1. From an idea to a business plan Buna – case study August, 2016
BUSINESS PLANNING
From an idea to a business plan
Buna – case study
August, 2016

2. BUNA cooperative Cup of awarness, please!
3 people, 3 paths, 3 set of skills & knowledge
All leading to a common goal =
Doing something you love without harming others and the environment

3. About BUNA cooperative
FAIRTRADE
4 principles of Buna
Non-profit
OUR WAY
Defining a ”problem”
Developing an alternative (solution)
Raising awareness (lectures, media, face to face)
Offering a solution and making it sustainable.

4. Business model Canvas
BASICS OF BMC

5. Introduction of BMC DEFINITION
”A business model describes the value an organization offers its customers and illustrates the capabilities and resources required to create, market and deliver this value and to generate profitable and sustainable streams.” (Osterwalder, A., Pigneur, Y., & Tucci, C. (May 2005). Clarifying Business Models: Origins, Present and Future of the Concept. Communication of the Association for Information Systems, Volume 15)
BUSINESS MODEL CANVAS
A visual tool designed by Alexander Osterwalder to facilitate when designing a business model. This component makes it easier to understand how the various components of a business effect each other.

6. The 9 components of BMC

7. Customer segments OUR TARGET CUSTOMERS For whom are we creating value?
Who are our most important customers?
WHO WILL WANT TO PAY FOR OUR PRODUCT/SERVICE?
BUNA COOPERATIVE – CUSTOMERS:
Customer profile: aware, quality, like to be different, inquisitive …
Retail and wholesale
Different products = different customers
Mass market
Niche market
Segmented
Diversified = needs & wants of different segments
Multi-sided Platform = serve more needs … example are credit cards … on one side we want as many people as possible to use it, but we also have to have as many places as possible, where they can use them
EXAMPLE: one of the most loyal target group of BUNA products are people who work for NGO’s and coffee lovers of Slovenia and abroad … aware owners of caffes

8. Value proposition What value do we deliver to the customer?
Which one of our customer’s problems are we helping to solve?
What bundels of products and services are we offering to each Customer Segment?
Which customer needs are we satisfying?
PROBLEM SOLUTION
BUNA COOPERATIVE – SOLUTIONS:
High quality product – fresh with known origin
Zero waste
No design / no logo / no stories – just facts
Reasonable price
Newness
Performance
Customization
”Getting the Jog Done”
Design
Brand/Status
Price
Cost reduction
Risk reduction
Accessibility
Convenience / Usabilty
EXAMPLE: all BUNA products are of known origine and environmentally friendly

9. Channels
Through which channels do our Customer Segments want to be reached?
How are we reaching them now?
How are our channels integrated?
Which one works best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?
HOW DO OUR PRODUCTS/SERVICES GET TO THE CUSTOMERS AND VICE VERSA?
Awareness – how do we raise awareness about our company’s products and services?
Evaluation – How do we help customers to evaluate our organization’s Value Proposition?
Purchase – How do we allow customers to purchase specific products and services?
Delivery – how do we deliver a Value Proposition to customers?
After Sales – How do we provide post-purchase support?
EXAMPLE: communal orderings of clothing … totally different type of offering products … but it was set up, because we wanted to offer a solution to a problem 
BUNA COOPERATIVE – CHANNELS:
Communication: lectures, media, face to face
Sales channels: retail, wholesale, web, communal orderings
Logistic: get it yourself, stores, post

10. Customer relationship
What type of relationship does each of our Customer Segment expect us to establish and maintain with them?
Which ones have we established?
How are they integrated with the rest of our business model?
How costly are they?
HOW DO YOUR CUSTOMERS RELATE TO YOUR PRODUCT?
Personal assistance
Dedicated personal assistance
Self-service
Automated service
Communities
Co-creation
EXAMPLE OF BUNA – people bringing their own packaging to take away BUNA coffee – each customer is personally involved 
BUNA COOPERATIVE – RELATIONSHIP WITH CUSTOMERS:
Community that is getting larger and larger
Customers find their own personal connection with products and services BUNA offers, but most of them are very personal

11. Revenue Streams
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
PRODUCT/SERVICE PRICE?
TYPES
Asset sale
Usage fee
Subscription Fees
Lending/Renting/leasing
Licensing
Brokerage Fees
Advertising
FIXED PRICING
List price
Product feature dependent
Customer segment dependent
Volume dependent
DYNAMIC PRICING
Negotiation
Yield management
Real-time-Market
EXAMPLE: how do we set prices for clothing?
BUNA COOPERATIVE – PRICES:
Fixed price for retail – price transparency
Fixed price for wholesale

12. Key Resources What key resources do our value proposition require?
Our distribution Channels
Customer Relationship?
Revenue Streams?
WHAT DO WE NEED TO MAKE OUR IDEA HAPPEN?
TYPES OF RESOURCES:
Physical
Intellectual (brand patents, copyright, data)
Human
Financial
BUNA COOPERATIVE – RESOURCES:
3 people with different knowledge and skills
Roastery
Technical equipment each of us has (computer, phone, car …)
Fairtrade and organic materials

13. Key partners Who are our key partners? Who are our key suppliers?
Which Key Resources are we acquiring from our partners?
Which Key Activities do Partners perform?
WHO DO WE NEED TO WORK WITH TO MAKE OUR IDEA HAPPEN?
MOTIVATION FOR PARTNERSHIP:
Optimization and economy
Reduction of risk and uncertainty
Acquisition of particular resources and activities
Key parteners can also be those who provide a substantial channel for our customer, when:
A partner is a leading entity with a brand and market position and this adds to our credibility
When partner has expertise to land contracts with key target customers
When partner adds expertice to product solution in the way that increases value of the product for end customer.
EXAMPLE: Key partners of BUNA are fairtrade companies from abroad that makes it able for us to develop our products  For example Afrotera with Burkina Faso.
BUNA COOPERATIVE – PARTNERS:
Suppliers of fairtrade and organic materials
Renter
Accountant

14. Key activities What Key activities do our Value Proposition require?
Our distribution Channels?
Customer Relationships?
Revenue Streams?
WHICH ACTIVITIES DO WE HAVE TO PLAN AND PERFORM TO MAKE OUR IDEA ALIVE?
BUNA COOPERATIVE – ACTIVITIES:
Roasting coffee
Marketing and sales … communication
Finding and keeping relationships with our partners
CATEGORIES:
Production
Problem Solving
Platform/Network

15. Cost structure
What are the most important costs inherent in our business model?
Which key resources are most expensive?
Which Key Activities are most expensive?
WHAT ARE THE COST WE HAVE TO PAY?
IS YOUR BUSINESS MORE
Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)
Value Driven (focused on value creation, premium value proposition)
SAMPLE CHARACTERISTICS
Fixed Costs (salaries, rents, utilities)
Variable Costs
Economies of Scale
Economies of Scope
BUNA COOPERATIVE – COSTS:
Materials (import)
Rent
Human resources

16. CREATE YOUR OWN BUSINESS MODEL
Workshop
CREATE YOUR OWN BUSINESS MODEL

17. Instructions Groups Each group thinks of a simple business idea
Within a group try to fill out the Business Model Canvas
Prepare for a 5 minute presentation of your idea

18. PRESENT YOUR BUSINESS IDEA
Presentations and discussion
PRESENT YOUR BUSINESS IDEA

19. DIFFERENT FORMS OF ORGANIZING
Why cooperative?
DIFFERENT FORMS OF ORGANIZING

20. Cooperative
DEFINITION: Firm owned, controlled and operated by a group of users for their own benefit. Each member contributes equity capital, and shares in the control of the firm on the basis of one-member, one vote principle (and not in proportion to his or her equity contribution). EXAMPLES: Buna cooperative – Slovene cooperative Mondragon – one of the most successful European cooperatives

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