Business ModelEssay Preview: Business ModelReport this essayBusiness ModelA Business Model describes how your organization creates, deliver and capture value. The Financial Times recently highlighted the importance of value: “the business model concentrates on value creation. It describes a company’s core strategy to generate economic value […] and provides the basic template on how the firm is going to make money.”
Having a clearly defined business model is important because it does the following:Serves as an ongoing extension of feasibility analysis. A business model continually askes the question, “Does this business make sense?”Describes why the network of participants needed to make a business idea viable, are willing to work togetherArticulates the company’s core logic to all stakeholders, including all employees.The business model design is built around 9 building blocks or key frameworks which each have to be considered in turn for the ultimate design:Customer Value Proposition (CVP)The value proposition building-block describes the bundle of products and services that create value for a specific Customer Segment. Important questions include: What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? Which customer needs are we satisfying? What bundles of products and services are we offering to each Customer Segment?
What are the Characteristics of an effective business model?A business model describes how your organisation creates, delivers and captures value. In a recent Financial Times article, the importance of value was highlighted: “the business model concentrates on value creation. It describes a company’s core strategy to generate economic value and provides the basic template on how the firm is going to make money.” Having a clearly defined business model is also important for a number of reasons. The business model serves as an ongoing feasibility study, continually asking the question of “does this business make sense?” It also describes why the networks of participants who are needed to make the idea a viable one are willing to work together for a common objective. The business model also
is a key indicator of who these participants are. As the most important people in a company, they are also individuals in the companyâ€â€µ who could help shape the strategic plan, build the network, execute the plan and bring the company forward. This kind of leadership is a prime example of a business model’s ‘community.’
As a business model’s ability to generate economic value improves, so too will being associated with a community. With this, the success of a business model has an importance as it is the foundation for the subsequent business model, which it begins and moves forward in. “What happens when a business model is successful‡‡.‡”
What are the Characteristics of a successful business model?A business model describes how your organisation creates, delivers and captures value. In a recent Financial Times article, the importance of value was highlighted: “the business model concentrates on value creation. It describes a company’s core strategy to generate economic value and provides the basic template on how the firm is going to make money.” Having a clearly defined business model is also important for a number of reasons. The business model serves as an ongoing feasibility study, continually asking the question of“does this business fit?” It also describes why the networks of participants who are needed to make the idea a viable one are willing to work together for a common objective. The business model also
is a key indicator of who these participants are. As the most important people in a company, they are also individuals in the companyâ€â€µ who could help shape the strategic plan, build the network, execute the plan and bring the company forward. This kind of leadership is a prime example of a business model’s ‘community.’
Practical business models for government and international organisations: ‡‡
A business model for sustainable development helps the human body: This is the key to creating sustainable, inclusive and successful businesses. ‡‡This is why the Human Resource Development (HRD) Act 2014 provides for the creation of new jobs and the introduction of new work in order to make all available opportunities open.‡ The work that enables them to perform such work in a wide range of industries as well as developing their skills and skills sets has been an issue in the past. Many businesses are under increasing pressure from governments and international organisations for changes in the way they approach the work of developing new industries. This creates new concerns by offering a framework underpinning their success for the organisation to help guide it to the next step of their business plan. A successful business model can’t be without an overarching purpose for the organisation, in particular a purpose for a ‘service’ such as public utilities and agriculture or a ‘productivity’ such as water distribution and the provision of basic services. These need to make a difference. These should include the social cost and the political cost of bringing the most effective parts of the organisation or productivity and also ensure that their own organisations or productivity can succeed. In this spirit, the business model provides a framework to enable companies to create, deliver, sustain and take