BUSINESS MODELS AND PLANNING Essay Example | Topics and Well Written Essays - 500 words

BUSINESS MODELS AND PLANNING - Essay Example h clients, suppliers, and other stakeholders in the businesses, and distribute their products, which led to the establishment of new business structures (Nielsen & Lund 23). Internet-based business models led to the improvement in efficiencies and the establishment of new distribution channels for many businesses such as in the banking industry. With the crashing of the tech stock in the late 90s, the perception that anything dot-com was profitable changed. Dot-com companies and indeed many businesses realized that their presence in the web was no guarantee that they were going to be profitable. As a result, businesses had to come up with new business models so as to improve their attractiveness and ensure their survival. Organizations had therefore to come up with new strategies and structures that would see them allocate resources in new ways to fulfill both short and long term business goals. Many scholars also delved into the subject of business modeling with the aim of coming up with profit-formulas for e-businesses (Nielsen & Lund 23). For example, Afuah and Tucci postulated that the profit formular revolved around production, mark-up, commission, and advertising. An organigraph is an organizational diagram that is dedicated to demonstrating how an organization works; how products, information and individuals interact within the organization (Nielsen & Lund 25). In this respect, like the organizational diagram or chart, the organigraph may present the formal organization of the business as well as its actions. While the organigraph has a set and chain like the traditional organizational chart, it also includes the hub (which serves as a centre for coordination) and the web (which presents the link between different aspects of the organization). On the other hand, the business model helps in structuring and addressing main issues that surround the business including such things as the organizational values, culture, and governance (Nielsen & Lund 24). In