[BU121] - Final Exam Guide - Ultimate 105 pages long Study Guide!
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A business model describes the rational of how an organization creates, delivers, and captures value: how a company intends to make money/the logic by which it sustains itself financially. Reflects the strategic decisions and trade-offs that entrepreneurs make to earn a profit. A produ(cid:272)t is the (cid:272)e(cid:374)tre of a (cid:271)usi(cid:374)ess (cid:373)odel, (cid:271)ut it is (cid:374)ot a (cid:271)usi(cid:374)ess i(cid:374) a(cid:374)d of itself, it (cid:272)a(cid:374)"t succeed without a great business model: different companies can have similar offerings but different business models. 3 ways to make money in water filtration. Q water: rents water filtration systems for a monthly fee to restaurants. Aquaovo: sells water filtration systems with a stylish cooler for a one-time fee to individuals. Event water solutions: rents water filtration systems for a per-event fee to event holders. Model affects strategy/ways of operating: blueprint describing how an organization operates, example: subscription-based vs. advertising-based revenue model.
