Business Models

Business Models

Introduction

To conduct the day to day activities of a business we need a proper system and model. This system and model provides us a clear guidance, direction and supervision to conduct the business. As the time is passing new business models are developing. Social business model is one of the new aspects of conducting the business. In this paper I would discuss the differences between traditional business and social business. Old principles in new rapidly changing economy are no longer working. Businesses have exhausted the possibilities of using the old business models on such important parameters as the complexity and speed. The main problem is destroying the functional disparity, which exists between the contemporary business environments and the traditional business models. In other words, inappropriate business models can cause the destruction of a company. Revolutionary technology requires new business models. In this new business climate of the classic "command-and-control" business model, although survived, was much less effective.

Discussion

Traditional Business Model

Traditional business unit is a design of business that helps the businessmen to earn profit. The basic approach of traditional business is to maximize profit as much as one can without causing any social benefits.



Social Business Model

The objective of social business model is basically to pass all the benefits to the customers. It is a customer oriented business model. But one thing that is worth mentioning is that this sort of enterprises is not non-profit organization. They must have to compete with other traditional or profit maximization organizations (Pedler, 2002). Organizations that operate using this sort of business models have to earn enough profit to cover the expenses.

Example

One of the best examples that fit best to explain the concept of social business model is of Gramene Dannon food plant. Famous football player Zinedin Zidane inaugurated this project. This project provides ...