A company\'s business model 1. details exactly how management\'s strategy will p

Question

A company's business model

1. details exactly how management's strategy will promote achievement of the company's strategic intent

2. deals with the whether there is a close fit between the company's mission statement, objectives, and strategy

3.is the economic logic explaining how the company’s strategy can deliver value to its customers and profitability to its owners

4. concerns how the company plans to achieve high gross profit margins

5. is management's plan for achieving the vision statement and becoming a market leader

Explanation / Answer

Answer: Option (3) - A company’s business model is the economic logic explaining how the company’s strategy can deliver value to its customers and profitability to its owners.

Explanation: A business model must answer who is the customer of the business and what is it that the customer values the most. It should also definitely answer how one can make money in the business, that is, the profitability for the owners to run or operate the business.

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