A business model is a plan or strategy that a company uses to attain its goals and objectives. The goals and objectives of an organization relates to the identification of the targeted customer base, identifying the sources of funds and the various areas for revenues. The goals for most companies are to maximize the profit and to make sure that the company expands and grows in the process. A business model is an abstract depiction of a company. It integrates the various processes of a company and highlights the various strategies and approaches taken by a company to achieve its objectives and goals in the process. A business model is developed by aligning the goals of an organization with the structure of an organization. There are various types of business models. Some of them are, “Bricks and clicks model”, “collective business models”, Direct sales model” etc. These are some of Continue reading
Business Analysis Case
Case Study of Motorola: Brand Revitalization Through Design
When Motorola released its earnings report for the second quarter ending June 2005, analyst and competitors alike were stumped. The company posted revenues of $8.83 billion up from $7.4 billion a year ago and earnings of $993 million against a $203 million loss a year ago. Selling 34 million handsets, the cell phone unit accounted for 55% of the quarterly revenue and $ 498 million in operating earnings. Motorola’s market share increased to 18.1%, a gain of 3.3%, establishing itself firmly as the second largest manufacturer behind Nokia (33% market share). This was an impressive turnaround for a company that had seen market share decline from a high of 51% during 1996 to a low of 13% in 2004 pushing it behind the market leader Nokia and the South Korean rival Samsung. A key contributor to Motorola’s turnaround was the RAZR V3 (Razr), the thinnest phone ever developed. This ultra-slim Continue reading
PEST Analysis of DELL Computers
A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the political, Economic, Social, and technological factors of the external macro-environment. Such factors usually are beyond the firm’s control and sometimes presents themselves as threats. For this reason, some say that “PEST” is an appropriate term for these factors. However, changes in the external environment also create new opportunities and the letters sometimes are rearranged to construct the more optimistic term of STEP analysis. Many macro-environmental factors are country-specific and a PEST analysis will need to be performed for all countries of interest. In the following, the analysis of the political, economic, social and technological factors leads to a description of the macro environment of Dell computers. Political Environment The political environment of a country is influenced by the political organisations such as philosophy of political parties, ideology of government or Continue reading
Relevance of Sustainable Development Goals (SDGs) for Businesses and Organizations
The organizations have been focused towards adopting key business approaches and practices that would contribute towards their improved revenue as well as profitability in the marketplace. In order to achieve such strategic goals to revenue and operational growth, it is required by the management to identify and understand the changing market needs, as well as the stakeholder preferences and accordingly the internal business or operational strategies, are to be defined. Considering such need, it can be reflected that in the present marketplace there is a need for the business organization to focus towards the increased social preferences and need towards sustainability and societal development along with that of the business growth. The approach to sustainability ensures that the business organization have a balanced approach towards society, business as well as the environment. Further to strengthen the approach to sustainability international organizations including United Nations (UN) has defined several key sustainable Continue reading
Zara’s Lean Operation: Source of Competitive Advantage
Fashion giant, Zara, forms part of the retail group ‘Grupo Inditex’ which is one of the “largest, fastest growing and successful” clothing retailers across Europe. Grupo Inditex is formulated by an amalgamation of major high street names from across Europe, including Zara, Pull and Bear and Bershka, in total boasting 3,825 stores across 68 countries.Zara’s success story begins by offering a product range capable of catering for men, women and children, providing affordable and stylish clothes whatever the season. Coupled with this, is their keen eye for discovering new fashion trends and translating these trends from the catwalk to the high street, both quickly and affordably. Zara boasts a marketing strategy of firstly product variety with a focal point of ensuring speed to market. At present, Zara launch 10,000 new articles per year across their portfolio of stores. Finally, store location, as any marketing is left to store location rather Continue reading
Case Study: Disney’s Diversification Strategy
The story of Disney is that of a company founded in 1923 by the Disney brothers, Walt and Roy. In the beginning, the company was referred to as the Disney Brothers Cartoon Studio and later incorporated as Walt Disney Productions in 1929. Walt Disney Productions made its mark for many years in the animation industry before venturing into television and live-action film production. Something else also happened before Walt had the breakthrough with Mickey Mouse. Before Mickey, there was Oswald, the Lucky Rabbit. But because he didn’t own the copyright, Walt lost the rights to Oswald, a bitter lesson that was to shape his company positively in the future. That experience thought him very early the value of intellectual property and Disney has used that knowledge to tighten controls over its properties as well as build defense against entrants and competing incumbents. The characters at Disney are well protected and Continue reading