BUSINESS ADMINISTRATION
ENTREPRENEURIAL DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is a documentation on how to manage company’s employee
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It is a blueprint on company’s organizational structure
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It is a documentation on how the company’s capture consumer’s value.
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It is a blueprint on how an organization creates, delivers and captures value
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Detailed explanation-1: -Definition: A business model describes the rationale of how an organization creates, delivers and captures value. It can be described through 9 building blocks: Customer Segments, Value Propositions, Channels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Key Partnerships & Cost Structure.
Detailed explanation-2: -The term business model refers to a company’s plan for making a profit. It identifies the products or services the business plans to sell, its identified target market, and any anticipated expenses. Business models are important for both new and established businesses.
Detailed explanation-3: -Profit formula. The profit formula is the blueprint that defines how the company creates value for itself while providing value to the customer.
Detailed explanation-4: -A business model is a blueprint for how a company creates, delivers, and captures value. It defines the products or services offered, the target customer segments, the distribution channels, the revenue streams, and the costs associated with running the business.
Detailed explanation-5: -Actual value creation occurs when businesses develop consistent streams of products and services that offer compelling and unique benefits to a specific target audience. This means an organization must establish and maintain a specific, sustainable value creation model to maintain industry leadership.