CED 361 Business Management Internship I

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CED 361 Business Management Internship I

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CED 361 Business Management Internship I

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Course Code: CED361
University: The City University Of New York

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Country: United States

Question: 

Assume you are Matthew Prince. You just received the following email from Ray Rothrock of Venrock Ventures.In preparation for our upcoming board meeting, please provide a situation assessment for CloudFlare. Highlight specific accomplishments, as well as challenges you are currently facing. Pay particular attention to why you feel you have these challenges.We will also want to see an action plan to address the most urgent challenges you face. Remember, we are all pulling for a $1 billion valuation at our next round of financing, so your plan had better be credible and aggressive.Best Regards,RayIt will be helpful if you apply the business model analysis framework to respond to Ray’s inquiry. You should also include at least two unique exhibits of your own creation. For example, you might show how hiring more engineers will impact profitability as the company tries to scale, or you might create an organizational chart showing current state and recommended changes or some other graphic to highlight your analysis.

Answer: 

Applying business model analysis framework
Business model analysis helps in determining the factors that affect the existence of a business. In the case of CloudFare, the application of the business model can help it to understand the revenue that the company receives from the customers and the manner in which it is received. The analysis of the business model canvas of CloudFare indicates that the company that has major connections with various companies within the industry. Company such as Pelion Venture provides an appropriate partnership and support for CloudFare. Apart from this, the company also had developed partnership with NEA and Venrock. This indicates that CloudFare have a steady aim of progressing through the market so that it can remain at the top of its position.
The key activities of the company are associated with the fact that it provides its customers with an opportunity to explore the internet and gain relevant information about different websites. Safe passage for customers is provided while they serve the websites so that serious threats from virus do not affect the progress of the company. The basic service provided by the company is free so that more customers can be drawn in to subscribe with the company.
One of the major drawbacks of the company is that it does not have a stable human resource management. According to Galí, the reason this being a drawback is that every company need to have a proper HR department so that the policies and procedures of the company can be maintained. The HR department can oversee the procedures related to the recruitment of talented employees in the organisation.
The offer made by the company is useful in attracting the customers towards gaining subscription. CloudFare offers differentiation in the commodity industry so that the target customers can gain the best of the products. The company provides premium service with features that are limited. The limited features reduce the complication of the use of services provided by the company. Proper security to the website help in assuring safe browsing and the manner in which information can be gained are provided by tutorials.
According to Antikainen and Valkokari, relationship with the customers is important for the existence of a company. Without customer satisfaction, a company like CloudFare cannot remain successful in the market. Therefore, the analysis of the customer relationship suggests that CloudFare aims to establish a safe and united community with the implementation of customer service and basic service. The services offered are provided without judgement and due to this, the base of customers’ increases vehemently. This can be considered as an advantage for the company as more customers provide opportunities to gain increased profit.
The distribution channels used by CloudFare are simple and provide easy access for being loyal to the company.  The use of websites can help the company to establish itself in the market and based on this CloudFare can gain the trust of the employees. The subscription of the distribution channels can help in the growth of revenue and therefore, the profit of the company can increase. At the same time, high paying customers also play a major role in increasing the profit of the company. Therefore, CloudFare targets customers that are willing to pay a high price and subscribe with the company.
The analysis of the cost structure of the company suggests that CloudFare receives a healthy income from the subscribers. The revenue analysis provides evidence that the company runs in profit owing to the fact that about 95% of the revenue are gained by subscriptions. This provides a proper evidence of the manner in which CloudFare can continue its business in the market. The formula for making profit is kept simple by the company. The calculation is based on 4% of the customers with a monthly contribution of $20. The total view of the pages can increase to over 2 million views and based on which, CloudFare can be a successful web company in the business market.
Therefore, it can be concluded that CloudFare can pay a healthy sum of money to the employees. It has been seen that salary of over $150,000 can be provided to the employees so that the company can motivate them and ensure that efficient work helps in attracting customers. As such, it can be said that hiring more employees can help in the increase of success in the business CloudFare can use the factors related to the business model for the benefit of the organisation in providing a safe browsing environment.
Exhibits
Exhibit 1: Impact on profitability by hiring more employees
                                               

Exhibit 2: Business model framework
                                       

Bibliography:
Antikainen, Maria, and Katri Valkokari. “A framework for sustainable circular business model innovation.” Technology Innovation Management Review 6.7 (2016).
Bolin, Jocelyn H. “Hayes, Andrew F.(2013). Introduction to Mediation, Moderation, and Conditional Process Analysis: A Regression?Based Approach. New York, NY: The Guilford Press.” Journal of Educational Measurement 51.3 (2014): 335-337.
Galí, Jordi. Monetary policy, inflation, and the business cycle: an introduction to the new Keynesian framework and its applications. Princeton University Press, 2015.
Marchet, Gino, et al. “Business logistics models in omni-channel: a classification framework and empirical analysis.” International Journal of Physical Distribution & Logistics Management 48.4 (2018): 439-464.
Schaltegger, Stefan, Florian Lüdeke-Freund, and Erik G. Hansen. “Business models for sustainability: A co-evolutionary analysis of sustainable entrepreneurship, innovation, and transformation.” Organization & Environment 29.3 (2016): 264-289.
Todorovi?, Marija Lj, et al. “Project success analysis framework: A knowledge-based approach in project management.” International Journal of Project Management33.4 (2015): 772-783.

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