BU121 Study Guide - Midterm Guide: Making Money, Accounts Payable, Variable Cost
Document Summary
A business model describes the rationale of how an organization creates, delivers, and captures value . How a company intends to make money/the logic by which is sustains itself financially. How your idea actually becomes a business. A business model is a description/blueprint of the rationale/logic behind how this organization actually creates value, delivers on that value and captures that value (or make money from it) Your plan for making money and layout of your strategic decisions. Creating value by differentiating itself from competitor and/or by meeting an unserved need in the market . Delivering value creation and capture of value takes place within a value network - community of partners, suppliers, etc. A product is the centre of a business model, but it is not a business model in and of itself it can"t succeed without a great business model. Different companies can have similar offerings but different business models.
