Business Administration

This report provides an overview of business administration in small, medium, and large online businesses. It discusses e-business models, revenue models, and provides insights into the business canvas models of three companies. A comparative analysis is also included.

Running head: MANAGEMENT
Business Administration
Name of the Student:
Name of the University:
Author Note:

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Executive Summary:
The aim of the report is to provide an overview of the business administration of small, medium
and a large innovative online business. The three businesses include Nura Headphones,
Australia; Matrix Booking, United Kingdom and Amazon, United States. The report commences
with an introduction to E business model and the various concepts related to it. The report also
provides a description of the various types of business and the revenue models. Based on which
the report tried to provide an insight into the Business Canvas Model of the three companies
based on the various criterion. Further, the report also allows in drawing a comparative analysis
between the three companies followed by a conclusion.

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Table of Contents
1.0 Introduction:..............................................................................................................................3
2.0 Literature Review:.....................................................................................................................4
2.1 Business Models:.......................................................................................................................6
2.2 Revenue Models........................................................................................................................8
3. Case Study:................................................................................................................................11
3.1 Company A: Business Canvas Model for the Small Online Innovative Business..................11
3.2 Company B: Business Canvas Model for Medium Sized Online Innovative Business..........12
3.3 Company C: Business Canvas Model for Large Online Innovative Business........................14
4. Comparison Table of the Three Companies..............................................................................16
5. Conclusion:................................................................................................................................17
References:....................................................................................................................................18
Appendices:...................................................................................................................................19
List of Figures:...............................................................................................................................20
1. Diagrammatic Representation of E business Model..................................................................20
List of Tables:................................................................................................................................20
1. Business Canvas Model of Company ‘A’ in Tabular Form......................................................20
2. Business Canvas Model of Company ‘B’ in Tabular Form......................................................20
3. Business Canvas Model of Company ‘C’ in Tabular Form......................................................20
4. Tabular Representation of Comparative Analysis between Three Companies.........................20

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1.0 Introduction:
The report aims at providing an insight into business administration of a small, medium
and large online business. The small online-business chosen here is Nura Headphones, Australia.
It is an Australian startup company that has brought about a change in which people hear. The
innovative design of the headphone adapts the sound specifically to the ears thereby creating
clear audio experience. The medium sized online-business chosen here is Matrix Booking,
United Kingdom. Matrix Booking is one of the renowned and cloud based booking system that
embraces newer technology and leverages power of the global platforms like the Apple,
Amazon, SAP and Google thus providing unrivalled experience to the users. The large online-
business chosen here is Amazon, Seattle. Amazon has been considered the one most innovative
company across the world due to its presence which is larger than life. It represents one of the
biggest e-commerce marketplace and platform for cloud computing in world measured by market
capitalization and revenue.
The report commences with a literature review and then goes on to discuss the types of
business and the revenue models. The report also provides an insight into the-business canvas
model of the three companies. The report also puts across a comparison table between the three
companies based on the company size, company turnover, capital investment of the company
and the types of revenue and the-business model.

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2.0 Literature Review:
According to Spieth, Schneckenberg and Ricart (2014) ,e-business model puts forward
description of how the company functions and the way in which it provides the product and the
service, the way the company generates revenue and the way it creates and gets adapted to the
newer markets and the technologies. The e-business model comprises of four traditional
components which includes the e-business concept, value proposition, sources of the revenue and
the necessary resources, activities and capabilities. It has been found that in successful business,
all components of the-business model works together in a supportive and cooperative manner.
Although most often e-business is thought as e commerce but other online activities online also
that falls under the e-business.

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Figure 1: Diagrammatic Representation of E business Model
Source: (DaSilva and Trkman 2014)
Abdelkafi, Makhotin and Posselt (2013) however stated that the concept of the e-business
puts forward the rationale of business, the goals and vision and the products or offerings that will
enable it in earning revenue. A successful concept is built on the market analysis that identifies
the customers for purchasing the product and the amount they are willing for making a payment.
Now, it is to be noted that the concept of e-business should depend on the goals like becoming a
major bank or a commercial enterprise or become competitor to some well known firms in each
of the industry. The objectives are also measurable and specific and capture around 10 percent of
the market or retrieve $100 million of the revenues in the five years. Irrespective of the realistic
nature of the objectives and the goals they are addressed as a part of the business plan process for
the start up firms and with the implementation plan for the existing firm that considers
significant change.
On the hand Laudon and Traver (2016) stated that embedded within the concept of e-
business are the strategies that describes the business concepts that would be implemented. They
are known as the corporate strategies since they establish the ways in which the business intends
in functioning. The strategies can however be modified for improving the business performance.
There are six basic types of E business models which include (Veit et al. 2014):
 Business to Consumer (B2C)
 Business to Business (B2B)
 Consumer to Consumer (C2C)
 Consumer to Business (C2B)

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 Business to Administration (B2A)
 Consumer to Administration (C2A)
2.1 Business Models:
According to Carayannis, Sindakis and Walter (2015), a business model puts forward a
rationale of how the organization delivers, creates and captures the value in the social, economic,
cultural and the other contexts. The method of business model modification and construction is
known as the-business model innovation and forms the part of the-business strategy. In other
words, the-business model represents a higher level plan for the profitable operation of the
particular business within a particular marketplace. A key component of business model
represents the value proposition. This puts across the description of goods and services that a
company has on offer and the reason for which they seem to be desirable to the clients or the
customers which is ideally stated in manner that represents the products or the services from the
competitors.
Business model is also believed to define the opportunities of partnering with the
established business. One such example would be an advertising business that benefits from the
arrangement of the referrals to and from the printing company. There are various types of
business models but in this report, the focus is on the e-business models. The e- business model
represents an upgraded version of traditional brick and mortar model. It primarily focuses on the
selling of the products through creation of the web- store over internet.
Types of Business Models:

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i. E-retailer: Electronic retailing involves a broader range of industries and companies.
The similarities between e-retailing companies include an engaging website, online strategy for
marketing, effective distributions of the products and the service and the analytics of the
customer data (Subramanian et al. 2014). There are two kinds of e-retailing, business to
consumer (B2C) and business to business (B2B). The B2C represents the most common of the e-
commerce companies where the retailers mostly sell off finished products or goods to the
consumers directly through the websites. B2B on the other hand involves the companies that
mostly sell the products to the other companies. These retailers include software developers,
consultants, freelancers and the wholesalers.
ii. Community Provider: They put across an online meeting platform where the people
can implement similar interest and communicate and find effective information. Through a
community provider people can not only transact but also share the interest, photos and the
videos (Oestreicher-Singer and Zalmanson 2013). For example, Facebook represented online
social networking service with headquarters in California.
iii. Content Provider: The content provider helps in managing the access to the
centralized repository data (Janssen and Zuiderwijk 2014). A content provider is a part of the
Android application that often provides own User Interface (UI) for working with data. They are
usually intended for the use of other applications that access the provider through the usage of
provider and client object. The provider along with the provider client offers consistent and
standard interface to the data that handles the access to secure data and inter process
communication. Typically one works with the content providers in either one of the two
scenarios. One is when the user wants to implement code for accessing an existent content

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provider in some other application. Another situation is when the user wants the creation of the
newer content provider in the application for sharing the data with the other applications.
iii. .Service Provider: A service refers to the vendor who provides IT solutions or
services to the organizations and the end users (Maglio and Spohrer 2013). The broader term
however incorporates all the IT business that puts across solutions and products through the
services that in demand like pay per usage or hybrid model of delivery. The examples of the
service providers include the hosting service provider, the cloud service provider, storage service
providers and the Software as the Service (SAAS) provider.
iv. Portal or Market Creation: Marketing portals or the marketing communication
portals offers marketing solution of asset management that serves wider industries including the
retail stores, distributed sales force, dealer networks and the franchise systems (Mohapatra
2013). Remote offices, sales associates, retail locations and distributors require access to library
of the print and the marketing resources through the online secured portal. This allows them in
ordering what they require, when they require thereby eliminating inventory and the distribution
headaches. The portal is usually collateral that allows personalization, proofing and ordering
online.
2.2 Revenue Models
Chaffey (2015) stated that a revenue model on the other hand represented a conceptual
structure that explained and stated the revenue earning strategy of business. It included product
or the service value, techniques of the revenue generation, sources of the revenue and targeted
consumers of the products offered.

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Revenue is usually generated from different sources that can take the form of the mark
up, arbitrage, commission, bids and rent. In fact, revenue can include a recurring payment or
onetime payment. In other words, revenue model includes each aspect of the strategy related to
the revenue generation within the business. In other words, revenue generation is a reflection of
how the-business is making money. This model is vital in determining the long term business
projections of the company since it puts forward an overview of the present and future potential
of the company in earning profits.
However, the e-revenue model represents the plan for generating revenue for the online
business. The e- revenue models however shares various similarities with the brick and motor
models and allows in reaching the customers across the globe thereby offering increasingly
diverse means of sales generation (Kim 2013). Such models remain helpful in shaping the
structure of the e-commerce business. There are various types of E Revenue business.
Types of Revenue Models:
i. Advertising: This is a revenue model adopted by information providers or the media
houses that earns money through an inclusion of the content and the advertisement provided.
This model is common both the online and the offline business and the company generate money
by charging advertisers based on per size of space offered, per click on advertisement or
thousand impressions (Cherif and Grant 2014). Google Adwords and Adsense, Facebook are
good examples of this model.
ii. Subscription: The subscription model of the revenue generation represents a unique
example of the recurring revenue strategy (Almeida, Santos and Monteir 2014). This represents a
common strategy amongst the SAAS and the online hosting companies like Youtube and Netflix.

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It is also common amongst the entertainment service where a specified service is provided at the
periodic pre-determined cost.
iii. Sales: According to the sales revenue model, the retailers and the wholesalers sell the
products online. The key benefits of the customer are convenience, fast information and the time
savings (Yao and Chen 2013). The prices often remain more competitive. In terms of the online
sales there exist various models such as the different market places that acts as the common entry
points of the various products from the multiple vendors. Examples includes, e- retailers like
Amazon that operates solely over web. It also includes marketplaces like buy.com, live shopping
like iBood and shopping clubs which include brands4friends.
iv. Transaction: In this revenue model the company receives commissions depending on
the volume for executing or enabling transactions. The revenue gets generated through the
transaction fees that the customer pays to the operator of a particular platform (Li et al. 2013).
The company acts as the operator within the market place that provided the customers with the
platform for placing his transactions. During the entire process these customers might be
considered as buyer and a seller. However, for actively participating in the e-market, it is
necessary for the customers to register so that both the parties involved in the transaction could
be identified. From the business perspective, the offer is put across by the others as the
customers’ offers the product online and act as sellers. Nevertheless, the amount of transaction
fee either remains fixed or is percentage calculated. Examples include eBay and Amazon.
iv. Affiliate: This revenue model refers to online distribution solution based on the
principles of the commission (Gregori, Daniele and Altinay 2014). The merchants first advertise
their services and products through the links of the partner website. It is basically a model that

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supports pay for the performance. In this model, commissions are paid only for the measurable
success or the actual revenue. It is to be noted that the affiliate link include a code that helps in
identification of the affiliate. This helps in tracking the sales, leads or the clicks. Therefore, the
affiliate acts as interface between the customers and the merchants. This particular model results
in win –win situation where the merchants sell the services or the products and affiliates receive
their commission. However, the variations include the banner exchange, revenue share and the
pay-per-click. This model is quite suitable for web and seems increasingly popular. The
examples of this model include affilinet and Amazon.
3. Case Study:
3.1 Company A: Business Canvas Model for the Small Online Innovative Business
Business Canvas Model Company A
1. Value Proposition Nura Headphones changes the ways in
which people can hear through the
introduction of the innovative design of the
headphones that adapts the sound
specifically to the ears for creating a clear
audio experience (nuraphone.com 2019).
Nura makes use of the own sound print of
the listeners for enhancing quality of the
audio heard.
2. Customer Relationship The business undertakes digital
communication with customers and being
helpful and friendly. It also resolves the
queries of the customers through the
knowledge management and the

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communication systems. It also provides
recommendations for the improvement in the
customer relations based on the customer
interaction and escalates the queries to
Customer Relationship Manager and the
product team.
3. Channel The sale of the Nura Headphones is
restricted to the online channels.
4. Customer Segments Customers are segmented based on their
unique hearing capabilities.
5. Activities Nura designs unique headphones for active
listener irrespective of whether they
commute, work or exercise (nuraphone.com
2019)
6. Resources  Physical Resources includes raw
materials for designing the
headphones
 Human Resources includes the
marketing experts and the talented
engineers designing the product
 Intellectual resources include
technology, patents and the customer
bases.
7. Key Partners This represents the suppliers that makes the
business perform
8. Cost Structures The cost structures of the Nura Headphones
are $ 499 AUD
9. Revenue Model It has a Sales Revenue Model

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Figure 2: Business Canvas Model of Company ‘A’ in Tabular Form
Source: By Author
3.2 Company B: Business Canvas Model for Medium Sized Online Innovative Business
Business Canvas Model Company B
1. Value Proposition Matrix Booking is a cloud based and award
winning software tool for workplace
management that provides innovative
meeting room, desk and resource booking
(matrixbooking.com 2019).
2. Customer Relationship For ensuring better customer relationship the
Matrix Booking helps in managing all
resources of modern organizations that
included meeting rooms, transport and
accommodation bookings . Besides, its
ability to innovate has helped it generating
special user experience through personalized
app.
3. Channel The service is mainly carried via a cloud
based online platform.
4. Customer Segments The service is suitable for the requirements
of the modern organizations
5. Activities It is ensures resource management, meeting
room and the desk booking software. It is
also working towards live travel tracking and
the fitbit devices thereby providing the
delegates with an invaluable experience.
6. Resources  Human Resources primarily includes

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talented engineers and the marketing
experts
 Intellectual Resources includes
technology , customer bases and
patents
7. Key Partners Acts as a development partner with some
chief global technology
8. Cost Structures There are also options available for resource
subscription. The subscription for bookable
spaces and meeting rooms ranged from £
5.00 to £ 30.00 per month. The subscription
for the hot desk ranged from £1.00 to £ 6.00
per month. The subscription for the lockers,
car spaces and the storage facilities ranged
from £0.50 to £ 3.00 per month
(matrixbooking.com 2019).
9. Revenue Model It has a Subscription Revenue Model
Figure 3: Business Canvas Model of Company ‘B’ in Tabular Form
Source: By Author
3.3 Company C: Business Canvas Model for Large Online Innovative Business
Business Canvas Model Company C
1. Value Proposition Amazon has the mission of becoming the
most consumer centric companies with the
following value propositions(amazon.com

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2019):
 Faster delivery speed
 Huge selection
 Lower prices
2. Customer Relationship Amazon makes its site navigation easier for
the customers, make sure that the customers
get the worth of their money, provide them
with the reasons for returning and provide
highest quality and an effective customer
service.
3. Channel Distribution channel via online
4. Customer Segments Amazon segregates customers as prime and
non prime buyers
5. Activities To become the world’s renowned customer
centric company and establish a platform
where the customers could purchase
anything.
6. Resources Human Resources primarily refer to the
talented technical experts and marketing
experts responsible for designing the site.
Intellectual resources that primarily includes
the technology, customer bases and the
patents.
7. Key Partners The Amazon Web Services (AWS) team
responsible for Business Development
represents group customer enthusiasts and

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leaders dedicated towards helping
businesses and individuals in moving
computing infrastructures and their
applications onto AWS Cloud (amazon.jobs
2019)
8. Cost Structures The cost of the Amazon seller includes the
referrals and account fees. The account fees
ranges from the $0 to $ 39.99 every month
while the referral fees ranging from the 6
percent to the 20 percent of the selling price
of the product with an average seller paying
closer to 15 percent.
9. Revenue Model It has a Affiliate Revenue Model
Figure 4: Business Canvas Model of Company ‘C’ in Tabular Form
Source: By Author
4. Comparison Table of the Three Companies
No. Description Company A Company B Company C
1. Company Size ( Manpower ) 59
employees in
one location
Over 200
employees
approximately
6, 13,300 employees
2. Company Sales $ 21 million $ 3 billion $141.92 billion in the
product sales
3. Company Capital Investment $6
million AUD
Between $2
million to $10
million dollars
$ 2 billion

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4. Types of Business Models Marketing
portals
Service
provider
E- Retailer
5. Types of Revenue Models Sales
Revenue
Model
Subscription
Revenue
Model
Affiliate Revenue
Model
Figure 5: Tabular Representation of Comparative Analysis between Three Companies
Source: By Author
5. Conclusion:
On a concluding note, it can be said that the report provides an intricate insight into the
concept of the e business models. It also puts forward an idea about the various e-business
models and the revenue models that each business adopts for a profitable functioning. The report
also put forward the business canvas model of an innovative small, medium and large online
business thereby providing a better idea of their business operation. One can also draw in a
comparative analysis between the three business based on the criterion mentioned.

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Appendices:Appendix 1: E –business Model
Appendix 2: Business Canvas Model of Company A

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Appendix 3: Business Canvas Model of Company B
Appendix 3: Business Canvas Model of Company C

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Appendix 4: Comparative Analysis of the Three Companies
List of Figures:
1. Diagrammatic Representation of E business Model
List of Tables:
1. Business Canvas Model of Company ‘A’ in Tabular Form
2. Business Canvas Model of Company ‘B’ in Tabular Form
3. Business Canvas Model of Company ‘C’ in Tabular Form
4. Tabular Representation of Comparative Analysis between Three Companies