TABLE OF CONTENT

NO. CONTENT PAGE

TITLE PAGE I
ACKNOWLEDGEMENT II
TABLE OF CONTENT III
EXECUTIVE SUMMARY IV

1.0 INTRODUCTION
1.1 Company Background 1
1.2 Problem Statement 4
1.3 Opportunities Recognition 6
1.4 SWOT analysis (two competitors) 7
1.5 Purpose of business model canvas preparation 9

2.0 BUSINESS PROPOSAL

2.1 Business Model Canvas (BMC) 10
2.2 Explanation of BMC 11

3.0 CONCLUSION 15
4.0 REFERENCE 16
5.0 APPENDICES 17

III
EXECUTIVE SUMMARY

The Business Model Canvas is an excellent tool for quickly grasping a

company concept. Using this canvas, will lead to insights about the customer that will
be serve, what value propositions are given through which channels, and how the firm
makes profit, as well as understanding own or a competitor's business model. This
report is required as part of the course Principles Of Entrepreneurship (ENT530). The
goal of this report is to identify the Business Model Canvas for our company that is
Roaring V-chine.

Roaring V-chine is a retail company that specializes in vending machine

concepts. Our vending machine business will sell a wide range of food product such
as groceries, beverages, and snacks. Roaring V-chine will ensure that the customer
receive first-class service. We will include our consumers in the selection of brands
that will be available on the shelves of our vending machines. Furthermore, Our
objective is to establish a vending machine business that will provide a broad
selection of goods and products from top manufacturing brands at cheap rates. Our
vision is to build a vending machine business that will have an active presence in
many places.

In this report, it will discuss about the Business Model Canvas of our company.
Besides that, it also will discuss about our company consist of company background,
problem statement, SWOT analysis and opportunities recognition.

IV
1.0 INTRODUCTION

1.1 COMPANY BACKGROUND

Figure 1: Company Logo

Name of company : Roaring V-chine Sdn. Bhd.

Type of Business : Partnership

Industry Profile : Vending Machine

Product : Food, Beverages, Groceries, Snacks.

Location No. 1, Jalan Pantai Sembulan, Kampung

:
Sembulan Baru, 88100 Kota Kinabalu, Sabah

Date Registration : 21 February, 2019

st

Business operation : Full time / 24 hours

Contact Number : 088- 230 716

Email : [email protected]

1
Description:

Roaring V-chine Sdn. Bhd. is the name of our company. In developed

countries such as England and Japan, vending machines are very popular service since
people nowadays are active lifestyle and get a positive response from consumers and
make vending machines a best-selling business. Thus, we took the opportunity to run
this business and make customer living a simple life with provide them our product
that is on-the-go vending machine.

Roaring V-chine was established on 21 February 2021 and located in Kota

Kinabalu, Sabah. Our company’s main activities is to provide hot and cold food such
as Malaysian, Western and Asian cuisine, drinks such as coffee, tea and soft drinks,
snacks such as pastries, candy, biscuits and chips, and fresh groceries such as eggs,
Fruits and vegetables, spices and etc. Our business operation will be full time 24
hours, with security and care.

1.1.1 MISSION, VISION AND OBJECTIVES

VISION

Our company’s vision is to “be the best vending machine service and franchise
in Malaysia.

MISSION

Our company’s mission is to offer diverse range of of goods that can be

personalized to every consumer’s specific needs and to be a learning organization
dedicated to constant development.

OBJECTIVES

1. To deliver outstanding customer service and to provide quality vending machines.

2. To form effective business relationships with our suppliers.

3. Installing environmentally sustainable vending machines in various place.

2
1.1.2 ORGANIZATIONAL STRUCTURE

An organisational structure specifies how activities like allocation of tasks,

coordination, and supervision are oriented toward achieving organisational goals. Our
company operates as a partnership. A partnership is a business or trade arrangement
between two or more persons. Each individual contributes money, property, labour, or
skills, and shares in the company's profits and losses.

Our company's organization structure is as follows: Izzah Dania Binti Jasrie as

the Chief Executive Officer (CEO), Roslizah Binti Rafail as the Accounting Manager,
Fayunah Justin is in charge of Sales and Marketing Manager, and Stephanie Elsie
Mansiang is in charge of Operations Manager.

Figure 2: Company Organization Structure

3
1.2 PROBLEM STATEMENT

Each business has its own challenges and risks including owning a vending
machine business. Therefore, we have identify the problems that will divided into two
segment that is customer and business.

1.2.1 CUSTOMER SEGMENT

Busy Lifestyle

In this modern era, people nowadays are industrious or very busy with their
activity, study and working. People do not have enough time to have a decent meal as
a result of this problem. Besides that, if the hour have past, other individuals will not
have time to go grocery shopping. As a result, having this vending machine will make
things simpler for them since the employees or students do not have time for breakfast
or during breaks, we may utilise the services of this vending machine to offer food
and drinks as well as groceries.

Unimproved Food Selection

People tend to become tired and bored with the same menu all the time at the
nearest food court or even at the house. Thus, Roaring V-chine solves this problem by
offering a wide range of cuisines such as Malaysian, Western, and Asian cuisines.
Furthermore, we also present a seasonal cuisine to meet our customers' appetites.

Hard To Get Food

People in this scenario include students who have run out of food at the
cafeteria or food court,It is difficult to get food quickly because stores are far apart,
and it takes time to wait for food delivery service, which is also expensive. The
vending machine was much more convenient because there was no delivery charge,
and Vending Machine users only had to wait a short time to get fresh food. This will
lead to time-saving solutions to our customers.

4
1.2.2 BUSINESS SEGMENT

Vandalism

Vending machine will sometimes face the issue of vandalism. This is because
the machine will be vandalised by irresponsible individuals and they will make
damage with the machine such as stole the money, scratching and drawing and etc.
The issue of damage due to vandalism will cause a lot of losses because it will cost a
lot to repair it due to the high maintenance.

Limited Location

Location plays a very important role in generating revenue collection.

However, sometimes the company will face difficulties in convincing the owner or
owner of the premises to allow to place the vending machine. Our job is to convince
the owners of the premises and pay the deposit rent and site rent according to the
agreement that has been made. This is important for the company to instill the trust of
the owners of the premises involved.

Mechanical / Technical Issue

The incidents often happen is in payment method using coins and cash. First is
when the tank was full, no more coin can be accepted. This will cause no more
purchase can be made thus vending machine will stop the operated. Secondly, the
problem with the notes cannot be read. When using notes with bad condition such as
crumpled and dirty, the vending machine cannot read the note and then rejected the
payment. Last but not least, the notes or coin stuck in machine. When the coin or the
notes inserted not in the right direction, this problem will occur.

5
1.3 OPPORTUNITY RECOGNITION

Opportunity recognition means proactive brainstorming a new business

venture or an expansion idea. Entrepreneurial business owners constantly seek new
revenue streams. Those that seize ripe opportunities tend to perform best financially.

For long-term viability and success, a company needs some ability to

recognize opportunities. Industries usually evolve based on societal changes,
customer preference changes or technological advances. Vending machines are
becoming better, smarter, and can deliver more engaging customer experiences.
Through artificial intelligence, facial recognition, and transparent displays, these
machines offer everything from entertainment to cashless payments.

People and commerce are shifting further from cash to digital payments, and
many are now adopting mobile wallets or e-Wallet such as Touch ‘n Go, GrabPay,
Boost, WeChat Pay MY, MAE, BigPay, AliPay, and Paypal. For example nearly 45%
of the Chinese population used mobile wallets in 2018, one of the highest adoption
rates in the world.

New technologies are enabling even more convenience. Companies are testing
facial and biometric recognition payments. For example, KFC offers facial
recognition payments at 100 of locations across the country. And the Shenzhen Metro
is testing new technologies that would enable riders to pay by simply looking at a
screen. By making use of AI, facial recognition, and advanced digital displays,
vending machine providers are enabling entertaining and interactive content to drive
loyalty and increase sales.

Next, the partnerships deliver innovation. For example, pure juice partnered
with other juice brands, an automatic equipment manufacturer, to co-develop an
innovative machine. The company’s goal was to offer an appealing user experience
that would increase engagement and sales. The vending machine offers the full
service of a juice counter with an immersive self-service experience. The company
has developed the system at major stores and shopping malls. Consumers interact
with the machine through a transparent touch screen display that enables them to see
their drink freshly made. The customer then has the option to pay through biometric
or cashless purchase.

6
 1.4 SWOT ANALYSIS

SWOT analysis is a strategic planning method that is used to assist a person or

organisation in identifying strengths, weaknesses, opportunities, and threats in
business competition or project planning. In this part, it will describe two of our
competitor’s SWOT analysis that is Chef In The Box and Adamo vending machine.

Roaring V-Chine Chef In The Box Adamo vending machine

 Wide range of  Wide range of menu  Good marketing plan

product
 Energy and time  Top 10 vending
 Strategic location saving machine companies in
Malaysia
STRENGTH  Modern technologies  Have dine-in place
 Good return in
 24/7 operation investment
 Halal Certificate  High quality products
 High quality product

 Consumer perception  not being aware of  Limited in design

the market's
 Maintenance knowledge and  Vandalism
WEAKNESSES reputation
 Usage of electricity  Limited funds
 Maintenance fee

 Create job  Broad target market  Cashless vending

opportunities machine
 Offer new
OPPOTURNITIES  Instant lifestyle packaging design  Joint ventures
programme with
 Develop customer’s investors
taste

 Vandalism  Loss customers due  Price wars with

to Covid-19 competitors
 Strong competition pandemic
 Same market
THREATS  Higher competitors competitors
 Competitors develop
new design and
innovative product

Figure 3: Company And Competitors SWOT Analysis

7
STRENGTH

For our company, we have wide range of product not only just food and drinks
but snacks and groceries also included. Besides, we also have an strategic location
that we choose tu operate the vending machine such as university, school, office, train
station and etc. Our business will operate 24/7 so that customer can enjoy the food
anytime they want. Roaring V-chine also using a modern technologies such as
cashless payment and touch screen. In addition, our product has been certified by the
Halal Food Authority as appropriate for Malaysian citizens, Furthermore, Roaring V-
chine following the International Organization for Standardization (ISO) and ensure
that our product is fully qualified.

WEAKNESSES

For this part, our company need to deal with customers perception like
vending machine food its not fresh, unhealthy, and the food is expensive. Besides that,
vending machine is high maintenance due to the complex system and when something
damage happen, it can cost a lot to repair it. Lastly is high usage of electricity will
lead to high monthly bill.

OPPOTURNITIES

In this part, our company can create a job opportunities. This is because, to
build a business It can not be run by a single person. Thus, we can generate jobs for
the society and raise the public's cost of living by forming this company. Besides, we
can make the customer living in instant lifestyle with offered them our product. Lastly,
we also will develop customer’s taste by offering a seasonal product.

THREATS

In this part, our company tend to have issue with vandalism since the
company is located in an open location. It is something we are unable to resist.
Besides, vending machines are available from a variety of well-known brands. To
compete with larger, more known companies, we will focus on developing a niche
market for our unique equipment.

8
1.5 PURPOSE OF BUSINESS MODEL CANVAS PREPARATION

The Business Model Canvas (BMC) is a strategic management and

entrepreneurial tool. It allows us to describe, design, challenge, invent, and pivot our
business model. BMC breaks our business model down into easily-understood
segments. It will reveal clear paths on which to build our organizational innovation
strategy.

First, Business Model Canvas is focused. Enterprises need a definition of

how to get their products to their customers and the business model canvas helps us to
define them. It also gives us the competitive edge to launch a profitable business not
only through product innovation but also through designing our business correctly.

Second, BMC is clear and concise. It helps us document our start up journey
so we can easily modify it as we go along. The business model is a blueprint that
defines our business initially and we later expand on it. It is useful for easy
communication with our team, investors, partners as well as employees to come on
board with our vision.

Third, target customer needs. The biggest reason for startup failure is
“Product/Market fit” and not the product itself. Too often we forget this and direct our
energy on building an awesome product. “Build and they will come” is a dying
mantra. The business model canvas forces you to think beyond our product. When our
envision how we will sell our product, what type of resources we need as well the
different customers segments we can serve, the business becomes lucid. Documenting
it gives you the clarity when we talk to our customers.

Fourth, reduces the risk of failure. The BMC helps us with the execution
steps requirement to take our idea to market. Connecting the dots between our value
proposition + customer segments + revenue streams, is a good input to our marketing
strategy, positioning statement as well as our Sales strategy. We have edge over our
competitors who are immersed in the lengthy pages of the business plan.

9
 2.0 BUSINESS PROPOSAL

2.1 BUSINESS MODEL CANVAS (BMC)

- MAMEE Sdn
Bhd. - Maintenance - Amenities
- Saving Time
- Hup Seng Bhd. - Production And - Membership - Students
- Nestle Storing - 2 way payment
method - Promotion - Employees
- F&N - Management
team - Provide Wide - Feedback - Bachelor
- Bataras Sdn. range of product
Bhd. - In Person - Traveller
- Provide fresh
- Life Water
Industries Sdn product
Bhd
- Full time
- 15 Business
Minutes Bake Operation
Sdn. Bhd
- Modern
- Seri Technology
Keningau Sdn.
Bhd - Premise - Website
- Smart People
- Khee San - Product - Vending
- Self Service Machine
Berhad
- Employees
- TouchNGo - Influencer/
- Loan Bank Ambasador
- Borneo Vending
Expert Sdn Bhd - Advertising

- Digital Form

- Fixed cost - Direct sales

- Variable cost - Membership

- Investors

Figure 3: Company’s Business Model Canvas (BMC)

10
2.2 EXPLANATION OF BMC

2.2.1 Customers Segments

Our target customers are students, employees, bachelor and traveller. Our
product are suitable for this customer segment because it minimize their time when
buying food due to their busy lifestyle, no time to go grocery shopping or run out of
food when past hour. Our product also can attract the travellers to try our product and
this will lead to tourist attraction.

2.2.2 Value Propositions

In this part, the first value propositions is can saving time. This is because,
when using Roaring V-chine, customer only had to wait a short time to get fresh food.
In addition, Roaring V-chine also provides two ways of payment method. This can
give customer other option to pay our product if they did not have enough balance in
their card. Payment method that we use is using cashless payment such as Touch n Go
and using cash. Roaring V-chine also provides a variety of food, snacks, beverage and
groceries with using only fresh product. Our business operation will be 24 hour every
day so that customer can purchase anytime they want. Our product also using modern
technologies to comparable to the present day. Our product also will benefit to people
that hate to queuing to get their food or product in other place and also it can benefit
to people who are introvert and rarely to go out to meet people because our vending
machine will be self service so that they not have the tension to talk to employees.

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 2.3.3 Channels

In channel to raise awareness, our company will provide our own website so
that our beloved customer can get more information about our product, thus they do
not have any doubt to purchase our product and it also can benefit to It also give
benefit to the person who want build their business under our company. Next, is
through advertising. In this segment, our advertising can be divided into two group
namely the physical advertising and digital adverting. In digital adverting, we run it
through social media such as Facebook, Twitter, Instagram, YouTube, TikTok and etc,
while for physical advertising, it will done through distribute pamphlets, hanging
posters and billboard. Besides that, in channel to purchase, we will run through
vending machine. Customer can purchase the food, beverages and etc from this
physical vending machine. Furthermore, in channel to evaluate our company can be
evaluate through social media influencer or ambassador. This can gain more trust
from the customer to purchase our product and the social media influencer also can
promote our company at the same time. In channel to deliver the product, the
customer can walk in to the nearest outlet to purchase our product. Lastly in channel
to evaluate after delivery, we will provide a digital form thus the customer can give
the feedback our product, also we provide our contact information such as email and
contact number.

2.2.4 Customers Relationship

Roaring V-chine company cares about customer satisfaction. This is because

providing good service to customers can give a good effect to the use of the product.
Thus, in this part we will provide amenities such as recyclable cutlery, bag and
condiments. Besides that, we also provide a membership so that the customer who
have the membership can get a discount with their purchase. In promotion, customer
that purchase 2 product, they will get free snack. This also will lead to our marketing
strategies. If there is problem when using our vending machine, customers can give
their feedback through digital form or contact information so that we can improved
our business and we also provide a 24 hour customer service so that they can contact
us at anytime. We also will do a meet and greet every year with our customer that
have our membership as a sign of our gratitude to them.

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 2.2.5 Revenue Streams

Revenue stream describe how business generate their revenues. For our
company, we have three revenue stream that we have namely direct sales,
membership card and investor. The revenue earned by Roaring V-chine is from direct
sales. customers will purchase the food and beverages that Roaring V-chine provide.
We will make sure our sales have tastes that meet the needs of customers with offer
reasonable prices. In direst sales, it will generate 63% of revenues. Besides, our
second revenue stream is membership. In this part, customers that register our
membership need to pay a subscription fee as mush as RM10 and all customer will
get our membership card that the customer can pay using those card. In membership,
it will generate 35% of revenues. The last one is investors. Investors will generate 2%
of ou revenues.

2.2.6 Key Resource

In key resources, it can be divide into three mainly physical, manpower and
financial resources. In physical resource, it have two part which is premise and
vending machine. Premise is where our main company will operate while vending
machine is where our goods will be placed. In manpower resource, our company
have two groups which is technical and office. In technical group, the manpower is
engineer and operation workers. Engineer is responsible to do weekly maintenance for
vending machine while operation workers is responsible to do the restocking the
product. In office group, we have the employees and staff that is responsible in
manage the company. In financial resources, we will made a loan from CIMB Bank
as much as RM200,000 and this will be our initial capital.

2.2.7 Key Activities

The first key activities is maintenance. The technical staff will do the
improvement to all of our vending machine once a month. Secondly, in production
and storing, the function of this activities is to restocking and storing the the fresh
goods to ensure all product are supplied enough to meet the customer demand. Lastly,
our management team will take care of customers safety and quality of the product.

13
 2.2.8 Key Partnership

In this part, it will listed out the main supplier for the our business. The key
partnership can be divided into several categories that is food supplier, machine
supplier and others. For machine supplier, we will get from Borneo Vending Expert
Sdn Bhd. This company is well-known for their quality vending machine supplier in
Kota Kinabalu Sabah. For food supplier, the company that we choose is Kilang
Makanan Mamee Sdn. Bhd, Hup Seng Industries Berhad, Nestle Malaysia, F&N, Life
Water Industries Sdn Bhd, 15 Minutes Bake Sdn. Bhd, Khee San Berhad, Seri
Keningau Sdn. Bhd and Bataras Sdn. Bhd. This company will supplies us for the
variety of assorted snacks, candy, biscuit and other junk food, beverages, pastry,
cooked food, and fresh groceries. Other partnership is a cashless payment app such as
boost e-wallet app, TouchNGo, and social media influencer.

2.2.9 Cost Structure

Cost structure is the last element of Business Model Canvas (BMC). In this
part, it can divided into two categories which is fixed cost and Variable cost. In fixed
cost, our cost structure is vending machine, rent for premises and salaries for
employees. In variable cost, the cost structure is advertising, maintenance, production
and utility bill.

COST (RM)

Vending machine 16,000

Rent (Monthly) 500

Salaries (Monthly) 800

Advertising 1,000

Maintenance 300

Production 12,000

Utility bill 1,400

= RM 32,000

Figure 4: Company’s Cost Structure

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3.0 CONCLUSION

In conclusion, in this study, we have discussed about Roaring V-chine is a

company that provides self-service solutions. We will undoubtedly ensure that clients
receive such high-quality items produced according to the claim formula. After
conducting some research, we discovered that there is a significant demand for the
items among the general public.

As a result, we see this as an advantage to take advantage of the potential to

make large gains. Customers can expect only fresh, halal items from us, and we are
pleased to accommodate their requests. Future commercial possibilities, this company
has a bright future ahead of it. This is due to the high demand for our products, which
are modern and unique in comparison to others. We established this company to study
and assess the viability of the venture, as well as to satisfy the wishes and needs of
consumers based on product and service quality.

We are confident in our ability to satisfy the needs and desires of the target
market. We hope that Roaring V-chine becomes the most common in Malaysia. In the
long run, we also hope that the product will be able to join the worldwide market. We
will do everything we can to make this dream a reality. To establish a firm effectively,
the desire of being honest and fair is another step toward attaining a star that other
people may never accomplish.

This project is highly beneficial for students who want to increase their
understanding about entrepreneurship. It also can help students to sharpen their
critical thinking skills to find any solution to problem that have been identified. Also,
the completing of this study give us pleasure.

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4.0 REFERENCES

BOOK
1. Ariffin, S., Wahab, I. A., Hambali, Z. (2013). Fundamentals of Entrepreneurship.
Shah Alam, Selangor: Oxford Fajar Sdn. Bhd.

SLIDES
1. Mamat@Ibrahim, N. Z. (2021). Principle Of Entrepreneurship [PowerPoint slides].
Faculty Of Business, Universiti Teknologi Mara.

JOURNAL

1. YAMAGUCHI, Y., & SHIMODA, H. (2018b). Current status of adaptation of

Natural refrigerant for Vending machine. The Proceedings of the Symposium
on Environmental Engineering, 2018.28(0), WS4.
https://doi.org/10.1299/jsmeenv.2018.28.ws4

WEBSITE

1. About Chef In Box. (n.d.). ChefInBox.Com.Sg. Retrieved June 24, 2021, from
https://chefinbox.com.sg/pages/about

INTERNET

1. S. (2021, April 9). My Experience with Doing Vending Machine Business in

Malaysia. Ringgit Oh Ringgit. https://ringgitohringgit.com/earning-
money/vending-machine-business-in-malaysia/
2. Cuellar, M. (n.d.). Vending machine industry analysis. Academia. Retrieved June
24, 2021, from
https://www.academia.edu/29594716/Vending_machine_industry_analysis
3. Anonymous. (2021, March 8) Vending machines. Japan Guide. https://www.japan-
guide.com/e/e2010.html

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5.0 APPENDICES

Turnitin report

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