PRINCIPLES OF ENTREPRENEURSHIP (ENT530) : BUSINESS

MODEL CANVAS

FACULTY OF BUSINESS AND MANAGEMENT

Name Student ID

1. ALLYSSA LAI BINTI DANIAL LAI 2019253844

2. ALYA FARZANA BINTI REDZUAN 2020964145

3. FATIN AFIFAH BINTI JAJULI 2019422762

4. JASTHASHA ANAK JEMAT 2019229046

5. MUHAMMAD SYAHMIL BIN SULAIMAN 2019472692

SEMESTER: 4

PROJECT TITLE: BUSINESS MODEL CANVA

LECTURER: DR. NOR AZAIRIAH FATIMAH BINTI OTHMAN

ACKNOWLEDGEMENT

Firstly, we are grateful because we managed to complete our ENT530 Business

Model Canvas within the time given by our lecturer. I would like to express my sincere
gratitude to our group members Syamil, Alya, Allyssa, Jastasha and Fatin for giving hand in
hand upon the completion of this business model canva report. The report can not be
completed without the effort and cooperation from our group members,

We would specially thank our beloved lecturer, Dr. Nor Azairiah Fatimah Binti
Othman, for constantly motivating us to work harder and for providing their invaluable
guidance, comments and suggestions throughout the course of the project. Without her, our
project would not have been successful.

Also, we would like to thank my parents and family that always supported us by
giving us moral support and throughout the completion of this assignment. Not to mention,
my classmates who are always there to offer their hands whenever I need them and help me
to finish this assignment.

EXECUTIVE SUMMARY
 Baju Kita was a partnership that was officially established on 20th June 2017. There
are five partners who own this company which are Allyssa Lai, Alya Farzana, Fatin Afifah,
Jasthasha, and Muhammad Syamil. This company was located at Johor Bahru. Marketing
and social media manager, administrative manager, operational manager, financial
manager, and human resources manager are some of the positions held by the proprietors.
Baju Kita has also hired five persons, including three sales assistants and two cashiers.

The main products of Baju Kita are making clothes with reused fabrics. Moreover, the
primary market of Baju Kita is eco lovers and Asian markets. Most of the clothes that Baju
Kita produces are suits with Asian skin color. Baju Kita products may be obtained via
physical stores and official websites. Our clothes have a variety of sizes and colors. Also,
casual wear is trendy among young adults since it is convenient and straightforward to wear.
Baju Kita products use the reused fabrics that are made up of non-petroleum based.

Baju Kita was created using Business Model Canva(BMC). Each of the grids on BMC
helps Baju Kita build up the business. The grid on BMC includes customer segments, value
propositions, channels, customer relationships, revenue streams, key activities, key
resources, key partnerships, and cost structures.

TABLE OF CONTENTS
 TITLE PAGE

ACKNOWLEDGEMENT I

EXECUTIVE SUMMARY Ii

TABLE OF CONTENTS Iii

LIST OF FIGURES Iv

1. INTRODUCTION
1
1.1 Company Background
1.2 Problem Statement 2

1.3 Opportunity recognition 2

1.4 SWOT analysis 3
1.5 Purpose of business model canvas preparation 3

2. BUSINESS PROPOSAL
6
2.1 Business Model Canvas (BMC)
2.2 Explanation of BMC
2.2.1 Customer Segments 8

2.2.2 Value Propositions 8

2.2.3 Channels 8

2.2.4 Customer Relationship 9

2.2.5 Revenue Streams 9

2.2.6 Key Activities 10

2.2.7 Key Resources 10

2.2.8 Key Partnerships 11

2.2.9 Cost Structure 11

3.CONCLUSION 12

4.APPENDICES 13

LIST OF FIGURE

Figure 2.1 : SWOT Analysis : Competitor 1 - Padini Concept Store 3

Figure 2.2 : SWOT Analysis : Competitor 2 - Cotton On 4
Figure 3.1: BMC 1 7
Figure 3.2: BMC 2 7
1.INTRODUCTION
1.1 COMPANY BACKGROUND

Baju Kita was established on 20th June 2017 and is located at Johor Bahru. The
business structure of Baju Kita is a partnership. The partnership of Baju Kita involved Syamil
as a director, Alya as assistant of director, Allyssa as a financial manager, Fatin as operation
manager, and Jasthasha as a human resource manager. Moreover, Baju Kita has 12
employees. Baju Kita is a brand of our company that focuses on casual wear. Casual wear is
something that people wear daily. Furthermore, casual wear became popular because it is
convenient for people to wear.

Baju Kita produces clothes with recycled clothes and focuses on environmentally
friendly clothing. Moreover, our company makes clothes that suit with Asian skin color. Also,
our company's target market is the Asian market and eco lovers. Our primary basic material
for casual wear is natural fibers that are non-petroleum-based but are instead plant or animal
fiber-based. Examples of plant-based natural fibers are cotton, hemp, bamboo, and soy.
Then, animal-based natural fibers include wool, silk, and cashmere. Baju Kita focuses on
environmentally friendly products because it reduces the number of pesticides released into
the environment, reduces toxic waste, and supports fair trade and animal rights.

Our company's mission is to save the environment and sustainably use natural
resources throughout our business and encourage environmentally responsible efforts to
develop new models for promoting sustainability. Our company vision is to be one of the
best brands in the world that provide a minimalist alternative to fashion with eco-friendly
materials and an empowering workforce.

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1.2 PROBLEM STATEMENT

The first problem is that we saw that the clothes that are being produced do not have
quality. Since our company is getting more significant day by day, our company always tries
to meet the quality that has been set. Also, our company's concern is the quality of the
reused fabric. Not all the reused fabric has high quality, and we tried our best to choose the
best fabric to make new clothes. Moreover, the reused fabric must be non-petroleum-based.
The second problem that our company encounters is the lack of t-shirt design. Most
of our clothes are just a plain t-shirt unless we receive a custom order from the customer
then we make new clothes with design on it. Currently, our company's primary focus is to
produce plain t-shirts that have a variety of sizes and colours. That is why our company's
difficulty is to produce designer clothes.
The fast fashion trend was another problem that we need to face. The fast fashion
trend is a problem that every company cannot avoid. Social media constantly feeds us about
new fashion trends. The consequences are that it can have an impact on our environment.
Our company tries to use the reused fabric to make new clothes.

1.3 OPPORTUNITY RECOGNITION

The first opportunity for recognition is to produce high-quality products. Our business
uses the reused clothes to make new clothes. As far as we know, reused clothes have a low
quality of fabric. Since we make our clothes, our business carefully chooses the best
material from reused clothes to produce high-quality products. Also, we want to prevent any
defect on clothes so the customer can feel safe and not worry about fabric quality.
The second opportunity for recognition is designing the clothes. The primary
production of our business is plain t-shirts unless we receive the custom design from
customers then we create the clothes. Our company sees that the customer does prefer t-
shirt design.
The third opportunity is to recycle and save the environment. Since our business is in
the fashion industry, it is expected that fast fashion trends happen frequently. Because of the
fast fashion trend, our business needs more fabric to make cloth. Furthermore, our company
uses the reused clothes to make new clothes. Moreover, it is suitable for someone who
loves to protect the environment and fast fashion lovers.

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1.4 SWOT ANALYSIS

Competitor 1

Figure 2.1

The first competitor for our business is Padini Concept Store. This company also
provides and sells casual wear and attire. The strength of this business is, they are such a
well-known, well-established, and vigorous company. They already have a solid and
valuable brand. Other than that, they also have a higher quality of products. Lastly, this
business is suitable for every age of consumers. They have various types of casual wear for
different ages. The weakness for this business is, they offer a higher price for their products.
This is because it is in line with the higher quality of products. Next, Padini's profit is
unstable. The consumer spending the budget on garments is dependent on the season, like
there will be the highest peak during the festival season such as Chinese New Year or Hari
Raya. The opportunities that can be taken from this business can produce new products and
innovations for casual wear. This is because they are such well-established and vigorous
capital businesses. So, there is no problem for them to develop new products. The
probability for them to succeed in the future is high because they already have their targeted
customers who believe in their business. For the well-known business, they also have some
threats they need to face. For this business, some threats they need to face will increase the
competition as they are being developed from another competitor. Other than that, there will
be a probability for the customer to choose another product that offers from another
business that is more affordable and has more variety choices rather than what they offered
like Uniqlo and H&M.

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Competitor 2

Figure 2.2

The second competitor in our business is Cotton On. We take Cotton On as our
competitors because they already exist and were established in 1991, which are long-term in
these industries. Since then, they have improved their products until they can offer high-
quality products compared to the other competitors. Next, they have a Performance
Management Program. This program supports the improvement of staff performance toward
customers. Before starting to work in each Cotton On store, staff must complete a 5-day
required training program. They also have some types of weaknesses, such as a lack of
colour pallets. Some of the customer demand cannot be met since it does not fulfil the
customer preference. Furthermore, they also keep changing the price of products. This not
fixed price will affect the customer's decision to buy it. This business can take so many
opportunities since they already exist in the market for an extended period. First, they can
diversify their product. For example, they can innovate for their current product to make the
customer more interested in their product. Second, since they already have more knowledge
and experience in this industry, maybe they can create or develop new products. With the
new development of products, they can expand their business. This business also has some
threats they need to face. For example, they will have intense competition from other new
businesses that want to enter the market. Other competitors will produce and innovate new

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1.5 PURPOSE OF BUSINESS MODEL CANVA

The business model canvas is an essential tool for simply and effectively
understanding a business model. Using this canvas, we will learn more about the customers
we serve, what value propositions are available through which channels, and how our
business generates money. We can also utilize the business model canvas better to
understand our own or competitors' company model. Alexander Osterwalder of Strategyzer
developed the Business Model Canvas. The business model canvas is a tool for describing,
visualizing, evaluating, and updating business models. It explains how an organization
generates, distributes, and captures value.

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2. BUSINESS PROPOSAL
2.1 BUSINESS MODEL CANVA (BMC)

2.1.1 Create a Business Plan with BMC

The Business Model Canvas reflects systematically on your business model, so you
can focus on your business model segment by segment. BMC is a great tool to help you
understand a business model in a straightforward, structured way. Using this canvas will
lead to insights about the customers you serve, what value propositions are offered through
what channels, and how your company makes money. You can also use the business model
canvas to understand your own business model or that of a competitor! The Business Model
Canvas was created by Alexander Osterwalder

2.1.2 Four Reason to Use BMC

i) Business Model Canvas is focused

the business model canvas is a one-page document that addresses the most important
elements to launch your startup

ii) Target customer needs

The business model canvas forces you to think beyond your product. When you envision
how you will sell your product, what type of resources you need the different customer
segments as well you can serve, the business becomes lucid.

iii) BMC is clear and concise

The business model is a blueprint that defines your business initially and you later expand
on it. It is useful for easy communication with your team, investors, partners as well as
employees to come on board with your vision.

iv) Reduces the risk of failure

The business model canvas helps you with the execution steps requirement to take your
idea to market.

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 Figure 3.1

Figure 3.2

2.2 EXPLANATION OF BMC

2.2.1 Customer Segments

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 The first grid is the customer segment. In this particular grid, we have two customer
segments which are the first is teenagers and adults and eco-friendly society. Our product
lines are specified for teenagers and adults. We provide casual wear sizes for teenagers and
adults. Most likely, our product was designed based on the teenagers and adults to wear
daily as their favourite and comfort wear. Besides, we also targeted the eco-friendly society
as we provide eco-friendly products. These people most likely prefer products that sustain
the environment. An eco-friendly society loves nature and having an environmentally friendly
lifestyle. Hence, our products are a perfect choice for the eco-friendly society as we use
recycled material and environment-safe oriented raw material to produce products.

2.2.2 Value Propositions

The second grid is the value proposition. There are two value propositions for our
products, and they are recycled fabrics and organic cotton. All product lines are made with
recycled fabrics and organic cotton. Our company is eco-friendly oriented where we focus on
contributing to the earth's greenery. Recycled fabrics recycle fiber, yarn, or fabric and
reprocess them into usable items, known as textile recycling. Textile waste is collected from
various sources and sorted and treated according to its condition, composition, and resale
value. Organic cotton is cotton that has been grown naturally without synthetic agricultural
agents like fertilizers, pesticides, or transgenic technologies. Thus, Just by buying our
products, our customers already take small steps towards looking after the mother earth to
make the earth a better planet and a better place for the communities and future
generations.

2.2.3 Channels

The third grid is the channels. In this channels grid, we reach our target consumers
with three channels which are walk-in stores, online website shops, and social media. Baju
Kita has a physical store for customers who are more concerned about quality evaluation
and privacy security. Some customers who do not love to buy online can come to our
physical store to gain more product experience. Besides, we also provide online website
shops for our consumers. Our customers can purchase our products through our online
website shop according to their preference by the tip of their fingers without going to our
physical store. Details of products are given in every product description to make their
observation of particular products before purchasing. The purchased products will be
delivered to our customers within three days after ordering. We also promote our business

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using social media as our medium to reach our potential consumers. Social media is a great
platform to introduce our business as there are millions of social media users. Despite the
Covid-19 outbreaks, online website shops and social media are our effective yet efficient
medium during this worst time as people are bound to the Covis-19 restrictions.

2.2.4 Customer Relationship

The fourth grid is the customer relationship. There are five customer relationships.
They are hosting events, loyalty discounts, online communities, social engagement, and
customer service. Our business is hosting events to share knowledge and increase local
commerce. They give 'big names' the opportunity to network, collaborate with other firms,
and even raise brand awareness. Loyalty discounts are given to our loyal customers on a
basis to attract and retain customers. Hence, they will make further purchases with us and
be able to enjoy discounts offered. Next, through social media, we will generate online
communities that always give positive feedback towards our products and services. Hence,
we will always keep in touch with our fellow customers online. For social engagement, we
organized some social activities like charity. This allows us to share our brand with people.
We may boost the likelihood of customers suggesting our brand to others or blogging about
their experience on social media by increasing the number of good interactions they have
with us online. Lastly, customer service is provided to ensure that their requirements are
addressed to benefit the organization or business. Thus, maintaining the satisfaction of our
customers.

2.2.5 Revenue Stream

The fifth grid is a revenue stream. Our company tried to find another alternative
despite Covid-19 happening. First and foremost, our primary revenue comes from sales. Our
company sells clothes, and we sell them through physical stores and websites. It is
convenient for customers to purchase our products. Moreover, we want to ensure that the
customers are satisfied with our products. Then, our company side revenue comes from
vendor rent. It means that we rent the empty rack to another seller to display their products.
Besides, we also provide rental for any photoshoot event. It is popular these days to not
purchase but rent the products. Even though we rent for the photoshoot, we can also
advertise our products to the customer. Furthermore, the side revenue stream that we have
is promoting another product to advertise on our website. Our company can gain profit if the
customer clicks on the advertisement that appears on our main page.

2.2.6 Key Resource

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 The sixth grid is the key resource. Our company has five primary key resources. The
first essential resource is financial resources. Our financial resource is from our savings from
each member. It means that the modal that we use to start up the company is from the
savings. The second is human resources. There are five company owners, and each owner
holds an important position such as marketing and director, assistance director, operational
manager, financial manager, and human resource manager. Besides, our company also
hires people to hold positions such as sales assistant and cashier. The third essential
resource is raw materials. Our company produces and designs the cloth. The raw materials
that we needed were fabric, thread, button, zip, rubber, pin, and needles. The fourth
essential resource is equipment. The equipment is necessary for our company to execute
and produce more new clothes. We needed a sewing machine, chair and table, cashier
machine, shirt rack, hanger, iron, and photocopy machine. The last essential resource is
knowledge. Since our company's primary focus is the production of clothes, we need to
follow every update in the fashion industry. The knowledge that we need to have is
knowledge about fabrics and learning about fashion trends.

2.2.7 Key Activities

The seventh grid is a key activity. Key activities are important to run the business.
There are several key activities under our company. The first key activity is production
activities. Under production activities, our business would take orders from customers and
make the clothes. Unless it is custom made, our business will design the clothes as
requested. Operation activities is our second key activity. Our business does have a physical
store and we will open the store from Monday to Saturday from 8am until 9pm. Moreover, as
for the website, our business set it as automatic and operated it for 24 hours. Another key
activity is marketing activity. Our business fully utilizes social media as our main platform to
market our product to the customer. Our business uses Facebook and Instagram to promote
our products and reach more customers via online. The fourth key activity is financial
activity. Our business will collect invoice from fabric supplier and customer, pay utilities, pay
debt and give salary to our workers. The last key activity is human resource management
activity. Under human resource management activity, our business is recruiting someone
new and can adapt to the work environment. It is important to recruit someone who has
knowledge about the fashion industry and competencies.

2.2.8 Key Partner

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 The eight grid is a key partner. Our first key partner is the supplier. Supplier is
important to our business to supply the fabric or reused clothes to make new clothes. Our
main supplier is Kloth Cares. Our second key partner is strategic alliances. Our business has
alliances with other retail stores such as H&M and Uniqlo. The reason why we make
alliances is because to learn good design of clothes and how they can always be innovative
in the fashion industry.

2.2.9 Cost Structure

The last grid on BMC is cost structure. Our business has fixed costs and variable
costs. As for fixed costs, we do have rent to pay, salaries to workers, equipment lease
payment, utility payments and business insurance. Variable cost is directly related to sales
volume. It means that if the sales increase, the variable cost also increases. However, if the
sales cost decreases, the variable also decreases. Our company’s variable cost is the
quantity of fabric.

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3.0 CONCLUSION
In conclusion, after applying the Business Model Canvas (BMC), we can conclude
that Baju Kita can join the market. We can guarantee and recognize whether or not our
business is on the right track using BMC. Aside from that, we want to ensure that our
business runs smoothly without any issues arising from projects, clients, suppliers, or
anything else. We can see the critical elements for our business and how they may
contribute to our company's success. BMC also helps determine which parts of the business
we need to enhance to make our company more successful.

At the end of this study, we can completely understand our business, and BMC plays
such an essential role for us to establish a new business or join the market. After we have
analysed all the issues and subject matter regarding our business, understand our business,
and BMC plays such an essential role for us to establish a new business

Lastly, we hope that Baju Kita can continue their business in the market to meet
more customer demands in the future. We hope that Baju Kita would be one of the
customers' first options for higher-quality clothes.

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4.0 APPENDICES

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