Temas Variados

Table of Contents



1. NTRODUCTION 1


2. HOW MANAGERS USE BUSINESS MODELS AND STRATEGY 4


3. STRATEGY MANGEMENT 6


4. BUSINESS MODELS MANGEMENT 7


5. COUPLING BUSINESS MODELS AND BUSINESS STRATEGY 8


6. CONCLUSIONS 12




References 13































1. Introduction

Business models and strategy, two topicsthat constantly concern to Business specialists and managers and that converge when developing business activities due to the value creation offered to the organizations.
Even when some professionals point out to describe them, nowadays does not exist an official definition of these concepts that insist in gaining more power as modern well-structured tools used for achieve outstanding inputs inevery process of the organizations.

In one hand, business model identifies with the rationale applied by business entities in delivering, creating and eventual capturing of value. Value identifies with the social aspects, economic aspects and cultural aspects among other forms of values. Processes involved in the construction of the business models incorporate the aspects involved indevelopment of the business strategy (Burns, et al., 2005 p. 27). In other words, it is about having all these elements playing an important rol one with the other to generate value in an overall sense (Magretta, 2002).
On the other hand, the strategy explains all the processes and techniques used to achieve a high performance in the organizational outputs focusing on the assumption of differentiation,this means, to generate added value by using every endeavor against competitors (Magretta, 2002).

Business models are developed in perspectives that describe the core aspects involved in the business entity with inclusions of the business purpose, business offerings, infrastructures, and strategies, trading practices, organizational structures, policies and general operational practices(Morris, 2002). It has been noted that business models has diverse interpretations within diverse business entities, hence depriving the actual meaning, making it unclear on how specialists may apply effective business models to a business entity. This is unlike strategies that are developed to handle a particular issue.

The world is shifting to a global village with civilization. Thismeans that companies has to develop new business models and strategies to stay afloat in the turbulent market. Business models are valued for the management hypothesis defined by the changing needs of the consumers. The disadvantages of the business models over strategies are that the business models are characterized with general assumptions that negate particulate solution to a business entity(Porter, 2008 p. 211).
It has been noted that business models has a number of applications in a business entity. This paper supports the assertions that business models have been used by business people in place of the strategy.


2. How Managers use Business Models and Strategy

It is worth noting that business models are responded by top management teams in different ways, this isthe reason behind complex issues for managing the business entities. A sizable number of the business entities employ particulate business models with the hope of arriving at the desired target. Majority of the business models applied identifies with the value creation architecture, delivery mechanisms and the capture mechanisms. The merits brought about by the business models resonate with valuecreation to the customers, which in turn influence customers to pay for the value in which the business entity converts into profit (Weill, et al., 2005 p. 27). This is never easy with the technological changes that are happening each and every day.
A number of organizations apply the business models in classifying business entities (Osterwalder, Pigneur, Tucci, 2005). This has been...