Business Models and Planning Chapter Questions - Assignment Example

The leading indicators consist of measures of economic activities where shifts attempt predicting onset of a cycle. This group employs approximately 10 distinguishing indicators. They include orders made by consumers to the manufacturers, index performance of vendors, manufacturer’s orders for nondefense goods, building permits issued in a period, average working weeks, interest rates in treasury bonds, and average initial claims among others. b. Coincidental indicators- these constitute a collection of processes of business events that fluctuate in the business process.

Hey /play an important role in shaping the business cycle as compared to the rest. Their movement is directly proportional to movement of the economy. Four categories are included in coincidental indicators. They include: the number of people employed in nonagricultural businesses, industrial production, individual incomes, and manufacturing and trade sales. c. Lagging indicators- Just as the name suggests, lagging indicators show the phases in the cycle after business events. Normally, they are visible after six to twelve months of a business event.

Close to seven measures are used as lagging indicators in business. They include: consumer’s price indices, outstanding commercial or industrial debts, unit cost in manufacturing, ‘fractions of consumers’ credits, and mean durations of unemployment and ratio of inventories to sales. A business model in this context will describe the justification of how a business forms, delivers, and takes note of values in an economic setup. The models in this scenario are a way of the business attaining the aims and objectives.

The business models become representations when they are used for a number of events in formal or non-formal setups. The models are used for representations of business strategies, infrastructure, trade events, and given operational processes To develop a full business model that develops to a