Business Plan Model
Business model is a process which allows the company to generate revenue with the help of proper planning and execution process. Business model is used to evaluate how well the organization is positioned within the value chain as well as also evaluates the relations of the company with its suppliers. With the help of a proper business model, a company can understand its forthcoming strategic measures as well as future impact of these measures into the financial position of the company (Massa, Tucci & Afuah 2017). Following section of the paper will describe three different business models along with their strengths as well as limitations. Further this paper will compare the best suitable business model with Microsoft project business model as well as will also discuss use of system based theoretical application in the management of healthcare system.
Bricks and clicks model
Bricks and click model follow the combination of both retail stores as well as online ecommerce websites. The offline retail stores are known as the bricks wherein the ecommerce channels as clicks. In this business model, small organizations can take advantage of multichannel sales strategy with the help of a unified presence. Firms can expand their customer presence with the help of the business model. Further, it can be also noted that businesses can improve their brand reach and presence with the help of the business model.
For newly established business, this model can be applied which will help the brand to offer its products to all types of customer segment. It is also evident that this model can allow a company to flexibly offer more extended brand reach towards the customers which further can allow them to sync inventory (Yan etal 2015). Brand building and growth is one of the most significant factors contributing towards organizational success. This model can allow the company to reach towards more customers and provide them better experience towards product offered by the company hence customer satisfaction can be greatly improved with the help of the model.
Strengths and limitations
This model has various advantages and disadvantages which needs to be discussed in order to understand the effectiveness of the model. The following section denotes the advantages and disadvantages of business model.
Strengths
- With the help of the model, the company can reach towards more customers since it will provide more in store and online products and services. This will also allow it to improve its brand value and growth very rapidly.
- With the help of the model, the business will be able to use web analytics which will further help them to refine the customer offering thereby improving the customer service in real time (Herhausen etal 2015).
- When compared to other business models, this model can provide a much better customer service since the customers will be able to contact to the business directly if they have any product or service-related concerns.
Limitations
- Initially, the operations in store and online simultaneously will require significant amount of capital without which the implementation of the business can fail massively. Further, it can be also noted for in store, the company will have to purchase various equipment’s and technologies which will require significant amount of funding without which the system cannot be implemented successfully.
- For native brick and mortar models, the company will have to learn how they can use and leverage into the sales channel of the company. Without understanding the sales curve, the company cannot proceed further with the strategy.
- If can be difficult for newly established firms to manage its inventory across two different channels as well as take actions against discrepancies simultaneously in both online and offline channel.
Crowdsourcing model
Crowdsourcing model involves opinions, data as well as social media to attract a targeted customer segment. A company can invest onto the network of talents without hiring in house employees and customers. This process can reach to a broader range of customers to target for the higher ROI.
Strengths and Limitations
Strengths
- Crowdsourcing model is very cost effective therefore new companies can employ this model without further capital and funding requirement.
- Crowdsourcing can allow in providing huge diversified experience towards the customers and there is potential that management team can create strategies can ensure that employees are following the same (Han etal 2019).
- Company can build brand image and utilize crowdsourcing to design new models which can allow them to improvise their product to significant extent.
Limitations
- One of the most significant disadvantages of crowdsourcing is it can become harmful for the company if it is not managed efficiently.
- Further, if not managed effectively, the company can end up failing with the business model.
Franchising model
The license of a trademarks, the payments of a fee, including authority on how the actual franchised firm is managed are all part of the franchising business model. The franchise agreement is the contract that establishes a franchise connection between the franchisor as well as the franchisee. The franchisor is the firm that owns the copyrights and developed the methods and procedures for starting and running a franchised company (Rosado-Serrano & Paul 2018). Franchise agreements demand consistency, and unlike a license related agreement, a franchise agreement gives the franchisor great influence over how the fundamental firm is run.
Strengths
- Franchising model can allow the business to grow and expand significantly in a number of different locations. This will allow the business to attract talented employees towards the business thereby improving the business efficiency.
- By franchising, the business can be able to expand rapidly over the region. Additionally, the business will not require to take any loans from the investors or banks if it follows the franchising model.
Limitations
- This model can cause lesser control over the manager since it will be franchised business based on another business and thereby conflicts can arise in this business model
- Since franchising business model gathers profit from different business segments, the core company might not be able to work co ordinately and the managers many not be able to understand the core business operations.
Microsoft follows subscription business model that allows a particular segment of customers. The company attract its customers with product features and services. On the other hand, the selected business model (Franchising) can allow the business to compete with some the huge giant company with the help of broad targeted set of customers. On the other hand, the subscription-based mode can allow automatic payments from customers and they can retail their customers for a long time. For repeat purchase of the product, subscription-based model can allow them to offer long term product-based services.
Based on the above situation, for CLC business, franchising is the most feasible business model since it is very cost effective and will allow the business to attract more customers efficiently. Franchising will allow the business to build an effective relationship with different business as well as will also allow them to control over the licensee’s business operations. However, franchise agreements are regulated by the federal laws and disclosures which will need to be understood in order to achieve quality control standards (Zajko & Brada? Hojnik 2018). The business can target many locations with the help of the model hence they can collect licensing fees based on the percentage of sales from the franchisee. Firms can depend on the business model by offering different products and services.
The traditional healthcare system is very dysfunctional and can provide effective theoretical approach towards overall healthcare system. The existing healthcare system can provide health, safety and quality of services however it fails to address the performance gaps in the healthcare system. If theoretical approaches can be applied to the management of healthcare system, health elements of can greatly improve and multiple factors can be positively impacted by the same (Braithwaite etal 2018). Within the systematic approach, there are various factors influencing the health of patients. By recognizing how these parts remain independent and also how many interact on each other, a systematic approach may help with the effective implementation of people, procedures, programs, and organizations to promote better healthcare at very lower amount of cost. These techniques may be used at all parts of the existing healthcare system, including patient-clinician interactions, health care units, organizations, communities, and nations, with diverse instruments available to meet the demands at each level.
Conclusion
On a concluding note, it has been found that there are various business models which can be implemented within the CLC business. It has been also found that the Microsoft project business model is focused on a particular segment of customers while the franchising business model will focus on a greater extent of customers. Microsoft uses a subscription-based business strategy that caters to a certain consumer niche. Customers are attracted to the firm because of its product characteristics and services. On the other side, the chosen business model (franchising) can enable the company to compete with some of the world’s largest corporations by attracting a large number of targeted clients.
References
Braithwaite, J., Churruca, K., Long, J. C., Ellis, L. A., & Herkes, J. (2018). When complexity science meets implementation science: a theoretical and empirical analysis of systems change. BMC medicine, 16(1), 1-14.
Han, S., Xu, Z., Zeng, Y., & Chen, L. (2019, June). Fluid: A blockchain based framework for crowdsourcing. In Proceedings of the 2019 international conference on management of data (pp. 1921-1924).
Herhausen, D., Binder, J., Schoegel, M., & Herrmann, A. (2015). Integrating bricks with clicks: retailer-level and channel-level outcomes of online–offline channel integration. Journal of retailing, 91(2), 309-325.
Massa, L., Tucci, C. L., & Afuah, A. (2017). A critical assessment of business model research. Academy of Management Annals, 11(1), 73-104.
Rosado-Serrano, A., & Paul, J. (2018). A new conceptual model for international franchising. International Journal of Hospitality Management, 75, 179-188.
Yan, W., Xiong, Y., Xiong, Z., & Guo, N. (2015). Bricks vs. clicks: Which is better for marketing remanufactured products?. European Journal of Operational Research, 242(2), 434-444.
Zajko, K., & Brada? Hojnik, B. (2018). Social franchising model as a scaling strategy for ICT reuse: A case study of an international franchise. Sustainability, 10(9), 3144.
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