MGMT 3710 Entrepreneurial Foundations The Business Model

Business Model A firm’s plan for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value

The He rt of a Business Model Resources Capabilities How It Chooses To Function …with a nod to competitors, suppliers, and most certainly customers!!

Pieces of the Business Model Macro Mission Statement Product Lines and Brands Geographic Markets Consumer Segments Competitive Positioning Suppliers and Partners Channels Customer Support

Red Cross’s Mission The American Red Cross, a humanitarian organization led by volunteers and guided by its Congressional Charter and the Fundamental Principles of the International Red Cross Movement, will provide relief to victims of disasters and help people prevent, prepare for, and respond to emergencies. Previous Slide

Red Cross Product Lines BACK

The Red Cross- Geographic Markets 181 Red Cross offices around the world  American Red Cross just one American chapter works to unite and facilitate use of resources here, even in worldwide projects BACK

The American Red Cross’s Customers Let’s Profile! BACK

Pieces of the Business Model Micro Price per unit Overhead Start-up capital Profit per unit Predicted sales Breakeven point

Get Into Groups!! Your mission, should you choose to accept it, is to think of 1. A company that has had a successful business model (cannot be Dell, Wal-Mart, or Southwest) and why it has been successful 2. A company that has had a not-so-successful business model and why it was not successful.