TENTH MEETING (04-06-22)
- ROLANDO III LLAMADO
- Apr 11, 2022
- 3 min read
Updated: Apr 12, 2022
Subject: Cost Structure
Topic: Identifying the Cost Structure of the Business
Day: April 06, 2022
Time: 10:30 a.m. – 11:30 a.m.
Facilitator: Rolando A. Llamado III
STEPS
A. Answer the following questions and put it in your blog site.
1. What are the most important costs inherent in our business model?
2. Which Key Resources are most expensive?
3. Which Key Activities are most expensive?
DISCUSSION
The meeting started with Mr. Rolando A. Llamado III as the facilitator. The objective was to identify the most important cost inherent and the most expensive key resources and key activities in order to answer the questions listed above.
The first question was a little hard to understand because the members were confused whether what to answer. A Youtube video link was sent in the group chat and every member watched it but still confused. That is why it was decided to just wait for Ma’am Sotto and ask what does the question number 1 means. The second question was easier to answer and everyone agreed that human resources are the most expensive key resources. For the third question, there was a debate among the members of which is more expensive, the production or the platform/network. According to Mr. Llamado, the platform or network is more expensive because of the advertisement that the company is going to create compare to the production because the company will just have partnership with Alibaba and with that partnership Alibaba might offer lower prices when the company buys its supplies. However, in terms of how many products that the company is going to buy, it might be expensive to. In the end, the members compromised to just pick the two key activities. Going back to the first question, after asking Ma’am Sotto, the members chose between cost-driven or value-driven and cost-driven is appropriate for the company under the variable category.
CONCLUSION
1. What are the most important costs inherent in our business model?
The cost-driven strategy is best fit for the business. Cost-driven is defined as completely focused on reducing their costs whenever possible, as the name suggests. Remember in activity 2 which is naming the purpose of the business, one of the purposes of this business is to offer affordable price to the homeowners and customers. To be able to do that the company needs to have low value propositions and maximum automation to keep internal costs low in order to offer competitive pricing to the customers.
The business falls under the variable cost. Variable costs are defined as costs that change as the quantity of the goods or service that a business produces changes. It means that it may increase or decrease depending on a company’s production or sales volume. Since this is a maintenance company, there is a direct labor costs and cost of raw materials which are examples of variable cost.
2. Which Key Resources are most expensive?
Out of all the key resources, the human resources are the most expensive. Why human resources? It is because the process of hiring, instructing and contracting part-time construction workers and other staff for the company have corresponding costs that the company needs to expect. Also, there might be unanticipated human resource costs that the business needs to take consideration.
3. Which Key Activities are most expensive?
The production and platform or network is the most expensive key activities for the business. Although the company will not produce its own product, the quantity of buying products from the supplier, which is Alibaba, can be expensive. In terms of platform or network, advertising is a really important part in creating a business that is why companies exert a large amount of money for this. Businesses have competitions and to able to stand out from the others, you need to have better advertising strategies compared to others that will get the attention of your customers.
BUSINESS MODEL CANVAS (KEY PARTNERS)
GLIMPSE OF THE MEETING
Members Contributions:
· Delfin, Eden Eve V. (Writer) – records the minutes of the meeting, notes the discussion and writes the blog.
· Llamado III, Rolando A. (Website Editor) – edits, designs and inserts the video and blog in the website.
· Mariano, Yvette Kayle G. (Leader) – facilitates and leads the group and the discussion of the tropic for smooth and clear communication in the Google Meet.
· Olasiman III, Epifanio T. (Video Editor) – records, screenshots the meeting and edits the video that will be inserted in the website.
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