Business Models and Planning Chapter Questions - Assignment Example

Also such an investor will be interested in the business’ chance of profitability or returns and thus try to be sure it is not a waste of investment. If it is already and established business, a new investor will be interested in previous financial year’s income and costs incurred so as to be certain that it is a right call. Therefore, it is wise to say that any investor will be more interested in what the business will give back to him or her for putting in his/her capital. If the business model seems to be one where low if not zero returns can be obtained, then such an investor will hold back his/her investment.

While for an investor, the interest is on previous information to decide on investment an analyst on his or her side tends to be interested in the firm in question ability to meet the investors’ wish of profit maximization. Therefore, an analyst will go more into detail like finding out the management’s ability to meet the given demand in terms of their management and leadership skills. An analyst will also go deeper and critically analyze the firm’s human, financial, and other resources and their contribution to the success of the business.

Therefore, while investors need information regarding the returns the business has on their investment, an analyst’s interest is focused on the given business ability to meet promises made to investors and how it will do it. Analysts mostly are employed by investors if not the organization to advise them on what and how to go about the requirements context so as to be able to meet the stipulated strategic goals2. Therefore, it is safe to say that analysts are the creators of business models that convey the business requirements the investors wish to establish.

Information is said to depend on the interest that leads one to fetch it. Therefore, all actors in the market will only be interested in business models up to the point where