1/ Define the term “Business Model.” Explain the importance of business models.
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Question
1/ Define the term “Business Model.” Explain the importance of business models.
2/ What does it mean to “capture value.”
3/ What is a “supply chain” and how might one uncover (exploit) value in supply chains?
4/ Tools for Development 1: A popular framework for creating a business model is the one put forward by Ken Osterwalder using a 9 component design called the “Business Model Canvas.” What are the components of that model? What do they involve? How are they sequenced?
5/ Tools for Development 2: The 5 component model. The reason this is useful is because it outlines a logical sequence of topics that must be addressed in the proper order in order for your business development process to make sense.
Explanation / Answer
Q.1. Model simply refers to a representation of something. Hence a business model is also a representation of how an organization makes (or intends to make) money. It depicts how a firm works, conduct various sets of activities, perform and generates profits. The model includes the components and functions of the business, as well as the revenues it generates and the expenses it incurs.
For example a restaurants simple business model shows that the organizations makes money bu cooking and serving to hungry customers.
Busines model provides an easy and clear understanding of structure of an organization that aids in being competetive. It is importants because it helps an organization to get answers of five core strategy questions that are critical to the success of a firm:
Through a business model all the questions can be answered clearly to which a firm can get competetive and may get success in industry.
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