Business Model
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business_model_.ppt
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- A stock market is a market where securities are sold
- Only listed companies are allowed to trade at the stock exchange
- Companies that are listed need to fulfill some conditions for them to continue trading at the stock exchange
- Due to the conditions, companies are forced to perform as per expectation
Trading at the stock exchange market means that companies enjoy certain privileges but this does not just happen because they are required to fullfill
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- Stock Markets helps companies to grow because failure to meet conditions will lead to deregistration.
- They expose companies to wider markets hence more growth opportunities
- Listed companies have more opportunities to raise capital unlike the unlisted once that are limited to private sources.
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Companies that trade at the stock market are owners by directors who are voted in by the shareholders
The shareholders elect directors at the annual general meeting
The stock exchange market is managed by a chair person who is elected by Company directors
Members of the board can vote out the chairperson in the event that does not perform
The stock market is run by a chairperson who controls the market, the directors elect the chairperson and the directors are elected by shareholders
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- Business models define companies make money
- Models can be purely profit oriented e.g. Low cost model, advertising model, pay s you go model among others.
- For the business model to be helpful, it should be well integrated into the business
- Purely profit oriented models are focused on generating revenue for the companies
Models generally define how companies are going to generate revenue and profits. Where the business models are well integrated into the system, companies attain maximum profits
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They motivate the companies to operate the optimum level by ensuring that the objectives and goals are followed
Encourages sustainability of the companies activities (Kumar 200)
Helps in establishing governance structures for companies for directors of the companies that trade at the stock market
Sustainable decision making and processes in companies
The kind of model that is associated by a company can determine many issues that are related to the companies like sustainable decision making and growth
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There are other models that are not majorly concerned with making profits, rather they focus on the needs of people and the world
Such models also take care of the needs of employees for value addition at various levels
Through creating value in the company, the models are able to give quality services to customers (Gregory 2003).
The model that focus on the needs of the society factors in the needs of everyone
While the purely profit model is designed to raise revenue, there are other models whose focus is to add value to all stakeholders of the company
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One of the alternative model that can be implemented by a trading company is the sustainable model
Coca cola is one of the example of a company that has implemented the sustainable model
The sustainable model is good because it take into consideration all the aspects of the company including value and external interest
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The pure profit model focus on profits, which means that companies which use this model are under pressure to meet the profit target
The sustainability model grows all the sectors of the companies from employees, customers and the society
The pure for profit model can lead to skewed development because the focus is purely on money, this means that other sectors are likely to suffer.
The pure profit model and the sustainability model work differently because one focus on just one aspect while another one has a more wider perspective
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Gregory, K.(2003). How to make money in the stock market. Oxford :Oxford University Press
Higgins, R. C. (2009). Analysis for Financial Management (9th ed.). McGraw Hill/Irwin
Kumar, P.(2009). Introduction to business models. New York: NYP
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"Towards Sustainability." Http://www.coca-colahellenic.com. Coca-Cola HBC AG, 2013. Web. 09 Sept. 2013. <http://www.coca-colahellenic.com/sustainability/>.
