Question
Value can only be created if:
A clear strategy exists
That accounts for external and internal business
environment
Meets the needs of its stakeholders
A business model is:
- A chosen system of inputs, business activities,
outputs and outcomes
- That create value over the short, medium and
long term
A clear strategy exists
That accounts for external and internal business
environment
Meets the needs of its stakeholders
A business model is:
outputs and outcomes
long term
Ask by Love Simmons. in South Africa
Mar 25,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
To create value in a business, a clear strategy is essential. This strategy should consider both the internal business capabilities and the external environment, including market conditions and competition. Additionally, the business model must meet the needs of all stakeholders. A business model is a system that includes the resources, processes, products, and outcomes that generate value in the short, medium, and long term.
Solution
It seems you are discussing the concept of a business model and the conditions necessary for creating value within a business context. Let’s break down the key points you’ve mentioned:
-
Clear Strategy:
- A business must have a well-defined strategy that outlines how it plans to achieve its goals. This strategy should consider both the internal capabilities of the business and the external market conditions.
-
Account for Business Environment:
- The strategy should take into account both the external environment (such as market trends, competition, regulations) and the internal environment (such as company culture, resources, and capabilities).
-
Stakeholder Needs:
- The business model should address the needs and expectations of various stakeholders, including customers, employees, investors, and the community. Meeting these needs is crucial for long-term success.
-
Business Model Definition:
- A business model is described as a system that includes:
- Inputs: Resources and materials needed to operate.
- Business Activities: The processes and actions taken to create products or services.
- Outputs: The products or services delivered to customers.
- Outcomes: The results of the business activities, which should create value.
- A business model is described as a system that includes:
-
Value Creation:
- The ultimate goal of a business model is to create value over different time horizons: short-term, medium-term, and long-term. This involves not only generating profits but also ensuring sustainability and growth.
If you have a specific question or need further elaboration on any of these points, please let me know!
Answered by UpStudy AI and reviewed by a Professional Tutor
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Simplify this solution The Deep Dive
Did you know that many successful businesses started by aligning their strategies with a clear understanding of their environment? Companies like Apple and Toyota thrive because they constantly analyze both internal capabilities and market trends, allowing them to innovate effectively while meeting stakeholder expectations. It’s all about creating a recipe for success that balances ambition with practicality!
In the entrepreneurial world, common pitfalls often stem from neglecting the stakeholder perspective. For instance, overlooking customer feedback can lead to products that miss the mark. Aiming for value creation means actively listening to everyone involved, from employees to end-users. So, keep those communication channels open to avoid the trap of creating solutions nobody wants!
