Academic Master

Business and Finance

Business Evaluation Model Research Paper

In the business field, growth is paramount else one will suffer loses and stiff competition from other entrepreneurs. The models that a business use should change with time so that they accommodate the growth of the current business. Other factors that may lead to the change in the business model is if the business strategy changes.

A business model is a technique or the method used by an organization so that they can impress their clients but at the same time maximizing their profits (Pogrebova, et al 2017). The models comprise of elements for delivering services and products to the customers. These elements may include promotion methods, ways of distribution, required resources, ways of generating profits and revenues, types of clients served and how the clients use the products.

The alternative one is online delivery, two is collective business structure, and three is service (Budzianowski, 2017).

Corporate Level Strategy

The corporate level strategy involves the decision-making strategies which affects the whole organization (Wheelen, et al 2017). In online delivery, it is a model that has been in the high use of late. Regarding growth, it reaches too many people globally. It is known that the world is becoming a global village, everybody is connected to the World Wide Web or network. It is done through social media platforms like Facebook and LinkedIn. There are many online entrepreneurs in the current generation, and from the research, the online business they run is stable and has fewer threats. Regarding cost analysis of the model, it is relatively cheap. Reasons are a lump sum, but some include less workforce hence fewer employees which result in fewer expenses used. There is no real marketing in this model; it’s through the internet which is cheaper.

The number two alternative is the collective business structure. This strategy involves bringing people who do similar businesses so that they can share information, have a pool of resources and also bring up some benefits like loans and credits. The notable companies based on these models include cooperatives, trade associations, and franchises. The unions as an example, the members have shared, selling the same commodity, dividing the dividends, having a common market and being led by a committee. Regarding growth and stability, this model lasts for long since many people who have shared interest makes decisions. The model always has got capital since this is not a one-person business.

The third alternative is the service model. It is one of the industry which has developed in the world. Some of the activities include banking, insurance, transportation and others. It is a more complicated model since the business must satisfy the customer to retain him/her to maximize profits. If the company gives quality services, then their growth and stability increases and vice versa is also true. Service industry gets higher profits because they don’t deal with tangible products which have many limitations like expiry dates.

Business Level Strategy

It is positioning of the business in a relationship with the competition in the market. Areas of focus are the cost and differentiation.

The online delivery model has its leadership cost management and service differentiation. In online delivery, there is less personnel’s work available. The people involved are the owner(s). The business is always easy to run since there is no direct contact between the customer and the business person. The customer orders through written text or a call pay for the agreed cost of the products and wait for the product to be shipped to his/her location. It shows that there are fewer costs since there will be less personnel being employed by the board of directors and other departments managers. There are many online businesses, each business service should be unique and a bit different from others so that they can win the competition. In this business plan, the services to be delivered by this kind of model should be exceptional to reduce or eliminate competition. The focus is the act of finding a specific function to offer in a niche market. When the cost and differentiation of services is focused chances are more significant of winning.

In the collection business structure, low-cost leadership implementation is one of the standard problems (Xue et al. 2017). In this model, there are very many levels of management. Familiar managers, experts in different fields, managing directors and the board of directors. To make sure the profits are maximized, the many positions should be changed which is hard according to the model. Product differentiation is common. There are many trade unions and cooperatives hence the business has to come up with a focused product to sell in the gap available in the market.

In the service model, both leadership costs and differentiation can never be ignored (Wheelen, et al 2017). A service industry like a bank has got leaders from the top ranks to the lower levels. This model uses a lot of money in expenses to pay these employees. If the customers are not satisfied or happy with the service a business provides, they end up going to other providers hence reducing profits. It means that differentiation is a must. The industry should offer services of high quality and the given time slice to win the other companies.

External Environmental Conditions

Any outside factor efficient business is an external environment.

The online delivery model has got its external factors that affect the business. The rate of the numbers of internet users and providers are the primary external factors concerning this model. The higher the number of people in social media the higher the rate of sales and higher profits margins and vice versa. Other factors include competition and the rate of growth in technology in different parts of the world.

The collective business structure is doesn’t have many external factors that affect it. The reason is that they mostly deal with unique products which are not available in other areas, have their market (no middlemen) and a combination of business people which makes them compelling. There are some factors though like climatic weather conditions which may be harmful to the raw materials the cooperatives use.

One of the primary external factor affecting the service industry is the technology growth rate. Banking industries being one of the most significant trades in this group has ATMs, mobile and IOS applications to its users and other technology advancements. Other external factors include a change in government policies and laws, inflation rates, etc.

Conditions Necessary for the Alternatives to Work

Online Delivery

Some circumstances need to be there in the industry to make the model a reality. The people behind the business should be informed on how all the process work online. How to host the websites, develop an application, manage money transfers and the policies set aside.

Collective Business Structure

One of the industries that need a lot of paperwork to make the model work(Xue et al. 2017). A lot of benchmarks is required from other trade unions to see how the management run things. There are many policies governing cooperatives, roles of the administration, how to find the market and the raw materials.

Services

Services involve the exchange of services with money. Everything that requires money transfers has a lot of dangers in it; many government rules are governing such institutions. The industry should find the gap in the market for the business to grow and be stable.

Pro-forma financial statements

Online delivery

If the model is used, the cost of expenses will be way lower since there are less personnel involved (Clauss, 2017).

Collective business structure

If adapting the business can incur many expenses. There are very many personnel involved in this kind of a model; it is characterized by many losses in case the product lacks right market, the tax paid to the government is also part of the expenses

Service

Any business related to the service industry is relatively not that costly nor that cheap. Some involve many employees some even one employee; there are no costs of buying raw materials. The only requirement is personnel (Xue et al. 2017).

Intended pros

Online delivery

  • Relatively cheaper
  • Fast services
  • Grow steady as the technology grows

Collective business structure

  • Common market
  • Better market prices
  • Fewer risks

Services

  • High-profit margins
  • Relatively less expensive

Intended Cons

Online delivery

  • Not safe at some points
  • Many scums

Collective business structure

  • Corruption
  • Costly costs

Services

  • Losses are real

Unintended pros and cons

Online delivery

Pros

  • SEO Awards

cons

  • Late delivery

Collective business structure

Pros

  • Big profit margins

Cons

  • Unexpected loss

Services

Pros

  • Big profit margins

Cons

  • Sudden loss

Implementation factors

Online delivery

  1. Connected to the network
  2. Skilled Personnel
  3. Website and mobile applications
  4. Collaboration with other online delivery services
  5. Follow the rules and regulations

Collective business structure

  1. Attached to the market
  2. Skilled Personnel
  3. Management committee
  4. Members who are the stakeholders
  5. Follow the rules and regulations

Services

  1. Connected to the network
  2. Skilled Personnel
  3. Website and mobile applications
  4. Collaboration with other service lenders
  5. Follow the rules and regulations

In online delivery the people responsible for the implementation is the owner(s), collective business structures are the members and the service there is the management.

Policies

Online delivery

The procedures are made by the owners. People employed here are IT specialist, marketers, and accountants. The business can thrive in any cultural practices. Most of the decisions are made by the person in ownership.

Collective business structure

Decisions are made by stakeholders. Hiring decisions are made by the management though. There are AGM’s where everything is discussed.

Services

Most of the decisions are determined by the management which is the BOM. Skilled personnel is hired which is determined by the type of service industry.

Roadblocks to Overcome so that the Business Can Be Successful

  • Corruption
  • Poor marketing strategies
  • Poor managerial skills
  • Funds mismanagement
  • Poor communication

The people to overcome all these roadblocks are all people from the management to the lower level employees.

General Policies Necessary to Eliminate Roadblocks

  • Thorough auditing
  • Hiring of skilled personnel
  • Education on ethics
  • Effective and proper communication

The people who implement these policies are the management and the stakeholders in collective business structure.

Implications

Online delivery

This model is good for the organization since it has been used in the past years. The chief merit is that it has fewer expenses and more significant profits margins. The main and almost the only problem is the risk of being scammed.

Collective business structure

Cooperatives were there a long time ago, they are there, and they will be always there. The difference is they keep revolving to be in many ways. The merit is that many people come together in a way they can share resources and ideas. The demerit is that it has high rates of corruption (Wheelen, et al 2017).

Services

Services like the banking industries have always been there, and they are known to be profitable. There are no risks related to products hence there are no goods associated risks. The main demerit is that the business should provide excellent services to win the customers (Pogrebova, et al 2017).

In conclusion, business model should be evaluated thoroughly before implementation. There are many factors to look for while choosing the model. Every business can adapt its business model different from the other one. The better the study, the better the model, the higher the rate of getting reasonable profits.

References

Budzianowski, W. M., & Brodacka, M. (2017). Biomethane storage: Evaluation of technologies, end uses, business models, and sustainability. Energy Conversion and Management, 141, 254-273.

Clauss, T. (2017). Measuring business model innovation: conceptualization, scale development, and proof of performance. R&D Management, 47(3), 385-403.

Pogrebova, O. A., Konnikov, E. A., & Kurbanbaeva, D. F. (2017, May). Model assessing the sustainability of industrial enterprise development based on real option dynamic management model of innovations generations. In Soft Computing and Measurements (SCM), 2017 XX IEEE International Conference on (pp. 868-870). IEEE.

Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy. pearson.

Xue, S., Song, H. X., Liao, J. H., ZHANG, X. F., DAI, H. C., & MA, L. (2017). Competitive Ability Evaluation Model of Investment Entities in Incremental Distribution Projects under the Background of Power Sales Side Market Liberalization in China. DEStech Transactions on Environment, Energy and Earth Sciences, (epee).

 

Business Evaluation Model

Student’s name

Institution name

Business Evaluation Model

In the business field, growth is paramount else one will suffer loses and stiff competition from other entrepreneurs. The models that a business use should change with time so that they accommodate the growth of the current business. Other factors that may lead to the change in the business model is if the business strategy changes.

A business model is a technique or the method used by an organization so that they can impress their clients but at the same time maximizing their profits (Pogrebova, et al 2017). The models comprise of elements for delivering services and products to the customers. These elements may include promotion methods, ways of distribution, required resources, ways of generating profits and revenues, types of clients served and how the clients use the products.

The alternative one is online delivery, two is collective business structure, and three is service (Budzianowski, 2017).

Corporate Level Strategy

The corporate level strategy involves the decision-making strategies which affects the whole organization (Wheelen, et al 2017). In online delivery, it is a model that has been in the high use of late. Regarding growth, it reaches too many people globally. It is known that the world is becoming a global village, everybody is connected to the World Wide Web or network. It is done through social media platforms like Facebook and LinkedIn. There are many online entrepreneurs in the current generation, and from the research, the online business they run is stable and has fewer threats. Regarding cost analysis of the model, it is relatively cheap. Reasons are a lump sum, but some include less workforce hence fewer employees which result in fewer expenses used. There is no real marketing in this model; it’s through the internet which is cheaper.

The number two alternative is the collective business structure. This strategy involves bringing people who do similar businesses so that they can share information, have a pool of resources and also bring up some benefits like loans and credits. The notable companies based on these models include cooperatives, trade associations, and franchises. The unions as an example, the members have shared, selling the same commodity, dividing the dividends, having a common market and being led by a committee. Regarding growth and stability, this model lasts for long since many people who have shared interest makes decisions. The model always has got capital since this is not a one-person business.

The third alternative is the service model. It is one of the industry which has developed in the world. Some of the activities include banking, insurance, transportation and others. It is a more complicated model since the business must satisfy the customer to retain him/her to maximize profits. If the company gives quality services, then their growth and stability increases and vice versa is also true. Service industry gets higher profits because they don’t deal with tangible products which have many limitations like expiry dates.

Business Level Strategy

It is positioning of the business in a relationship with the competition in the market. Areas of focus are the cost and differentiation.

The online delivery model has its leadership cost management and service differentiation. In online delivery, there is less personnel’s work available. The people involved are the owner(s). The business is always easy to run since there is no direct contact between the customer and the business person. The customer orders through written text or a call pay for the agreed cost of the products and wait for the product to be shipped to his/her location. It shows that there are fewer costs since there will be less personnel being employed by the board of directors and other departments managers. There are many online businesses, each business service should be unique and a bit different from others so that they can win the competition. In this business plan, the services to be delivered by this kind of model should be exceptional to reduce or eliminate competition. The focus is the act of finding a specific function to offer in a niche market. When the cost and differentiation of services is focused chances are more significant of winning.

In the collection business structure, low-cost leadership implementation is one of the standard problems (Xue et al. 2017). In this model, there are very many levels of management. Familiar managers, experts in different fields, managing directors and the board of directors. To make sure the profits are maximized, the many positions should be changed which is hard according to the model. Product differentiation is common. There are many trade unions and cooperatives hence the business has to come up with a focused product to sell in the gap available in the market.

In the service model, both leadership costs and differentiation can never be ignored (Wheelen, et al 2017). A service industry like a bank has got leaders from the top ranks to the lower levels. This model uses a lot of money in expenses to pay these employees. If the customers are not satisfied or happy with the service a business provides, they end up going to other providers hence reducing profits. It means that differentiation is a must. The industry should offer services of high quality and the given time slice to win the other companies.

External Environmental Conditions

Any outside factor efficient business is an external environment.

The online delivery model has got its external factors that affect the business. The rate of the numbers of internet users and providers are the primary external factors concerning this model. The higher the number of people in social media the higher the rate of sales and higher profits margins and vice versa. Other factors include competition and the rate of growth in technology in different parts of the world.

The collective business structure is doesn’t have many external factors that affect it. The reason is that they mostly deal with unique products which are not available in other areas, have their market (no middlemen) and a combination of business people which makes them compelling. There are some factors though like climatic weather conditions which may be harmful to the raw materials the cooperatives use.

One of the primary external factor affecting the service industry is the technology growth rate. Banking industries being one of the most significant trades in this group has ATMs, mobile and IOS applications to its users and other technology advancements. Other external factors include a change in government policies and laws, inflation rates, etc.

Conditions Necessary for the Alternatives to Work

Online Delivery

Some circumstances need to be there in the industry to make the model a reality. The people behind the business should be informed on how all the process work online. How to host the websites, develop an application, manage money transfers and the policies set aside.

Collective Business Structure

One of the industries that need a lot of paperwork to make the model work(Xue et al. 2017). A lot of benchmarks is required from other trade unions to see how the management run things. There are many policies governing cooperatives, roles of the administration, how to find the market and the raw materials.

Services

Services involve the exchange of services with money. Everything that requires money transfers has a lot of dangers in it; many government rules are governing such institutions. The industry should find the gap in the market for the business to grow and be stable.

Pro-forma financial statements

Online delivery

If the model is used, the cost of expenses will be way lower since there are less personnel involved (Clauss, 2017).

Collective business structure

If adapting the business can incur many expenses. There are very many personnel involved in this kind of a model; it is characterized by many losses in case the product lacks right market, the tax paid to the government is also part of the expenses

Service

Any business related to the service industry is relatively not that costly nor that cheap. Some involve many employees some even one employee; there are no costs of buying raw materials. The only requirement is personnel (Xue et al. 2017).

Intended pros

Online delivery

  • Relatively cheaper
  • Fast services
  • Grow steady as the technology grows

Collective business structure

  • Common market
  • Better market prices
  • Fewer risks

Services

  • High-profit margins
  • Relatively less expensive

Intended Cons

Online delivery

  • Not safe at some points
  • Many scums

Collective business structure

  • Corruption
  • Costly costs

Services

  • Losses are real

Unintended pros and cons

Online delivery

Pros

  • SEO Awards

cons

  • Late delivery

Collective business structure

Pros

  • Big profit margins

Cons

  • Unexpected loss

Services

Pros

  • Big profit margins

Cons

  • Sudden loss

Implementation factors

Online delivery

  1. Connected to the network
  2. Skilled Personnel
  3. Website and mobile applications
  4. Collaboration with other online delivery services
  5. Follow the rules and regulations

Collective business structure

  1. Attached to the market
  2. Skilled Personnel
  3. Management committee
  4. Members who are the stakeholders
  5. Follow the rules and regulations

Services

  1. Connected to the network
  2. Skilled Personnel
  3. Website and mobile applications
  4. Collaboration with other service lenders
  5. Follow the rules and regulations

In online delivery the people responsible for the implementation is the owner(s), collective business structures are the members and the service there is the management.

Policies

Online delivery

The procedures are made by the owners. People employed here are IT specialist, marketers, and accountants. The business can thrive in any cultural practices. Most of the decisions are made by the person in ownership.

Collective business structure

Decisions are made by stakeholders. Hiring decisions are made by the management though. There are AGM’s where everything is discussed.

Services

Most of the decisions are determined by the management which is the BOM. Skilled personnel is hired which is determined by the type of service industry.

Roadblocks to Overcome so that the Business Can Be Successful

  • Corruption
  • Poor marketing strategies
  • Poor managerial skills
  • Funds mismanagement
  • Poor communication

The people to overcome all these roadblocks are all people from the management to the lower level employees.

General Policies Necessary to Eliminate Roadblocks

  • Thorough auditing
  • Hiring of skilled personnel
  • Education on ethics
  • Effective and proper communication

The people who implement these policies are the management and the stakeholders in collective business structure.

Implications

Online delivery

This model is good for the organization since it has been used in the past years. The chief merit is that it has fewer expenses and more significant profits margins. The main and almost the only problem is the risk of being scammed.

Collective business structure

Cooperatives were there a long time ago, they are there, and they will be always there. The difference is they keep revolving to be in many ways. The merit is that many people come together in a way they can share resources and ideas. The demerit is that it has high rates of corruption (Wheelen, et al 2017).

Services

Services like the banking industries have always been there, and they are known to be profitable. There are no risks related to products hence there are no goods associated risks. The main demerit is that the business should provide excellent services to win the customers (Pogrebova, et al 2017).

In conclusion, business model should be evaluated thoroughly before implementation. There are many factors to look for while choosing the model. Every business can adapt its business model different from the other one. The better the study, the better the model, the higher the rate of getting reasonable profits.

References

Budzianowski, W. M., & Brodacka, M. (2017). Biomethane storage: Evaluation of technologies, end uses, business models, and sustainability. Energy Conversion and Management, 141, 254-273.

Clauss, T. (2017). Measuring business model innovation: conceptualization, scale development, and proof of performance. R&D Management, 47(3), 385-403.

Pogrebova, O. A., Konnikov, E. A., & Kurbanbaeva, D. F. (2017, May). Model assessing the sustainability of industrial enterprise development based on real option dynamic management model of innovations generations. In Soft Computing and Measurements (SCM), 2017 XX IEEE International Conference on (pp. 868-870). IEEE.

Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy. pearson.

Xue, S., Song, H. X., Liao, J. H., ZHANG, X. F., DAI, H. C., & MA, L. (2017). Competitive Ability Evaluation Model of Investment Entities in Incremental Distribution Projects under the Background of Power Sales Side Market Liberalization in China. DEStech Transactions on Environment, Energy and Earth Sciences, (epee).

 

Business Evaluation Model

Student’s name

Institution name

Business Evaluation Model

In the business field, growth is paramount else one will suffer loses and stiff competition from other entrepreneurs. The models that a business use should change with time so that they accommodate the growth of the current business. Other factors that may lead to the change in the business model is if the business strategy changes.

A business model is a technique or the method used by an organization so that they can impress their clients but at the same time maximizing their profits (Pogrebova, et al 2017). The models comprise of elements for delivering services and products to the customers. These elements may include promotion methods, ways of distribution, required resources, ways of generating profits and revenues, types of clients served and how the clients use the products.

The alternative one is online delivery, two is collective business structure, and three is service (Budzianowski, 2017).

Corporate Level Strategy

The corporate level strategy involves the decision-making strategies which affects the whole organization (Wheelen, et al 2017). In online delivery, it is a model that has been in the high use of late. Regarding growth, it reaches too many people globally. It is known that the world is becoming a global village, everybody is connected to the World Wide Web or network. It is done through social media platforms like Facebook and LinkedIn. There are many online entrepreneurs in the current generation, and from the research, the online business they run is stable and has fewer threats. Regarding cost analysis of the model, it is relatively cheap. Reasons are a lump sum, but some include less workforce hence fewer employees which result in fewer expenses used. There is no real marketing in this model; it’s through the internet which is cheaper.

The number two alternative is the collective business structure. This strategy involves bringing people who do similar businesses so that they can share information, have a pool of resources and also bring up some benefits like loans and credits. The notable companies based on these models include cooperatives, trade associations, and franchises. The unions as an example, the members have shared, selling the same commodity, dividing the dividends, having a common market and being led by a committee. Regarding growth and stability, this model lasts for long since many people who have shared interest makes decisions. The model always has got capital since this is not a one-person business.

The third alternative is the service model. It is one of the industry which has developed in the world. Some of the activities include banking, insurance, transportation and others. It is a more complicated model since the business must satisfy the customer to retain him/her to maximize profits. If the company gives quality services, then their growth and stability increases and vice versa is also true. Service industry gets higher profits because they don’t deal with tangible products which have many limitations like expiry dates.

Business Level Strategy

It is positioning of the business in a relationship with the competition in the market. Areas of focus are the cost and differentiation.

The online delivery model has its leadership cost management and service differentiation. In online delivery, there is less personnel’s work available. The people involved are the owner(s). The business is always easy to run since there is no direct contact between the customer and the business person. The customer orders through written text or a call pay for the agreed cost of the products and wait for the product to be shipped to his/her location. It shows that there are fewer costs since there will be less personnel being employed by the board of directors and other departments managers. There are many online businesses, each business service should be unique and a bit different from others so that they can win the competition. In this business plan, the services to be delivered by this kind of model should be exceptional to reduce or eliminate competition. The focus is the act of finding a specific function to offer in a niche market. When the cost and differentiation of services is focused chances are more significant of winning.

In the collection business structure, low-cost leadership implementation is one of the standard problems (Xue et al. 2017). In this model, there are very many levels of management. Familiar managers, experts in different fields, managing directors and the board of directors. To make sure the profits are maximized, the many positions should be changed which is hard according to the model. Product differentiation is common. There are many trade unions and cooperatives hence the business has to come up with a focused product to sell in the gap available in the market.

In the service model, both leadership costs and differentiation can never be ignored (Wheelen, et al 2017). A service industry like a bank has got leaders from the top ranks to the lower levels. This model uses a lot of money in expenses to pay these employees. If the customers are not satisfied or happy with the service a business provides, they end up going to other providers hence reducing profits. It means that differentiation is a must. The industry should offer services of high quality and the given time slice to win the other companies.

External Environmental Conditions

Any outside factor efficient business is an external environment.

The online delivery model has got its external factors that affect the business. The rate of the numbers of internet users and providers are the primary external factors concerning this model. The higher the number of people in social media the higher the rate of sales and higher profits margins and vice versa. Other factors include competition and the rate of growth in technology in different parts of the world.

The collective business structure is doesn’t have many external factors that affect it. The reason is that they mostly deal with unique products which are not available in other areas, have their market (no middlemen) and a combination of business people which makes them compelling. There are some factors though like climatic weather conditions which may be harmful to the raw materials the cooperatives use.

One of the primary external factor affecting the service industry is the technology growth rate. Banking industries being one of the most significant trades in this group has ATMs, mobile and IOS applications to its users and other technology advancements. Other external factors include a change in government policies and laws, inflation rates, etc.

Conditions Necessary for the Alternatives to Work

Online Delivery

Some circumstances need to be there in the industry to make the model a reality. The people behind the business should be informed on how all the process work online. How to host the websites, develop an application, manage money transfers and the policies set aside.

Collective Business Structure

One of the industries that need a lot of paperwork to make the model work(Xue et al. 2017). A lot of benchmarks is required from other trade unions to see how the management run things. There are many policies governing cooperatives, roles of the administration, how to find the market and the raw materials.

Services

Services involve the exchange of services with money. Everything that requires money transfers has a lot of dangers in it; many government rules are governing such institutions. The industry should find the gap in the market for the business to grow and be stable.

Pro-forma financial statements

Online delivery

If the model is used, the cost of expenses will be way lower since there are less personnel involved (Clauss, 2017).

Collective business structure

If adapting the business can incur many expenses. There are very many personnel involved in this kind of a model; it is characterized by many losses in case the product lacks right market, the tax paid to the government is also part of the expenses

Service

Any business related to the service industry is relatively not that costly nor that cheap. Some involve many employees some even one employee; there are no costs of buying raw materials. The only requirement is personnel (Xue et al. 2017).

Intended pros

Online delivery

  • Relatively cheaper
  • Fast services
  • Grow steady as the technology grows

Collective business structure

  • Common market
  • Better market prices
  • Fewer risks

Services

  • High-profit margins
  • Relatively less expensive

Intended Cons

Online delivery

  • Not safe at some points
  • Many scums

Collective business structure

  • Corruption
  • Costly costs

Services

  • Losses are real

Unintended pros and cons

Online delivery

Pros

  • SEO Awards

cons

  • Late delivery

Collective business structure

Pros

  • Big profit margins

Cons

  • Unexpected loss

Services

Pros

  • Big profit margins

Cons

  • Sudden loss

Implementation factors

Online delivery

  1. Connected to the network
  2. Skilled Personnel
  3. Website and mobile applications
  4. Collaboration with other online delivery services
  5. Follow the rules and regulations

Collective business structure

  1. Attached to the market
  2. Skilled Personnel
  3. Management committee
  4. Members who are the stakeholders
  5. Follow the rules and regulations

Services

  1. Connected to the network
  2. Skilled Personnel
  3. Website and mobile applications
  4. Collaboration with other service lenders
  5. Follow the rules and regulations

In online delivery the people responsible for the implementation is the owner(s), collective business structures are the members and the service there is the management.

Policies

Online delivery

The procedures are made by the owners. People employed here are IT specialist, marketers, and accountants. The business can thrive in any cultural practices. Most of the decisions are made by the person in ownership.

Collective business structure

Decisions are made by stakeholders. Hiring decisions are made by the management though. There are AGM’s where everything is discussed.

Services

Most of the decisions are determined by the management which is the BOM. Skilled personnel is hired which is determined by the type of service industry.

Roadblocks to Overcome so that the Business Can Be Successful

  • Corruption
  • Poor marketing strategies
  • Poor managerial skills
  • Funds mismanagement
  • Poor communication

The people to overcome all these roadblocks are all people from the management to the lower level employees.

General Policies Necessary to Eliminate Roadblocks

  • Thorough auditing
  • Hiring of skilled personnel
  • Education on ethics
  • Effective and proper communication

The people who implement these policies are the management and the stakeholders in collective business structure.

Implications

Online delivery

This model is good for the organization since it has been used in the past years. The chief merit is that it has fewer expenses and more significant profits margins. The main and almost the only problem is the risk of being scammed.

Collective business structure

Cooperatives were there a long time ago, they are there, and they will be always there. The difference is they keep revolving to be in many ways. The merit is that many people come together in a way they can share resources and ideas. The demerit is that it has high rates of corruption (Wheelen, et al 2017).

Services

Services like the banking industries have always been there, and they are known to be profitable. There are no risks related to products hence there are no goods associated risks. The main demerit is that the business should provide excellent services to win the customers (Pogrebova, et al 2017).

In conclusion, business model should be evaluated thoroughly before implementation. There are many factors to look for while choosing the model. Every business can adapt its business model different from the other one. The better the study, the better the model, the higher the rate of getting reasonable profits.

References

Budzianowski, W. M., & Brodacka, M. (2017). Biomethane storage: Evaluation of technologies, end uses, business models, and sustainability. Energy Conversion and Management, 141, 254-273.

Clauss, T. (2017). Measuring business model innovation: conceptualization, scale development, and proof of performance. R&D Management, 47(3), 385-403.

Pogrebova, O. A., Konnikov, E. A., & Kurbanbaeva, D. F. (2017, May). Model assessing the sustainability of industrial enterprise development based on real option dynamic management model of innovations generations. In Soft Computing and Measurements (SCM), 2017 XX IEEE International Conference on (pp. 868-870). IEEE.

Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy. pearson.

Xue, S., Song, H. X., Liao, J. H., ZHANG, X. F., DAI, H. C., & MA, L. (2017). Competitive Ability Evaluation Model of Investment Entities in Incremental Distribution Projects under the Background of Power Sales Side Market Liberalization in China. DEStech Transactions on Environment, Energy and Earth Sciences, (epee).

 

 

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