MGMT 3710 Entrepreneurial Foundations

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MGMT 3710Entrepreneurial Foundations

• The Business Model

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Business Model

• A firms plan for how it competes, uses its
  resources, structures its relationships,
  interfaces with customers, and creates value

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

• Mission Statement

Product Lines and Brands
Consumer Segments
Geographic Markets
Suppliers and Partners
Competitive Positioning
Customer Support
Channels
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Red Crosss 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.

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Red Cross Product Lines
BACK
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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
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The American Red Crosss Customers
Lets Profile!
BACK
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Pieces of the Business ModelMicro

• Price per unit
• Overhead
• Start-up capital
• Profit per unit
• Predicted sales
• Breakeven point

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Get Into Groups!!

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