Question

A company's business model details the manner in which the company will pass the three tests of a winning strategy. indicates how the strategy will result in achieving the targeted strategic objectives. clarifies (1) how the business will provide customers with value, and (2) why the business will generate revenues sufficient to cover costs and produce attractive profits. explains how it intends to achieve high profit margins. sets forth the actions and approaches that it will employ to achieve market leadership.

Answer 1

The correct answer is: clarifies (1) how the business will provide customers with value, and (2) why the business will generate revenues sufficient to cover costs and produce attractive profits.

Step-by-step explanation:

The business model of a company is a tool that helps a new enterprise to enter the market seeking to understand all the variables that make up the business and that integrated will assist in providing value to customers and generating enough revenue to cover costs and produce attractive profits.

Because it is an easy tool to make, cheap and easy to implement, it is essential that each company develop its business model with a focus on creating value in order to achieve innovation and creativity for business success.

It is important for the entrepreneur to follow some steps to realize his business model, which can be constantly modified when he finds more creative strategies to generate business value. Some questions can be asked such as: What will be done, how will it be done, for whom will it be done and how much will be spent. According to all these premises, it will be possible to seek the best way to implement a business that is profitable and competitive in the market.