Use the below text and then answer the questions at the bottom:
“Text, what is a business model.
A cartoon of a worried man in a tie. Text, MBA jargon? A prototype of a venture? Meaningless management speaker? A corporate fashionista? Possibly.
People have been talking about business models, in air quotes, more and more over the last decade.
Because it is a way to understand organizations as systems that have common components.
Three gears with directional arrows.
Text, To understand an organization’s business model, think about
one, what value it creates.
two, who is serves. A man in a lab coat. Another man in a black suit.
Text, Three, what sets it apart.
four, what resources it depends upon.
five, its crucial relationships.
six, the channels through which it delivers value.
seven, how it generates money. A large dollar sign.
Text, And, eight, what it spends money on.
Business model innovation is not just about changing what you sell.
A man’s eyes widen. Text, It is about continually re-evaluating…
What value you create, with whom you collaborate, who you are, how you capture value, how you work, how sustainable you are.
Modern business is a continual re evaluation.
Modern managers must become adept at ambidextrous thinking, in air quotes.
Animated hands push the words to the top of the screen.
Text, Ambidextrous thinking. Exploiting their current business model whilst also exploring new business models.
Exploit plus explore.
In an era of rapid change, organizations either…
Adapt or die.
A cartoon fish eats the text or die. Adapt is left standing.
Embrace the change.
Summary. What is a business model. How an organization creates and captures value.
Who it serves, what sets it apart, its key resources and relationships, its delivery channels, how it generates revenue, its cost structure.
Better business learning by Gavin Wedell MBA. gavinwedell.com.
Music credit the annual new england xylophone symposium.
PS. There’s a great tool called The business model canvas. Check it out. Google it.
All non-audio content copyright 2011 gavin wedell.”
- Why is a business model important?
- How are business models influenced by internal and external factors?
- Conduct a little research on models and discuss the difference between the product model and the marketing model. Is one model better than the other? Explain.