The business model of an organisation:
A)takes the value proposition and incorporates it into a specific value chain of activities
B)is a process for modelling the success of the organisation's strategy
C)determines how the organisation will create customer value
D)can be difficult to identify in low-cost manufacturing firms

Question

Quizplus · Accepted Answer

The business model takes the value proposition and incorporates it into a specific value chain of activities. It defines how the organization creates, delivers, and captures value. It includes the processes, resources, and capabilities required to create and deliver the value proposition.

Option B is incorrect because the business model is not just a process for modeling the success of the organization's strategy, but it is the strategy itself.

Option C is partially correct but not comprehensive as it misses the capturing of value part.

Option D is inappropriate as the complexity or simplicity of the business model is not dependent on the type of industry, organization, or business.

The Business Model of an Organisation