Business Model : An Organization

A business model is an important and integral part of the business a strategy of any firm whether big or small. The way a business model is developed determines and indicates the values, ethics and principles on the lines of which the business at large will be operating. It also indicates how the business is going to function and covers various internal and external dimensions of a business and the organization as a whole.

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Business models have a huge impact on how an organizations operate. It is crucial that an organization chose a business model before inception in order to succeed. Basically, business models have become the new basis of competition, replacing product features and benefits as the playing field on which companies emerge as dominant or laggards (Plantes, 2013).

The company has beliefs that the custom printing will target a huge segment of clients, who are in need of quality printing. The management team wants to serve a competitive price depending on the design.

Business model defines the process by which the business enterprise or an organization creates, delivers and captures the value, which excites the customer to pay for the value provided and converts those payments into profits. In simple terms business model is a simpler representation of a business logic which represents what an enterprise offers to customers, how it reaches them, through which activities, resources and partners it achieves the value and how it earns money.

The idea of including the business model within the Annual Report has been a controversial subject for some time. In the first part of my essay I will discuss the opposing arguments to this issue, by analyzing the effects on the following accounting conventions; relevance, faithfulness, comparability and understandability. As there is no clear and universally applied definition of the business model, for the purpose of this essay I will adopt one from the Oxford dictionary. It states that the business model is ‘’A plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products, and details of financing’ '. Then in the second part I will consider the role that non-financial measures

As a manager the strategy, and business model generated can have a direct impact on a firms performance. If your strategy doesn’t have any notion of how it plans to generate a competitive advantage or your business model doesn’tt portray how you’re going to create value for the consumer, it will have a negative impact on your firm, This will cause your firm loose in terms of the competition within the industry, and generate a competitive disadvanatage, which is underperformance relative to other competitiors in the same industry or industry average(Rothaermel, F.).

Organisations are commonly known as open system which operates under the conditions of substantial risk, uncertainty and turbulence. The organisations are seeking to balance coherence and stability with well flexibility and balance stability and varying of higher level of efficacy. And Organisations survive, prosper and exists on the basic value of proposition, where it means creating a thing not for profits and not destroy the values. Business model in the organisation helps to capture, redistribute and unlock in an efficient manner. Business Model Innovation in organisations are the concept based on doing the innovative by depending on their resources and internal

Business models can be used by management to get a sense of how the organization/company/startup is creating, capturing and delivering value to its customers. Management can seek to optimize the business by

Business model refers to the basic logic of enterprise value creation, that we called how customers provide products and services, when the enterprise in the value chain or value network and obtain profits. In popular explanation, it is about how the enterprises make money.

For Lewis (2001), a business model means “all it really meant was how you planned to make money” (Lewis, 2001, p. 254). This definition reiterates in simple words the previous “theory of business” by Peter Drucker (1994) who described the term business model as a set of suppositions about what a business will and will not do to get paid for. These suppositions are about the market and external environment, customers, competitors, technology and the company’s strengths and weaknesses (Drucker, 1994). These explanations are very close to the famous definition of strategy by Michael Porter which is the formation of a unique and valuable position by linking different set of the company’s activities (Porter, 1996; Ovans, 2015). In online business, the business

The business model canvas can be described as a chart divided in blocks that gives the possibility to understand the business model of a

In the business world, strategy is probably the most often used and the most often confused term. The article ‘Why Business Models Matter’ clarifies and elaborates on crucial element of any organization. The Author, who also wrote, ‘What Management is’ asserts that the business model and strategy is the basis of any organization whether it be profit or non-profit. Magretta shows the outlines of business model and strategy. To make a big success in business, the first step is making a business model, when making a new business model, managers must think about all possible outcomes. She goes on further in the article to give examples successful organizations and their use of strategies to compete within the industry.

Val Clulow School of Business, Swinburne University of Technology, Hawthorn, Australia Julie Gerstman School of Business, Swinburne University of Technology, Hawthorn, Australia Carol Barry School of Business, Swinburne University of Technology, Hawthorn, Australia

Michael Lewis (2000: pages 256-257) scoffed at the whole attempt to formalize the definition of business models when he wrote that “ “Business Model” is one of those terms of art that were central to the Internet boom: it glorifies all manner of half baked plans. All it really meant was how you planned to make money.”