How Business Models Can Be Used For Management Essay

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1. List and describe (in a few words) at least two perspectives of the way that business models can be used for management. (2+2=4) 

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
1. (2) validating parts of the business model hypotheses in a pivot experiment in order to find a plan that works.
2. (2) Optimize efficiency by refining parts of the business model

2. What is the formal definition of a business model that is common across all perspectives of business models? (4 points)
A business model is how an organization creates, delivers and captures value. 

3. What does “consistency” mean in the design of a business model using, for example, the Business Model Canvas? Give an example of an INconsistent business model. (2+2=4) 

1(2): consistency in a Business Model Canvas means that the nine building blocks relate to one another in harmony. For example, if the customer segment is women aged 20-30 in the Bay Area of San Francisco, the channels to reach the customer segment(s) has to correspond to the customer segments. In practice, this means that one of the nine building blocks cannot be transformed without changing, or at least revising, the remaining eight.
2(2): An example of an inconsistent business model would be an airline company whose value proposition is to offer flights at a lower price (cost-driven)
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