BU121 Study Guide - Midterm Guide: Management Consulting, Canadian Business, Tim Hortons
Document Summary
Describes the rationale of how an organization creates, delivers and captures value. How a company intends to make money/how the business intends to sustain itself (social venture) How your idea actually becomes a business. Product is the centre of the business model but it is not a business itself. Different companies have different approaches; model you choose affects your strategy/way of operating: example: gillette. Virtually gives away the handle and makes its money selling razor blades. Companies that sell electric shavers make their money upfront: example: water filtrations. Rents water filtration systems for a monthly fee to restaurants. Revenue stream is thus the recurring monthly fee. Restaurant gets to charge for the water (value proposition) which is another revenue stream for them. Sells water filtration systems with a stylish cooler for a one-time fee to individuals. Rents water filtration systems for a per-event fee to event holders.
