UNIVERSITI TEKNOLOGI MARA

CAWANGAN KELANTAN

Faculty of Computer and Mathematical Sciences

ENT300
FUNDAMENTALS OF ENTREPRENEURSHIP

BUSINESS MODEL CANVAS: REPORT

GROUP
D1CS1104C

GROUP MEMBERS
NAME STUDENT ID
NURIN SYAFIQA BINTI MOHD FADZLE 2018692586
NURUL IZZAH BINTI FAUZI 2018639564
NOR ATIKAH BT KAMARUDIN 2018637932
AINAN SALSABILLA BT MOHD 20182323709
KHAIRULNIZAM 4
NUR AFIQAH AHMAD SUKRI 2018231382
NUR FAZLIN ALIA BINTI HASHIM 2018447066

Prepared For:

MADAM SURAYA BT HUSIN

Submission Date:

12 May 2020
 INTRODUCTION

Entrepreneurship education seeks to provide student with the knowledge, skills and
motivation to encourage entrepreneur in a variety of settings. Variations of
entrepreneurship education are offered at all level of schooling from primary or
secondary schools and also in university programs. Entrepreneurship education
focused on the development of skills or attributed that enable the realization of
opportunity.

In this project, we make a business model canvas on a company to know about

their 9 building blocks of BMC components that they had use. We can learn about a
company in real life, the nature of the company and the challenge the company has to
face. In this business model canvas(BMC) it helps us to improve our knowledge in doing
business plan later.

In conclusion, this project is good to the student as they study about the businesses
in their life. We can also go and see the production of the company. It is a good
experience to us.
 Smiling Orchid Bakery & Cake is located in 473, Jalan Dato Nik Mustapha 17500
Tanah Merah Kelantan. This bakery was established in 2003 and their factory is
established to produce the product at 2011. Before the establishment of the factory they
produce the product at the shop but due to the increasing demand they open up a
factory to manufacture the product.

Smiling Orchid Bakery & Cake is owned by Ronald Toolseram and Kenny So Yu
Cheng. This bakery is a partnership between two people. This bakery has around 20
staff including the salesgirl, driver, factory worker and manager. Some staff works at the
shop and some of them works in the factory. This business has been in operation for 15
years.

The average sales for this bakery is RM 2000 per day which is RM 60 000 per
month. This is a stable company that can give opportunities to the local people to work
in their hometown. They also have promotion and receive many orders if there is any
special occasion such as Mother’s Day, Teacher’s Day, Valentine’s Day and National
Day . This will increase their sales for that month.

The factory that belongs to Smiling Orchid Bakery & Cake is located In Lot 6750,
Jalan Jedok 17500, Tanah Merah Kelantan. This bakery also has other side business
that is Smiling Orchid Ingredients Trading located In Tanah Merah and Pasir Mas
Kelantan. This business supplies ingredient and tools for making cakes and dessert.
They also owned Smiling Orchid Coffee located in Tanah Merah Kelantan. This café
provides cakes and coffee for customer to eat at the café.
Business Name : Smiling Orchid Bakery & Cake

Business Address : 473, Jalan Dato Nik Mustapha 17500 Tanah

Merah, Kelantan

Factory Address : LOT 6750 Jalan Jedok 17500, Tanah Merah

Kelantan

Phone Number : 09-955 7052

Business Form : Bakery and Cake

Main Activities : Bakery and Cake

Date Started : 2003

Date of Registration : 2003

Registration Number : KT0031233-K

Business Model Canvas

Key Partners Key Activities Value Propositions Customer Relationships Customer Segments

Riders:
 Events  Trusted  Politeness  Students
 Retail Store  Celebration  High quality  Service  Villagers
 Fruit Store  Festivals  Delicious and cheap cakes  Social media  Families
 Store that sells materials  Ceremonies  Get, keep, grow
ingredients of cake Drivers:
 Birthdays  Socio-economic
As inverstors:  Hotel & Rest  Situational
 Funding people, School,
Hotel Managers

Key Resources Channels

 Awareness
 Baker  Purchase
 Cakes  Delivery
 Packaging  Social media
 Price
 Social media

Cost Structure Revenue Streams

 Raw materials  Cake selling
 Monthly allowance
1. KEY PARTNER
Firstly, the key partner for Smiling Orchids Bakery is retail store. They bought all the raw
material such as flour, condensed milk, salt, and egg from retail store in Tanah Merah.
They make a comparison for the price and choose the store with the cheapest price.

Their key partners will be the people that want to help they and also companies that
want to collaborate, such as:

Stores: - Fruit stores, stores that sell decorating materials for the sweets.
  - It can also be companies that sell machines especially for bakery stuff.
 Sponsors: -We can make some contract with different companies such as Investors &
Funding people, School , Hotels , Restaurants and also try to make good contract

It can also be, entering to contest where they could find some investors and also if they
go to desserts contest and the win, so they could have a better reputation so people will
trust them more than before.

2. KEY ACTIVITIES
Secondly, key activities for this bakery are manufacture, selling and service. They are
the one that produce the cake, dessert and bread and sell it at their shop. When there
are shop, they should provide service which is send their product to the customer and
also at the payment counter.

Also for service, they are activities to get profit of it, and also to make other customers
in the events that they do. They create the sweets that each activity need to make the
customers laugh, like in birthdays, depending on the customers, like if it is children then
they will make a cake of their liking, if it is an adult make something more adult-like  but
everything depends. But they will try to make as many "activities" as possible,like:

-Hotel & Restaurants celebrations

 -Normal celebrations
 -Events & Festivals
 -All types of ceremonies
 -Wedding cakes

They always make the best out of them to satisfy all types of customers and never
refuse the demands or request of the customers having a limit for them.
3. VALUE PROPOSITION
The products that Smiling Orchid Bakery & Cakes produce are with high quality and low
price. In this case, it is produced for those who are looking for low price and high quality.
The customers will choose them because of using high quality of ingredients for their
cakes. With also the best service in their shop, because all of the employers are very
cheerful and make the costumers feel good and comfortable with their shop's unique
design. And the most important, they want their customers to feel the happiness that
they want to transmit in the cakes or cupcakes, everything they make will have their
feeling on it, and the happy face that they make after eating it.

4. CUSTOMER RELATIONSHIP

 Get
-From Smiling Orchid Bakery and Cake facebook page
 Keep
-Excellent customer service.
 Grow
-From a specified package such as package for teacher’s day celebration.

From customer relationship building block, we can know how customer find out about
Smiling Orchids Bakery and Cake. They find out about this bakery from their facebook
page. Next, how the bakery can keep their customer. It is because they give an
excellent customer service to their customer. All the employers need to be connected to
their costumers, where they could create a relationship with trust and honesty, the
employers need to use their politeness and a dedicated service with the client so they
could use telephone, e-mail and whatever channels to contact with each other.Last but
not least, how the customer spend more at their bakery. It is because they served a
package for a special celebration. For example teacher’s day celebration.
5. CUSTOMER SEGMENT

Drivers:

-Socio-economic

- Situational

Riders/Customers:

-Students

-Villagers

-Low and high income families

Customer segment is one of the most important building blocks in this business model
canvas to achieve the target. So, getting this building block right is the key to success
their business. They make the price affordable and suitable for customers such as
students, villagers and families who are in low and high income.

6. KEY RESOURCES
They use human resources, such as a very good chef but also some of their group
member can be the chef so then they wouldn't contract so many employers. They
create their own social media such as Facebook so that people can enter and see their
products. Their quality will be higher that the average, and also the price they will make
it good, so everyone could afford it, but everything depends, in the place where it is
located and also the size.
7. DISTRIBUTION CHANNELS
The channel for Smiling Orchid Bakery are awareness, purchase and delivery. They
were awareness about their company’s product using advertising in social media such
as Facebook and website. They allow the customers to purchase their products by self-
checkout and order through their media social account such as Facebook and
WhatsApp. Lastly, they deliver the customer’s order over the counter only. They did not
use any delivery service for their customers.

8. COST STRUCTURE
Cost structure is the most important costs incurred while operating under a particular
business model. The business ’ major cost driven are raw material. The Smiling
Orchid Bakery are focus on minimizing costs wherever possible. This approach aims at
creating and maintaining the leanest possible Cost Structure, using low price Value
Propositions, maximum automation, and extensive outsourcing.

They need to pay many things:

 Machinery
 Supplies of foods, fruits, decorating materials.
 Programs and webpage also need to be paid.
 Employers and chefs also need their salaries.

If this shop is going well, they are going to expand it everywhere.

9. REVENUE STREAM
Smiling Orchid Bakery get the revenue streams from sales of good to their business
records on its accounts depend on the types of activities carried out by the business
and their income from business. They make profit by selling Cakes, Cupcakes, sweet
food and drinks, which is the main propose of their shop. If the sale is low, so it will be a
big problem for them.

CONCLUSION

With a better system of purchasing types of cakes, the customers will purchase cakes
from the bakery because are providing their needs. Customers will not leave you unless
they would be facing some difficulties such as size of the cakes, qualities and the price.
The competition between bakeries today is forcing customers to give discount for the
cakes. Without any discounts and lower qualities, it is difficult to safe loyalty customers
in the modern era in today’s world. You should have especial products for the Masjid
and The Month of Ramadan as well as for all Muslim people throughout the world.
Therefore, reduce the fat in some baked goods by replacing up to half the fat with fruit
or bean purees. In the future, the company will serve all over the world for those who
want halal Cakes to celebrate their happiness with their families and relatives. And the
future plan include Finance, marketing, HR, operation aspects to start with Bakery
business.