money goes to manufacturing and delivering a second pair for a child that otherwise would go without any shoes.
ReplyDeleteTom’s Shoes serves two distinctive customer segments, the first one being the consumers; the individuals that actually purchase the footwear and the second segment including the recipients of the shoes; the children in need. Generally speaking, the consumer segments served by Tom Shoes can be divided into two categories: people who want to give back and people that are in need. Customer relationships are maintained through the high quality of the product offered and social value provide in the act of giving. Moreover, Tom Shoe’s employs a unique delivery system in which each pair of shoes are hand placed on the feet of each child. This approach also builds and sustains important customer relations. The distribution channels in which the footwear company operates include the Tom’s Shoes website and the delivery process that creates value by ensuring that the shoes end up on the feet of children in true need. Revenue streams for Tom’s Shoes embrace profit, recognition, social value, sustainability, and the satisfaction of giving.
The key resources for a venture are the assets required to offer and deliver the key elements of the venture. The key resources for Tom’s Shoes is that of its staff (both in fashion and production), its consumers (those purchasing its shoes and aiding with profits), and those delivering its shoes to the developing nations (transportation).
Key activities of a business, whether it is a commercial enterprise or social entrepreneurship, are the actions and processes that, if not performed correctly, will dismantle a venture. The key activities for Tom’s Shoes are production and manufacturing of two shoes when one is purchased. One of the manufactured shoes goes to the consumer purchasing the shoes and the other pair goes to the individual in a developing country that is in need of shoes to protect their feet. Also another key activity for Tom’s Shoes is that of transportation and delivery. Without the transportation and delivery that Tom’s Shoes uses to deliver its shoes, the individuals in need of these shoes will not receive them. Without its production/manufacturing and its transportation/delivery Tom’s Shoes would not be able to operate as a social entrepreneur.
The partner network of a venture includes those individuals and companies outside the venture, which offer other resources and abilities to the venture. Key partners for Tom’s Shoes are its staff (both designers and production), its marketing resources, transportation agencies, its services rendered, and the local governments of the developing nations it serves. The cost structure of an enterprise is to determine the cost of what the venture is delivering. The cost structure for Tom’s Shoes is the purchasing of its resources to produce its products, its transportation costs for actually delivering its value, and the cost of a for-profit business.
Posted by Catherine Langley and Morgan Vickers
A business model describes the rationale of how an organization creates, delivers and captures value. IKI ( Idara khidmat insani) is a nonprofit organization working for the welfare of women and children in remote areas. The goal of IKI is to provide ground for women where they can be independent to support their kids and provide education to children.
ReplyDeleteThe business model of IKI is unique they are not only providing education and vocational training centers, but they are also helping women to establish themselves. IKI is working in those areas of Azad Kashmir, Pakistan, where women are not allowed to work outside the house, vocational training centers have been made in such areas where these women are trained to make carpets, embroidery, stitching and grow indoor vegetables. In these rural areas parents can’t afford to send their kids to school, there is a lot of trend among such families to make kids beg for money and food. IKI was able to open private schools only for such kids, with permission of their parents/ guardians they are made to quit work and join IKI schools where they are paid to take classes. In these cases IKI did not only provide programs but they made sure what is going to attract poor parents as well as help their homes keep running.
Key resources are assets required to offer and deliver key elements of venture, in case of IKI there key resources are vocational centers, women and children they are serving, place where they running their school from, the staff which is properly educated to teach children and women.
Key activities make the venture work, for IKI their key activities are offering women classes to learn making carpets, embroidery, stitching and indoor vegetables. These are the items which are then sold in the market and the profit goes to students and the funds are recycled. Distribution channels the carpets and the clothes made are sold through exhibitions in big cities.
Customer segments (who is being served) IKI is serving rural areas, it is not only helping women and children but they are working for the uplifting of rural areas.
Key partners consist of those individual and companies outside the venture, which offer other resources and abilities to the venture. IKI is mostly being supported by Azad Kashmir government and local administration of rural areas, its staff, and local people by offering their land and services; it is also supported by other nonprofit organizations that do not have access to such areas. Cost structure how things are paid for the cost for IKI is to run those vocational centers and buy raw material required to make carpets, embroidery and clothing. After the sales funds are split among students and rest of the funds are recycled. Fund raising events are also organized to support the firm.
Posted by Ayesha Khan, Ashley Hall, Tony Anyansi and Adam Stiles
A business model is the best way to describe how the social entrepreneur creates, delivers, and captures its value that is provided to the community. The business model will allow the entrepreneur to create a business strategy if they notice that one or more areas need immediate attention. In class we spoke about the different sections in a business model that are considered and evaluated to make sure that the social entrepreneur is fulfilling its value. The following are the sections in a business model: value proposition, customer relationships, customer segments, revenue streams, distribution channels, key resources, cost structure, key partners, and key activities.
ReplyDeleteThe Interactive Resource Center (IRC) provides services to the people of Guilford County who are in need of assistance and this was all created by volunteers (VALUE PROPOSITION). The IRC is a different support system than a homeless shelter, because it is centered on making the homeless employable. The IRC provides food service and even a barbershop experience. When the homeless arrive they have a sign-up sheet as to what basic needs they are looking for. The IRC connects with workers and leaders of churches and civil organizations, city council members, and is currently pursuing a staffing agency which can assist the community with available jobs (CUSTOMER RELATIONSHIPS). They do not discriminate towards race, gender, or age and target the homeless and less fortunate who have little skill and have made poor decisions to be able to get on their feet (CUSTOMER SEGMENT).
The IRC receives funding from donations and grants (REVENUE STREAMS). The city of Greensboro wants to be able to donate some revenue that they have to allow its people to benefit. When the IRC began thinking about a staffing agency for the participants, it created ideas like building a facility to help the people of Greensboro relax and build a garden or just enjoy themselves. The staffing agency will help the IRC stay sustainable because it will have to offer more counseling and services to its people (COST STRUCTURE). There are available computers in their facility that allow applicants to acquire knowledge in the area they are pursuing (KEY RESOURCES), and there is also available professionals who are awaiting for the applicants to assess their needs and find ways to fix them and prepare them for the real world (KEY ACTIVITIES). The IRC has the opportunity to connect with local colleges for a water barrel business and be able to reach out to the Social Services of Guilford County for assistance in Human Resources that can give potential entrepreneurs advice (PARTNER NETWORK).
Posted by Koula, Amanda Bullock and Matt Inman
A business model is the particular way in which a business organization ensures that it generates income, one that includes the choice of offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies also how an organization creates, delivers and captures value. Salvation Army is an organization that is a good example for a social entrepreneur business model. They first have their customer segments which is simply who is being served. The people being served in stage of the business model range from those strung out on drugs, homeless, to gambling. The list goes on to all who they serve but their main business customer segments here in Greensboro are homeless & less fortunate economic deprived individuals, and those who are addicted to something. Linked to the social value creation Salvation Army value proposition satisfies its customer needs by providing resources to their customer segments, providing food and shelter, as well as programs that will serve the need for these individuals. Distribution channels for Salvation Army would be store sales, and the donation centers. Customer relationships are established and maintained through always providing these services to individuals who are at need, as well as creating value and revenue streams that successfully allows the organization to make money but still serve its purpose in creating value in the community.
ReplyDeleteThe key resources are assets required to deliver key elements of the business, the Salvation Army has several different elements in its business plan that they want to cater to, but looking locally, key resources would include giving the customer segments a chance to better themselves through the programs offered, but also providing ways that the customer segments can give back to the organization itself. The Key activities that makes this business work is simply sponsorships, donations, thrift store sales, and community partners that help with different programs. A key partnership include partnering with different organizations such as Goodwill, churches, and other social entrepreneurs within the community who all have the same value creation and serves some of the same people. Lastly, the cost structure is set up to make sure that the value created that Salvation Army delivers doesn’t exceed its cost on return. The Salvation Army has set up several business entities within the company that generates revenue as well established many partnerships to sustain its business ventures.
Chris Ruffin, Whitney Buchanan, James Brady, Dennis Andrews
When considering what a business model is, it is important to note that there are certain aspects to this concept. Especially in the case of social entrepreneurs, a business model specifies how the venture “creates, delivers, and captures value.” (Channelle James, 10-25-10) As we have learned, creating value can eventually have a social impact on the community or even the world. Tom’s Shoes is an excellent example of how they give back to the world. A business model exemplifying what exactly Tom’s Shoes do in the sense of customer relationship, cost structure, key activities, etc. is important when understanding A Business Model.
ReplyDeleteFor further understanding, here is break down of a business model of Tom’s Shoes.
Value proposition for Tom’s shoes consists of providing new shoes for those in need of them in the correct size. They make an effort to create shoes that would be functional with those who would be wearing them in a style that fits in with their requirements for a shoe.
Customer relationships when it comes to Tom’s shoes are created through advertising, making those who purchase the shoes aware that their chose of shoe could be helping someone. Tom’s shoes functions with their customers as people will always be in need of shoes and will become associated with replacing their old Tom’s with new Tom’s.
The different customers that tom’s shoes serve are those who purchase the shoes, and also those who are receiving a pair of shoes.
Distribution Channels, the value that Tom’s shoes creates through their interaction with the customer is the way in which they personally interact by placing the shoe on the person receiving the free pair of shoes. This creates a specific image of tom’s shoes to those buying the shoes and those receiving them.
Revenue streams. Tom’s creates revenue by producing shoes that are cheap enough to produce two of at a reasonable price for a customer.
Cost of producing the shoes is broken down into different areas, most of the costs going to shipping, traveling to place the shoes on the feet of those who need them. Then the cost of creating the shoes needs to be factored in along with advertising, labor and material costs. Some of these costs are linked with the key resources needed with Tom’s shoes that contain Fabric and other shoe parts, volunteers, designers, delivery, finding and investing resources.
Key activities of Tom’s shoes include finding those in need of their shoes, Market research, advertising, maintaining customer recognition and Tom’s shoes web space.
Partnerships are a key factor with Social Entrepreneurships; Tom’s shoes will rely on partners to help keep Tom’s shoes alive. Some of these partners may include Fabric Producers, Distribution services and tailor services for those creating their shoes.
Posted By: Rebecca Austell, Megan Binns, Craig Shannon,and Erich Von Landsberg
When considering what a business model is, it is important to note that there are certain aspects to this concept. Especially in the case of social entrepreneurs, a business model specifies how the venture “creates, delivers, and captures value.” (Channelle James, 10-25-10) As we have learned, creating value can eventually have a social impact on the community or even the world. Tom’s Shoes is an excellent example of how they give back to the world. A business model exemplifying what exactly Tom’s Shoes do in the sense of customer relationship, cost structure, key activities, etc. is important when understanding A Business Model.
ReplyDeleteFor further understanding, here is break down of a business model of Tom’s Shoes.
Value proposition for Tom’s shoes consists of providing new shoes for those in need of them in the correct size. They make an effort to create shoes that would be functional with those who would be wearing them in a style that fits in with their requirements for a shoe.
Customer relationships when it comes to Tom’s shoes are created through advertising, making those who purchase the shoes aware that their chose of shoe could be helping someone. Tom’s shoes functions with their customers as people will always be in need of shoes and will become associated with replacing their old Tom’s with new Tom’s.
The different customers that tom’s shoes serve are those who purchase the shoes, and also those who are receiving a pair of shoes.
Distribution Channels, the value that Tom’s shoes creates through their interaction with the customer is the way in which they personally interact by placing the shoe on the person receiving the free pair of shoes. This creates a specific image of tom’s shoes to those buying the shoes and those receiving them.
Revenue streams. Tom’s creates revenue by producing shoes that are cheap enough to produce two of at a reasonable price for a customer.
Cost of producing the shoes is broken down into different areas, most of the costs going to shipping, traveling to place the shoes on the feet of those who need them. Then the cost of creating the shoes needs to be factored in along with advertising, labor and material costs. Some of these costs are linked with the key resources needed with Tom’s shoes that contain Fabric and other shoe parts, volunteers, designers, delivery, finding and investing resources.
Key activities of Tom’s shoes include finding those in need of their shoes, Market research, advertising, maintaining customer recognition and Tom’s shoes web space.
Partnerships are a key factor with Social Entrepreneurships; Tom’s shoes will rely on partners to help keep Tom’s shoes alive. Some of these partners may include Fabric Producers, Distribution services and tailor services for those creating their shoes.
When considering what a business model is, it is important to note that there are certain aspects to this concept. Especially in the case of social entrepreneurs, a business model specifies how the venture “creates, delivers, and captures value.” (Channelle James, 10-25-10) As we have learned, creating value can eventually have a social impact on the community or even the world. Tom’s Shoes is an excellent example of how they give back to the world. A business model exemplifying what exactly Tom’s Shoes do in the sense of customer relationship, cost structure, key activities, etc. is important when understanding A Business Model.
ReplyDeleteFor further understanding, here is break down of a business model of Tom’s Shoes.Value proposition for Tom’s shoes consists of providing new shoes for those in need of them in the correct size. They make an effort to create shoes that would be functional with those who would be wearing them in a style that fits in with their requirements for a shoe.
Customer relationships when it comes to Tom’s shoes are created through advertising, making those who purchase the shoes aware that their chose of shoe could be helping someone. Tom’s shoes functions with their customers as people will always be in need of shoes and will become associated with replacing their old Tom’s with new Tom’s.
The different customers that tom’s shoes serve are those who purchase the shoes, and also those who are receiving a pair of shoes.
Distribution Channels, the value that Tom’s shoes creates through their interaction with the customer is the way in which they personally interact by placing the shoe on the person receiving the free pair of shoes. This creates a specific image of tom’s shoes to those buying the shoes and those receiving them.
Revenue streams. Tom’s creates revenue by producing shoes that are cheap enough to produce two of at a reasonable price for a customer.
Cost of producing the shoes is broken down into different areas, most of the costs going to shipping, traveling to place the shoes on the feet of those who need them. Then the cost of creating the shoes needs to be factored in along with advertising, labor and material costs. Some of these costs are linked with the key resources needed with Tom’s shoes that contain Fabric and other shoe parts, volunteers, designers, delivery, finding and investing resources.
Key activities of Tom’s shoes include finding those in need of their shoes, Market research, advertising, maintaining customer recognition and Tom’s shoes web space.
Partnerships are a key factor with Social Entrepreneurships; Tom’s shoes will rely on partners to help keep Tom’s shoes alive. Some of these partners may include Fabric Producers, Distribution services and tailor services for those creating their shoes.
“A business model describes the rationale of how an enterprise creates, delivers, and captures value” (Osterwalder, 14). A business model is a blueprint that contains structured elements which emphasize how an enterprise attains success. The structures elements often includes customer segments, value proposition, channels, customers relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. It's a framework aimed at the creation of economic, social and other types of value. In providing an example of a business model for a social entrepreneur, we will be focusing on Grameen Bank. The reason we have chosen to apply the business model theory to Grameen Bank is because they operate a social enterprise with a mission that has provided both accessibility and opportunity for the underprivileged people, especially women, to develop new possibility to prosper their lifestyles.
ReplyDeleteGrameen Bank key resources are loans coming from non-profit organizations, and most importantly the borrowers themselves which their share have represented 95% of equity for the bank. (Grameen Bank web site, Grameen Bank at a glance, 2010). There are circumstances where Grameen Bank receives loans from for-profit organizations, in that case, the interest rates are distributed at reasonable scale and based on the borrower potential of repayments. For their key activities, Grameen Bank specializes in granting loans to the underprivileged. Women are highly preferred because they are studied to be more stable borrowers and more family oriented.
In this organization, the key partners would be the banks, which lend the money and the customers, those who borrow money. This organization serves the customers by lending them small amounts of money, that is the customer segment. The value proposition is the grant of small loans that would allow customers to start small businesses or any type of activities and improve the quality of living.Then, when we talk about the cost structure, for the Grameen bank case, we have to take into account the social value that creates the key activity, and the cost will be useful. Those who lend the money have to trust there borrower. The real cost would be to not trust the borrower, and not allowing them a chance to invest the money.
A revenue stream refers to the methods by which money comes in. The Revenue Stream produced by Grameen bank is derived from the 90-some percent return on loans. The borrowers are so grateful for these small, yet life-changing loans that they are more than willing to pay the bank back. This produces the revenue that the bank requires for sustainability.
For Grameen Bank, Customer Segment and Customer Relationship are tied together. It is owned by the borrowers of the bank and it works exclusively for them. Borrowers of Grameen Bank own about 95 percent of the total equity of the bank (the remaining 5 percent is government owned). This means that the customer relationship is directly tied to the success of the bank and its segment is the poor who only require a small amount of money to start their own business, continue running their existing business, etc. The Distribution Chanel is a very simple one: loans. A loan-seeking individual comes to the bank and requests a loan, once they receive the loan, the have a certain number of months to repay with a simple interest rate.
Grameen bank, established a loans office in a social environment where small loans were unheard of. This has caused the borrowers to be extremely grateful for the opportunity to improve their lives and, as such, produced over 90 percent returns on loans. Their business model is simply powerful and powerfully simple.
Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Hoboken, NJ: Wiley.
Team Johanson Urkle Grou
Itay Baron
Tran Ngo
Aubrey Paquet
Myshaina Kehinde
Emilie Roos