BUSINESS MODEL SIMPLIFIED

Book excerpt: What is Business Model? Different people define the concept of business model differently. For the average person, business model merely describes the way in which a firm makes money. Some see it as the company plan for generating revenues, some see it as the structure of operations and how to organize various activities to provide services, others define it as the architecture of the organization and division of resources to generate profits. Companies and society has always been the rubrics that holds the very make up of business activities. Combined, these two forces form the essence of contribution to what makes economy, shaping our daily activities, and the formation of business cycles. Given the ever-increasing complexity of the global marketplace, business (exchange of good and services, manufacturing, farming, production, distribution, sales and consumption) is rooted in the way we live and how our societies and ultimately nations, progress. A viable, efficient and effective business model is vital to organizational success of failure.