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What Is Strategic Management 10

Lecture Notes

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7 views

What Is Strategic Management 10

Lecture Notes

Uploaded by

edume.cano
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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What is a Business Model Canvas

■ A business model is simply a plan describing how a business intends to make money. It explains who your customer base is and
how you deliver value to them and the related details of financing. And the business model canvas lets you define these different
components on a single page.
■ The Business Model Canvas is a strategic management tool that lets you visualize and assess your business idea or concept. It’s a
one-page document containing nine boxes that represent different fundamental elements of a business.
■ The business model canvas beats the traditional business plan that spans across several pages, by offering a much easier way to
understand the different core elements of a business.
■ The right side of the canvas focuses on the customer or the market (external factors that are not under your control) while the left
side of the canvas focuses on the business (internal factors that are mostly under your control). In the middle, you get the value
propositions that represent the exchange of value between your business and your customers.
■ The business model canvas was originally developed by Alex Osterwalder and Yves Pigneur and introduced in their book ‘Business
Model Generation’ as a visual framework for planning, developing and testing the business model(s) of an organization.

What are the Benefits of Using a Business Model Canvas.


Why do you need a business model canvas?
The answer is simple. The business model canvas offers several benefits for businesses and entrepreneurs. It is a valuable tool and
provides a visual and structured approach to designing, analyzing, optimizing, and communicating your business model.
■ The business model canvas provides a comprehensive overview of a business model’s essential aspects. The BMC provides a quick
outline of the business model and is devoid of unnecessary details compared to the traditional business plan.
■ The comprehensive overview also ensures that the team considers all required components of their business model and can
identify gaps or areas for improvement.
■ The BMC allows the team to have a holistic and shared understanding of the business model while enabling them to align and
collaborate effectively.
■ The visual nature of the business model canvas makes it easier to refer to and understand by anyone. The business model canvas
combines all vital business model elements in a single, easy-to-understand canvas.
■ The BMC can be considered a strategic analysis tool as it enables you to examine a business model’s strengths, weaknesses,
opportunities, and challenges.
■ It’s easier to edit and can be easily shared with employees and stakeholders.
■ The BMC is a flexible and adaptable tool that can be updated and revised as the business evolves. Keep your business agile and
responsive to market changes and customer needs.
■ The business model canvas can be used by large corporations and startups with just a few employees.
■ The business model canvas effectively facilitates discussions among team members, investors, partners, customers, and other
stakeholders. It clarifies how different aspects of the business are related and ensures a shared understanding of the business
model.
■ You can use a BMC template to facilitate discussions and guide brainstorming sessions to generate insights and ideas to refine the
business model and make strategic decisions.
■ The BMC is action-oriented, encouraging businesses to identify activities and initiatives to improve their business model to drive
business growth.
■ A business model canvas provides a structured approach for businesses to explore possibilities and experiment with new ideas.
This encourages creativity and innovation, which in turn encourages team members to think outside the box.

How to Make a Business Model Canvas


Step 1: Gather your team and the required material
★ Bring a team or a group of people from your company together to collaborate. It is better to bring in a diverse group to cover all
aspects. While you can create a business model canvas with whiteboards, stick notes, and markers, using an online platform like
Creately will ensure that your work can be accessed from anywhere, anytime. Create a workspace in Creately and provide
editing/reviewing permission to start.
Step 2: Set the context
★ Clearly define the purpose and the scope of what you want to map out and visualize in the business model canvas. Narrow down
the business or idea you want to analyze with the team and its context.
Step 3: Draw the canvas
★ Divide the workspace into nine equal sections to represent the nine building blocks of the business model canvas.
Step 4: Identify the key building blocks
★ Label each section as customer segment, value proposition, channels, customer relationships, revenue streams, key resources, key
activities, and cost structure.
Step 5: Fill in the canvas
★ Work with your team to fill in each section of the canvas with relevant information. You can use data, keywords, diagrams, and
more to represent ideas and concepts.
Step 6: Analyze and iterate
★ Once your team has filled in the business model canvas, analyze the relationships to identify strengths, weaknesses, opportunities,
and challenges. Discuss improvements and make adjustments as necessary.

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