Entrepreneurship and Business Creation - Essay Example

Business models are the details that a company uses to work on its product and operations. The segments that compose of the business model focus on all aspects of the business which even go into the depth of the financial activities and managing operations. (Tatum). When working on developing a business model, six major components are mostly the key instruments to the development. The value proposition is a description of the customers’ problem and how the product addresses that problem. It bases itself on the value that customers’ perceive out of it.

Market segment is the group of customers that the company has to target. Adding an innovative edge in the product is what builds on to make the product a potential hit in another segment of the market. The value chain structure also needs to be considered as an important part on how the firm will capture a section of its value. The financial activities are an important segment as well along with understanding the position that the competition has. The last segment that a business model focuses on is building a competitive strategy which will have its core focus on the competitive advantage.

(The Business Model). . nufacturing facilities, the defining production process and allowing for the labor to produce the products all sum up the parts of the business model. (Tatum). The business model also needs to pay emphasis to the external factors. An identification of the target market influences the effort that the firm focuses on its marketing and sales efforts of the company; these too need to be strategically managed so that the cost of production of an individual product does that increase too much.

Basing the operations of the firm on this model helps them maintain a focus on their core mission and objective. (Tatum). Proper evolution of the business model after experience shows that the company has gained experience is implementing it into the operations. In simple words, the business model describes a rationale of how an organization decides to create, deliver and capture and maintain its value. (Osterwalder). 2. As An Entrepreneur, What Do You Understand By The Seven Domains Model? Please Explain How You Will Apply The Seven Domains When Evaluating A Viable Business Opportunity?

The seven domains model are discussed and acted upon everyday by entrepreneurs and managers unconsciously. These domains are all connected to each other and every domain makes the other even more valuable. Frequently, the understanding of these domains revolves around the human resource section of a company and how they implement them. The seven domains model mainly composes of understanding the information available and how to improve on it. (Corporation). Seven domains model can be used in all aspects of businesses and designs.

They involve synergy between all the resources so that the project completion objectives are not compromised. What the seven domains tend to seek together what they generally