Saturday, 30 June 2012
Friday, 29 June 2012
Tuesday, 26 June 2012
I. Business Models
* Material following the opening feature on Amie Street.
1. A business model is a firm’s plan or diagram for how it competes, uses its
resources, structures its relationships, interfaces with customers, and creates
value to sustain itself on the basis of the profits it earns.
2. It’s important to understand that a firm’s business model takes it beyond its
own boundaries. Almost all firms partner with others to make their business
3. There is no standard business model, no hard-and-fast rules that dictate how
firms in a particular industry should compete.
4. The term business model innovation refers to initiatives such as that
undertaken by Michael Dell that revolutionized how products are sold in an
5. The development of a firm’s business model follows the feasibility analysis
stage of launching a new venture but comes before the completion of a
a. If a firm has conducted a feasibility analysis and knows that it has a product
or service with potential, the business model stage addresses how to
surround it with a core strategy, a partnership model, a customer interface,
distinctive resources, and a approach to creating value that represents a
viable business model.
b. At the business model development stage, it is premature for a new venture
to raise money, hire a lot of employees, establish partnerships, or
implement a marketing plan. A firm needs to have a business model in
place before it can make additional substantive decisions.
A. The Importance and Diversity of Business Models
1. Importance of Business Models
a. Having a clearly articulate business model is important because it
does the following:
- Serves as an ongoing extension of feasibility analysis.
- Focuses attention on how all the elements of a business fit together and constitute a working whole.
- Describes why the network of participants needed to make a business idea viable would be willing to work together.
- Articulates a company’s core logic to all stakeholders, including the firm’s employees
b. Once a firm’s business model is clearly determined, the entrepreneur
should diagram it on paper (to the extent possible), examine it, and
ask the following questions:
- Does my business model make sense?
- Will the businesses I need as partners participate?
- If I can get partners to participate, how motivated will they be? Am I asking them work for or against their self-interest?
- How about my customers? Will it be worth their time to do business with my company?
- If I do get customers, how motivated will they be?
- Can I motivate my partners and customers at a sufficient scale to cover the overhead of my business and make a profit?
- How distinct will my business be? If I’m successful, will it be easy for a large competitor to step in and steal my idea?
2. Diversity of Business Models
a. There is no standard business model for an industry or for a target
market within an industry. For example, there are five distinct ways
that online companies make money. These approaches, shown in
Table 6.1, are the core piece of their respective company’s business
b. There are always opportunities for business model innovation. Think of Netflix in movie rentals, Wikipedia in encyclopedias, and Curves
International in fitness clubs.
II. How Business Models Emerge
1. The value chain is a model developed by an academic researcher that many businesspeople as well as entrepreneurs use to identify opportunities to enhance their competitive strategies.
2. The value chain is the string of activities that move a product from the raw material stage, through manufacturing and distribution, and ultimately to the end user.
3. By studying a product or service’s value chain, and organization can identify ways to create additional value and assess whether it has the means to do so.
4. Value chain analysis is also helpful in identifying opportunities for new businesses and in understanding how business models emerge.
5. A firm can be formed to strengthen the value chain for a product, however, only if a viable business model can be created to support it.
III. Potential Fatal Flows of Business Models
1. Two fatal flaws can render a business model untenable from the beginning.
a. A complete misread of customers.
b. Utterly unsound economics.
IV. Components of an Effective Business Model
A. Core Strategy
1. The first component of a business model is the core strategy, which
describes how a firm competes relative to its competitors. The following
are the essential components of a firm’s core strategy.
Mission Statement. A firm’s mission, or mission statement,
why it exists and what its business model is supposed to accomplish
b. Product/Market Scope. A company’s product/market scope defines
the products and markets on which it will concentrate.
c. Basis for Differentiation. It is important that a new venture differentiate
itself from its competitors in some way that is important to its
customers. If a new firm’s products or services aren’t different from
those of its competitors, why should anyone try them?
i. From a broad perspective, firms typically choose one of two generic
strategies (cost leadership or differentiation) to position themselves
in the marketplace.
ii. Firms that have a cost leadership strategy strive to have the lowest
costs in the industry, relative to competitors’ costs, and typically
attract customers on that basis.
iii. In contrast, firms with a differentiation strategy compete on the basis
of providing unique or different products and typically compete on
the basis of quality, service, timeliness, or some other important
B. Strategic Resources
1. A firm is not able to implement a strategy without resources, so the
resources a firm has affects its business model substantially. The two
most important strategic resources are discussed below.
a. Core Competency. As defined in Chapter 3, a core competency is
a resource or capability that serves as a source of a firm’s competitive
advantage over its rivals. Examples of core competencies include
Sony’s competence in miniaturization, Dell’s competence in supply
chain management, and 3M’s competence in managing innovation.
b. Strategic Assets. Strategic assets are anything rare and valuable that
a firm owns. They include plant and equipment, location, brands,
patents, customer data, a highly qualified staff, and distinctive
2. Companies ultimately try to combine their core competencies and
strategic assets to create a sustainable competitive advantage. This
factor is one to which investors pay close attention when evaluating
C. Partnership Network
1. A firm’s network of partnerships is the third component of a business
model. New ventures, in particular, typically do not have the resources
to perform all the tasks required to make their businesses work, so they
rely on partners to perform key roles.
a. Suppliers. A supplier (or a vendor) is a company that provides parts
or services to another company. Almost all firms have suppliers who
play a vital roles in the functioning of their business models.
b. Other Key Relationships. Along with its suppliers, firms partner with
other companies to make their business models work.
i. There are risks involved in partnerships, particularly if a single
partnership is a key component of a firm’s business model.
ii. Many partnerships fall short of meeting the expectations of the
participants for a variety of reasons.
C. Customer Interface
1. Customer interface – how a firm interacts with its customers – is the fourth
component of a business model. The type of customer interaction depends
on how a firm chooses to compete.
a. Target Market. A firm’s target market is the limited group of
individuals or businesses that it goes after or tries to appeal to.
i. The target market a firm selects affects everything it does, from
the strategic assets it acquires to the partnerships it forges to its
b. Fulfillment and Support. Fulfillment and support describes the way
a firm’s product or service “goes to market” or how it reaches its
customers. It also refers to the channels a company uses and what level
of customer support it provides.
c. Pricing Structure. A third element of a company customer interface is
its pricing structure. Pricing models vary, depending on a firm’s target
market and its pricing philosophy.
Saturday, 16 June 2012
Concern over stagnant oil extraction rate Commodities Talk - By Hanim Adnan LOCAL palm oil production is looking strong, but the stagnant oil-extraction rate (OER) of palm oil, especially in Peninsular Malaysia that is below 20% for the past 20 years, has been a major concern. In times of low crude palm oil (CPO) prices and low yields, producers are normally challenged to improve their OER performance. OER can be used as a management tool in assessing the performance of a mill or plantation, as profitability to a great extent is influenced by the amount of oil realised per hectare of land under cultivation. Thanks to Sarawak and Sabah oil palm planters’ high OER of above 20%, the national OER average touched 20.21% in 2008.
However, this is not good enough as the Government strives for the national OER to hit 25% by 2020. It is also targeting a national fresh fruit bunches (FFB) rate of 35 tonnes and palm-oil yield at 8 tonnes per ha per year. A straight forward answer to the stagnant OER in the peninsula can be due to the third or fourth generation “recycled” soil used to plant oil palm back in 1960s, which was previously planted with rubber trees, and also with tapioca and gambir trees during the Second World War in the 1940s.
Those oil palm trees in Sabah and Sarawak were planted in new agriculture soil, previously rainforest jungles, therefore guaranteeing higher yield and OER. the government is targeting a national FFB of 35 tonnes per ha per year Many also failed to realise that 21% of the oil palm trees in Peninsular Malaysia are 19 to 25 years old, leading to diminishing FFB yield by 1% to 2% per year as well as poor OER.
However, the overall stagnation in OER does not really reflect the credible OER and yield performance among efficient plantation groups like United Plantations Bhd, IOI Corp Bhd, Kuala Lumpur Kepong Bhd and Sime Darby Bhd. These planters mostly achieved OER of 21%, CPO of five to six tonnes and FFB of over 28 tonnes per ha per year. Many are pointing their fingers at the poor performance of the smallholders sector, which has resulted in the stagnation in OER and yield in the country.
Smallholders, which contribute about 45% to the total palm oil production nationwide, were somewhat reluctant to undertake replanting activities when CPO was trading above RM3,000 per tonne. It is believed that smallholders’ OER now stands at only about 18%, CPO yield below 3 tonnes while FFB at 15 tonnes per ha per year. Therefore, it was indeed a good move by the Government since late 2008 to allocate several incentives and funds to encourage more aggressive replanting of unproductive oil palm trees with superior clones among smallholders.
There is also talk that the Government will divide smallholders into clusters to expedite more structured replanting activities in the future. Another effort to help improve the national OER is to upgrade the existing palm oil mills, which were set up back in the 1960s. There are a number of mills still operating with an OER of below 18%. These mills will need to improve their OER through stringent FFB grading, rejecting unripe fruits and adopting new technology. The oil palm industry needs to make concerted efforts, including improving agricultural practices, to push yields and productivity to new heights.
Hanim Adnan is assistant news editor at The Star. She feels that the Government must find a fast solution to help outdated palm oil mills improved on their OERs.
Ref ; The Star 14th April 2009
dalam bijinya ada mesocarp. Bahagian yang menghasilkan crude palm oil, fibre dan juga bahan lain seperti air, sludge serta non oily solid.
dalamnya juga ada nut yang bertempurung berwarna hitam. Dalamnya ada palm kernel atau isirong sawit.
fiber gunanya untuk dijadikan bahan bakar, operasikan boiler, hasilkan stim, jana elektrik serta guna untuk pemanasan serta kukus buat sawit.
shell juga digunakan untuk dijadikan bahan bakar.
dua produk utama kilang sawit adalah CPO dan PK.
Namun, biji sawit bukan kilang yang buat kawan! Ia dibekalkan oleh ladang sawit. Kilang hanya proses sahaja.
Jadi, ladang sawit! tolong hantar biji banyak - banyak ya! sebab dalamnya ada dua produk penting kilang iaitu
Thursday, 14 June 2012
Ada kilang sawit.
Ada kolam effluent.
Ada ladang sawit.
Ada perumahan pekerja kilang dan ladang.
Ada kolam air untuk kegunaan kilang dan perumahan.
Sebuah pemandangan yang hebat!
Saturday, 2 June 2012
Walaupun saiznya masih sama, namun bangunan kayunya berubah menjadi batu selepas 8 tahun.
Landskaping dan juga kebersihan bertambah baik.
Semuanya bermula di sini bilamana Awang sampai ke Sabah.
Dari sini Awang dijemput oleh pemandu LPOM Lajuneda. Namanya laju, tapi dia memandu dengan penuh berhati - hati dan pelahan.
Maklumlah, jalan Jeroco paling laju boleh drive cuma 40 km/j.
Awang sempat 3 kali tertidur dan bangun.
Sebelum sampai ke MPOM B.
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