Business Essentials: Tenth Canadian Edition
Business Essentials: Tenth Canadian Edition
Business Essentials: Tenth Canadian Edition
Chapter 4
Entrepreneurship, Small
Business, and New Venture
Creation
Equity Debt
• Personal Savings • Financial Institutions
• Love Money • Suppliers
• Venture Capitalists
• Private Investors (Angels)
– succession timing?
– successor training?
• Advantages • Disadvantages
– freedom – unlimited liability
– simplicity – lack of continuity
– low start-up costs – difficult to raise money
– tax benefits – reliance on one
individual
• Advantages • Disadvantages
– larger talent pool – unlimited liability
– larger money pool – lack of continuity
– ease of formation – ownership transfer is
– tax benefits difficult
– potential conflict
• Advantages • Disadvantages
– limited liability – start-up costs
– continuity – double taxation
– professional – regulations
management – stockholder revolts
– easier to raise money
• Advantages • Disadvantages
– limited liability – no incentive to invest
– owner continuity
– members simply benefit
– one vote per member;
from usage
equal voice regardless of
size
– income taxed only at the
individual member level
https://www.youtube.com/watch?v=wlKP-BaC0jA
Source www.businessmodelgeneration.com/canvas. Canvas concept developed by Alexander Osterwalder and Yves Pigneur.
Source www.businessmodelgeneration.com/canvas.
Canvas concept developed by Alexander Osterwalder and Yves Pigneur.
Copyright © 2023 Pearson Canada Inc. 4 - 35
1. Customer Segments
Customer segments
Athletes
Mass
Market
Sports Fans
Sneaker
Enthusiasts
ValueProposition
What value do we deliver to our customers?
Which customer’s needs are we satisfying?
Getting the
Newness Performance Customizatio Design Brand Convenience
Job Done
n
Channels
Direct Indirect
How are the value proposition(s) promoted, sold and delivered? Why? Is it working?
Customer relationships
Dedicated Automated
Personal Self-Service Community Co-creation
Personal
Assistance Assistance Services
Categories of relationships
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4. Customer Relationships
High
product Personal Athletes
performance Selling
Co Creation Mass
Comfortable Self-Service Market
Everyday
Wear
Retail Sports Fans
Passion for stores
sport Website Young
Nike + People
Innovative TV (trendy)
design Ind. Stores
Revenue Streams
Product Sales
Key Resources
High Personal
product Personal
Selling Athletes
performance Selling
Co Creation
Co Creation
Self-Service Mass
Comfortable Self-Service Market
Everyday
Wear
Retail Sports Fans
Brand Passion for stores
sport Website Young
Distribution Nike + People
chain Innovative TV (trendy)
design Ind. Stores
Product Sales
Product Sales
Key Activities
Supply High
chain product Personal
Athletes
Manageme performance Selling
nt Co Creation
Comfortable Mass
Marketing Self-Service
Everyday Market
Innovation
Wear
Retail Sports Fans
Brand Passion for stores
sport Website Young
Distribution Nike + People
chain Innovative TV (trendy)
design Ind. Stores
Product Sales
Key Partnerships
What can the company not do so it can focus on its Key Activities?
Supply High
Manufacture chain product Personal
rs manageme performance Selling
nt
Co Creation
Profession Marketing Comfortable Self-Service Sport
al athletes Everyday
Innovation Wear Lifestyle
Physiologis Retail
ts Brand Passion for stores Training
sport Website
Retail Distribution Nike +
stores chain Innovative TV
design Ind. Stores
Product Sales
Cost Structure
What are the business’ major cost drivers? How are they linked to
revenue?
Supply High
Manufacture chain product Personal
rs manageme performance Selling
nt
Co Creation
Profession Marketing Comfortable Self-Service Sport
al athletes Everyday
Innovation Wear Lifestyle
Physiologis Retail
ts Brand Passion for stores Training
sport Website
Retail Distribution Nike +
stores chain Innovative TV
design Ind. Stores
Manufacturing
Sponsorships
R&D Product Sales
Marketing Distribution
What is this?
https://www.youtube.com/watch?v=2xBiin2HHhY
Copyright © 2023 Pearson Canada Inc. 4 - 57
Activity – Business Model Canvas
Instant
Pot