Business Models and Types of Business PDF

**Vision** -A vision statement is a written declaration clarifying your business's meaning and purpose for stakeholders, especially employees. It describes the desired long-term results of your company's efforts. -For example, an early Microsoft vision statement was "a computer on every desk and...

**Vision** -A vision statement is a written declaration clarifying your business's meaning and purpose for stakeholders, especially employees. It describes the desired long-term results of your company's efforts. -For example, an early Microsoft vision statement was "a computer on every desk and in every home." **Mission** -A mission statement is used by a company to explain, in simple and concise terms, its purpose(s) for being. The statement is generally short, either a single sentence or a short paragraph. **Goals vs. Objectives** -A goal is an achievable outcome that is generally broad and longer term while an objective is shorter term and defines measurable actions to achieve an overall goal. **Types of Goals** - - - **Types of Objectives** - - - **Core Values** -Core values are the deeply ingrained principles that guide all of a company's actions; they serve as its cultural cornerstones. -Core values often reflect the values of the company's founders---Hewlett-Packard's celebrated "HP Way" is an example. They are the source of a company's distinctiveness and must be maintained at all costs. **Business Model** -The term business model refers to a company\'s plan for making a profit. -It identifies the products or services the business plans to sell, its identified target market, and any anticipated expenses. Business models are important for both new and established businesses. They help companies attract investment, recruit talent, and motivate management and staff. **Types of Business Models** - A retailer is the last entity along a supply chain. They often buy finished goods from manufacturers or distributors and interface directly with customers. - -A manufacturer is responsible for sourcing raw materials and producing finished products by leveraging internal labor, machinery, and equipment. - -Instead of selling products, fee- for-service business models are centered around labor and providing services. A fee-for- service business model may charge an hourly rate or a fixed cost for a specific agreement. - -Subscription-based business models strive to attract clients in the hopes of luring them into long-time, loyal patrons. This is done by offering a product that requires ongoing payment, usually in return for a fixed duration of benefit. - Freemium business models attract customers by introducing them to basic, limited-scope products. Then, with the client using their service, the company attempts to convert them to a more premium, advance product that requires payment. - -If a company is concerned about the cost of attracting a single customer, it may attempt to bundle products to sell multiple goods to a single client. Bundling capitalizes on existing customers by attempting to sell them different products. - -Marketplaces receive compensation for hosting a platform for business to be conducted. Although transactions could occur without a marketplace, this business model attempts to make transacting easier, safer, and faster. - -Affiliate business models are based on marketing and the broad reach of a specific entity or person\'s platform. Companies pay an entity to promote a good, and that entity often receives compensation in exchange for their promotion. - -Aptly named after the product that invented the model, this business model aims to sell a durable product below cost to then generate high-margin sales of a disposable component needed to use that product. - -Instead of relying on high-margin companion products, a reverse razor blade business model tries to sell a high-margin product upfront. Then, to use the product, low or free companion products are provided. This model aims to promote that upfront sale, as further use of the product is not highly profitable. - -The franchise business model leverages existing business plans to expand and reproduce a company at a different location. Often food, hardware, or fitness companies, franchisers work with incoming franchisees to finance the business, promote the new location, and oversee operations. - -Instead of charging a fixed fee, some companies may implement a pay-as-you-go business model where the amount charged depends on how much of the product or service was used. - -A brokerage business model connects buyers and sellers without directly selling a good themselves. Brokerage companies often receive a percentage of the amount paid when a deal is finalized. **Types of Businesses** - -A sole proprietorship is an unincorporated company that is owned by one individual only. While it is the most simple of the types of businesses, it also offers the least amount of financial and legal protection for the owner. - -As the name states, a partnership is a business owned by two or more people, known as partners. Like sole proprietorships, partnerships are able to take advantage of flow-through taxation. This means that the income is treated as the owners' incomes so it is only taxed once. - -Corporations are a separate legal entity created by shareholders. Incorporating a business protects owners from being personally liable for the company's debts or legal disputes. A corporation is more complicated to create, as compared to the other three types of businesses. **Organizational Structure** -An organizational structure is a system that outlines how certain activities are directed to achieve the goals of an organization. These activities can include rules, roles, and responsibilities. **What is Management?** -The coordination and administration of tasks to achieve a goal (Herrity, 2024). The functions of management - -Proper planning is the foundation upon which all other management functions are built. Tactical planning involves setting objectives, determining the best course of action, and developing strategic plans to achieve goals. -Planning has evolved to include input from all levels of an organization. - -Organizing involves using resources in a way that allows for an efficient, effective execution of the organization\'s tactical plans. It also involves tasks such as: =Creating organizational structures =Defining roles and responsibilities =Establishing communication channels - -Leadership involves influencing and motivating employees to achieve the organization\'s goals. Understanding and adapting different leadership styles allows a manager to effectively respond to the needs of each team member needs and organizational challenges, which can contribute to motivating workers. - -This work involves monitoring performance, comparing actual results to planned objectives, and taking corrective action when necessary. **Management Styles** - -The autocratic management style is also known as the authoritarian. These types of leaders usually focus on results and efficiency. - -Laissez-faire management is the contrast of the autocratic model. This type of managers typically focuses on delegating tasks to team members with minimal supervision. - -This style of leadership may be seen as a combination of both autocratic and laissez-faire leaders. - -The collaborative approach to management solicits feedback from team members on institutional policies and other important decisions. - -The inspirational leader often relies on honesty and emotion to help other team players grow---both in their work roles and personally. - -These types of leaders are often referred to as pacesetters and are usually focused on generating performance by setting high standards, with accountability placed on each team member. - -The dictatorial mode of management style---taking disciplinary action---can be essential in situations where an organization suffers due to employees slacking off. - -Strategic leaders look at them overall "big picture" of objectives to be achieved. Supervisors are given the bulk of the responsibility of overseeing the day-to-day achievements. - -These types of leaders are completely focused on getting things get done, rules are secondary. These leaders even appreciate when employees devise easier and better ways of achieving results. - -Affiliative leaders consider themselves as part of the team, freely mingling and interacting with their team members. They are often very "hands-on," and ready to offer a helping hand to the team members.