Eight Models of Business Models, & Why They’re Important The term Business Model is one that gets thrown around a lot these days. Even though it might sound like a buzzword to you, it’s important to understand what a business model is, and how they are useful. One of the confusing things about the business model concept is that there are a wide variety of models of business models, and it seems as though everyone that talks about them makes up a new one. This can be frustrating if you are trying to figure out how to use the concept. At their core, all business models address this questions: how do we sustainably deliver value to our customers? In this instance, the sustainable part refers to your organisation – how can you deliver value so that you’re still around in the future? In a special issue of the journal Long Range Planning, Charles Baden-Fuller and Mary Morgan say that business models can serve three different purposes. Value Networks from Verna Allee: Verna was working with some of the basic concepts of business models in the 90s.
How to put your money where your strategy is - McKinsey Quarterly - Strategy - Growth Picture two global companies, each operating a range of different businesses. Company A allocates capital, talent, and research dollars consistently every year, making small changes but always following the same broad investment pattern. Company B continually evaluates the performance of business units, acquires and divests assets, and adjusts resource allocations based on each division’s relative market opportunities. Over time, which company will be worth more? If you guessed company B, you’re right. For the past two years, we’ve been systematically looking at corporate resource allocation patterns, their relationship to performance, and the implications for strategy. We’ve also reviewed the causes of inertia (such as cognitive biases and politics) and identified a number of steps companies can take to overcome them. We’re not suggesting that executives act as investment portfolio managers. Weighing the evidence Exhibit 1 Enlarge Exhibit 2 Why companies get stuck Cognitive biases Exhibit 3
The illusion of strategy What does a good strategy look like? How can we recognise the right one when we see it? The problem is, even in retrospect it's hard to recognise a good strategy. Successful organisations often point to a clear strategy underlying their growth. Or so they say. The strategies we describe in case studies are often an illusion. They probably contain elements of truth, but it’s a retrospective truth, one which can only be determined after the event when we’ve had a little time to think through what really happened. How so? In the first type of situation, we observe what’s happening. Unfortunately, most of our competitors can do pretty much the same. Fact is, most of these simple situations have already been “solved” – someone has already found a way to exploit the dynamics. In the second type of situation, strategic analysis is a waste of time. However, things look different in retrospect. We can now recognise the forces which apply and the actions needed to exploit them. Myths are good.
Business Strategy News, Strategic Marketing & Management | Management Today Britain's 10 oldest family businesses 15 April 2014 Family businesses will contribute £218bn a year to the UK economy by 2018. As these firms show, keeping it in the family can be a recipe to success. Diageo is going deeper into emerging markets Just as everyone else is getting out of emerging markets, Diageo is taking the brave step of increasing its presence in India by buying up its biggest spirits manufacturer. Debenhams' profits dive as House of Fraser sales hit record The department store has promised decisive action. World Health Organisation: 'E-Cigarettes should be treated exactly like tobacco' 14 April 2014 Leaked documents show vapers could be about to join smokers in the smokers' shelter. Tesco just can't keep out of the US The supermarket is planning to open seven stores selling its cheap-as-chips F&F clothing range on the East Coast. Cambian is 2014's most under-hyped IPO 11 April 2014 Sleeping chairman: How to alienate all your shareholders in one fell swoop 10 April 2014
VISION STATEMENTS A good definition for a Mission Statement is a sentence or short paragraph which is written by a company or business which reflects its core purpose, identity, values and principle business aims. The definition for Vision Statements is a sentence or short paragraph providing a broad, aspirational image of the future. A Vision is defined as 'An Image of the future we seek to create'. Mission Statements therefore contain important information about a company in a nutshell. Vision Statements therefore contain details of the company's future - its vision ( the future plans with aims and objectives )These types of Statements focus on tomorrow. Some hints and tips on How to write a Vision Statement for those working in organisations, institutions and establishments: Take your time when writing a Vision Statement. Get the 'feel' of Vision Statements by checking out the samples and examples of Vision Statements of some big companies and small establishments Click for this information
Strategy on One Page - Anthony Tjan by Anthony K. Tjan | 8:40 AM June 1, 2011 My partner Mats Lederhausen, formerly worldwide head of strategy for McDonald’s, introduced me to “Strategy Trees.” It comes down to asking the “Why, what, who, and how” of your business, arraying it across one page in a way that makes it extremely useful as an alignment tool amongst management or board members. 2. 3. 4. The Strategy Tree is a variant of a decision tree, except it is less about forcing choices along a path than simply outlining a path for strategic purpose and growth.