PresentationBusiness3 Elaboration of statement In the evolutions of the worlds entrepreneurship industry, managers have evolved from the generic means of gaining a competitive advantage to much more formidable methodologies that optimize the internal business environment. Directives such as mass production and investment in distribution are no longer dependable in the survival of the current competitive nature of meeting various consumer needs(A Wilcox, 2001). Managers have delved into other entities of the organization in search for a solution to this quagmire; the most cheapest and long term solution to not only sustain a business but also improve it as well. Entities such as human resource, finance and even marketing have all been redefined in terms of approach with the application of business models. The restructuring of key business entities that affect the day to day activities of any organization is somewhat echoing the words of a legendary philanthropist, Henry Ford. His approach was even a lager perspective than the simple improvement of the internal business atmosphere. He perceived that if his company and the country in general were to succeed economically, both the social and political elements of the society out to be aligned with this economic prospect. What came to be known as Fordism, a theoretical methodology that has inspired the execution of entrepreneurial obligations to date, involves finding a point where all the internal entities of an organization inclusive of labor and the leadership have mutual independent interests. In return, of the excellent execution of management prerogatives, employee will earn bigger wages. Fordism extends its reach to the external environment as well, with the promotion of a competitive environment of a monopolistic nature. Enterprises that dominate industries are prompted to execute their objectives with an appreciation of cost plus pricing so as not to suffocate smaller competitors. It is a methodology that touches on structural management of finance and even gives leeway for state intervention in dire economic situations. It is with this mindset that scholars, strategic leaders and entrepreneurial specialists have come up with models that give businesses a stronger competitive advantage that is adaptable to the modern day market conditions(Bacal, 2011). These models ensure a business meets its objectives by changing entities of the relative enterprise beyond that of mass production and advertisement. Today, there are business models for every element of the internal business environment, from supply and demand to leadership approaches. The most successful organizations in the present day today, have in one way or another established a formidable business model that is ideal to their market share expectations and organizational objectives. Fordism Business Model A business model is typically any structured approach that sets elements of an organization in the manner that best meets it projected entrepreneurial ambitions. It simpler terms, it is a means by which an organization ensures that it does not only survive but grow simultaneously(Blenkhorn & Fleisher, 2005). In a much more academic perspective, these are predefined methodologies that are adaptable within an organization, delving into all internal business elements such as market participants (competition, customers, and associate businesses), management of finance, leadership approach, personnel recruitment, not to forget information and technological solutions. Fordism is somewhat a business model that covers a much larger economical scale. While distinctive business models encompass an organization and its immediate external environment, Fordism covers the state and its relation to the global economic industry. It is an approach that promotes capitalism through the elimination of obstacles that a country may face regardless of whether is tis political, social or economic. Fordism catalyzed the evolution of the execution of business activities by redefining the approach taken by organizations and countries alike. The resultant effect is the formulation of business models that have grown over time. Solutions can be found on even how to approach low income markets. Business models facilitate the success of an organization beyond the fundamental product machineries and technologies. The rippling result is the continuous redesign and development of entrepreneurial approaches with renewed appreciation of economies of scale of entities of the internal business environment(Buthpitiya, 2012). An avid example is the coined term Silicon Valley Business Model that describes how organizations based in Silicon Valley have succeeded. It is business model that highlights the importance of knowledge, information on the economic environment, invention of innovative solutions, global connectivity, and social entrepreneurship. It is a model that is popular, largely due to the characteristic growth of small scale enterprises to large international conglomerates that many of the successful organizations in Silicon Valley have experienced. It is a business model that prompts directives that are knowledge based, that optimize the skills of the entrepreneurs and improves both the internal and external business environments. The Silicon Valley Business Model Any business model that has been seen in application in the Silicon Valley has a characteristic focus on the restructuring the business architecture, provide the best possible promotion approach and production of innovative commodities that not only meet but superset the needs of the target market. Restructuring predominantly involves the application or formulation of a practical business models. Entrepreneurial functions are analyzed in terms of vertical structures, which are elements that support operational elements such as supply, finance and sales. They can be horizontal processes that involve the structural management of an organizations human resource element. The marriage of horizontal and vertical functions has a lot of success in the Silicon Valley attributed to it. The best marketing strategy is based on the gathering of information of the conditions of the entrepreneurial atmosphere inclusive of competitor activities, marketing trends and promotion methodologies. It will enable an organization implement the best strategy to market the relative product(Agarawal, 2006). Not all existing marketing models are applicable due to the complexity of different markets structures and industries which catalyzing the innovation of custom marketing strategies that are best suited to the originations capacity. Moreover, the need for creating and developing new models has been seen as the best possible means to meet the present day congested business surroundings. Those who fail in this regard have been seen to focus on misguided investments, which in the end led to failed businesses and ruining of careers. The last critical element of any successful Silicon Valley business model is the continuous investment in research and development that has resulted in the creation of well-designed goods. An organization also needs to have a unique product and work on its improvement regardless of successful sales or not. The product should not only meet its basic function but also provide a solution for secondary problems. In addition to that, its use should be one that solves critical challenges that are faced day to day by the prospective end-consumer. A case study that highlights the successful application of a successful Silicon Valley business model is Associated Press, a news organization. The evolution with which technology has enabled the connection and communication of the global society has forced many news outlets to redefine their basic business model. Due to the convenience with which the internet is now accessible, individuals are no longer going to the newspaper stand for information or wait for the next news bulletin, but are heavily dependent on the internet(Blenkhorn & Fleisher, 2005). This is simply because the information is much easier to access, somewhat free and in real time. AP recognized the change of the market atmosphere; and as such, recognizes implements innovative growth opportunities as a means of adaptation. Among its revised objectives was the acquisition of News Whip, a technological startup company that facilitates the communication of information within the newsroom. The company provided a platform that sieves data from social media activities as a means of sourcing feedback from the audience and people on the ground. One immediate effect was the improvement of dissemination of editorial personnel. It went further ahead to invest in the conversion of data to info graphics by partnering up with Graphiq, a design company. How these elements contributed to the success of the organization of interest The acquisition of News Whip enabled AP to restructure the means by which stories and information are distributed, discovered and investigated. It has enabled the media conglomerate to apply new tools in adaptation to the current media industrys atmosphere, where technological solutions are the go-to investment. The investment in mobile and social media optimization platforms has enabled AP to sustain its market share and even launch new products such as the highly successful ?10 Things to Know series, that provides a preview of the most significant topics and event that took place in that particular day(Buthpitiya, 2012). The assimilation and appreciation of the internet alongside the dependability its target audience has in it, enabled AP to thrive as a media entity. The investment in technological solutions has optimized the performance of its internal environment and improved its overall product, which is news. The feedback methodology has enabled AP to connect its audience to various occurrences regardless of its position on the planet, ensuring that its market share is secured and thusly, guarantees a future for the company. Significance of findings with respect to future of business models It may have taken a couple of decades to recognize the relevance of renovating the manner with which business objectives are critically executed but the result is dynamic business models that have changed the perception of the market in the long term. The result of this revision of business approaches, reinvention of the internal business environment and the creation of innovative goods and dependable services. The greatest challenge for future business models is the issue of optimization(A Wilcox, 2001). Business models have been effective sine the 90s, and has resulted in renovation of almost all elements of the internal business environment. Models have been created for human resource management, finance, leadership, supply chain, marketing and even technology. It leaves little space for new innovations. It begs the question what will be the next means of gaining a competitive advantage after the luster of technology(Agarawal, 2006). Moreover, the global economic atmosphere is yet to fully recover from the recent recession where many of the models in place failed to save many companies. The only resolve, it seems is for organization to look for solutions from within, use their available resources to formulate approach that is coherent to the market conditions as they evolve. A Wilcox, Z., 2001. Competencies and firm peformance: Examinig the casual ambiguity paradox. Strategic Management Journal, pp. 75-99. Agarawal, K. N., 2006. Competitive Intelligence in Business Decisions- an overview. Competitiion Forum, 4(2). Bacal, R., 2011. Perfomrance Management. Thousan Oaks: McGraw-Hill. Balzac, S. R., 2011. Organizaitonal development. New York: Mc Graw Hill. Blenkhorn, D. L. & Fleisher, C. S., 2005. Competitive Intelligence and Global Business. New York: Praeger. Buthpitiya, S., 2012. A Context-Aware Application Development Framework and Toolkit for the Mobile Environment.. Proceedings of the 26th International Conference on Advanced Information Networking and Applications Workshops, 13(8), pp. 663-670.
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