1.Why is a business model important? 2.How are business models influenced by internal and external factors? 3.Conduct a little research on models and discuss the difference between the product model and the marketing model. Is one model better than the other? Explain. Having a business model is important in two ways. First, the business model provides the framework for the business. It helps to keep in line how to organize and develop the business. Anoutline of the business. This allows the entrepreneur to try various options of scenarios in order to find the one that will work best for their business. Secondly, as defined in the reading by Alex Osterwalder (2009), “A business model is a conceptual tool that contains a set of elements and their relationships and allows expressing the business logic of a specific firm” (p. 55). A businessmodel is a simplified representation of things in the real world (McCubbrey, 2009, p.55). Havinga strong business model is important for the success of the entire business. Internally, business models are influenced by their leaders. It is the owner, or leaderships, jobto ensure that the business model is being followed. They must also be authoritative in order to make quick and sound decisions in regards to that model. The internal environment of the business must also be flexible and adaptive to keep up with quick adjustments. An adequate set of training is also an important internal factor. The business needs employees who are trained and believe in the concept of the business. A failure in a strong management could mean costly
You've reached the end of your free preview.
Want to read both pages?