An Area in a Business Operating Environment - Case Study Example

? Business Model Report College Introduction Offering bar service is an idea that would really work successfully due to the parties such as birthdays and weddings that people hold for their interest fulfillment. The services would be either tap beer or spirit which would be held at a destination with a reasonable price. Such occasions are held on Fridays and Saturdays. These parties can take place through hiring of a private area/ table or bar to have their functions. The customer may either serve themselves or one may hire someone to undertake the alcohol serving duty. In that case, the business model report for the business would be tackled below. What makes the company success The sinner party company being a brand new service within the area of location, many people above eighteen years would be attracted to the services offered by the company. Many of the customers would be looking for a bar with lighting and logo placement which would help in overcoming the competitions by the other companies. Additionally, the Sinner Party Company has been strategically placed where the population is high hence more customers. The process layout of the company is very convenient to the customers hence their attraction to the company (Anderson, Narus & Van Rossum, 2006 pp. 90). Target customer The Sinner Party Company has no discrimination to customers. The company targets all kinds of customers at all age above 18 which is authorized by the law. The customer consideration by the company is the ability to make the payment of the services provided by the company. Additionally, they consider the customers attitudes and their behaviors during the party. For instance, the customers should be able to adhere to the company’s rules and regulations where they should not carry anything illegal to the party station (Winer, 2001n.p). In that case, the sinner party company gets attached well to their customer hence good relationship. The company’s relationship to the customers is pleasing and strong. For instant, the company offers the customers with two options; to provide private bar service for the customers at their own homes, to provide the customer with both the destination and the private bar services (Payne & Frow, 2005 pp. 168). Additionally, the company places the parties near to the customers where they are able to access the places at the right time. They also have the freedom offered by the company to choose the product they would wish to have during their function. In that case, the company’s relationship to the customers is strong enough (Payne & Frow, 2005 pp. 170). Macro environment The Sinner Party Company has been net working economically, politically, socially, and technologically. Due to their social relationship with the Sydney people, they have been allowed to use the offices and the suburbs for their functioning. On the other hand, politically, Sinner Party has strictly adhered to the laws (Kirschbaum, 2005). They do not allow any customer who might bring illegal things in their company. In that case, the company has flourished without any government complains. On the side of economic, the sinner party company is a government revenue generating company. They consider the customers ability to make the payment according their charges. In that case, they make adjustments of their charges to equalize each customer and make everyone fit in to their rank (Kirschbaum, 2005). Due to the technology advancement in the company, the operations have been ease. The record keeping has become computerized where the company is able to record more than one thousand customers with their dates of functioning. Additionally, company has been able to bank their money hence safety. The sinner party company operates both daytime and night. In that case, the advancement of the technology has highly benefited the company. They have employed security maintainers who have been using technological tools to keep and ensure the customers safe both during the two sessions. Distribution channel The use of brands and logs make the distribution channels in the Sinner Party Company easier. They either use the bottle channel to distribute their bar service or the tap beer. The bottle channel is mostly used when the customer requests for the company’s bar service at their homes. On the other hand, the tap beer is used when the company takes the responsibility to hire a destination for the customer and offer the bar service (Kirschbaum, 2005). Additionally, the sinner party company, though quite, they are aiming at promoting their distribution channel through the agencies. They also decide to use posters to promote their clubs and pubs. In that case, this would be a way of customer attraction by the use of poster hence making the distribution operations become easier. The posters would be written such that they advertise the company’s good reputation hence many of the customers will apply for the company’s services during their parties. Core resources and competencies The sinner party company management is highly skilled of the of the organization operation. They have managed to come up with the process layout of the company. They have managed to give the customers a good layout on how to operate with the company in the right manner. They are skilled in designing, such as painting of the rooms and preparing the photo taking ground for the customers’ party to be enjoyable (Gronroos, 1997 pp. 413). Additionally, they are skilled in food preparation according to the customers needs in packages. On the other hand, the company management makes various records on the dates and time agreed with the customers to hold their party. In that case, they do not get any cases that they have failed their customer. This has made the company build a good reputation hence more customers (Foss, 1997 n.p). On the other hand, the company management is good at time managing according to their schedule. The company operates mostly on weekends between 9.00 o’clock till 5.00 am. Due to their time management skill, most of the people have been attracted to the company by the hard work the company has displayed. The company has also human resource such as the security. This has been made to ensure the customer security during the party time. Any forms of crimes in the sinner party company are nullified. Additionally, the security ensures, though the invited people take beer or alcohol, the security resource ensures peace and harmony during the party (Foss, 1997 n.p). Additionally, the company has employed entertainment skilled people who ensure the customers’ parties are enjoyable. For instance, there are DJs provided by the company to entertain the invited people by the customer. This has made the company reputation become strong enough. On the other hand, there are cleaning workers who ensure the place is clean enough after the function. This makes the company’s services pleasing to the customers due to the hospitality they display. In that essence, the core resources and the competencies of the sinner party company (Foss, 1997 n.p). Key processes The sinner party company has various key processes with which they deal fairly with their customers. Firstly, the customers are given the chance to pick the service they need to either the private bar service or they hire one of the company’s unit to hold their function. Secondly, the company designs the units for the customers for decoration and making the customer’s party look more colorful. Thirdly, the customers are allowed to pick the kind of alcohol and food packages they would need in their. They also pick the date and time for their function (Gronroos, 1997 pp. 412). In that case, the sinner party company has made the customers know that the daytime functions are cheaper than the night functions. Fourthly, the customers finalize their deposits and make their final payments after the function. During the functioning date, the company provides the customer with security for both types of services. Then the cleaning is done and the customer makes the final payment. Finally, the customer is asked to leave the feedback and tell any improvement that the company needs. In that essence, the sinner party company would be developing from step to the other (Gronroos, 1997 pp. 415). The gap between firm and the customer (value proposition) Sinner Party Company offers security for the customers for both services. Through out here, customers who hold their functions at night, they all feel secure due to the security ensured by the company. The company displays a lot of hospitality where the customers are offered with options to choose according to their interests (Anderson, Narus & Van Rossum, 2006 pp. 90). The company offers the customers with entertaining aspects such as the DJs for the decoration of the parties. This is a company different from others such as the catering companies where one is responsible for his or her own party. In the sinner party company, one is able to locate his or her party either in the morning or at night. This is due to the security offered by the company for the secure of the customers’ property. In that case, the Sinner Party Company gives their customers a freedom during their celebrations (Anderson, Narus, & Van Rossum, 2006 pp. 90). Additionally, the Sinner Party Company charges are pleasing to the customers. They allow the customers to make the deposits first then finalize their charges after the function. This displays how respectable the company is to the customers. The company management shows their understanding to their customers needs. They enable trustworthy with the customers hence strengthening the relationship. On the other hand, the sinner party company follow the law such that they do not allow illegal activities to take place in their midst. In that case, the customers feel safe and stress free during their functions (Anderson, Narus, & Van Rossum, 2006 pp. 90). For the Sinner Party Company wrestling with the high cost and the flexibility of the old, the company is able to improve the efficiency and availability of the party resources and the application through visualization. According to the research, around 50% of typical human resources in the party company budget in a non- virtualized data center go towards maintaining the existing customer safety and innovation of the new technology to the security sector. The sinner party company clients make the business grow typically by a minimum of 30-45% in a year making a decrease in costs by 35% in that case, the company expenses on the resource and buying of the property. Due to the security offered, the customers’ costs have lowered to about 20% (Anderson, Narus & Van Rossum, 2006 pp. 90). Revenue streams The Sinner Party Company revenue fall under the one time revenues were they deal with the usage fee. In that case, the customers pay for the usage of the company’s services. According to the operating process, during the picking of the date and time for the function as a customer, one pays the deposit. In that case, they agree with the company to finalize the charges (Gallaugher, Auger & BarNir, 2001 pp.410). The company accommodates fifty customers at a maximum hence the usage fee is generated by each customer. All the services offered by the company within the two options are charged. The beers and the spirit served to the customers are also incorporated in the final changes. Additionally, a customer may need his or her unit to be decorated hence they are charged for the cost (Gallaugher, Auger & BarNir, 2001 pp. 478). Cost structure The costs incurred by the Sinner Party Company in all sectors differ from one to the other. For instance, when the company requests for the company to hire a private table or area, this would cost AUD$1000 to about AUD$1500 per night. Additionally, the cost of the drinks taken during the party would be under the company. On the other hand the essence of having a bottle service or a tap beer service at a hired place is also a cost incurred by the company. On the same case, the company also provides their customers with human services such as the DJs and other entertaining aspects which also challenge the company (Gallaugher, Auger & BarNir, 2001 pp. 479). Additionally, the construction of the destination by building the small building with either four or five floors and separate rooms is also costly. The blocks and the cement needed would also cost the sinner party company. On the other hand, a destination where one is attracted to hold their weddings and birthdays should be well decorated with everything needed available. This is a costly task that the company incurs. In that case, the margin model is very essential (Gallaugher, Auger & BarNir, 2001 pp. 479). The company also incur costs due to the great competition from the catering companies. They spend a lot as they try convincing the customers to choose their company during their weddings and birthdays. The travelling during the movement to approach the customers from different places is also costly. Margin model As a company, the alcohol bottle is charged at higher rate than in the other ordinary bars. According to the two options given to the customers ; to provide bar service for them at their own homes is charged for the transport of the bottles and the staff the company offers to serve and clean the area of the function (Kirschbaum, 2005 pp. 27). Additionally, if the company is responsible for the seats, they are also charged per sit. In such a case, any damage incurred either for a seat or a bottle, the owner of the function becomes responsible. On the other hand, if the company is responsible to find the destination and provide the private bar services, the charges are different. Due to cut the cost incurred where hiring the destination, the company charges a bit higher charges than the first option. For the private bar service is equal to that of the home bar service. In that case, the charges differ due to the charges for the bar hiring cost (Kirschbaum, 2005 pp. 26). Though establishing an area in a business operating environment would be costly due to the construction of the building or purchasing the building it would be a way of targeting customers. In that case, the cost incurred by the company during the construction or the purchasing would be returned as the number of customers would have increased hence increase in income. For instant, the bars that are situated near the Wynyard and the CBD areas of business operations, many people would be attracted to the sinner party company hence income generation. Additionally, dividing of the building in to units and penthouse is also costly. This is reversed through the refurnishing of the building with makes it attracting to the customers. They also feel comfortable operating in such decorated building as their function become more colorful (Kirschbaum, 2005 pp. 26). References Anderson, J. C., Narus, J. A., & Van Rossum, W. (2006). Customer value propositions in business markets. Harvard business review, 84(3), 90. Evans, P. B., & Wurster, T. S. (1997). Strategy and the new economics of information. Harvard business review, 75(5), 70. Foss, N. J. (1997). Resources, firms, and strategies: a reader in the resource-based perspective. Oxford University Press, USA. Gallaugher, J. M., Auger, P., & BarNir, A. (2001). Revenue streams and digital content providers: an empirical investigation. Information & Management, 38(7), 473-485. Gronroos, C. (1997). Value?driven relational marketing: From products to resources and competencies. Journal of marketing management, 13(5), 407-419. Kirschbaum, R. (2005). Open innovation in practice. Research-Technology Management, 48(4), 24-28. Payne, A., & Frow, P. (2005). A strategic framework for customer relationship management. Journal of marketing, 167-176. Winer, R. S. (2001). Customer relationship management: a framework, research directions, and the future. Haas School of Business. Read More