Module Four Journal Simulation

1 Module Four Journal Module Four Journal 2 The segments of the business model canvas that changed over the three generations of the honey business were key resources and revenue streams. Ravi brought in outside employees and added different honey related confections to the product lineup before passing the company to an outside CEO. The other products created new revenue streams and the outside management and CEO added to the key resources as new employees. The decisions to bring in new employees and add to the honey product lineup added great value to the business model canvas, even if it upset some of the family members. The decision not to issue an IPO affected the business model canvas by not removing quality from the value proposition as well as not adding to the cost structure or revenue stream. The decision to not branch out into other non-honey products affected the revenue stream as well as the cost structure due to the lack of honeybees. However, the new, non-honey products would have needed a new business model canvas as it provides a different value to customers and those customers would need to be reached in different ways in this new market. When making decisions, I made sure to read each person’s opinion carefully as if I was hearing them out in person. I also focused on the description of the scenario, while considering what I have learned in this class, the business model canvas, and what makes the most sense for the business at hand. I found that while I had more pieces of information to consider while making decisions in this simulation the second time, I still made the same decisions. Below are the decisions I made. Having Harsh balance family time as  Choosing to mix the board well as growing the business  Choosing to self-fund  Giving the company over to Ravi  Focus on core business  Bringing in outside management  Bringing in an outside CEO  Module Four Journal  Formalize governance processes 3  Not issuing an IPO These decisions were made while considering the family dynamics, the success of the business, and not compromising growth over quality. There needs to be balance between family and business. It can be effective to bring in “new blood” to a company and Ravi’s confections offered new product options in the same market. The company growth had become too much for the family, which caused not only the need for outside management, but a mixed board as well. While growth is the goal of all companies, the rate of growth can be harmful as well as helpful. Continuing to self-fund appeased the family as well as continuing growth at a healthy pace. The choice to focus on core business instead of introducing new product lines, kept the family legacy intact, while also not overcomplicating the business with a new market. The only choice for the CEO was a daughter that did not have the qualifications or experience to run the company or an outside CEO. My choice may have differed if any of the nieces or nephews were an option. The governance processes gave clear guidelines to every employee, which is beneficial in any company, especially a family run company. Not issuing an IPO came down to not sacrificing quality. I believe I made the right decisions, even though I made the same ones as before. Unless I learn something in this class that shows me that any of those decisions are bad, I will probably continue to choose those options for this simulation. If it were a different business, in a different simulation, perhaps it would be different. If the business was not family operated or if there were more than two options presented. But I feel as though with each choice I made the one that benefited the business the most, while keeping the family content. I again managed to end the simulation with a medium family relationship and ownership value.