Phone: (310) 338-3088
Subject: Business, Accounting, Economics, Finance, Information Systems & Business Analytics, Management, Marketing, Business Law
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The purpose of this guide is to support MBAI 691: Comparative Management Systems (CMS) students with their secondary research on their international projects; Pivot or Proceed?: An Exploration of Business Model Evolution in U.S. and Iberian Ventures. The professor for this course is Dr. Marcus Crews. This course has a travel component to Spain and Portugal and is project-based.
A business model explains how you will monetize your ideas and make money with your method of operations, based on your capabilities and competencies to carry out your value proposition. A business model involves the conception of how the business must operate given its value proposition, what its capability foundation should be, and whether it can be financially viable. The process to develop or change a business model revolves around critical questions of industry dynamics and company dynamics. A company's business model must reflect or influence the dynamics of the industry. It provides answers to some basic questions such as " How will we make money?" "What capabilities will it take to have profitable operations?" "How will we generate sales and profits?" How will we sustain revenue growth?" "How will we sustain income growth?" (Newth, 2012).
Business Author, Joan Margretta states that Business models are, at heart, stories that explain how enterprises work. Like a good story, a robust business model contains precisely delineated characters, plausible motivations, and a plot that turns on an insight about value. It answers certain questions: Who is the customer? How do we make money? What underlying economic logic explains how we can deliver value to customers at an appropriate cost? Every viable organization is built on a sound business model, but a business model isn't a strategy, even though many people use the term interchangeably. Business models describe, as a system, how the pieces of a business fit together. But they don't factor in one critical dimension of performance: competition. That's the job of strategy (Newth, 2012).
Dr. Alexander Osterwalder, entrepreneur, speaker, and business theories, has found ways to assist established companies in how they conduct business and how to begin new ventures. Dr. Alexander started his own company, Strategyzer, to support other companies as they develop, evolve, and grow.
Mr. Osterwalder's developed a Business Model Canva Template as a strategic management template that assists organizations to describe, design, and analyze their business models.