A Companys Business Model - 1508 Words

A company’s business model is a key factor in affecting a stock’s price especially in a recession. For example, companies that rely on consumer spending are at the mercy of their customer’s budget, which is often reduced in a recession; this translates into less on the bottom line, and therefore affects the business’s stock price. Industries such as the travel industry are heavily affected by economic downturn because consumers can relatively control how much they must travel and how much they go on vacation, and so on and so forth. In a slump, an average family of four may forgo going on vacation to the beach, but still have to buy shampoo to wash their hair. Essential products, sold by corporations, such as toilet paper, toothpaste, laundry detergent, or shampoo are not as affected by recessions because these products are always needed despite the economic climate. A company’s management team is also a big factor which can affect a company’ s bottom line as well as it’s market valuation. A great management team can turn an unprofitable business model into a profitable one, but conversely, a bad management team can convert a profitable business into an unprofitable one—this is why Warren Buffet is an admirer of company’s that are so easy to run that an idiot can run them because sooner or later one will. A quote by Buffett illustrates the importance of great employees and or management. â€Å"Somebody once said that in looking for people to hire, you look for threeShow MoreRelatedGoogle s Internal And External Organisational Skills1625 Words   |  7 Pageseffectively make changes towards the company’s internal and external organisational skills, resources and functional competences moreover, reviewing the company’s strengths, as a result of adapting to the new change(Newth, F 2012), that is, the re positioning of Google’s online shopping paid model. This is a crucial change t o develop, as vice president of product management for Google shopping, Sameer Samat, explained that by repositioning to an all-paid model will increase further trustworthy data(SullivanRead MoreHow Competitive Advantage And How Does It Manage A Company s Business Model?1035 Words   |  5 Pagesadvantage, and how does it relate to a company’s business model? Competitive advantage is that a company has better ability in earning profit and profit growth compared to its competitors for the same group of customers in one industry. Management level uses the business model to establish the strategies for the company’s operation and thus create competitive advantage over the company’s rivals and make more profit. 2. Describe the strategic planning model, and who is involved in the strategy-makingRead MoreDeveloping an e-Business Strategy Essay1276 Words   |  6 PagesAt the core of the development of an e-business strategy for any particular organization lays several issues that need to be spotted on by any person who intends to successfully develop either a B2C e-business model or a B2B e-business model. Due to the rapid development of technology and globalization in the 21st century, e-business has suddenly become an important means of conducting business transactions given the big difference in both businesses and consumers’ way of living prior and duringRead MoreHow And Who Makes Strategy At The Corporate Level1631 Words   |  7 PagesQuestions on Chapter 9 1. How and who makes strategy at the corporate level? How companies with multi business Model formulate their strategies and what they target in their strategies. Corporate level includes chief executive officer (CEO) board of directors, corporate staff whose responsibility to supervise the strategic development and to make sure that business strategies are followed correctly with maximizing profitability and sustain competitive advantage. Strategic managers decide in whichRead MorePorters Five Forces1232 Words   |  5 PagesUniversity 04 October 2012 Abstract Michael Porter’s Five Forces model is a very sophisticated theory for calculating a company s economical standing. Michael Porter established a structure that shapes a structure that monitors an industry and is often used in strategic planning. Porter s detailed five forces model is one of the most frequently used business strategy tools and additional ease and effectiveness to havemany situations within in America and withinRead MoreThe Company’S Board Of Directors Plays A Determinative1392 Words   |  6 PagesThe company’s Board of Directors plays a determinative role is assessing the company’s internal and external risks. The effective risk management is an integrated part of the company’s successful business performance. The Board is ought to identify, measure, and manage the potential risks and hazards. The Board ought to evaluate the efficiency of the company’s internal controls’ management, its strengths, and weaknesses. The Board of Directors decides on the scope of the actions necessary to maximizeRead MoreAir Canada Aligned Business Strategy With Information Technology1191 Words   |  5 PagesAir Canada Aligned Business Strategy with Information Technology In 2014, Air Canada achieved its best full year financial performance in the Corporation s 77-year history, said Calin Rovinescu, President and Chief Executive Officer. (Air Canada Website CIO 2015) Adjusted net income was $531 million, representing an increase of 56.2 per cent year-over-year.† The purpose of this paper is to examine how Air Canada in 2011 successfully aligned their business strategy and Information TechnologyRead MoreIntegrated Reporting And Its Impact On International Recognition1213 Words   |  5 PagesDrivers of and Problems with Traditional Model Over the past half of a century, companies have been exposing an increasing quantity of information to meet the needs of stakeholders. Particularly, they have presented complementary information to providers and potential investors who greatly concern and predict the trend from financial statement. According the research from ACCA1 concluded that investors say: â€Å"A link is missing between current reporting, business strategy and risk, and we do not believeRead MoreCustomer Value Proposition : Mcdonald s Owner Value1094 Words   |  5 Pagesby tracking Internet usage data, and the company ensures that customers are receiving the most value possible through this free service. 2. Owner Value Proposition – McDonald’s owner value proposition hinges on its sales. With the franchise business model, the company as a whole is able to take a percentage of total net sales that each of its franchise stores receives, and also make profits from franchises in which the company is a majority owner. The company as a whole faces many costs, suchRead MoreDecision Based Modeling : Case Study876 Words   |  4 PagesDecision Based Modeling The purpose of this paper is to review a business case presented by a laboratory services company and make recommendations on how best to incorporate required changes and the impact it will have on current and future operations. Prior to making any recommendation, a review of the company’s existing business operations is required. This assessment will afford the decision maker various tools in which informed decisions can be made. More times than not, multiple options