12160687 Yifan Wang Module code: EB3S03

Assignment 1



Assignment 1

Introduction

As a term business implies that any party which participates in trade offers services, manufacture goods or retail its products to consumers is conducting business. Business is defined in two categories one is to bring innovation in the current business model of any business type the other is to follow the cliché of the market trend. Innovating business possess greater risk therefore yield higher profits.

Any new business model when launched is with the primary motive of extracting maximum profits from the market, through ethical means. However, when a business enters the existing market it faces various challenges apart from promoting its vision, brand and idea in the market. However, after a certain time period (in most cases an year) if the business sustains itself through all the risk then it is prone to organizational profits and the cycle of growth halts at a certain point in an years time.

The growth cycle of a business model is dependent upon various constraints each of them evolve step by step, the following are the constraints which a company encounters in its first year while growing as a business. The initial constraint is the courtship, next is infant, then the Go - Go constraint, followed by adolescence period and then the company reaches its prime, after completing its prime the company ends up on a stable position.

Discussion

At the establishment of viable administration for any conglomeration is the basic truth that all conglomerations, for example all living life forms, have a lifecycle and experience extremely foreseeable and redundant examples of conduct as they develop and improve. At every new phase of improvement a conglomeration is confronted with a remarkable set of tests. How well or defectively administration addresses these tests, and heads a solid move from one stage to the following, has a critical effect on the triumph or flop of their conglomeration.

The growth of a business model is similar to the growth of a human being and develops as a child develops from birth till it reaches its mature age; similarly, a company reaches its stable position. As a human starts declining from its mature age towards elderliness, similarly, a company declines from stable position, the incline and decline is marked on a parabolic curve where at one point it reaches its maximum and then starts a down fall (Cao, & Chen, 2012). The critical evaluation of each phase is described below.

Courtship

Courtship defines the first stage of the growth of a business model. At this level the intent and purpose is defined why the owner develops the idea for the business, it also plays a vital role of defining the vision and mission of the company in terms of where they expect to land after stabilization. Courtship has the role of defining the ultimate goal of the founder as to whether he is solely present to earn money or provide some input to the market.

The problems encountered in courtship are that the new ...