Topic:So What is Your Business Model

From SharedExperienceProject

Contents 1 Topic Highlights 2 Introduction and Motivation 3 Learning Activities 4 Learning Objectives 5 References

Topic Highlights

(What you will learn)

• An understanding of the term business model, and why it is important in the context of strategic entrepreneurship
• The relationship between business model and strategy
• The role business modeling plays in strategy formulation

Introduction and Motivation

(Why learn it)

The term business model is very often misused, and yet it is one of the most useful tools a strategist can have^[1]. This topic is based on a paper entitled Why Business Models Matter.

Through the reading and the class discussion, you should aim to build a simple working definition of the term and an understanding of the role business modeling plays in the development of strategy.

Whether you realize it now or twenty years from now, you will benefit from having asked yourself questions such as:

• Do I need to invent my business model?
• How do I test my business model?
• What are the components of my business model?
• What should they be?

Learning Activities

(How the levels of understanding will be gained)

Learning activities for this topic

Type	Name	Direction
Reading	Read before class: Why Business Models Matter	Self-directed
Lecture and discussion	So What is Your Business Model?	Instructor-directed
Personal activities	Reflection and review, e.g. of the activity and the learning objectives given below in this page	Self-directed

Learning Objectives

(Levels of understanding to be gained)

Learning objectives for this topic

Level of Understanding	Objective(s)
Very best	Can I hypothesize about the success of a business model, given information such as descriptions of the external and internal business situations? Am I comfortable proposing a business model for a business situation or case not studied in class? Can I design a new business model for any business situation?
Highly satisfactory	Can I analyze the strengths and/or weaknesses of a given business model? Do I understand how to "test" how likely it is that a proposed business model will succeed? Am I able to compare the business models of two or more companies? Could I propose a business model for a case similar to one studied in class?
Satisfactory	Do I correctly and consistently use the terms business model and strategy in any analysis or communication? Can I correctly classify given business models of two or more companies? Can I provide examples of a given business model?
Maybe just enough to pass	Am I able to define the term business model? On a quiz, for example, could I explain the difference between the terms business model and strategy? Can I identify a company's business model given a reasonably complete description of what it does?

References

1. ↑ Magretta (1999) Why Business Models Matter, Harvard Business Review, May, 2002, pp. 86-92.