Holacracy and the Zappos Business Model

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.

As the business model addresses “how the company makes money in this business”, Louis Vuitton’s business model in Japan can be simply explained as selling products through directly owned and controlled stores. A good business model can guarantee the success of business. LV’s business model in Japan successfully drove it to the world’s largest market by strictly following the principles and benefiting from the external environment.

Business model entails many facets. To narrow down the meaning of business model, it refers to the way businesses intend to create products to sell and to generate revenue in a particular industry (Ovans, A., 2015). As business decided elements necessary to accomplish goal and objectives, they must consider many factor that influence business models. According to Band (2009a), people, process & strategy effect business models. People effects business models through skilled or unskilled employees, organizational structures and incentives. Studies found that user adoption is the top problem that organizations face when implementing CRM solutions. Lack of training and education compound implementation CRM solutions. Change in

The values of H&M, which guide the teamwork and lead to success, are strong and clear, involving an organization belief in people, and other values like

The founders of the corporation were executives with high standards of integrity, religious convictions, respect and care for its employees, customers, and the community. According to Hess & Cameron (2006), the leaders feel that they should live the values, share the vision, make others successful, as well as, manage the business. They are committed to the organization’s culture and values based on putting people first and integrity.

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).

So, the best business model will fail if the organizational operations and process practitioners can't execute it and the business process will fail if it produces some value or products or services that are inappropriate for the customers. They have to be dynamic in the real world problems and there should be a balance between these two. While creating a business model operations and process practitioners should know the business model and all the values of organization. The business process should be carefully aligned with the assumptions and goals set by the business model.

People have tendency to attribute the success of companies in conjunction with their business models. Amazon, IBM, Apple, and eBay are successful due to their business model. In 2010, Osterwalder and Pigneur introduced the Business Model Canvas that is simple and understandable. In fact, it is a popular tool that facilitates the communication among employees, customers, and partners. It explains the way a company creates and captures value. This paper is going to analyze the genesis, the advantages and the limitations of the business model canvas

Online collaboration can be an effective tool in recording and documenting all the new processes that are being created for future managers as well as employees. A repository of all information that is generated from brainstorming and collaborative writing can store key information on important people, liabilities, responsibilities, technology and employee information. The owner will have to make time to give the new managers an orientation of his ServeNow chain while discussing his most fundamental values and goals for having this business. These goals can include providing excellent customer service, and the best quality at the best price. Zappos is a

Corporate level strategies affect the entire organization, which includes financial performance, mergers and acquisitions, functional areas, and allocation of resources (Parnell, 2014). Home Depot’s values are the compilation of all strategies within the organization with an emphasis on their employees. Ultimately, they believe the organization’s culture is central to their success (Home Depot, 2016). Uniquely, they outline several key aspects which are:

The organizational structure of Zappos.com is revered as one of Americas’ most innovative corporate cultures. The unique structure of this company has been so successful that they have a department for business-to-business consultations that assist other companies interested in adopting the model into their own organization. From a struggling start-up business to a $1.2 billion merger with Amazon.com, the company has remained true to its value of “delivering WOW through service” not only to its customers but also to its employees as well. Although there are hierarchical levels, there is a

Zappos started out by selling shoes online to become the world’s largest online retailer of shoes. Subsequently, in their quest to boost sales, they moved beyond footwear to become an E-tailer that sells ‘anything and everything’.

According to Don Debelak of entrepreneur.com “A great business models depend on developing three "green lights," or qualities that help the business succeed: finding high-value customers, offering significant value to customers, and delivering significant margins. Great business models also avoid three "red lights" that can derail a business: difficulties in satisfying customers, trouble maintaining market position, and problems generating funding for growth.”(entrepreneur.com, 2007)

A business model is a company’s perception and conception of how the set strategies that a company pursues

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.”