Mgmt13151 : Business Model Assignment Assessment Answers

Question: 

Critically evaluate the Importance and application of Business Excellence models in a public or private sector organization within the UAE.  Use recent research evidence (see course material, VLE, recommended textbooks and related references) as well as adopted business excellence model by a UAE-based organization that you are familiar with to support your arguments.

Structure of your answer:

Answer: 

Introduction:

Business models are of great importance to both private and public organizations. Business models show how an organization identifies and creates value for customers to increase its profits. A good business model should be able to involve both internal and external factors.

The reasons and benefits of adopting business excellence models

1. A good business excellence model framework is known for impacting positively in both a business and its outcomes. Research conducted on many organizations that adopt business excellence models have indicated that business excellence models help in advancing or rather improving different management practices within the organizations. This in return contributes to improved national competitiveness. An example of such as the case in Korea and USA.
2. Most organizations that adopt effective business excellence models benefit from the provision of a roadmap for excellence. This, therefore, helps the organizations and companies with opportunities to conduct self-assessments and identifications on areas that need to improve as well as benchmarking where they can take responsive and corrective actions after the benchmarking process. With knowledge of such success factors that are associated with business excellence models, organizations tend to be motivated in the adoption of  these models
3. To help in promoting teamwork. Business models have promoted teamwork among employees through the focus on performance quality. This is done by ensuring that both the individual goals are similar to the organizational goals. Employees tend to work together to ensure job satisfaction and achievement of their goals. The management should shape the future of the organization and make it happen while utilizing the talents and skills of the employees.
4. Most business organizations that are performing well are known to be applying and making good use of business excellence models. Research studies reveal that business excellence models when effectively adopted lead to effective utilization of the organization's resources that may include finances, technological resources, and human resources. Most organization have proven to have an improved orientation process, better customer orientation and improved customer relations with the adoption of good business excellence models and frameworks. Moreover, implementations of business excellence models are becoming a popular and motivating factor due to its ability to improve business outcomes such as sales volume, profits, and employee morale and market shares.(Mahn, 2011)
5. Creating greater awareness of quality among employees. Business models create a clear picture of the quality output aimed and achieved by the organization. This awareness has brought about trust between employees and the top management and therefore works to improve their performance. “Organizations generate increased value and levels of performance through continual improvement and systematic innovation portrayed by harnessing the creativity of their stakeholders.”(Teece, 2010)
6. Continuous professional and organizational performance. Business models have kept the performance of both private and public organization going. Models make it possible for the organization to predict its performance. This prevents it from going bankrupt or for unplanned results. Through training, the employee’s professional career is improved. “Excellent organizations have a positive impact on the world around them by enhancing their performance whilst simultaneously advancing the economic, environmental and social conditions within the organization and surroundings.”(Markides & Sosa, 2013)
7. Developing a proactive, flexible workplace.This has been done through empowerment and motivation. The organizational personnel is prepared for new changes by the models and hence be flexible to apply them. Employees are now willing to make decisions that the previously would have deferred to management. This state shows that the organization’s culture has changed. Cost-effectiveness and use of a systematic approach leading to an improvement in services and an increased level of customer focus. This finding can be supported by the very high customer satisfaction rates collected in recent surveys. This has been found to have been done by consistently understanding, anticipating and fulfilling needs, expectations, and opportunities of customers.(Fenell, 2017)

Evidence from a local organization

A few frameworks of business models have been applied in local organizations such as e-business and microfinance. The role of the models in such organizations is to explain how the business creates value, sells the value to the customers and how it converts those payments into profits. The frameworks, e-business, and microfinance mostly target product- centered -businesses. Empirical evidence on business models in local organizations is difficult to find. Business models of creative professional services seem to be more elusive and less defined than those of creative content providers (Osterwalder, 2010). Coca-Cola Company is one of the local companies in the world that can be used as evidence on how to apply a business model canvas or framework for business success. The company’s activities include bottle manufacturing, beverage processing, distribution, retailing of its beverage brands that include diet coke, sprite, Fanta, minute maid and Kinley. To gain maximum profits from these activities, this company has adopted a business model that they term it as “the Coca-Cola system.” This model is to cover the areas of production, marketing, sales and distribution processes which are the main productive activities of this company. Since the company is globally distributed, it has adopted an extensive business model that comprises the following in most countries (Coca cola company, 2016)

1. The coca cola export corporation in every country
2. Respective country Coca-Cola beverage limited company
3. An extensive network of distributors both international and regional(Dubosson, 2002)

The coca cola company enjoys a competitive advantage and other attached advantages for their adoption of a productive business model. This explains why this company always appears to be operating in a monopoly power in many countries of operation. The company’s business model has concentrated on marketing to get customers, producing more of what the customers need, distributing to them through local distributors and selling to them at different prices and tastes.

Conclusion:

In relation to the literature review on the benefits of adopting business excellence models as well as evidence from local companies, it's right to conclude that, For companies, there is a need for more effective networking and sharing of best practices particularly from mature adopters to early adopters of BE. There is an opportunity for 1256 R. Mann et al. larger corporate organizations to play a more active role in assisting SMEs on the journey to BE. A good starting point is for mature adopters to work on increasing the take-up of BE principles within their own supply chain as this will benefit their own organization as well as others. In order for a business to excel in its performance, there should be total quality management and strategic plans should be made. A business model not only improves the relationship between top management and the employees it also enhances proper relations with the customers. The management should ensure that the employees have a sense of job satisfaction so that they can focus on improving organizational goals. This leads to employees offering proper customer care to the customers. Business models also enhance changes in the culture of the organization which leads to better performance beyond measured borders. Involving employees in decision making makes have a sense of being valued and they, therefore, utilize their skills totally by the introduction of new ideas. It’s therefore clear that both private and public business sectors, there is a need for an effective business model to play a vital role in explaining how that company can earn or earn its revenues. The business model is not only vital for the customers or external stakeholders but also important to the entrepreneurs since it will aid them in acquiring investors and the establishment of partnership. (Fenell, 2017)

References:

Coca cola company, 2016. Coca cola journey: Our business model. [Online] Available at: https://www.coca-colajourney.com.pk/our-company/our-business-model [Accessed 11 October 2018].

Dubosson, M.O., 2002. eBusiness Model Design. thunderbird international business review.

Fenell, Z., 2017. The Importance of a Business Model. Biz fluent , 1(1), p.4.

Mahn, R., 2011. Awareness and impact of business excellence in Asia. Total quality management, 22(11), pp. 1237–1258.

Markides, C. & Sosa, L., 2013. Pioneering and first mover advantages: the importance of business models. long range planning, 46(4-5), pp.325-34.

Osterwalder, A..?P.Y., 2010. Business Model Generation. New Jersey: John Wiley and son.

Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning, 43(2-3), pp.172-94.