Concept of Business Models by Madhukar Angur

Concept of Business

Madhukar Angur

What is BusinessA business, is also called as an enterprise or an organization involved in the trade of goods, services, or both to consumers.

Business makes goods more useful to satisfy human wants. Con sumer goods are meant for direct use by the ultimate consumers, e.g., bread, tea, shoes, etc. Producer goods are used for the production of consumer or capital goods like raw materials, machinery, etc. Services like transport, warehousing, banking, insurance, etc. may be considered as intangible and invisible goods.

OBJECTIVES

CHARACTERISTICS The entrepreneur is a key figure in the process of economic growth. The quality of entrepreneurship exiting in any region determines to a large growth. The quality of entrepreneurship existing in any region determines to a large extent the development of that region.

All those activities relating to the production and distribution of goods and services are called economic activities.

A businessman tries to earn more and more profits out of his business activities. The incentive for earning profits keeps a person in business and is also necessary for the continuity of the business.

The business should try to satisfy the consumer so that the demand for his products is maintained. The existence and expansion of business depends upon the liking of the consumers for the products of that business.

BUSINESS MODELS

The plan implemented by a company to generate revenue and make a profit from operations. The model includes the components and functions of the business, as well as the revenues it generates and the expenses it incurs.

In the upcoming slides different Business Models are explained in detail

Low-Cost model

Low Cost model refers to point-to-point services and predominantly direct distribution. The low-cost carrier business model is evolving towards a hybrid approach. Examples include buying oil futures to manage oil price fluctuations, having destination tourist boards pay for newspaper advertising, having staff pay for their own uniforms and training.

Franchise model In franchise business model there is always the added element of the franchise company. Franchising your business is a proven route to rapid growth. But becoming a franchisor is not an automatic ticket to success, especially in this challenging economy. A franchise can be a good way for a novice entrepreneur to get started because he can follow a successful business blueprint.Best examples of Franchise Models are McDonald’s and Subway.

AdvertisingThe web advertising model is an extension of the traditional media broadcast model. One of the main goals of advertising and marketing is to craft and deliver convincing messages to targeted markets. The best way to deliver these message can depend on the situation, the audience and the type of business from which it originates.

DIRECT SALESA sales model is the strategy a company uses to get its products to consumers. A company using a direct sales model sells directly to consumers instead of selling its product to resellers such as department stores and third-party web sites.Direct selling enables entrepreneurship and opportunity for millions of Americans thanks to its business model, which relies on a sales force of independent professionals.

 Freemium modelIt describes a business model in which you give a core product away for free to a large group of users and sell premium products to a smaller fraction of this user base.If the right business conditions are met, a freemium model can help drive faster revenue and profit growth than a paid-only model. It’s no wonder, then, that freemium has become a popular model for Web 2.0 companies to market their products.

Hope this presentation will help entrepreneurs to learn concepts

Business related concepts

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