Why is it important to craft a business model?
A)Because it sets forth management's game plan for maximizing profits for shareholders
B)Because it details exactly how management's strategy will result in the achievement of the company's strategic intent
C)Because it is a part of an operating model that focuses on delivering excellence and creating value for external shareholders and internal labor force
D)Because it sets forth the key components of the enterprise's business approach, indicates how revenues will be generated, and makes a case for why the strategy can deliver value to customers in a profitable manner
E)Because it sets forth management's long-term action plan to match the business standards set by formidable rivals

Question

Quizplus · Accepted Answer

Crafting a business model is important because it sets forth the key components of the enterprise's business approach, indicates how revenues will be generated, and makes a case for why the strategy can deliver value to customers in a profitable manner. It helps to define the company's direction, purpose and strategy, and provides a framework for decision-making and resource allocation.

Why Is It Important to Craft a Business Model