Comparable Business Model Concepts †Free Samples to Students

Question: Discuss about the Comparable Business Model Concepts. Answer: Introduction: Business models are the frameworks on which the companies stand and operate. They are made up of the various aspects related to the organisations like vision, mission, goals, organisational culture and strategies. The business models of the multinational companies even incorporate competitors, business partners and consumers as parts of their business models. The business models of the companies are formed by the apex management and reflect the organisational culture. It is this reason business models are often e-business archetype or personalities of the organisations. The business models also serve a platform for the organisational operations and a framework which is aligned with the financial goals of the companies. They provide guidance to the managers to make strategies to reduce costs and maximise profits and return on investments. Business model can be defined as the framework on which business organisations operate in the market. The business models consists of several aspects of the organisations like core values, missions, business visions, target customer segments, business strategies and stakeholders. The business models of the companies are the practical applications of the values, missions and visions(Bocken et al., 2014). The multinational companies define their business models according to the organisational culture and organisational policies. The macroeconomic changes compel the organisations to change reform their business models to sustain in the market. Thus, business models aim to provide the organisations to which they belong sustenance and continuous growth in the market. Business model archetypes involve the fundamental personalities of the business and their products. The business models of the organisations include the main activities of the business organisations, their main values, customer bases which they cater to and how they create value for the customers (Beck, Demirg-Kunt Merrouche, 2013). They are the framework on which strategies stand and involves modes of operations like open innovations with other firms. The companies often lose their knowledge and expertise when employees leave them. These loss of strategic human resources weaken companies and their business model. Carl Jung created a model called business model archtype which human being inherit and use to make their own personalities. The model was applied to business organisations because they are believed to be legal personalities. The model speaks about three primary personalities of all business organisations which are product, services and trade. The secondary personality trai ts in business organisations are brokerage, subscriptions, market place and ecosystem(Bohnsack, Pinkse Kolk, 2014). Business model as an activity systems involve the various activities of the business organisations which are required for their very sustenance. The model looks at business organisations as collections of various functions like acquisition of resources, employing of uman resources, acquiring of machinery, supply chain management, production lines. The business models as activity systems involve partners, suppliers and customers. They reflect the strengths, weaknesses, threats and opportunities of products and projects. Thus it can be opined that business model is an activities involving resources, processes and so on to earn profits(Schwarz, Terrenghi Legner, 2017). Business model as cost-revenue architecture involve the business models to make profits. This approach deals with the aim of the business models to maximise revenues and reduce the costs of the company. The concept involves use of modern technology to increase production and maximise sales to earn more profit from it. The business models of companies as revenue generation and cost reduction tool involve disruptive innovations, new market penetration, application of sustainable technology, aggressive promotions and inclusion of stakeholders while making business strategies(Aversa et al., 2015). This important role of business in todays has given rise to the concept of business model continuum which shows how business organisations modify and adopt their business models to operate on a great scale by adapting to market conditions. The continuum works on a scale showing commodity products on one end which are sold on high scale lower profit margin and luxury products on the other end wh ich sell at scale but at higher margins of products. The when business organisations shift along the scale from low priced to high priced products, their entire business model including sales and marketing components of the model change(Visnjic, Wiengarten Neely, 2016). The conceptualisation of the business models help the organisations deal with static and dynamic problems and involves redesigning of business model. The business organisations have to deal with several static and dynamic problems. The business organisations have to deal with static business problems which make the business operations extremely complex like political situations in the country, lack of local supply chain and lack of technological development in a within a country. The business organisations are required to frame and redesign their business models to deal with these complexities(Serdarasan, 2013). For example, if the local supply chain cannot provide certain raw materials, the business organisations have to import it. This show that the business organisations have redesign their business models to deal with the complexities presented by the dynamic and static complexities in the environment. Business context refers to a condition in the market involving a business organisation, a business community or an industry as a whole and keeps on changing. The business conditions are dependent on the static and dynamic environmental conditions and tend to change with them. For example, the automobile manufacturing companies are impacted by changes in the laws pertaining to areas pollution and road safety. These organisations have to maintain a vast reserve of information or big data which has made them adopt knowledge management system and integrating technology(Naldi et al., 2013). They are today required to maintain this huge data base to able to operate with a large number of suppliers and distributors all round the world. The automobile companies today have to reconfigure their supply chains to obtain sustainable and less polluting raw materials in response to the stringent environmental laws which have come into force in all the major economies in the world. Moreover the inte rnational automobile manufacturing and marketing companies have expanded their operations into all the major markets of the world which require them to adopt supply chain in these markets. This requires them to reconfigure and restructure the supply chain management policies which are important components of business models of these companies. They are also required to acquire, store and share a large body of business information to operate on regular basis. The top automobile companies today exchange and share these information with their geographically dispersed branches, supply chains and distributors spread throughout the world. It can also be pointed the companies integrate technology and sustainability to produce goods(Romn Juan Martn, 2014). They invest in technology to manage and recycle wastes and use them to generate energy which helps them to reduce their energy expenses. The automobile companies use modern technology like cloud computing and data sharing on cloud to com municate with their business partners. Thus, it can be inferred from the above discussion that companies today redesign their business models to incorporate changes like big data, supply chain reconfiguration, and technological integration (Brock et al., 2013). The business models of the organisations are impacted by changes in the macroeconomic environment which necessitates the business managers to make strategies to adapt the business model according to the changes. The macroeconomic environmental factors like politics economics, society, technology, law and environment are beyond the control of the business organisations yet have profound impact on the strategies and even the very sustenance of the organisations. For example, all commercial banking organisations are required to follow the financial policies made by the apex bank, governments and the international agreement between countries to operate. If there is any change in the financial policies made by any of these three institutions, the apex management bodies of the commercial banks have to redesign their business models(Fischer Heutel, 2013). The middle and the lower managers have to ensure that the redesigned models are followed by all the employees. The changes in the econom ic or market conditions also trigger the managers to redesign the business models. If a multinational companies introduces a new and innovative product at low price, the domestic companies have to redesign their business models to apply modes of operations to be able to introduce low priced new product of the same category as the MNCs product(Guerry et al., 2015). The change in the methods of operations may involve huge investment in technological up gradation and hiring of new highly paid skilled employees. It can be pointed out that domestic companies who fail to modify their business models to adapt to these changes often have to exit from the market or are acquired by the multinational companies. Thus, the upper, middle and the lower level managers have to redesign business models according to changes in the external environment. It can be concluded that business models play crucial role in ensuring the sustenance and growth of companies. They guide the employees to operate to add value and minimise expenditure of the company. Therefore the managers keep on restructuring the business models of the companies to adapt them to the market changes. It can also be pointed out that a successful business model and its application require strong support and participation of the employees of all levels and departments. It also requires the support from stakeholders like customers, shareholders and the government. References: Aversa, P., Haefliger, S., Rossi, A., Baden-Fuller, C. (2015). From business model to business modelling: Modularity and manipulation. InBusiness models and modelling(pp. 151-185). Emerald Group Publishing Limited. Beck, T., Demirg-Kunt, A., Merrouche, O. (2013). Islamic vs. conventional banking: Business model, efficiency and stability.Journal of Banking Finance,37(2), 433-447. Bocken, N. M. P., Short, S. W., Rana, P., Evans, S. (2014). A literature and practice review to develop sustainable business model archetypes.Journal of cleaner production,65, 42-56. Bohnsack, R., Pinkse, J., Kolk, A. (2014). Business models for sustainable technologies: Exploring business model evolution in the case of electric vehicles.Research Policy,43(2), 284-300. Brock, C., Blut, M., Evanschitzky, H., Kenning, P. (2013). Satisfaction with complaint handling: a replication study on its determinants in a business-to-business context.International journal of research in marketing,30(3), 319-322. Fischer, C., Heutel, G. (2013). Environmental macroeconomics: Environmental policy, business cycles, and directed technical change.Annu. Rev. Resour. Econ.,5(1), 197-210. Guerry, A. D., Polasky, S., Lubchenco, J., Chaplin-Kramer, R., Daily, G. C., Griffin, R., ... Feldman, M. W. (2015). Natural capital and ecosystem services informing decisions: From promise to practice.Proceedings of the National Academy of Sciences,112(24), 7348-7355. Naldi, L., Cennamo, C., Corbetta, G., Gomez?Mejia, L. (2013). Preserving socioemotional wealth in family firms: Asset or liability? The moderating role of business context.Entrepreneurship Theory and Practice,37(6), 1341-1360. Romn, S., Juan Martn, P. (2014). Does the hierarchical position of the buyer make a difference? The influence of perceived adaptive selling on customer satisfaction and loyalty in a business-to-business context.Journal of Business Industrial Marketing,29(5), 364-373. Schwarz, J., Terrenghi, N., Legner, C. (2017). Towards comparable business model concepts: resource description framework (RDF) schemas for semantic business model representations. InDesigning the Digital Transformation: DESRIST 2017 Research in Progress Proceedings of the 12th International Conference on Design Science Research in Information Systems and Technology. Karlsruhe, Germany. 30 May-1 Jun.. Karlsruher Institut fr Technologie (KIT). Serdarasan, S. (2013). A review of supply chain complexity drivers.Computers Industrial Engineering,66(3), 533-540. Visnjic, I., Wiengarten, F., Neely, A. (2016). Only the brave: Product innovation, service business model innovation, and their impact on performance.Journal of Product Innovation Management,33(1), 36-52. Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future research.Journal of management,37(4), pp.1019-1042.