Question

4.Q# Recall Business Canvas Model and briefly explain the canvas business model of IrFS with its nine components?

CASE

IrFS’s business model is unique in that it combines the goals of a for-profit company with the ambitions of a philanthropic organization. IrFS’s mission is “one for one.” The mission is made possible by the way IrFS is structured. IrFS has two parts. IrFS is a for-profit company that manages the overall operations and logistics. “Friends of IrFS” is a nonprofit organization that assembles volunteers, delivers the Boots, and coordinates the eyewear/site restoration and coffee/clean water initiatives. An important decision by founder and his team made early on, when IrFS was strictly a shoe company, was that the cost of providing Boots to children in need would be built into the Boots’ selling price. The same approach now applies to eyewear and coffee. As a result, as long as IrFS sells its products, it can fulfill its philanthropic mission. It does not need to rely on donations, as most charities and nonprofits do, to sustain itself. IrFS’s strategy is built on selling practical products. Boots, eyewear, and coffee are products that are sold widely. Its Boots are pricey ($54 to $80 for a pair of simple slip-ons), but people know that when they buy IrFS Boots they are paying for a pair that will be donated to a child in need. IrFS relies heavily on volunteers, interns, and partners to do much of its work.

Many of the people who volunteer and work with IrFS are motivated by the company’s mission, which changes lives. In some countries, Boots are required in order to attend school. Owning a pair of Boots provides a child a chance to be educated and to have a better life. IrFS is not reluctant to share these types of realities, which deeply resonate with volunteers and customers. IrFS has almost as many interns, for example, working in its facilities as employees.

“Friends of IrFS” works with nonprofits and NGOs to distribute its products. It does this in part because local organizations, already embedded in a country, know the needs better than IrFS does and can direct the company. An example is IrFS’s partnership with the Seva foundation to implement its eyewear/restore sight program. The Seva foundation runs sight programs in Nepal, Tibet, and Cambodia. It is uniquely equipped to help IrFS make the best use of its dollars.

IrFS has been diligent in the execution of its one-to one model. Its products are appealing, its philanthropic efforts are making a difference, and it involves a lot of people in what it does. These factors have enabled IrFS to build a strong brand. Its core strategy is also working. It has remained sustainable without needing donations. IrFS has also excelled at creating excitement

and passion in others for what it is doing. It does alot to elicit this. for example, every two weeks a group of IrFS volunteers travels to Argentina or another part of the world to make a “shoe drop,” which is the term that IrFS uses for distributing Boots. Anyone can apply for the trip, and for many it is a life-changing experience. Every shoe IrFS gives away is placed on a child’s foot by a IrFS volunteer. Volunteers pay their own travel expenses, but the trips are organized by IrFS

Answer 1

Q. What is Buisiness Canvas Model and briefing the Business canvas model of IrFS with its nine compnents..?

It is process by which is framing for developing new bsuiness or documenting the existing business models. It describes a Firms or product of a company's finance, customer, infrastructure facilities etc...

It has mainly 9 components. on the basis of that coponents let's brief the IrFS:

Customer Segments

Value Prepositions

Channels

Customer Relationships

Revenue streams

Key Activities

Key resources

Key partners

Cost Structure

Customer Segments:

Which will define the offering of the products and services to each customer segment. Customer segments may be group of people or may be an organization.

IrFS operating as both for-profit organization and as a non profit organization too.

Value Prepositions:

What all the innovative product or services deliver to the customers. It should be analysed based on the reviews and analysing of the cost, benfits and value.

Boots, eyewear and coffee are products that are sold widely

Channels:

It means the in which the products or services reach to the customer segments.for the betterment of the company they will choose the most cost-effective way.

IrFS sell the boots. people know that the price was high compared to other books, but they know that it will reach a portion to the child in need.

Customer Relationships:

It describes the type of relationship a company maintains with its each customer segments. its to be increased by better quality of services by organization, increasing of sales etc...

IrFS has a good customer relationship, due to their charity most of their customers are readily working as a volunteer for the charity.

Revenue Streams:

It is identifying the way in which how the organization will make money for their operations and how would they gain profit.Company will increase the revenue stream by many methods like promotions, discounts, advertisement etc...

IrFS main stream of revenue is selling of boots which costs in between USD54 - USD80

Key Activities:

Which may indicates the important activities a company should took place for executing the companies value preposition.

IrFS executing both for-profit and non profitabale activities.

Key Resources:

Which indicates important assets are required to make the business model of work.Which may include, office, HR, Finance etc...

IrFS delivers the boot, coordinates eye wear or site restoration and coffee or clean water initiatives.

Key Partners:

Partners in other words known as suppliers. they are here to perform the activities and deliver the value of the organization to the customers.

IrFS Volunteers will become its suppliers. In other words its customers will be their suppliers too.

Cost Structure:

It indicates the cost and expenses the company will incurred through operating of the business. This final component is very imoortant because it will decide whether to continue or stop the business.

IrFS core strategy (Friends of IrFS) of working remained the company sustainable without buying donations.