Value chain model business plan

Description[ edit ] Formal descriptions of the business become the building blocks for its activities. Many different business conceptualizations exist; Osterwalder's work and thesis[3] [5] propose a single reference model based on the similarities of a wide range of business model conceptualizations. With his business model design template, an enterprise can easily describe its business model. The most important activities in executing a company's value proposition.

Value chain model business plan

For large public-private or government projects revenue sources might also include: Bonds, usually for large capital expenditures Taxes, primarily income, property and sales taxes Use fees and tolls With small fast-growing companies such as e-Business startups, investors often track expected revenues and revenue growth and may make changes to increase revenue.

However, after the Dot-Com boom ended, more traditional measures such as cash flow and earnings have came back into favor as means of evaluation. Value chain model business plan, Resources and Capabilities The activities, resources and capabilities of a business are sometimes known as its requirements.

In order to perform the activities required to carry out the mission of the business, certain resources are needed; for example, employees with certain skills, or capabilities, are needed to perform activities correctly and efficiently.

Also, inventions, processes and other intellectual property may add to the individual knowledge of an employee to develop a competence in the performance of the required activities.

Activities Activities are specific business processes or groups of processes such as design, production and sales that implement the business concept. The operational business model identifies the costs and outputs of each activity.

Activities drive the need for resources. Existing activities should be carefully scrutinized in order to conserve resources and reduce costs. Activities left over from previous initiatives, but not currently necessary should be curtailed. This may sound elementary but businesses start many activities over time, especially if its business concept changes.

But one doesn't often hear of a large business curtailing its activities in order to focus on its current mission.

Also, proposed activities should be carefully reviewed before a commitment is made to develop them.

Definition of a Business Plan

Not only should they be aligned with the goals of the organization and contribute to offerings in demand in the market, but the required resources and capabilities should be considered. The implementation of some activities, such as production or manufacturing, have high costs that must be incurred before a product can be sold and revenues begin to flow.

Some fundamental e-business activities may infringe on patents. Business processes, or the "method of doing business" may be patented, so that a business model may unwittingly include the development or use of intellectual property owned by another party. Patents have been freely awarded for even the most straight forward business processes.

CyberGold has a patent for pay-per-view ads where the customer enjoys an incentive for clicking on them Netincentives has a patent for online incentives programs, possibly in conflict with CyberGold's Netword LLC has a patent for a Web navigation based on keywords rather than URLs Open Market has a patent on electronic shopping carts, on paying with credit cards using the secure socket layer encryption and on secure credit card transactions.

However, there are now several types of shopping carts. One-click shopping allows the prospective buyer to bypass the use of a "shopping cart", which is cumbersome for many users.

This business process has been used freely by traditional businesses since the beginning of recorded history and the fact that this process has been patented is very controversial.

Also controversial is Priceline. In effect, a few companies have patented Internet business models, which are being used by many other companies. If these patents can be easily licensed at reasonable rates then there won't be a problem in the future development of e-business.


But if not, the resulting chaos will inhibit the growth of the online business world. Resources In order to perform activities an organization requires human, tangible, intangible and supporting resources.

Human resources, in particular the skills and knowledge of employees are important, as are the programs e.

value chain model business plan

Of related importance is the "corporate culture" that shapes how employees work together and which may also be instrumental in determining how a company works with its partners, or whether a merger between two companies can be successful.The aquaculture value chain in Zambia has experienced significant growth and upgrading in recent years.

• Intensive aquaculture is growing whilst smallholders operate in isolation of a commercializing value chain. Value chain analysis is a strategy tool used to analyze internal firm activities.

Its goal is to recognize, which activities are the most valuable (i.e. are the source of cost or differentiation advantage) to the firm and which ones could be improved to provide competitive advantage.

The business model describes how the company is positioned within its industry's value chain, and how it organises its relations with its suppliers, clients, and partners in order to generate profits. Value-stream mapping is a lean-management method for analyzing the current state and designing a future state for the series of events that take a product or service from its beginning through to the customer with reduced lean wastes as compared to current map.A value stream focuses on areas of a firm that add value to a product or service, whereas a value chain refers to all of the activities.

Business Plan. In many cases, the business plan is the home of the business model and the business strategy.

The business plan explains every aspect of the business, including the model . Table of contents Introduction 1 1. Market outlook 2 2. P&U value chain: issues and business opportunities 3 “Gassier” business models 4 Electric transmission 6 Utility-scale renewables 7 Other emerging options 8 3.

Value Chain Analysis and a Value Chain Example