BUSINESS MODEL

• A business model is an “abstract

representation of an organization, be it
conceptual, textual, and/or graphical,
of all core interrelated architectural, co-
operational, and financial arrangements
designed and developed by an
organization.
• It describes how the business will generate
revenue and support financial projection/s. It
will greatly help in describing the importance of
the business in gaining profit and sales. It is
description of means and methods a firm
employs to earn the revenue projected in its
plan.
• There are two primary lever of company’s
business model the ; PRICING and COST.
• It is used for a broad range of informal and
formal descriptions to represents core
aspects of a business, including purpose,
business process, target customers,
offerings, strategies, infrastructure,
organizational structures, sourcing, trading
practices, and operational processes and
policies including culture.
Characteristics of a Strong Business Model:
1.Identify the specific audience
2.Establish business processes
3.Record key business resources
4.Develop a strong value proposition
5.Determine key business partners
6.Create a demand generations strategy
7.Leave room for innovation
Benefits of Business Model Documentation:
1.It describes how an organization fulfils its
purpose.
2.It answers the following questions: Who is your
customer, what does the customer value and
how do you deliver value at an appropriate cost?
3.Maintaining a focus on corporate goals,
reviewing operational practices and ensuring
that the two are congruent.
4.It can be incorporated into public relations
material and is useful to share with customers
Benefits of Business Model Documentation:
4. It can be incorporated into public relations
material and is useful to share with customers and
partners.
5. The mission statement or vision statement may
be included in a business model.
6. Financial goals have been main focus of such
models but business sustainability and corporate
culture have become increasingly integral to
business plans in recent years.