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.

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).

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.

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

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

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

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

However, this paper chooses this definition as theoretical perspective of analysis for this paper subject to the following modifications: A business model is overall framework and philosophy by which a company (intends or) creates value in the market place through enhancement of its own combination of raw or in-put materials to create products (tangible and intangible including services), product packaging and systematic distribution in order to generate some or the best possible profit.

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.).

For a company to achieve maximum impact on their strategies whether marketing, financial or expansion the company must understand their business activities. Efficiency in managing business activities ensures smooth operation for maximum profit (Brinkman, 2). The business model strategy enhances the management of the enterprise and operational design to conform to profit-making goals by implementing the segmentation of business activities. The research report will employ the business model canvas to study and perform data analysis on the quickly growing taxi company Uber Company. Data analysis is the deliberate activity of collecting and presenting data in a form that highlights useful information that is helpful in decision-making (Boyd, 18). Data analysis can be described as the implied process of taking the whole of the collected data and identifying trends to determine direction, meaning and implications, in addition to asking questions about the received data and making comparisons within it to expand concepts from it (Warner, 13). Travis Kalanick and Garrett Camp founded Uber Company back in 2009. The company’s objective was to come up with a mobile app that was to dominate in the transportation sector (Reilly & Williams 32). The Uber app is known to allow users to make their trip request over the app, which is also where taxi drivers get routed. By March 2015, this service was accessible in over 55 nations and over 200 cities all over the world (Hirschey, 19). One of

Business model innovation is basic logic changes, which refers to the enterprise value creation. It is also called by bringing the new business model into the social production

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

Strategy as positioned by Rotharmel, describes the goals actions a firm intends to takin in its quest to gain and sustain competive advantage, its when you understand this strategy that an business model is formed. Business model outlines how the business works and thrives (i.e understanding who is the consumer, what does the consumer want and how are we bringing value to the consumer. In other words A business model is an abstract representation of some aspect of a firm’s strategy (Lewis, G & Seddon, P, 20013, p.2). One can look as strategy being the external piece coming up with perspectives for the organization, while the business model is the internal piece of the organization, demonstrating how the organization plan on utilizing those strategies to generate revenue.

A company’s business model is a key factor in affecting a stock’s price especially in a recession. For example, companies that rely on consumer spending are at the mercy of their customer’s budget, which is often reduced in a recession; this translates into less on the bottom line, and therefore affects the business’s stock price. Industries such as the travel industry are heavily affected by economic downturn because consumers can relatively control how much they must travel and how much they go on vacation, and so on and so forth. In a slump, an average family of four may forgo going on vacation to the beach, but still have to buy shampoo to wash their hair. Essential products, sold by corporations, such as toilet paper, toothpaste, laundry detergent, or shampoo are not as affected by recessions because these products are always needed despite the economic climate.

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