Prometheus Consulting - Organisation Development and Strategic Human Resource Consultancy

 Business models 

 What are the key elements? 

Like any recipe, a comprehensive business model can comprise many potential ingredients. They address key questions of why, what, whom and how:

  • WHY the company exists
    • The company's purpose
    • Whom it exists to serve
    • How it captures its essence in statements of mission and vision

  • WHAT its position is on fundamental issues
    • What it believes constitutes success; what it measures and communicates
    • What its core principles, values, philosophies and culture are
    • Whom it considers are its key stakeholders, why these relationships matter, and its obligations
    • What it wants to be known for; the wider image it desires
    • What its 'offering' is in terms of products and services; what customers are buying
    • Whether it believes in focus or diversification
    • Whether it is adventurous or conservative (first mover, early adopter, safe follower, etc.)
    • How it defines the nature and source of its growth

  • WHOM the business is aimed at
    • Whom it considers to be the customer
    • Whom it considers itself to be in competition with
    • What markets it wants to be in
    • Against which performers it benchmarks itself

  • HOW it works at a strategic level
    • How it attracts custom
    • Where it concentrates its business
    • How integrated it is in its value chain
    • What its distribution channel is
    • With whom it collaborates (e.g. business allies, supplier 'partners', community NGOs)
    • How it treats its various stakeholders and prioritises their call on the company
    • How it positions its brand(s)
    • How it exploits the electronic medium for e-business and e-commerce
    • How transparent it chooses to be
    • What proportion of effort is devoted to financial planning and tax avoidance
    • How real or virtual the organisation is
    • How it views and exploits its core competence(s); what it does itself and what it outsources