
Report on Constructive Relations at Top Trucking Company
November 24, 2023
Capstone Project
November 27, 20231. Introduction
Any business enterprise either unequivocally or verifiably utilizes a specific business plan and model. The business plan and model depict the configuration or design of the quality creation, business processes, and other organizational activities that the organization utilizes. The pith of a business model is in characterizing the way by which the organization conveys worth to clients, allures clients to pay for quality, and can convert those customer payments to business revenues. Thus, the Business model in this way mirrors the administration’s theory and vision about what clients need, how they need it, and how the organization can sort out how to best address those issues, get paid for services, and make business revenue. The motivation behind this article is to comprehend the importance of business models, and their changes in styles over the years and to comprehend the meaning of the given statement.
2. Business model
The usual balance that existed between the customer and the supplier has changed over the years due to changes in the global economy. These changes are due to the development in communications, technology, and information systems, and the usage of global trading mechanisms. Now the customers have an ample number of choices and supply alternatives. The technology has allowed in lowering the cost of services and customer solutions. Thus, businesses must now be more customer-centric. The business now needs to rethink and revamp the values offered to the customers (Al-Debei et al 2008).
A business model is a representation of an enterprise or an organization implemented by the organization to make business processes work to generate business revenue from business operations. The business model consists of elements and functions that comprise the business activities, business revenues, and business expenses. Thus, a business model can be regarded as and method through which an organization makes money. It can be a simple model or a very complex form of model. For example, a restaurant-based organization may have a business model to generate business profit by providing good food quality and services to their customers. Similarly, a website-based organization may have a business model where the revenue can be generated in many ways like through web-based advertisements, online commerce, certain application services, etc.
A business model thus gives details of the data and other business values that define how the business is capable of creating and delivering its services to the customers. The various business model design elements are listed in Figure 1.
Figure 1: Business model design elements
Fordism is a sort of manufacturing-based philosophy that aims to achieve a higher rate of productivity through the standardization of the business process output via the usage of conveyor assembly lines and breaking a large work into smaller sub-works. This philosophy has been applied not only to the automotive sector but to other manufacturing industries. Fordism’s success lies in the following principles:
- Each product produced is made through machines thereby enhancing the standards of the product.
- Making use of assembly lines allows workers to execute sub-tasks parallelly.
- Increasing the pay of workers so that they too can buy the products they made (Mayo 1999).
Fordism principles and the technological revolution allowed Ford workers to have good life standards. The main idea of the usage of the assembly lines was to break down complex manufacturing tasks into sub-tasks of simpler type through the usage of technological-based tools. The easier sub-tasks made use of exchangeable parts that can be used every time of the manufacturing process. Thus it gave advantages of adaptability, and flexibility and thus allowed to build objects more effectively and productively. This type of manufacturing process gave the advantage of cutting the cost of production and manpower involved in production (Mayo 1999).
From 1985, Silicon Valley in America saw a sudden growth in the number of companies and slowly the whole valley became a hub for a huge number of tech companies, and startup enterprises. The main principles of these companies were to have a business model that had the following things:
- Have always a fresh idea for the business
- Incorporate knowledge in all business activities.
- Make a calculated sort of campaign to influence the key stakeholders.
- Be a team
- Willingness to share and grow
- Learn from failure
- Incorporates technology and technological entrepreneurs.
The Formats of “Essay Writing” You Have To Gain Knowledge About
Silicon Valley became a hub for technological growth worldwide. Due to its huge success, many countries have started to look over this business model. The main feature that helped in the success of the Silicon Valley business model was the adoption of technology in the business environment and the making of business plans by incorporating technology. The majority of the companies in Silicon Valley started to make business earnings by shifting from the traditional business style of the business office, sales chain, supply chain, and production to another business model like brick and click business model. The business model of brick and click model has a company that is capable of integrating offline and online business presence. Some organizations adopted a new business model of purely online.
Thus, the Silicon Valley model became a very promising business model. But for a business model to be competitive it must be more than logical in doing business. A business model might be troublesome for contenders to reproduce for different reasons as well. There might be confounded procedure steps or solid licensed innovation security, or hierarchical structures and game plans may exist that will obstruct the actualization of another plan of action. The great plan of action outline and usage includes surveying such inside variables and in addition outer components worried with clients, suppliers, and the more extensive business environment.
Entrepreneurs fail to understand the business model concept which looks to them as technical or abstract ( Lee et al 2003).
As the organization continues from the startup arrangement, the model frequently changes because of new open opportunities, new aggressive threats from competitors, or basically because the organization adapts more about what its clients genuinely require. Thus, the business model changes. In the past 20 years, there has been a change in the business model from Fordism to the Silicon Valley model.
The three center rules that have become the main principles for Silicon Valley’s new businesses are as follows:
- Be a go-between, or in tech-talk, a stage. Discover a group of people that necessities something particular, and give an approach to get that going on the web. If it’s another model, so much the better.
- Minimize the quantity of paid on-staff workers. Exactly when Instagram was procured by Facebook, 13 individuals were working there. As a prior reference, Kodak at one point utilized around 140,000.
- Make everything automatic (Slywotzky 1996).
Consider the case of Apple Inc. Apple Inc. emerges as the world’s most well-known, and presently wealthiest, organization. To the overall population, Apple is known for three things:
- its captivating CEO Steve Jobs, who has accomplished famous status in death as in life
- its stunning iOS items, particularly the iPhone and the iPad, and their ancestor the iPod, which have put advanced innovation in the hands of the masses;
- Its stratospheric stock cost, which notwithstanding when in March 2013 it had dropped to 63 percent of its September 2012 top, gave Apple the most noteworthy business sector capitalization of any organization on the planet.
As an aftereffect of its extraordinary accomplishment, toward the end of 2012, Apple had $121 billion in fluid resources. In April 2013 the organization focused on dispersing as much as $100 billion to shareholders in stock buybacks and money profits before the end of date-book 2015.
Apple adopted a business model of innovation, understood the business needs and quality needs of its customers it was able to make products uniquely designed for customers. It is the best example of an innovative business model that has changed in the changing business environment.
3. Conclusion
Business model changes over time thus it is necessary to make plans and changes in the company accordingly. Moreover same business model cannot be successful in all countries. This is due to the changing environment, business policies of the countries, economic policies of different countries, and other political factors. Pepsi has to make necessary changes like the introduction of glass-based small bottles and small pet jars in India which it ruled out in other countries like America. One of the main assignments for a new business is to outline its plan of action. Commonly this is finished with constrained learning of the business sector in which the organization will work – the administration group may not be sure the objective clients will buy the item. This unique plan of action may turn out to be imperfect and changes must be made to it for the organization to create deals energy. Realize what its client base truly needs. Promoting methodologies are then defined to achieve these gatherings and influence them to buy from the organization. New income opens doors regularly as the organization’s model ends up being effective
Thus it can be concluded that no single model can be defined to be the perfect model of success and no single model can be adopted in all countries and all sectors of business.
4. References
Al-Debei, M. M., El-Haddadeh, R., & Avison, D. (2008). “Defining the business model in the new world of digital business.” In Proceedings of the Americas Conference on Information Systems (AMCIS) (Vol. 2008, pp. 1-11).
Lee, G. K. and Cole, R. E. 2003. Internet Marketing, Business Models and Public Policy. Journal of Public Policy and Marketing 19 (Fall) 287-296.
Slywotzky, A. J. 1996. Value Migration: How to Think Several Moves Ahead of the Competition. Boston (MA): Harvard Business Review Press.
Mayo, M. C., and G.S. Brown. 1999. Building a Competitive Business Model. Ivey Business Journal63 (3) 18-23.