These models are applied so that the needs of the customers can be fulfilled. The enterprises require to structure those practices in such a way that the business model connect with innovation and forming of the business strategy (Hedman & Kalling, 2003). In this report a discussion about the changing environment will be presented. This will exhibit the development in the global economy and the change in the traditional practices which lead towards technological growth and development. Innovation in communication and the development in the technology will lead to the establishment of the global trading regime. Such methods have ignited the competition because the customers have more options available for choosing from the best available option. This practice has forced the organisations in developing a more customer centred approach. This study will show the application of the business models used by Apple Inc. which will clearly differentiate the traditional and the modern way the businesses are structured. ACCOUNTANTS VIEW OF THE BUSINESS MODEL The business model in accounting is related to the economic theory of the firms. This is related to the measurement issues which are within the financial reporting systems. The understanding of the organisational and financial structure of the business is also referred to as the accountant’s view of the business model. The incorporation of the business model is observed in the business plan, income statement and the cash flow projections of the organisation. Similarly, the application of the model is more conceptual rather than financial. The application of the model emphasises on the use of technology, benefits to the customers, identification of the target market segment, ensure appropriate flow of the revenue, mechanism for capturing value and utilising those for accomplishing the organisational goals and objectives (EFRAG, 2013). These methods are important because they create value for the customers, entice the payments and convert the payments into profits for the organisation. This shows a direct relation with the economic as well as accounting benefits for the organisations (Hedman & Kalling, 2003). DEFINITION BY TEECE (2010) The definition presented by Teece (2010) about the application of the business model specifies that the essence of the model is more conceptual rather than financial. The knowledge which is required for developing the business model requires that there is extensive knowledge of the economy, changing trends of the business and the adaptation towards e-commerce, outsourcing of the major business functions and restructuring the financial services around the globe. The excessive use of technology and the development of the model have developed an understanding of the ways the businesses need to understand and determine the customer value (Teece, 2010). The business model has a direct relation with the theoretical foundation of the business and this requires that an equilibrium measure is created which develops perfect competition in the real world (Teece, 2010). The customers are less concerned about the products and they are more centred towards the solutions to their needs. Innovative ideas which aim at satisfying the customer needs succeed in attracting more customers rather than the traditional methods using which the business functions
Business enterprises require that they either implicitly or explicitly apply a business model for acquiring maximum operational efficiency. This model can be considered as being complete if it describes the design and creates value for the organisation…
In existing scenario, conditions of business environment have become changed quite intensively. High level competition and business environment fluctuations prevailing within the existing business environment has made the role of an employee’s performance quite vital in the long term success and sustainability of the business organization.
Concisely, business model shall address two variables; financial viability and stakeholders’ credibility. There has been increasing debate on this aspect of the business model. In this essay an attempt has been made to explain this aspect of the business model with the help of different examples.
Aneconomy’s framework, character, ability is discussed in Macroeconomics; this is not individual decision making. Mainly international, local or state level economies are discussed in Macroeconomics. Macroeconomics parameters are employment rate, GDP (Gross Domestic Product), GNP (Gross National Product), PPP (Purchasing Power Parity) etc.
In the present world where communication technologies and networking has changed tremendously and still changing very fast, forced businesses to change accordingly. The international business environment (IBE) is multidimensional - it covers political risks,
With recent trends in the global organizations under the scanner and their practices affecting the world’s economy adversely, businesses and governments along with social organizations have all awakened to the much needed and subtle or highly intelligent and balanced approach to running businesses for profitability.
With technological changes taking place and globalization impacting economies and companies, BP oil has experienced numerous challenges over its lifetime to-date. Yet again, the company which is mainly based in the United Kingdom has faced numerous
all address the clear customer identification; valued factors by business’ customer and ways to manage to meet customer value demand in cost efficient or profitable way. Concisely, business model shall address two variables; financial viability and stakeholders’ credibility.
y since 2000 saw its revenue double as its customers quadrupled resulting in revenue of more than £60.7 billion in revenue in 2010 an increase of 7.1% from the previous year (Palacios-Marqués & Devece-Carañana, 2013). Owing to the significance of size within the
er, the term business model is a general term adopted in business representing core aspects in a business like the strategies used to capture and retain the market share, trading practices, marketing techniques and business operational processes and policies. For this reason,
There are methods that are applied in the business where those who take part in the business benefit from the service they provide to one another respectively.
The most important factor in any business is how it operates, and the
3 pages (750 words)Essay
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