I don’t know how to handle this Business question and need guidance.
In need of a 125 response/discussion to EACH of the following forum posts. There are (4) different Forum posts. Agreement/disagreement/and/or continuing the discussion. Original forums discussion/topic post is as follows:
Forum Post 1
Good Afternoon Class,
Business models are very important to the success of the overall company. When the layout of the business is simple but effective the company can normally compete in whatever market that they are working in. Describes the processes of how the business moves items or makes money in a simpler format. Business models are the backbone of the company just like the NCO’s in the military. If you own billboards and want to attract other companies to utilize them then you have to come up with some kind of format that allows those companies to obtain your space.
Internal and external factors that effect the business happen every single day. Refer to the video attached in this weeks forum and think about the Energy example that was talked about. The market is always changing and you have to be able to change to adapt to the customer needs. The same thing can be said for the reference to Amazon and how they only sold books at first but now have one of the biggest business models in the country. Realizing what the next steps can be for any company needs to be one of the biggest internal factors that they can have. Another internal influence that always needs reviewing would be employee training and engagement simply because these people work everyday for the same company and want to grow with it.
Product models and marketing models seem to work hand in hand. You can have a solid product that needs little to no marketing and it be very successful but at some point marketing played a role in the success of said product. Marketing models however, change on the regular because the audience changes with it. Knowing the audience will help to ensure you sell that product to them the first time. I also don’t feel that one is better then the other because they need each other in order to survive.
Forum post 2
Hope all is well and week 2 of 8 is being kind to you. For some odd reason, I could not view the video however, after reading the material, I believe I can answer these questions accordingly.
1. Why is a business model important? To open, in my opinion, a business model is a canvas or what some would call a roadmap to your success. Like an architect, as an entrepreneur it’s important to establish the blueprint and build the foundation on what your purpose is, how is this product going to make and sustain revenue, and how am I going to reach and keep my customers. It establishes a means to figure out your concept. Poor planning leads to poor performance.
2. How are business models influenced by internal and external factors? As an avid “Bar Rescue” fan, I can say that location, your equipment, employees and audience plays a major role in internal influences. Being able to understand the median annual income, the age/sex ratio of the targeted audience and what product like yours is already being provided is important when it comes to what can I bring different. Example, trying to open a hip hop lounge in a city where primarily retirees ranging from ages 60+ reside would not be a good investment. When it comes to employees and equipment, anywhere anyone goes, they want to feel welcomed and comfortable, you want their business. Customer service will make or break a business…people read YELP!!! I mean if you think about it, when you call someone, their initial greeting, or lack thereof, will set the tone for the rest of the conversation before it even starts. I am HUGE fan on customer service so I’ll transition into the external factors now. External factors that could influence a business, I kind of mentioned it earlier but the economy and competition from other businesses in your location. If you think about it, opening a laundry mat service in an area where the median annual income is between $50K-$70K would be a bust as most people homes are equipped with laundry rooms and laundry equipment.
3. The difference between a product model and marketing tool. I think the difference for the product model and tool is the purpose of your product/investment vs who you are trying to reach. I think you bring a model to the table for investors, your vision, how to best produce this product. The marketing tool today… …social media…and it’s winning!!! Everyone has some sort of social media account. I mean you don’t have to sell your demo cds out the back of the trunk anymore because there’s soundcloud and youtube. I don’t think one is better than the other as the product model is the prototype, your means to innovation. How do I make this better, more efficient, more effective. As the marketing tool, will promote your product and services.
I hope in conclusion, I made sense to you all and did not go off on a tangent, I could take forever about customer service. Have a good week 2 and I’ll see you in Week 3.
Forum post 3
The business model is critical to overall function and success of a business. The model by which an organization functions determines how the company will accomplish it’s mission, utilize it’s resources and, of course maximize profits in order to reinvest in the business. The model is affected by internal factors such as the employees, managers, and the actual product that is being manufactured, whether it be a physical product or a useful service. The external factors affecting a business are things such as market value for your product, and needs of the consumer, meaning how needed is your product or service by a consumer; what is the value of what you offer to the customer? My personal favorite “celebrity” entrepreneur, Marcus Lemonis, Founder and Owner of Camping World, star of hit reality show “The Profit”, says the three most important things in a fluid business are people, process, and product. I would venture to make a connection that those three key aspects to a business are largely influential on a business model. You have to have the appropriate work ethic and personalities in your work place (process), you have to have a stable and achievable model (process), and of course your consumable (product) must have some value to the consumer and have a level of necessity.
I believe the benefit of either product or marketing models will depend on the specific type of consumable being produced, or the individual goals of the company. Perhaps a company producing a specific useful product meant for a specific purpose would employ the product model, where the goal is to convince the consumer that their product is useful and desirable, while a company who provides numerous products across a wide set of categories might abide by the marketing model, where the company adjusts its methods to fit the demands of their consumer base.
Forum Post 4
A business model is important because it is the basis of any prosperous business, enabling it to meet its goals and objectives by outlining how to organize it and grow it successfully. Having a business model will explain how a business plans to budget, market, sell their product, and make a profit.
Many internal and external factors can influence a business model. Marketing to a target audience, for instance, will set a path for the business model, so the company knows to whom they will focus on selling. Most successful businesses solve a problem, which is why a customer would find value in their product. Our book mentioned that McDonald’s has hot sauces in Mexico to cater to their specific likes. These are not available at their U.S. locations because there is not a demand for them in this market. Knowing the competition is another external influencer. You would not want to put a product on the market made with cheaper quality but priced higher than the competition. Knowing who the suppliers in the industry are will help a business keep pricing competitive.
This week’s lesson mentioned internal factors, as well, such as how qualified the owner is and whether they have the required resources. Many people have great ideas for a product but do not have the means to implement them to grow a profitable business. A company also needs to ensure they hire the right number of employees. I have worked for several companies who failed, and the one reason I was able to see was that they downsized employees and were then unable to meet their customers’ demands.
After conducting a little research on models, I found that the difference between the product model and the marketing model is that the former focuses on the quality of a product and makes sure the customer accepts its price. Whereas the latter constantly changes with the needs and wants of the customer. Both models can be successful, but I think a marketing model is more sustainable because it requires the business to adapt to their consumer’s wants and needs versus only looking to improve quality and lower prices. The customer feels more valued with a marketing model.