Business Model for the Organisation-Free-Samples for Students

Questions: 1.Explain what is involved when referring to the notion of an e-business archetype, business model as an activity system and a Business Model as a cost-revenue architecture. 2.Explain how these Business Model conceptualisations can be used to analyse and solve static and dynamic problems, including business model design/re-design problems. 3.Explain what is meant by the term Business Context and the notion that change in Business. 4.Refer to an organisation that has been impacted by either one or a combination of the following Phenomena. Answers: Introduction Business model assists a business to have a concise and clear picture about its operation. Management team draws the accurate business model for the organisation and they strive to give value mostly to the customers. This value proposition tends to be stronger than the competitors in the market. The management team draws the business model in a way that acquires large customer base for the business. The aim of the business model is to generate sell for the business and increase revenue opportunity. In first part of the essay, one business concept model will be discussed mentioning relevance of e-business archetype, business model as a system and cost-revenue archetype. In latter part of the essay, McDonalds business model and its relevance will be discussed. In the last section, impact of the business model of business will be discussed. Defining the concept of a business model In Franchise model, instead of building own business, some of business owners buy another's business strategy and growth. The franchise system allows one business to purchase another company ownership stake and the franchise buyer does not need to make own distribution channel and develop new products. The parent company needs to provide proprietary products and brand name to the franchisor. However, as stated by Pedersen, Gwozdz Hvass (2016), franchise system is beneficial for both, it can reduce the capital investment of the franchisor and for the parent organisation, it provides benefits to open a new store in other location that can enhance brand image. Franchise owners can have revenue that would be collected from that location and franchise will have licensing fees. Moreover, if the business has e-business model through a mobile app, the customers will have the products in near outlets. 1.Explaining the notion of an e-business archetype, business model as an activity system and cost-revenue architecture The business model can be referred as a statement, description, architecture, a representation, a method and a structural template for an organisation (Mazzarol et al., 2016). Doing a business electronically is the new notion of the business model as it is a less expensive way and risk is low. Internet based business refers that the organisation conducts the business and commercial transaction through an internet. In recent time, businesses have made advances in information technologies and communication system. Of late, computing system decreases the utilisation cost that accelerates the boundary of e-business. E-business models are diverse and these could be e-shops, third party services, e-procurements and online network creation. There are others e-business models as well that are infrastructure network, portals, producers. A business operates with the concept of participants in a business with interest of company, customers, allies and suppliers. Strategic method for e-business is now relationship marketing. Most of the e-business firms now take the concept of freemium concept as the organisations are now providing free products, services, plans and subscriptions. As described by Miller, McAdam McAdam, (2014), the most of the organisations are trying to accumulate various media channels into one. Most importantly, the organisations are trying to focus mainly on the mobiles based app and internet. E-business archetype is related to the mission, structure, revenues, process, legal issues and technologies (Zott, Raphael Massa, 2011). Value creation mechanism has been experimented multiple times by the digital economy and marketers are creating values with making a network with partners in e-business. Value creation in e-business can be described as digital economy and also as set of capabilities. Resources, core competencies and capabilities are helpful for making strategic networks. However, four main sources for value creation are lock-in, novelty, efficiency and complementariness (Schneider Spieth, 2013). Moreover, firm performance is related to the business model and the process of utilising resources and capabilities. Most of the e-business provides emphasis on novelty that allows the business to have strategy of differentiation or cost leadership strategy. Business model focuses mainly on the generation of cost and revenue and the main attention is on business model innovation. The e-business needs to decrease time in marketing with maturing business model lifecycle. There are four aspects in cost revenue architecture, financial aspects, customer interface, value proposition and business infrastructure (Spieth, Schneckenberg Ricart, 2014). In addition to this, business model innovation is important as it is vehicle for business transformation. 2.Explaining business model conceptualizations and solving static and dynamic problems In business model, components are value proposition, customer relationship, key activities and key resources, goals, channels and scopes (Iacob et al., 2014). Static properties of an organisation will be unchanged in overtime and these help the organisation in carrying out the activities. However, in order to gather innovation in business model, the management can integrate dynamic features. The business model can be seen as the components that would help an organisation to have the overall process of an organisation in highlighting target customers. The static components of business can be solved through interaction, synergies and flexibility. Static problems can be solved through value proposition, nature of inputs and outputs, congruence strategy components, key resources, transformation of inputs and revenue and profit. However, dynamic capabilities are included with the business environment with innovative actions, rapid change, time-to-market and competitive reduction. Dynamic capabilities can be referred as organisations capacity and management responsibilities (Hargreaves, Longhurst Seyfang, 2013). The organisation can do susceptible change with taking adaptive capabilities, absorptive capabilities and innovative capabilities. Figure 1: Business Innovation through dynamic capabilities (Source: Nica, 2015) 3.Explain the business context and the notion that changes business Context analysis can be stated as a method that is helpful to refer the operation of business environment (Martins, Rindova Greenbaum, 2015). The environment of business can be two types, external and internal. Corporate entrepreneurship is all about development of new ideas and organisation always strives for profitability. All the organisations try to be profitable and strategic renewal is needed even if it is business model. Existing business must go on changes if it's running in the not profitable way. Within the management, the organisation takes the decision in notion of innovation and it is the core concept of corporate entrepreneurship (Liebowitz, 2013). Innovation and corporate entrepreneurship both talk about calculated risk taking the ability of a business bring change in business model. Change management in business model talks about technology innovation that can be seen in mechanism of firms innovation and organisations resources about technologies. Technology changes are considered to be the core concept in business innovation and that is inevitable. Technology changes can be seen as vehicle for innovation and most important subject in sustainability and innovation. 4.Referring to an organisation that has been impacted by changes phenomena McDonalds organisation has its outlets worldwide and it has its outlets in Australia too. Moreover, the McDonalds takes the business model of franchise seriously and with the help of the business model, the organisation gives service in more than 50 million people in more than 118 countries (McDonald's Australia, 2017). McDonald's sells more than 50 burgers every second in worldwide figure. Additionally, in managing big-data, McDonald's has multidisciplinary team in to deploy the responses in case any issue occurs. Organisation in a past few years took the action through an information-centric organisation with providing data driven decision. In makings useful decision in IT analytics and software developing, the organisation provides training to HR, finance team in using of Big Data. Marketing department works hard in deploying the big data services in McDonald's. Moreover, McDonald's has numerous franchisee business models all over the worlds and making a connection and creating da ta driven culture, McDonald's binds the organisation with a single actionable and relevant big data. Nonetheless, it is showing that technology is important for not only e-business for also franchise business model. In value chain analysis, it is the future in technology using as logistics are associated with this. Inbound logistics, operations, outbound logistics and marketing and sales and services are related to this. McDonald's has support activities like firm infrastructure, human resources, management and technology development with procurement services (DaSilva Trkman, 2014). In inbound logistics, McDonald's buys raw vegetables and materials from suppliers and operation happens in restaurant kitchen. In the process, the organisation keeps it system oriented as computer keeps the track of the process of selling through the use of technologies. In addition, in outbound logistics, the organisation provides more focus on the energy conservation, innovation and sustainability. Explaining the organisation's business model that has been impacted by change and managers responsibilities McDonalds Australia focuses the franchise business model and organisation has mobile app and customers can order products. In changing the business through the use of technologies, value creation, correct use of resources and capabilities, the organisation needs to allocate more budget. The managers of the organisation need to take decision about this. Conclude by briefly discussing the significance of your findings for the future of business models research and practice. Changes in sustainability and innovation are related to embracing the industry disruption. It shows that if one product or service is not working properly, the organisation must follow the industry trend to handle the situation. McDonald's can opt to have e-business option that delivers on-time fast food on customers demand. In addition, knitting the network together is important as in case of disruption of industry, the organisation can knit together the networks in altogether. Lastly, customer relation is importa nt as it is related to the pulse of the customers who buy the products who can provide comments through social media. Conclusion The business model in recent time is a new unit of explanation which can bridge the traditional idea about the network of the company. Furthermore, it is observed that business model is mostly the systematic or holistic adaptation of organisation's growth that the managers take to achieve the goals. Franchisee model may help to have the growth, however, e-business model simultaneous consideration in operating a business. The business model should consider the performance of organisation, partners, customer and suppliers Reference List DaSilva, C. M., Trkman, P. (2014). Business model: what it is and what it is not.Long range planning,47(6), 379-389. Hargreaves, T., Longhurst, N., Seyfang, G. (2013). Up, down, round and round: connecting regimes and practices in innovation for sustainability.Environment and Planning A,45(2), 402-420. Iacob, M. E., Meertens, L. O., Jonkers, H., Quartel, D. A., Nieuwenhuis, L. J., van Sinderen, M. J. (2014). 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