MRKT20052 Marketing Management and Digital Communications Assignment Sample

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MRKT20052: Marketing Management and Digital Communications Assignment

Abstract

In the following report, the business model canvas of MoneyPlace Holdings Pty Ltdhad been discussed. The business model had been discussed in it. There are nine building blocks that helped in getting a quick overview of the company. It was revealed that the customer segment of the company comprised private individual, small businesses, travellers, brokers, etc. Furthermore, value propositions were also outlined that states that the company aims to become a one-stop solution for loan-seekers. In addition to this, the report highlighted the key success factors. In addition to this, it was also highlighted that the company is subjected to many risks like the operational risks and changing market conditions. Based on the risks identified, some recommendations were also provided for the company. They are:-

  • The company should grow beyond its core areas and should explore more areas and options.
  • It should work on its model provides clients with one-stop access to financial products and establish privileged relationships with consumers and supermarkets.
  • In order to ease-off the lending process, the company should employ one-of-a-kind business analytics and evaluation techniques.

Introduction

A business model is a description of how a business operates and makes money. It refers to the art of delivering a superior class of services to the customers, satisfaction to the stakeholders and appropriate cost to the vendors. In the world of business expansion, there is a company found MoneyPlace Holdings Pty Ltd which kept a significant role & share in the market. The business canvas model of this company is provided here that comprises its goodwill, funding, stakeholders, the channel of distributions, customers and suppliers. Moreover, it has been observed that how its interrelationships affect the business environment of MoneyPlace in the long run. In addition, the overall report outlines the suggestions are required in the business model and provide some recommendations for the company.

Company’s Background

MoneyPlace is the online market place which is gradually increasing the business opportunities by providing their services across its location. It is basically a loan providing company where the investors and borrowers come and dealfor an appropriate rate of interest. The channel of getting the service is that the user can apply online to match their credit estimations with investors who are suitable enough. This company was founded by Stuart Stoyan in 2014. The main objective of this company is providing loans to the persons in need because the owner of this company found that banks are not doing the work they supposed to do. Therefore, Stuart administrates his idea into a business enterprise.

Business Model

MoneyPlace Holdings Pty Ltd is a financial entity that lends online peer-to-peer loans to those who are in need of financial assistance. It is also one of the subsidiaries of Auswide Bank Ltd. The overall business is aimed at providing one-stop loan services at a reasonable interest rate.  

The business plan is focused on six crucial aspects (Wang& Feng, 2012):-

  • Cost efficiencies:Focused on high returns with minimum efforts.
  • Major Projects:timed for high returns and values.
  • Onshore operations:These have to be flexibility and value generating
  • Exploration:Positive results that would minimise risks for future projects
  • Latent Capacity:Limited challenges and attractive returns
  • Technology: Improving safety, lowering costs, and unlocking resources

Key Partners

· Financial market operators

· Australian Securities & Investment Commission

· Investment Partners

· Liberty Financials

· Auswide Bank

Key Activities

· Providing personal loans

· Debt consolidation’

· Transaction management

· Advisory and Counselling

Value Proposition

· To be a major client-centric loan provider

· To be a one-stop solution for loan-seekers.

· Forming a partnership with other players in the same field in order to gain a better position in the market.

Customer Relationships

· Personal assistance

· Client Eccentricity

· Customer Service

· Advisory and assistance

Customer Segments

Private individuals

Small businesses

Travellers

Brokers

Key Resources

· Establishment fees

· Interest Rates

· Diversity and Inclusion

· Employees

· Big investors like Liberty Financials

· Instant loan approval

Channels

· Mobile App

· Social Networks

· Website

· Call Centers

Cost Structure

· Taxes

· Government fees

· Contract signing and licensing fees

· Salaries

· Marketing and sales

Revenue Streams

· Services Fees

· Long-term interest on loan

· Loan protection insurance

Key Interrelationships

The MarketPlace is the place or platform for the borrowers to get the loans at a prevailing interest (Tarhini, et.al., 2015). On the other hand they are also a big landscape for investors who offer their proposals at different variances and criteria. The Moneyplace never deals in money with their customer because they only facilitate the services as they are a peer-to-peer market. In addition, there are the interrelationships also undertake significant share in the company such as Liberty Services Networks. They acquire the lenders for the market place of MoneyPlace. The Liberty Services Networks is the leading non-bankers and sponsor findings that help to develop customer trust and quick market transaction. This organization also provides the facilities to its beneficiaries. The Liberty Services Networks deals in financial equipment, home, car, personal and business loans but basically the main objective of this company is diversifying the financial services of the other industries (Tarhini, et.al., 2015). The Liberty Service Networks is connected with MoneyPlace as an interrelationship in order to expand the business as well as increase the profitability.

Critical Success Factors

In the competitive business environment of the loan industry, MoneyPlace is the biggest example of successful industries. The organization facilitates the services of providing loans to borrowers from investors. As the management of MoneyPlace did may researches and orientation of market in order to get success in the long-run. Managers of these industries followed several approaches and key business drivers in order to expand the business (Pastuszak, et.al., 2012). There are five critical factors that affect the overall success of business such as:

  • Organizational risk: The MoneyPlace is ready for getting the level of success. The identification of risk in the business was a critical factor for them to become successful in the long run.
  • Organizational culture: The methods and approaches followed by MoneyPlace in order to address the risk are called organizational culture because every company has its own to perceive the risk for a solution.
  • Mission: The identification and recognition of the objective is the important part before setting up them. The manager always finds the methods to get objective which more productive than the expectation.
  • Team composition: In order to achieve the transformational changes a team must be required in promoting and persuading.
  • Supplier support: This is the most crucial part of the business to get the support from the vendors (Pastuszak, et.al., 2012). The vendors and suppliers are masters in administrating the risk very effectively so they can provide winning formulas for the business.

Downside Risks

The services of credit creations and credit supply are not always beneficial to the customer in the country or other countries (Agarwal and Ansell, 2016). Especially for those who are not able to arrange their funding timely and unable to set sufficient economical budget scale. In a few years, it has been observed that there is false information is delivering by the credit supply industries. The incorrect information is supplying by the industries get the new customers but this line of attack was not successful. The technique of getting people like this is becoming a downside risk because after the activities in this area the people are slightly getting back a step. The downside risk for MoneyPlace was when they should launch the organization. Basically before forming a company, the market condition and legal obligation must be reviewed (Agarwal and Ansell, 2016). One another downside risk of MoneyPlace was that the proposals and deals they facilitating would respond by the customers or not.

Business Model Changes

The current business model is based on five pillars, namely vision, IT and operational excellence, client-eccentricity, and financial risk control. The changes would be done in them only (Köhler, 2015).

Vision:MoneyPlace must determine other options in the capital markets and revenue ecosystems for better funding and business expansion. The leaders must envision the clarity of purpose for transformational success.

Distribution:Digital functionality and operations should be increased in order to cater to the existing market and improve customer experience (Amit& Zott, 2012).

Client Centricity:An improvedunderstanding of client needs, profitability, shares, and part of segmentation will help the company to understand the right balance between customers and the company.

IT and Operational Excellence:Simplifying IT and searching for more options to make the financial activities easy and convenient will help the company in modernising its operations and minimise the cost.

Financial Risk Control:There are many regulatory mandates that might be impacting lending and investment business. Keeping operations in line with regulations can reduce the overhead cost.

The company is putting extra emphasis on increasing its productivity and capacity and reducing the cost of carrying out operations at each stage and managing its supply chain.Furthermore, it is required by the company to have centralised governance. Teams should coordinate and collaborate with the other groupsto streamline the supply chain.

Conclusion

The report outlined various characteristics of the company as was highlighted in the business canvas model. The business channel, value propositions, key features, partners, etc., were highlighted. In addition to this, the relationships of the company with other business partners have highlighted and their significance was elaborated. In addition to this, risks and critical success factors were enlisted and their impacts were also outlined.

Recommendations

  • The stockholders, suppliers, customers, and business partners should come together to collaborate so as to curb the common issues and risk factors. It is also important to understand the demands of the stakeholders in order to grow faster (Köhler, 2015).
  • In order to ease-off the lending process, the company should employ one-of-a-kind business analytics and evaluation techniques.
  • The company should make efforts to streamline the supply chain by coordination and collaboration with other departments downstream and upstream (Kolapo, et al, 2012).
  • The company should grow beyond its core areas and should explore more areas and options.
  • It should work on its model provides clients with one-stop access to financial products and establish privileged relationships with consumers and supermarkets.

References

  • Agarwal, R. and Ansell, J., 2016. Strategic change in enterprise risk management.  Strategic Change,  25(4), pp.427-439.
  • Amit, R., & Zott, C. (2012). Creating value through business model innovation.  MIT Sloan Management Review,  53(3), 41-49.
  • Bell, J., Crick, D. and Young, S., 2004. Small firm internationalization and business strategy: an exploratory study of ‘knowledge-intensive’and ‘traditional’manufacturing firms in the UK.  International Small business journal,  22(1), pp.23-56.
  • Köhler, M. (2015). Which banks are more risky? The impact of business models on bank stability.  Journal of Financial Stability,  16, 195-212.
  • Kolapo, T. F., Ayeni, R. K., & Oke, M. O. (2012). Credit Risk And Commercial Banks'performance In Nigeria: A Panel Model Approach.  Australian journal of business and management research,  2(2), 31.
  • Pastuszak, Z., Shyu, S.H.P., Lee, T.R., Anussornnitisarn, P. and Kaewchur, O., 2012. Establishing interrelationships among organisational learning, innovation and performance.  International Journal of Innovation and Learning,  11(2), pp.200-215.
  • Tarhini, A., Ammar, H., Tarhini, T. and Masa’deh, R.E., 2015. Analysis of the critical success factors for enterprise resource planning implementation from stakeholders’ perspective: A systematic review.  International Business Research,  8(4), pp.25-40.
  • Wang, Y., & Feng, H. (2012). Customer relationship management capabilities.  Management Decision,50(1), 115-129.
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