Business models are about making money and most forms are in the business to make a profit. It is therefore no surprise that the phrase business model is increasingly finding its way into CEO speech, and in business school functional areas such as accounting, finance, marketing and strategy. This work explores which activities a firm performs, how it carries them out, and when it executes them to make a profit. It reflects research of any strategy text. It includes the differences between business models and revenue models, the resource-based theory of strategy, the product-market theory of strategy, dynamic capabilities, connected activities, disruptive technologies, the role of corporate social responsibility in the formulation and execution of business models, translation of resources and capabilities into profits, the link between activities and profits, the S3PE framework, and balanced scorecard and economic value added as measures of business model performance.
Business models are about making money and most forms are in the business to make a profit. It is therefore no surprise that the phrase business model is increasingly finding its way into CEO speech, and in business school functional areas such as accounting, finance, marketing and strategy. This work explores which activities a firm performs, how it carries them out, and when it executes them to make a profit. It reflects research of any strategy text. It includes the differences between business models and revenue models, the resource-based theory of strategy, the product-market theory of strategy, dynamic capabilities, connected activities, disruptive technologies, the role of corporate social responsibility in the formulation and execution of business models, translation of resources and capabilities into profits, the link between activities and profits, the S3PE framework, and balanced scorecard and economic value added as measures of business model performance.