Essay On Cost Analysis

2870 Words12 Pages
COST SEGMENT INFRASTRUCTURE SECTION This component deals with the realisation of the business model. It deals with inputs and resources that need to be used in order to deliver the value propositions to the customer in order to ensure customer satisfaction. This component is made up of Key Activities, Key Resources and Key Partnerships. Key Activities The key activities are the activities a business has to excel in. These are the activities required for the business to function, in other words, to generate sales and gain revenue. The activities identified in this segment will be the most important actions performed by the business. Activities can generally be grouped into three types of activities, namely: • Production: Design, manufacture and delivery of value proportion • Problem solving: Suitable solutions for solving customer problems. • Platform or network activities: The developing, managing and maintenance of a business. Key activities will be established by looking back on the canvas and asking: What Key Activities do our value propositions require? What Key Activities do our channels require? Key Resources These are the essential resources needed to realise the business and model the business components. Key resources can be physical, intellectual, human and/or financial and can be owned, leased or acquired from key partners (Osterwalder & Pigneur 2010). The assets, competencies, people, information and other resources identified in this segment allow a business to create and offer value proportions, reach markets and maintain relationships with customer segments in order to earn revenue (Ellis 2013). Key resources can be financial, physical, intellectual (brand patents, copyrights, data etc.) or human (Osterwalder & P... ... middle of paper ... ...as the basic recipe for the example product, cauliflower rice. What will the product be? The product will be a finely grated mixture of blanched cauliflower and finely chopped blanched onions. This product will be send through the necessary preparation techniques, freeze blasted and packaged in the appropriate packaging. This will be kept frozen until the customer wants to prepare the cauli-rice for consumption. The customer will have the convenience of taking the already chopped cauli-rice mixture out of the freezer, add it to the heated butter or coconut oil and steam it for 7min, before serving. This will reduce the preparation time of preparing cauli-rice from 10min to 3min with a total saving of 7min. Taken into account that homemade “cauli-rice” also needs to be washed and chopped before preparing it, the frozen pre-cooked option will save even more time.
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