Q1: Critically evaluate the purpose, components, and functions of business models with reference to

both traditional and newer sustainable model in a contemporary organization.

What is Business model?

A business model is simply the defined plan implemented by a certain company to generate revenue
and make a profit from operations.
OR
A business model is the conceptualized structure that supports the viability of a business, including its
purpose, goals and plans for achieving them. Nowadays, business models have become crucial starting
point of most companies. They describe the way each and every company should operate or work. It
also represents how a company intends to make money by turning their innovations into profit.

Components of business model canvas and roles of each segment:

1. Key partner
2. Key activities
3. Key resources
4. Value proposition
5. Customer segment
6. Customer relationship
7. Channels
8. Revenue streams
9. Cost structure

1. Key partner – system of suppliers and contractual workers that help the organization to create.
On the off chance that you have a variety of vital accomplices, it can empower you to diminish
your costs or enlarge the gathering of potential customers. By method for collaboration, having
key accomplices is frequently valuable for both sides.

2. Key activities – can be isolated into 3 divisions: generation, issue arrangement and dealing with
the stage/system. Generation is planning, making and supplying. Issue arrangement is an action
which concentrates on supporting and helping your client to comprehend vague matters.
Dealing with the stage concerns just those organizations whose key asset is a network access.

3. Key assets – things expected to create esteem recommendation and achieve client sections by
method for channels. In plan of action canvas the key assets can be separated into budgetary
(cash), physical (machines, autos, servers, office), human (experienced specialists, exceedingly
instructed researchers) and scholarly (clients' information, licenses, learning).

4. Value Proposition – refers to all the reasons that make customers pick your item/benefit. It is
an arrangement of advantages the organization offers. Those advantages ought to comprise
unique qualities, nonexistent available. In the event that you think about your quality
suggestion, you need to answer the topic of clear contrast between your administration and
the administrations of your opposition. Give your vision a chance to be short, clear and
infectious. Utilize the purported "lift pitch" [30 seconds to attract] to outline and characterize
 your administration. In the event that you can exploit such a brief timeframe and draw in the
consideration of your potential client, your quality suggestion needs no further advancement.

Example: Provide the other value added services to customer

5. Customer segment – clients are the heart of each business. The fundamental inquiry here is:
the thing that market would you say you are battling for? Every organization ought to know
precisely who does it address its item/benefit for. In this component of plan of action canvas,
customers ought to be described and afterward arranged to discrete fragments. Contingent
upon whom your customers are, your system ought to be formed in an unexpected way.

Example: feedback of customer, APS (After Parts Service) Many Engineering Company provides
the best service to their customer.

6. Customer connections – the nature of every relationship can be distinctive relying upon the
necessiti0es of every customer and client portions that you bolster.
They can be close to home (e.g. B2B) or mechanized. Their primary point is to construct the air
of trust and keep up those connections.

7. Channels – characterize the method for conveying and achieving client sections with a specific
end goal to give them esteem recommendation. While checking your appropriation channels,
you ought to focus on both solicit and offering. Specialists guarantee that it is ideal to begin
with the channels that are the speediest yet the least expensive ones. These days, every
organization ought to burn through cash on viable e-promoting. While utilizing online
networking it is critical to recall that fitting instruments ought to be utilized for proper client
portions. There are 5 principle stages: give the data about your item/benefit, let the client
check the quality recommendation, convey the item/benefit lastly, after-deals support. A
decent plan of action mulls over each one of those stages.

Example: Provide the best and fast channels for product supply at customer end, (supply chain
management)

8. Revenue streams- "if a client section is the heart of each plan of action, income stream is his
course". This component portrays the way the organization creates income from every client
section. There are numerous methods for acquiring it, not withstanding, it is regularly identified
with administrations that are being sold. Clients can pay for utilizing the item, membership or
permitting. There are numerous ways and some of them can be consolidated together.

9. Cost relationship – the majority of the costs that the organization ought to make to exist. On
the off chance that you make a worth suggestion, cultivate the client connections and produce
income streams, it implies that you pay. The expenses can be effectively tallied in the wake of
characterizing key assets, key exercises and key associations. Fetched structure can be isolated
into 2 classes: perpetual costs (pay rates, office, telephones for workers) and variable expenses.
The most vital thing is to pay not exactly acquire.
ON TRADITIONAL AND NEWER SUSTAINABLE BUSINESS MODEL:
Traditional business model :
The way of your little business and the sort and measure of client engagement it requires to be
effective charge whether you require a physical location or a virtual one. In the event that, for instance,
you're giving composition, duplicate altering, counseling, bookkeeping or charging administrations, the
essential interface with your customers is by telephone, email and fax, invalidating the requirement for
work space past a home office. On the other hand, a little business in which you offer clothing, beauty
care products, adornments, workmanship, furniture or home embellishments will probably require show
space, changing areas and proper stockpiling. (Christina Hamlett, 2016)

Traditional business model

Example: Dairy Shop, Street Book Stall, Restaurants

Furthermore, it is just as the way the telephone was replaced by cordless phone and then the mobile
phone took place for communication purposes.
(TSBC, 2016)
Newest sustainable business model:
We require plans of action that can accommodate how an organization can make and convey esteem for
its numerous partners while catching worth for itself. Be that as it may, the changing asset scene makes
open doors for advancement. The test is to reevaluate the assembling business as a system of complex
and developing connections, and to comprehend the changing example of the development of quality
and the worth creation among the system performing artists. (UNIVERSITY OF CAMBRIDGE, 2016)

Sustainable business model

Business Business value Customer value Customer

infrastructure infrastructure

Key partner:
Suppliers
Investors Cost structure Value Customers
Partners proposition
Revenue Customer
Key Activity: Streams Customer relationship
Process problem/Pain
Channels
Key Resources:
Employee
Machinery
Product/service
 (researchgate, 2

What are some ways in which traditional and newer sustainable models may differ from each other?

Below is the difference of traditional and newer sustainable business model:

TRADITIONAL MODEL NEWER SUSTAINABLE MODEL

Maximum capacity planning Planning on real demand

Functionally lay out Flow lay out
Big distances between activities Distances reduced to minimum
Independent managing of each activity Management focused on process
Big scale operative Shot scale operative
Large scale of product transfer Unit by unit transfer
Large stock volume Controlled stock
Saturated capacity Excess of capacity+
Highly specialized personnel Versatile personnel
 PART TWO: BUSINESS MODEL INNOVATION

Analyse and compare the business model of Alibaba with that of a traditional retailer such as Farmers
Trading store, explain Alibaba’s complexities and the ways in which it uses technology to generate
revenue.

ALIBABA BUSINESS MODEL

Key Partners Key Activities Value Propositions Customer Customer Segments

Relationships

Key Resources Channels

Alibaba.com was built up in 1999 in Hangzhou by Jack Ma, a previous English educator, together with a
gathering of 17 companions. It is China's driving business-to-business e-business organization, working
the world's biggest online commercial centers for both worldwide and residential China exchange;
Taobao.com, China's biggest C2C closeout webpage; Alipay, China's biggest online installment entryway;
and Yahoo! China, China's driving web index. Shippers can list their items for nothing on Alibaba.com,
additionally have the alternative to pay for a scope of advantages, for example, more prominent
presentation on the site and boundless item postings. In Chinese, Taobao signifies "scan for fortune."
Taobao.com has developed to end up China's biggest shopping site and is positioned the ninth most well
known site on the planet by Alexa.com. Propelled in 2003, Taobao records a huge number of items and
administrations from a huge number of venders. Taobao does not charge exchange expenses and the
site is allowed to join for vendors, an arrangement which helped the site pick up its tremendous client
base in China. While Alibaba.com is business-to-business, Taobao is business-to-customer or shopper to-
purchaser engaged, empowering little organizations and people to open online stores. To help
customers pick among the boundless number of vendors, the site has a one of a kind rating framework
that reflects what number of exchanges every dealer has effectively finished. Purchasers can specifically
ask dealers questions through Alibaba Group's moment delivery person programming. Dealers have the
choice to purchase publicizing and different administrations to help them emerge on the site and
support deals. Publicists can pick between pay-for-execution and presentation advertising. These
promotions are the essential means through which Alibaba profits from Taobao.

Tmall

Tmall.com, dispatched in 2008, offers a wide determination of marked items arranged towards China's
developing working class. While Taobao caters more to little vendors and people as merchants, Tmall is
centered around bigger organizations, including multinational brands, for example, Nike, Inc. (NKE)
Apple Inc. (AAPL). Tmall has developed to have more than 50,000 shippers offering to more than 180
million dynamic clients. It was Tmall that dispatched "Singles Day" in 2009 as a yearly limited time
occasion to remunerate clients with rebates. Tmall charges vendors a store, a yearly expense, and a
commission expense on exchanges. Along these lines, it looks to some extent like eBay Inc. (Ebay) and
Amazon, which likewise gather exchange charges from outsider shippers. Dealers on Tmall have
admittance to investigative instruments demonstrating the quantity of guests, site hits, and client
evaluations, which serve to control their business choices. (Blystone, 2015)

ALIBABA BUSINESS MODEL STRUCTURE

11 Main
In 2014, Alibaba dispatched the US shopping site 11Main.com. 11 Main hosts more than 1,000 dealers
offering items in an assortment of classes. The site charges dealers a rate of offers and goes up against
eBay, Amazon, and Etsy, Inc. (ETSY) all alone region.
Programming versus Distribution centers
Not at all like Amazon, Alibaba Group holds no stock and possesses no distribution centers. Or maybe,
Alibaba has made programming stages that encourage the trading of merchandise and administrations.
While Alibaba's incomes are just a small amount of Amazon's, it has higher working edges and overall
revenues. The purpose behind this is to a great extent that Amazon needs to deal with the costly and
complex logistics of creating and keeping up a system of stockrooms to ship items specifically to
customers. To put it plainly, programming is simpler to scale than distribution centers. (See alsoː
Navigating E-trade: Alibaba, eBay and Amazon.)
Alibaba and Baidu
A standout amongst the most fascinating components of Alibaba's business system lies in its association
with Baidu, which works China's driving web index. Alibaba really hinders Baidu's creepy crawly from
indexing both Taobao and Tmall, implying that pages from these sites don't show up in Baidu's query
items. Thusly, customers must go straightforwardly to Taobao and Tmall with a specific end goal to see
what they bring to the table. This thus builds the estimation of hunt on Taobao and Tmall. At the point
when a client does a pursuit on Taobao and Tmall, promotions from dealers show up close by query
items. This part of Alibaba'a plan of action is like Google Inc's. (GOOG), which makes the greater part of
its income through internet promoting.
Alibaba Group's Ecosystem
Notwithstanding its driving e-trade gateways Alibaba Group made a biological community of
organizations to compliment them:
Alipay
Alipay is an online outsider installment stage, propelled in 2004 by Alibaba Group. It gives installments
and escrow administrations to exchanges on Alibaba Group stages. Regularly contrasted with PayPal in
the United States, Alipay is the pioneer in China's online installment market with 300 million clients.
Alibaba Group spun off Alipay in 2010.
Alimama
Dispatched in November 2007, Alimama is an internet showcasing stage that gives dealers on Alibaba
Group's commercial centers a scope of promoting and publicizing administrations.
China Smart Logistics
China Smart Logistics is an exclusive stage that gives continuous access to data for both purchasers and
merchants with a perspective to enhancing the effectiveness of e-trade bundle conveyances.
Aliyun
Aliyun creates stages for distributed computing and information administration, guaranteeing that
Alibaba's e-trade gateways can deal with their gigantic activity and exchange volumes.
Ventures
Alibaba Group has made significant interests in Sina Weibo, a Chinese small scale blogging site like
Twitter Inc. (TWTR), and Youku Tudou, China's response to YouTube. Alibaba has likewise put resources
into various US new companies, including video informing application Snapchat and Lyft, a distributed
ridesharing application. In 2014 it even purchased a 50 percent offer of Guangzhou Evergrande Football
Club for $192 million.
The Bottom Line
In spite of Alibaba's colossal speculations, its center business stays focused on e-trade. Its plan of action
has joined components of a hefty portion of the main innovation organizations in the US instead of
reflecting any one specifically. All things considered, the differing organization portrays its general
mission as "to make it simple to work together anyplace."
The 100 Year History of an Iconic Retail Brand

Agriculturists is a Kiwi symbol, a quite adored NZ retailer since 1909. What began as a mail request
organization rapidly developed to wind up NZ's driving retail establishment famous for quality, client
administration and worth for cash. While we have tagged along route subsequent to 1909, our qualities
continue as before.
FARMERS RETAIL BUSINESS MODEL
FARMER TODAY
These days, Farmers is a flourishing, advanced retail establishment, with a huge scope of contemporary
home and mold stock. Gladly Kiwi claimed Farmers works in 59 retail chains in rustic and city areas
around the nation.
They position themselves as "Your Department Store" on the grounds that our stores and item ranges
are continually redesigned to meet the changing needs of our clients guaranteeing the absolute best
scope of on-pattern home and design stock.
At Farmers they esteem our kin and the encounters they convey to their clients. Key to client encounters
are their kin as it is their endeavors that have held clients returning for a long time.
To guarantee their clients keep on being conveyed stunning encounters, they endeavor to make
Farmers:
• An environment for self-awareness and profession advancement
• A working environment which gives you a feeling of having a place
• A solid supporter of the Community
• A working environment with advantages

Farmers and Your Community

In 2015, Farmers contributed $2.1 million to foundations all through New Zealand. Ranchers contribute
both cash and several hours every year of representative time to backing and drive awesome causes.A
late case of Farmers endeavors was in December 2015 where $678,115 was raised for Hospice. They
accept by centering their exertion on these chose philanthropies they can affect the biggest measure of
individuals inside New Zealand.

They are focused on supporting the group that backings them. With 59 stores across the nation they are
pleased to help with the prosperity of the New Zealand people group, and have accomplished for more
than 100 years. (Farmers, 2016)
Agriculturists started as a humble mail-request business in 1909 on October 1 - their first buy being a
move of wire mesh.
Agriculturists is presently a chain of 58 stores the nation over, utilizing more than 4,000 individuals.
It was set up as Laidlaw Leeds on October 1, 1909 by Scottish worker Robert Laidlaw.
The organization has survived two world wars, the entry of the PC age, changing retail designs and the
ascent and fall of world securities exchanges.
In 1936 the store embraced a parrot called Hector who turn into its mascot until 1977, when it kicked
the bucket at the unprecedented age of 131. Bits of gossip endure about whether there was more than
one Hector and on the off chance that it truly was 90 when given by an elderly Gray Lynn client said
Hunter, who has composed a book on the store's history.
In spite of the stories, Hector's full stays still stand tall at the organization's head office, Hunter said.
Established as a mail request business in Auckland, there are currently 58 stores from Kaitaia to
Invercargill utilizing 3900 staff.
It provided food at first for country groups and its first deal was for a move of wire mesh - a world far
from the make-up, design, toys and furniture now loaded.
Taking after World War 1, Laidlaw Leeds converged with the Farmers Union Trading Company, a
cultivating agreeable, and established its name in New Zealand's history.
The mystery of Farmers' prosperity was its capacity to reevaluate itself, Hunter said.
"Development has described Farmers.
"It was the principal mail request business in New Zealand when it began, it had the main Santa parade,
it had the primary free carpark for clients in Australasia, it was the first to present contract buy shopping
in New Zealand, and it was one of the main stores to go into self-administration, rather than full
administration shopping."
The organization additionally had a solid client center, which worked to support its, Hunter said.
Mr Laidlaw was the first to offer a cash back surety to clients and accepted to be only the second on the
planet to compose a statement of purpose.
He expected to manufacture the best business in New Zealand, to improve exchanges, to wipe out
postponements and to offer just quality products.
Early mail request indexes were a tome, made up of 500 pages, and stuffed with promotions for stock,
for example, flour, tea, bikes, sewing machines, autos - even houses.
By 1960, one in 10 New Zealanders had a record with the organization.
After ten years, Farmers turned into the greatest division chain in the nation, in the wake of purchasing
Calder McKay, a South Island organization.
In 1986, Farmers was assumed control by speculation organization Chase Corporation and after six
years, was purchased by Deka, with the Maori Development Corporation and Australia's Foodland.
The business was come back to New Zealand possession in 2003 when Anne and David Norman, the
proprietors of Pascoes, purchased it.
"Under the consideration of its new proprietors and administration Farmers has been repositioned into
a lively, present day retailer concentrating on driving brands for style, magnificence and homewares
(NewsHub, 2009)

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