Business Models and Organizational Change
Added on 2020-03-01
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Running Head: Business models and organisational changes.Innovation andSustainable BusinessDevelopmentConstructing business model
Business models and organisational changes.Innovation and sustainable business developmentThe essay argues for the business model and how it should be constructed keeping in mind the various strategies and changes that are likely to occur. Pre preparation or such dynamism need to made by the managers through studies and predicting the market scenario well beforewith the help of efficient research. On making predictions training to the employees must be rendered so that they become eligible enough to face those challenges and react positively towards static and dynamic problems. The concept is well explained using the example of Cadbury and how it reacted to the recession situations by motivating the employees in a unique manner. This is the example of finding out opportunities and creating wonders out of it. The business model is the structure of the company which assists in deciding how the working of business carries forwards and what rules regulations are required to be followed. The model helps in enhancing the value of the business and thereby attracting the customers. By adopting the business model expansion and improvisation in business takes place resulting in growth and development of the organization (Hill, 2017). Business model enhances the efficiency of employees as they have set plan to work on. An efficient model should be flexible to adapt the changes and positively revert towards the innovation and modification in the technical, political and social field. This would result in newness and follow the trend thereby increasing the loyalty of consumers which will enhance the brand image and set the trend in the market (Cloetta, n.d.).The business model operates in different types and fields depending upon the nature of the business. Considering the e-business archetypes there are multiple measures that need to undertake while designing the model (Ovans, 2015). First of all, it should be made clear that models are part of the business plan and it is a narrow term. A business plan is an overall structure from start till expansion and handling risk, decision making and many more attributes. Business model as per e-business archetype design the delivery time, picking up oforder, it’s dispatching and clearing out consumers’ grievance to solve out the problem and acquiring the consumer satisfaction thereby increasing the loyalty and promoting the businessin a good sense. The business model also focuses on adapting the things of competitors by moulding it another way round if it feels better for the growth of the organisation. There are in all seven kinds of archetypes which are: product, subscription, service, brokerage, trade, 1
Business models and organisational changes.marketplace and ecosystem. Then there is activity task in a business model which depicts theconcentration on the focal point of the firm which was constructed by the managers (Reeves, 2017). Through activity system the organisational management takes place and delegation process along with information flow will be pivoted. Activity task is bifurcated in 2 ways thatdesign element and design theme. The design element is argued over content, structure and governance whereas design theme involves within novelty, lock-in, complementarities and efficiency (Zott & Amit, 2010). Lastly, there is a business model as cost-revenue architecture.The cost-revenue archetype states the discussion over budget in setting up certain activity, forinstance, in order to adopt the new technology to improve the production cost of machinery will get compared with the revenue it is likely to generate and accordingly buy or make a decision will be implemented (Bm now, 2013).In an organisation there occur timely changes which are either static or dynamic. In case of static problems, pre-preparation is made as such problems are likely to occur. Example, in online marketing failure of connection, break downs, unavailability of resources is common problem likely to arise and resolution of this should be prepared in advance. Another issue is the dynamic problem, these are the fluctuating situation that could occur at any moment of time and managers have to deal with these adverse situations smartly. Such situations test the decision making and risk management skill of the managers and directors (Boonstra & Bradshaw, 2013). Examples of such situations are changes in governmental norms of the country where orders need to be delivered, political changes, occurring of natural calamity during shipping. There exist varieties of a business model which could be implemented by matching it with the nature and situation of the problems. These numerous models are a low-cost business model, franchising, e-commerce, freemium, add-on business model, affiliate, the ad was driven, auction, catalogue and franchising model. Also, there are problems related to design and re-design, as discussed earlier designing is pre-set but re-designing falls under the dynamic notion and adaptability need to make to face the challengesand accept the situation by converting it into the opportunity or solving it till that extent that loss is not faced (Chand, 2016). The business context could be referred as the business environment. The business environment is dynamic in nature and high co-operation is required in it. Business context is divided into 2 portions micro environment and macro environment. Micro is an internal environment which deals with the issues and challenges faced by the organisation such as 2
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