MGMT 6110 Fall 2018 Due 11/28/2018

1. You have this idea for a new business. It is unique and there is nothing exactly like it that you know of. Use the business

model canvas to explain the logic of your business. To complete this question, you need to first write a brief explanation of the

business that you have in mind. Next, you need to complete the business model canvas for your business. Finally, you need to

explain what the business model canvas tells you. What issues did it identify? If I were answering this question, my proposed

business might be a mobile cat washing service. There are lots of dog washers but not too much service for people who want

their cat groomed and washed. I would explain how the business would work, complete the canvas and then explain what

issues the canvas helped me identify. (DO NOT use mobile cat wash as your example)

Mobile money transfer

This is an easy way of sending money from your phone to another person using your courier. A close example is cash app or zelle.

This kind of money transfer is popular in Kenya and it is called M-Pesa. As a customer once you buy the line you can

automatically activate the money transfer section. Once you activate that section you can send and receive money using your

phone number. Even you can save money using this platform or transact your business without carrying credit, debit cards or cash.

This is a save mode of transaction and can send money to your family members without struggle of going to the bank and do

transfer. Also, the customers can withdraw and deposit money into their account using this system. The customers are charged

service fees for the transaction

 The company will sell the idea to small business owner to act as its agent and use their own money. These agents get part of the

fees the customer is charged. The idea of having as many agents as possible is to take the service close to the customers who don’t

have the time to walk to their banks.

Key Partners Key Activities
- Customer - Transfer of money
- Banks - Provision of savings
- Network Couriers - Develop employee’s
- Data protection skills
companies - App Maintenance
- Communities - Evaluation of the
- developers challenges
- Expansion to new
markets
- Develop partnerships
Value Propositions
- Transfer of money
- Develop small business
owners
- Financial advisory
- provision of saving and
withdrawal anytime.
- Bills payment
- Business transaction
-
-
Customer Relationships Customer Segments
- Events
- Website - Small business owners (Agents)
- Mobile app - Working class
- Blogs - Elderly
- Customer care, through - Generation Z
call - Millennials
- Street traders - Low income population
- Word of mouth

Key Resources:

- Management
Channels
- Strong supply chain - Online and Offline
- Well-trained - Mobile phone
employees
- Sim
- R&D
- Website
- Magazines
- Tv adverts

Cost Structure Revenue Streams

- Platform maintenance - User transaction fees
- Customer data protection - Bill payment services
- Commission to agents
- Employees salary

The business canvas is the heart and engine of any business. It lays out the structure the business operation, these structures are critical

to the decision making of the business. The executive uses this tool to identify all the business operations. The main component of this

tool is as follow: Key partners, key activities, key resources, value proposition, customer relation, channels, customer segment, cost

structure, revenue stream.

The business model answers the following question for the executives; what you have, how to reach you customers, who are your

customers, what is the gain and at what cost. Once these questions are answered, the top executives are in a pole position to make

decisions based on the answers provided. Business model is the tool that generates profit for the company if constructed and

implemented well.

2. You have been asked to develop a PEST analysis for TSU. Select the factor that you think is the most critical for TSU from

each category in the PEST analysis. Support your selection. In other words, what is the most critical factor in the political,

economic, social and technological categories. You will have four factors – support each one.
 Factor Opportunity Threat

1. Trade regulations and tariffs. 1. 1.

2. Tax Policy- Tax cut-2017 In the long run, more jobs are brought back into the
3. US Election country form oversees, this will create more jobs for the
students leading to higher enrolment.
2.
Poli As more companies are taxed low, some turn to
tica donations, scholarships or encouraging their employees
l to go back to school since they will pay for it. This is a
way of appreciation by the companies for the low tax.
The trade war will have negative impa
economy on the short run, making t
economy to shrink. This will have im
on any partners who have given
scholarships and donations to the
institution.
3.
Usually the election season and the par
affiliation have an impact the runnin
funding of TSU.

1. Economic growth 1. 3.
2. Unemployment rate Economic growth has a positive impact in the For small city with a population of aro
3. Competition institution. TSU will buy stationery and other to have 20 Universities and 11 commu
facilities at a low price compared to when the colleges is incredibly hard to thrive.
economy is not doing well.
Eco 2.
no With unemployment rate at its lowest, it means more
mic working-class people can go back to school for
al further studies.
3.
The high number of universities and colleges in the
town mean a lot of research must be released by the
university and provide quality education in order to
be competitive. This is good for the learners.
 1. Culture and gender role. 1. 1.
2. Leisure interests. The culture and gender role have changed, making equal It is hard to convince the leisure lovers
3. Millennial attitudes access to education especially for summer classes.
Soc 4. Population growth 2. 2.
io- People willing to for-go their leisure time in order to As millennials love sports and other
further their education. entertainment, it is hard for them to att
Cul 3. classes during such events.
tur Millennials have realized the way to succeed is through
al education
4.
As the population grow, it means for students for TSU
in the future.
1. Social media and digital world 1. 1.
2. Technology improvements It is easy for TSU to market themselves through social More and more students are busy on so
3. Research media as most of this generation look for information media instead of focusing on studies an
Tec form the social media. assignment
hno 2.
logi With the improvement and emergence of more
cal technological devices, it is easy to teach now.
3.
With the help of technology, it is easy to do research
now than before since data is readily available.

PEST analysis is a tool is that is supposed to guide the management of the institution to take a position in matters that affect the day-

to-day running of the institution. These factors might come in the form of political, social, economic as well as technology. All these

factors outlined can impact the institution negatively or positively, so the management must identify the kind of impact and what kind

of position to take.
Political factor

The change of tax policy in the country can have positive impact on the institution. The education friendly companies who used to

donate funds towards education institution can now have more money at their disposal. This makes them to increase the funds towards

their activities such giving scholarships to poor students and donations to institutions. Also, as companies have money for

reinvestment which create more job opportunities for fresh graduates and students. This makes the more people get employed and

come back for further studies.

The issue of trade war has negative in the short run but a positive impact in the long run according to research done by scholars. In the

short run, more companies feel the pinch of not having more imports for their products into the country, this will result in companies

making more layoffs this will make more working students to dropout of school and, the institution getting less funds from donors.

But in the long run companies bring back their production facilities back into the country making more job opportunities for the

former and current students. The US election have an impact in the institution, this is because management of the institution have an

affiliation to certain political party and if that political party does not win it might have short funds from the state government and low

student enrollment due to political influence.

Economy
Economic growth has always a positive impact on the institution both in terms of donation and student enrollment, but economic

downfall will have negative impact. Now that the economy of the country is booming, it means that more jobs for the current and

former students as well as more profits for companies that donate to the institution.

When the unemployment is high, it is not a good sign for TSU since more students won’t be able to afford the school fees. But with

the current situation in the country, more jobs available for those unemployed and the unemployment rate hit a record low, this means

that more students can come back for further studies.

There is a high competition in Nashville for higher education institution. In a small city of a population of around 2M, to have 20

universities and 11 community colleges is a tremendous challenge. This means that all the institutions will share the number of

schools going population, in other words it led to low enrollments.

Social-Cultural

The ever-changing culture of the current generations means more people are enrolling for higher education. This made more women to

access education and take leadership role. Millennials attitudes and leisure interest of the current generation makes the

institutions to alter their timetable for classes and other activities. This will have an impact on the running of the institution.

Population growth make the institution to have access to more schools going population. This will make TSU to grow in terms

of the number of courses taught and the enrollment to go up.

Technology.
The emergency of social media has a great influence on the marketing strategy of the institution. TSU can take advantage of the

current populations use of social media and use that platform to reach to more future students. The social media has also a

negative impact on the teaching aspect as more students are busy on social media instead of focusing on the ongoing lesson.

It is easy to teach more students now thanks to the advancement of technology. This has facilitated the virtual learning technique

which made the work of lecturers easy. Research is now an easy think since raw data needed for research is readily available

now. Technology has enhanced professors to produce more research papers and develop more tools compared to the analog

world.

3. Recommend a merger or acquisition for the company you are using for your case. Explain what action you are recommending.

Explain what company you are considering for M&A. Explain what synergies this action would create for your case company.

What are the possible downsides to this action?

Merger and acquisition is a general term that refers to consolidation of companies and assets through various types of financial

transactions. McDonald is the food industry and is one of the biggest player in that industry, but the in the recent past the company has

faced stiff competition from new entrants as well as companies that existed. in order for MCD to defend and gain more market share

am proposing the company to an acquisition of a company that has a good customer base which can give MCD a competitive
advantage from its competitors. once this deal is done i have the believe that MCSD can conquer the market and diversify its already

diversified products.

Am proposing MCD to consider the acquisition of Papa John's International, Inc. which is the same industry but sells Pizza. this

product is not in the industry Papa John’s is an international company but is struggling in this industry since it is facing competition

from companies ahead of Papa John’s, some of these companies include but not limited to Domino’s Pizza Inc. and Yum! Brands inc.

Papa John’s has a revenue of $1.66B compared to MCD which has $23B, the company’s profit after tax is way below compared to

MCD and other competitors in this industry. Papa John’s was formed in 1984 by John Schnatter. it immediately went public the

following year and was incorporated in Indiana but later went private. it was reincorporated in Delaware in 1991. Papa John’s has

market cap of $1.8B, this is within the reach of MCD when it comes to the market cap. the company has 22,400 employees, this is too

low and MCD can absorb it easily.

Through this acquisition the company can add it’s already diversified product a unique product which it don’t have right in its

production line. Pizza is a marketable product that is attracting young population, especially the millennials and generation Y. The

company will bring about 22,400 employees who are motivated and have the expertise to make the pizza.

This is an offensive acquisition that make the company gain more market share. this action make the company compete from a new

front with the likes of Yum! and Dominos. due to its financial muscle MCD can easily conquer this market easily since there is big

company like MCD in this industry. this action will also make our biggest competitor (Starbucks Corp) lose ground to MCD, once we

go into this sector of this industry it will be hard for our competitors to gain ground.
The biggest downside in this action could be the employee integration, this can possible arise since MCD is acquiring a new business

sector and there are existing employees. the employees can sabotage the deal and make it fail. also adding a product to the already

strained production line will be a big challenge for the management. it will also be difficult to convince those customers who don’t

like MCD and are loyal customers of Papa John;s, this will pose a challenge of losing some of the customer base.

4. You have been asked to design a strategic dashboard for the company you have selected for your case. First briefly describe

the key ideas behind the strategic dashboard. Next, identify the KPI for your company. Explain why these are the KPI’s for

your company. This dashboard will be used by organizational members at the CSuite level. Include the layout of your final

dashboard design. You can use any design software or create the design by hand. If you use a hand drawn dashboard, make

sure your scanned copy is easy to read.

Revenue-since McDonalds has a lot revenue streams, the total revenue is the most important indicator of the companies income

before the expenses. i chose this because the management want to beat the revenue of previous years, so it is beneficial to add it to the

dashboard.

Cost/Expenses- After the revenue the management want to know the cost of doing the business. Managers are tasked with cost

reduction, so it must be added to the dashboard.

employees- based on the work done, sales generated, and the cost, managers what to know the number of employees doing the work,

whether the company is overstaffed or understaffed. Also how the company has retained its employees is another factor why it should

be added to the dashboard.

market share- to clearly show the percentage of the market share MCD is controlling is a good thing to show in the dashboard, so

that managers can easily know which market to target and what time to do it.

Food and paper expenses- the management want to know what price are we paying for the food and can we minimize that cost, in

order for that decision to be made swiftly it should be added to the dashboard.

Net income- it the dream of a shareholder to a positive net income, so this should be shown visibly and in a place it can easily be seen,

hence the dashboard.

Number of restaurants- the number of restaurant centers the company is operating is always important to show clearly so that the

management can easily track the performance of each and every individual restaurant.

Number of franchises- the management need to know the number of franchises the company is running and it will be a good idea if it

is found in the dashboard.

5. Thinking back on all the concepts we have covered this semester, what do you think is the most useful concept was that we

covered? Explain why you think it is the most useful concept. Be detailed.
Generally all the concept were beneficial when it comes to the decision making of the business world. the PEST analysis, the business

model, the five forces and how to make partnership and alliances and what to consider and the steps to follow when doing mergers and

acquisition.

but how to make and use the business model was the one i liked most, this is because a new business idea can be translated into action

using the business model. the framework itself is make the decision making of the business executive easy since they their customers,

channels of their business, key activities, resources, the value proposition, customer relation, the key partners, cost and the revenue.

once someone identify all these, it will be easy to tackle and concentrate the energies on all what we identified in the business model.

For example in question 1 i have identified a business that does not exist in this country. if i had a capital i would have implemented

that business easily since i know where to start, what to target and who to make a deal with. It is easy to run a big company which has

a well drafted business model, in this case all the managers will concentrate how to implement the business model and focus on issues

identified in the business model.

It is the business model that make the convert the ideas into economic values. Business model connect the technical input and the

economic output. once the expertise make a decision based from the business model the business will easily generate the economic

output. The business model focuses on value creation, this means that the it addresses the the wealth creation for shareholders which is

the ultimate goal of any manager in the current world.

the PEST analysis is something that fancied me. how to identify the issues the company is facing what kind of challenges these issues

pose, is it a threat or opportunity and how this can issues can be translated into profit or what kind of defensive measures the company

can undertake. All these issues makes me better equipped for the challenges ahead of me as i am eying the world of management

whether it will a business i will start or as an employee.