Business Decision Making and Motivational Strategies
Added on 2020-03-04
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Running Head: Business models and dynamism.Innovation and BusinessDevelopmentDiscussing Business models
Business models and dynamism.Innovation and business developmentThe essay examines the concept of business model and referring the models in different situation like e-commerce archetype, activity system, and cost-revenue architecture. The concept of business model assists in resolving the static and dynamic problem keeping inview the model design and redesign problem. The business environment is studied linking it with the changing external and internal environment. It argues upon the for sure changes that are likely to take place and elucidating the statement supporting the example of Coles and its positive technological amendments that the company initiated. Lastly, the impact of dynamism on business models is discussed followed by the decision-making process adopted by the managers and their way of dealing with the issues that occurred. The business model is framework that designs the manner in which the business will process and progress. The entire business could be easily explained in a small paragraph justifying the gist of conducting the business. It is stated that customers get attracted to those organisation which follows a set predefined Performa. On following the criteria a sense of discipline is maintained and compromise with quantity and quality is never done. This is the factor that grabs customer’s attention and increases the customer loyalty. Consumers like those product and service that maintains its consistency and fulfil the promises. They gain a positive factor of word of mouth publicity. More satisfied the customer is more will they recommend it to others. Business model is the tool to save cost and listing down the expensesand cutting cost wherever required. This helps in generating revenue and increase the profit margin. Business model is a narrow term and is just a structure and part of business plan which argues about the human resource, capital investment, budget setting and fulfilling the requirements of business model. Even investors decide to invest in a business by scrutinizing and analysing the business model. Business models should be flexible and adaptable to dynamic environment to react positively as per the changing situations (Hill, 2017).The business model can be constructed with the help of seven archetypes. Business archetypes are introduced by Carl Jung, the inventor states that archetypes are similar to that of personality. When one is inspired by the other’s personality they try to adapt them inside as well. Same is the case with archetypes if the model or structure of the similar business is attractive the competitor’s tries to inculcate those strategies within them as well. An E-business archetype gets inspired with the portal and software that could be beneficial for flourishing business. The seven archetypes are product, subscription, service, brokerage,
Business models and dynamism.trade, marketplace and ecosystem (Smarter start-up, 2014). Another business model is based on activity type. The activities are set of tasks which are interdependent on each other and connected with the central focal firm designed by the managers and entrepreneurs of that focal firm to maintain the connectivity and flow of information. There are two parties involved and activities are designed using two attributes: design element & design theme. The design element involves content, structure, and governance. The design theme includes novelty, lock-in, complementarities, and efficiency (Zott & Amit, 2010). Business model actsas a cost-revenue architecture where the budgetary chart is constructed keeping in view the cost incurred to gain customer satisfaction and whether such cost is justified or not? Is the cost rendering the well-defined profit or the strategy need to be changed?Keeping in mind the business model there occurs a variety of challenges. A business faces static and dynamic problems, also there exists design and redesign issues as well. Usingthese predefined flexible business models the constant and diverting problems can be solved (Zwilling, 2011). The static problems are those that always stays attached with the business whenever it is started thus the solution is almost known to the business and applying the business model these issues can be resolved. The dynamic problems are sudden and could appear at any point of time, the challenge is to resolve these problems efficiently using business model concept including the design/ re-design problem as well. There are multiple models of business, some of them are a low-cost business model, franchising, auction, catalog, add-on business model, affiliate, the ad was driven, freemium & e-commerce business model (Problemio, 2016). The models differ with the nature of the business, considering e-commerce the static problem is connectivity problems, availability of resources, viruses & piracy which is static one whereas the changing software, banned by the government, payment issues, delivery problems and many other unpredicted problems are dynamic. With the set model and IT experts, the static problems could be resolved but dynamic problems require expertization and intelligence level to solve it with immediate aspect to satisfy the angry customer and providing them the rapid assistance possible.The business context is the wider aspect which is highly dynamic including different stakeholders. The business environment is further divided into two attributes: macro environment and microenvironment. Macros are external whereas micro includes the internal environment. Macro is a wider aspect that covers the study of the external environment and relates to the moves of the competitors, changing trends and taste of customer, the launching of new political policies and dynamism in the international market. Micro relates to the
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