Business Model Risk Project

Business Model Risk Project

Contents
Introduction......................................................................................................................................1
Case Business Model.......................................................................................................................1
Risk Analysis...................................................................................................................................4
Risks.................................................................................................................................................5
Mitigation ........................................................................................................................................6
REFERENCES................................................................................................................................8
.........................................................................................................................................................9

Introduction
Business model (BM) refers to a plan of an organisation by which it identifies the source of
revenue for successful operations. It demonstrates the rationale of how a firm creates, delivers as
well as capture the value (Laurischkat and Jandt, 2018). Therefore, this framework plays an
important role for a company in achievement of corporate goals, where it includes customer
segmentations, value proposition, channels, revenue streams and more, as main components of
business core activities (Wells, 2018). The present assignment is going to prepare a business
report of Volkswagen, for describing its core activities and strategy that this firm use to run
successfully. The main focus is given on factors that put large impact on BM of Volkswagen, i.e.
electric vehicle. For this purpose, risk analysis is being carried out with a description of how
concept of electric vehicles has become a threat for business model of respective firm.
Furthermore, proper recommendation by which impact of such factor can be reduced also
provided.
Case Business Model
The business model considers as most essentially plan of a company, that demonstrates way
of producing, delivering and earning of profitability. Without a successful business model, a
company cannot achieve its strategic goals, within a competitive marketplace (Bhaskaran and
Bandyopadhyay, 2018). The main features of business model include targeted audience, core
activities to establish business process, record of key resources, value propositions and a demand
generation strategy. All these features demonstrate how a firm operates its activities for
achievement of a specific position. In context with automotive sector, competition is more fierce
for global automotive manufacturers, that must tackle with a number of mounting problems
(Andreassen and et. al., 2018). It includes unstable demand of customers to get fuel efficiency
vehicles due to rising of global warming; influx of rivalries from emerging economies with
growing pressures from governmental bodies to produce more efficient as well as greener
vehicles. Under this regard, Volkswagen which deals in the same automotive sector seems to be
doing remarkably well. This German company has founded in 1937 and till then it attains a
successful position within automotive manufacturing sector, due to producing efficient and
luxurious vehicles (Kirton and Maclaren, 2018).
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