Business Model & Business Development-Free-Samples for Students

Question: Discuss about the Concept of Business Model. Answer: The business model of any organization denotes a precise and clear picture of the operational business of the organization. Precisely the business model is something that includes the principles of the business regarding the creation, delivery and the capture of the business values in the context of the culture, economy and the society. Business model is considered as the part of the business strategies of the business organization. It is meant that the business model of any firm is the way of interpretation of the value proposition to the existing for profitability and the revenue growth. In other way, business model is the means of generating the rapid growth of the revenue for the organization (Schaltegger, Ldeke-Freund Hansen, 2012). The business model intents the purpose and the function of the business. For completing rightly the function of the business, the business model requires a background and context. The most popular business models are based on the several business personalities or the fundamental template that are called the business model archetype (Bocken et al., 2014). A business archetype is necessary to understand the business model of any organization. Primarily there are seven business model archetypes for understanding the categories of the business, which are further divided into two sections, primary and the secondary. The business archetype suggests and makes way for the management of the business to plan their strategies according to the structural spectrum options. The overall and the basic purpose and objective of a business model is to focusing on the creation of the business growth of the business, which is reflected in the value proposition of the customers. The involvement of the physical human recourses and the capital resources of the business model for the fulfillment of the business goals is considered to the activity of the business. The activity system of the business model entails the set of organizational activities that are internally dependent centering on the organization (Bocken, N. M. P., Short, S. W., Rana, P., Evans, S. (2014. The activity system executes the activities of the firm, vendors, customers and the partners of the business. The activity system includes several activities, which are interdependent, and this is the central concept of the business activity system. Interdependencies of the activities in the business model provides the clear vision of the activity system of the evolution process of the firms business over the long span of time and expands the boundaries of the business un the competitive market of the constant changing customers. These interdependent activities of the business model are generally performed by the business organization, but sometimes it can be the customers, partners or the suppliers of the business. Moreover, the activity system of the business models defines the prior consumers, potential partners and the suppliers (Bocken et al., 2016). The business model of the organization is based on various components. The revenue business model is another major component, which is responsible for the revenue growth of the firm. The cost revenue architecture of a business model refers to the pricing strategies that are responsible for generating the revenue o the business (Zhang Lopez-Pascual, 2012). The business models and the revenue architecture of a business are internally linked. In fact, the business models and the revenue modes complement each other by determining the strategies of pricing and the design of the product.. One of the major and popular revenue architectures is the razor-blade model in the business model, which involves the inexpensive pricing razor and marks up the consumables (Meertens et al., 2012). The pricing strategies and the generation of the cost revenue depend on the revenue architecture of the business models. Total productive maintenance or TPM is a system defining the maintenance process of the organization in order to add business value to the organization. TPM is a major and prime factor of the business model, which ensures the work flow of an organization to go smoothly. This maintenance process includes eight pillars or section, which denotes the entire system of maintaining the business from the employees to the equipment needed in a business. The purpose of TPM in a business model is to provide and ensure proper improvement of the organization through every level (Rajput Jayaswal, 2012). Be it the elimination of the employee conflict within the organization, or the quality issues regarding the product, TPM manages the all. It is considered that TPM is one of the vital part of an organization in designing their business model and securing the efficiency in productivity. The business model of a firm is capable of resolving the dynamic and the static business problems that often arise in the business process (Chen Patton, 2012). The business model helps the organizations operational activity to be executed by solving the static problems of the business. The static attributes of the business support the organization to accomplish the present business activities without obligations. However, the static components of the business do not always seem to be helpful for the organization, since it prevents the innovative growth of the organization. Thus, the business model of the organization requires incorporating the dynamic components of the business for integrating the innovative features in the same. The dynamic properties of the business model help the organization to accommodate and respond appositely to the contemporary market environment. The design of the business model proposes the conceptualization of the business objectives to carry out the cons tant and the elastic properties of the business model for overall profit and growth of the revenue in the global market (Weske, 2012). The business model of an organization, being the prime determinate of the business strategies is capable of creating problems and conflicts. The entrepreneur of any organization approaches the innovations in the business model, which the potential business personnel are not familiar with (Massa Tucci, 2013). Another problem arises with the fact that questions the similarity of the business model with the business strategies. The overlap of the business strategies with the intellectual territory creates another problem in the business model. For example, dealing the two different and competing business models in the same industry needs spatial separation. The designing and the conceptualization of the business needs a clear and the inclusive business of the business goals as well as the potential perspective of the business in the competitive targeted market (Mezger, 2014). The concept of the business context signifies the context in which a business community is employed. The specialized vocabulary or the business community is based on the business context and one of the major notions of the business context is change. Change is one of the constant factors of the business. The changing values and the approaches of the organizations are rapidly increasing. The requirement of the digitalization and the new people and the innovation are leading to the rise of the big data. The concept of the big data is about business interruption. The impact of the big data is increasingly effective on the stakeholders of the organization. For example, the impact of the rise of the big data is disrupting the market. The major informational technology companies like Capgemini is using big data to involve the nontraditional stakeholders into the industries (Wielki, 2013). To obtain the business goals the company is planning their business models as well as strategies inclu ding the big data to consider the value proposition in the business market. The rise and the implementation of the big data has enabled the company face less failure and more success and added the competitive advantages into the company. The impact of the big data has influenced the business model of the organization (Katal, Wazid Goudar, 2013). The managers of the Capgemini, while making decisions for the business model of the organizations, has focused on the technologies and the efficient people, since the big data requires the technological advancement and the skilled people for the implementation of the business strategies. The organization as well as the managers of the organization must have the clear and insight idea of the business objectives. It can be concluded from the above discourse that the business model is one of the major and the prime unit of the business. The business model is not only responsible for the planning of business strategies, but also determines the revenue growth and the profit of the business. Different and specific business models are there to resolve the issue created by the numerous components of the business and helps the activity system of the business to work properly. The essay shows that the constant and the inevitable change in the business are influencing the global business and the managers of the organizations are found to plan their business strategies accordingly. References: Bocken, N. M. P., Short, S. W., Rana, P., Evans, S. (2014). A literature and practice review to develop sustainable business model archetypes.Journal of cleaner production,65, 42-56. 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