a) What is a traditional business

A traditional business is generally a store, a restaurant, or a government agency. These businesses

provide a service or a product to their customers. Traditional businesses exist to provide a product
to their customers and consumers in exchange for payment. Most of these businesses' typical goals
are to make a profit for the owners or operators, which means the company makes more profit
revenue than it spends. Businesses spend a lot of money on bills and incomes that keep them
running. "Traditional business" can also be used as a phrase to describe a protocol that is widely
followed by businesses in certain situations.
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A modern business is one that utilises cutting-edge technology to its advantage in order to maintain
a competitive advantage over its competitors. Individual, social, and environmental value are all
important to us. This is inextricably linked to the creation of economic value for the company's
stakeholders.When we talk about modern business, it simply meant that such business can be used
or we can say take benefits of modern technologies in the best way.

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b) Traditional vs Modern organizations

Stability

With multiple business strategies, modern organizations are more dynamic. Traditional organizations
are thought to be stable, which may be true; however, because their activities are planned ahead of
time, they do not allow for progress or change, which means these strategies can become obsolete.

Flexibility

Modern organizations are more flexible for change in every aspect of their work environment, from
knowledge and skills to approaches and workflows, rather than traditional organizations, which are
fixed, inflexible, and planned.

Risk management

Traditional organizations have policies and standards in place to protect themselves from any kind of
risk. They are risk averse, in contrast to modern businesses, which are risk takers who use well-
defined calculations to assess risks across multiple dimensions. This isn't just for a specific issue that
occurred at a specific point in time; instead, it's for the possibility of a potential risk.

Technology
Traditional organizations are centralized and (overly) cautious about adopting cutting-edge
methodology and technology. With the current rate of technological innovation, keeping up with
ever-changing market demands is much more difficult, if not impossible. Going modern entails
adopting a modern mindset that is focused on the present. Companies that refuse to embrace
technological advancements and new ways of working will be stuck in the past.

Organizations must transform their businesses by introducing new products and services with digital
signatures and augmenting their existing portfolio to fit into the digital ecosystem to keep up with
these dynamic market demands.

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c) Traditional Types of Business Models

A business model is simply a company's overall strategy for making money by selling a service or a
product. The business model lays out how the company intends to manufacture and market a
product or service. This budget also accounts for the costs of manufacturing and marketing the
service or product. There are a variety of business models available, each of which can be tailored to
the needs of different companies and types of businesses.

Manufacturer

The manufacturer's business model involves using raw materials to make a product that can be sold.
This business model could also entail the assembly of prefabricated components to create a new
product, such as in the case of automobile manufacturing. The business-to-consumer model
describes how a manufacturing company can sell its products directly to customers. The business-to-
business or B2B model involves outsourcing the sales aspect of the process to another company.
Typically, wholesalers sell their products to retailers, who then sell directly to consumers. A clothing
manufacturer that sells merchandise to a retailer, who then sells to consumers, is an example of this
type of business.

Distributor

A business that buys products directly from a manufacturing company would fit the distributor
business model. The products would then be resold directly to consumers or to a retailer by this
company. A distributor frequently serves as a link between a manufacturer and the general public.
The challenge for distributors is to set profit-making price points while also employing effective
promotion strategies to ensure strong sales. For distributors, competition can be fierce,
necessitating constant market analysis.

Retailer

A retailing business buys products from a wholesaler or distributor directly and then sells them to
the general public. Retailers frequently use a physical location as a point of sale. Grocery stores,
clothing stores, and department stores are examples of retailers. Retailers can be national chains or
small businesses run by a single person. It is common for a retailer to have a physical location, but it
is not required. As an online retailer, retailers may choose to offer sales. Online retailing can be done
on its own or in conjunction with physical retailing. Competing against other retailers who sell similar
products is a constant challenge for retailers.

Franchise

Any of the other business models, such as manufacturing, distributing, or retailing, could be
incorporated into a franchise business model. Franchise businesses are organized around a single
service or product that is sold or produced. The franchisee, who is the person who buys the
franchise, follows the franchisee's business model. Buying a franchise has a number of advantages
for the franchisee, as most business processes and protocols have already been established. The
franchisee, on the other hand, has less flexibility as a result of these established protocols.

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