A Necessity of Business Model for Gross Profit- myassignmenthelp

Question: Discuss about theA Necessity of Business Model for Gross Profit. Answer: A business model is the model which helps to enhance the profit of the organization by enhancing the productivity of the operations department. It has two components cost and price. The first step of profitability is gross profit. The main focus of gross profit is on costs only not on expenses. The main aim of business model is to force the company to do only business instead of managing efficiency. The businesses that consider business model in its business attract many customers towards business because business model is the proof that no large scale of guidance is needed. Business model is likely to be innovation. The main purpose of business model is to produce the profit within the organization (George Bock, 2011). With the efficient use of business model, business can overtake and become able to replace the established company. There is need to find the innovative business model for established business so that they would become able to grow their position in the competitive e nvironment. There are nine blocks will be demonstrated regarding business model. It will describe the way that how business can utilize this 9 models without observing the elements of complication such as strict rules, hierarchy, over workflow and system. It will describe according the real experience and research on substantial literature, 9 models of business model will be describing below: Value proposition Segments of the clients referred by value proposition Communication and distribution channels Relationship with clients Key sources for business model Key activities for business model Key partners for business model Revenue streams Structure of cost Figure 1: Business model Source: (Osterwalder, n.d). The classification of business model and archetypes elaborates various types of business model completely or partially. It is a research which main focus on effective understanding of the concept of model because of its nature of practical approach. The archetypes can be applied for the purpose of fomation, design and management of business model (Zott, Amit Massa, 2011). The description of archetypical of a business model should at least define the customers, value proposition, economics dimension, organizational architectures, value creation and innovation process to provide a comprehensive understanding of how business can create a systematic way to create a customer value (Wirtz, 2011). Figure 2: business model archetypes Source: (Bohm, 2015). There are seven archetypes which are abstractions that demonstrate the basic behavior of business relation to each other. Since they are abstractions, it might not be evident of applying them. Each archetype has been attributed by two prototypes to describe their applicability. A prototype is an indication of the archetype that show an actual business model which is likely observed in real life. For instance, it can be seen that e-commerce and lead generation are the example of prototype of trade archetype (Lambert Davidson, 2013). Both kinds of companies are able to bring together buyer and sellers, and make money by providing efficient services to the customer. In the referring to the notion of an electronic business archetype, business model as an activity system and cost revenue architecture involved depth description of business model archetypes indicates interesting business models of well developed organization (Chubb, Reilly, Brown, 2011). For instance, internet has been ri sen in all over the world, the attention regarding e-business model has been increased, which later on become refined to pure play models (Itami Nishino, 2010). The classifications of business model and archetype are considered as most important for the conceptualization of business models because they are more empirical in comparison of any frame work. It has been analyze that there can be two major issues in an organization such as static and dynamic issues. Static issues are considered as long term on the other hand the natures of dynamic issues are forceful (Fielt, 2013). The business model is dependent upon the nature of business. Business blocks of business model will be helpful to fix the issues of static and dynamic appropriately. Business model will facilitate to recognize the process as per innovation. It is able to find out the issue in the organization and provide better solution to rectify those issues sooner. There are various aspects which may bring amendments in the business model. They can be over served customers, commoditization, less productivity in the field of innovation and less opportunities for developing business fr om external area (DaSilva Trkman, 2014). Business system is made up of learning system and delivery system. On the basis of their conceptualization, profit model is considered as the assumptions of decision maker that organization will gain definite profit in certain period. The system of business focuses on the demand of the target customers and delivers appropriate services quality and products to customers. Business model in the form of system consist profit model and business model as well. The company of Google is worth example for it. Google has profit model and the characteristics of it is that the service user of this organization are not liable to pay the single penny to the service provider. The main focus of Googles profit model is to provide the services of free charge to their users who utilize the services of Google. Apart from that the business system of Google is elegant. Due to providing effective services not only to their customers but also to their staff, employees do not want to switch. It is the more e ffective point of Googles business model that it makes updated its employee regarding amendments and does quick response on query. The values of Googles profit model are visible. It is necessary that the business model should be attractive so that outsider can observe it immediately, Googles have attractive model. It has twin roles of business system first one is pretending to job for perceiving the strategic differentiate intend of firm. Secondly, it takes immediate action for learning for the growth of business further. A business context is specialized vocabulary which is employed. It can include individual organization, a huge community of business or a single handed project. The business context are customer, terms, location, market type, relative IT content of products and relative business dependence on IT. These all elements of business context are inevitable. There are emerging IT and traditional IT and within each environment, the range of the scope of the view can differ broadly since each environment might deploy a mixing of huge and small changes (Sanchez Ricart, 2010). In emerging environments, changes can be done due to introduction of new technology and up gradation of services which enhance the features functionally which is having the nature of inevitable. In traditional environments, amendments can be done like an up-gradation of operating system or enterprise resourcing planning change for the implementing of localized the applications of line of business. It has been concluded that innovation and sustainable business is important for the business. A model of the business demonstrates the logic value of an organization in order to create and capture the customer values. Business model is considered as the key element which is providing services towards improving the condition of an organization. In this report business architect model has been discussed. It has been found out that business model mention the logic of value of an organization and it represents concisely by an interconnected set of elements that indicates the proposition of value, innovation process, value creation, organizational architecture and business context. However, there is more perspective of strategic which is necessary to understand the value capture and the value of business. Moreover, meanwhile the focus of business model is on the organization, in that focus the network of the business should be involved. References Bohm, J. (2015). Business Model Archetypes for Utilities-A Resource and Stakeholder Perspective (Doctoral dissertation). Chesbrough, H. 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