Professional Accounting MIT Sloan Management Review

Question: Describe about the Professional Accounting for MIT Sloan Management Review. Answer: Business Model Innovation Paragraph 1: The BMI (business model innovation) contains two essential elements value proposition and the operating model (Massa and Tucci 2013). The value proposition discusses about business model that who are the group of customers? It refers explicit choice in three dimensions as follows: Target customer: this is to define the group of customer whom the business would serve and to identify their needs. Service or product offering: It states the business offering to the customer to satisfy the customer needs Revenue Model: It states how the company is compensated for the offerings they provide to the customer The operating model discusses how to gain profit from the customer by delivering the offerings and choice of the business depending on certain criterias like Value chain: What is the status of the business to satisfy the demand of the customer, what operations are followed in the business organization, which components are outsourced and their needs to outsourcing the elements? Cost model: It defines the configuration of the current asset of the company and the costs required for the delivery of its value to gain profit (Gobble 2014). Organization: It states the method to develop and deploy the people in the organization to endure and advance competitive advantage over other companies The BMI is valuable when the business organization is in instability, the business model innovation can give an organization the best approach to break out exceptional rivalry under which item or procedure development is restricted effortlessly, technique of the contenders are joined and the supported preferred standpoint is tricky. Paragraph 2: The Business Model Innovation can address disturbance, for example, administrative or mechanical movements that interest on a very basic level of new aggressive methodologies. Unverifiable interest is a test that all organizations confront and in most of the cases they are the main source of the risk. One approach to lessen that danger is to roll out improvements to the organization's blend of items or administrations (Casadesusà ¢Ã¢â€š ¬Ã‚ Masanell and Zhu 2013). In account, if the organization have two portfolios offering a 20% return, it ought to pick the less unsafe one, since it will make more esteem after some time (Massa and Tucci 2013). The same is valid with item portfolios. Organizations looking to recalibrate their item or administration blend have basically three choices: Uncover new opportunities: The current business model need to be diagnosed and the limitations and the opportunities of the company should be identified. Implementation of the new model: The successful business organizations whose main reason for success is the innovation of the new model are not the innovator of the business model (Amit and Zott 2012). They are the first to implement the business model successfully with the application of new ideas Creating new platform skills: It is the process of building a new platform for the management of the business model innovation process. Week 5: CAGE Framework Paragraph 1: The CAGE Framework combines the Cultural, Administrative, Geographic and Economic distances of the companies and the countries (Moalla and Mayrhofer 2014). Pankaj Ghemawat is the person who built up the CAGE structure. CAGE framework is a great apparatus for affiliations and organizations hoping to create global methodologies (Ghemawat 2013). Effortlessly survey the potential size, dangers, and hindrances to various universal markets; take out the mystery of picking which nations to enter in which request; Identify current items most effectively and transportable at least cost; and develop new items exceptional to worldwide endeavors (Motohashi 2015). The analysis of the CAGE framework distinguishes the center ground between the one-size-fits-all and the mass-customization extremes that encapsulate most worldwide business sector methodologies and item advancement endeavors. The administrative dimension identifies the physical transportation distance and increase in the cost, remotene ss and the geographical diversity of the country, weakness of transportation or failure in communication and problem faced in internal navigation (Jain 2016). The geographical dimension affects the organizations related with production of perishable or fragile products and that have low bulk ratio or value. The products also requires good connectivity and communication between the supervisors and operational requirements. To apply the CAGE system in an organization there should be recognizable proof of the areas that offer low crude material costs, access to business sectors or customers, or other key choice criteria (Motohashi 2015). It could be resolved that the business association is keen on business sectors with solid customer purchasing power, so it would utilize per capita salary as the principal sorting model. Accordingly, it would likely wind up with some kind of positioning in the current market scenario. Paragraph 2: Walmart being a huge company and having business worldwide it have problems regarding its business abroad. Walmart gains more profit in its home country than other countries, so it need to find the problem in its business to have equity in their business (Jain 2016). Thus the CAGE framework is applied on Walmart to resolve the business issues related with Walmart. The CAGE framework underlines that the distance acts as the critical element to influence the economy and competition of the business (Motohashi 2015). The CAGE framework can help the business organization to identify the differences in their business. In the report Walmart has been identified and application of CAGE framework in their business process would benefit the companys current growth (Ghemawat 2013). The cultural, administrative, geographical and economical barriers of the company can be mitigated implementing the CAGE framework in the current business process of the company. References Amit, R. and Zott, C., 2012. Creating value through business model innovation.MIT Sloan Management Review,53(3), p.41. Casadesusà ¢Ã¢â€š ¬Ã‚ Masanell, R. and Zhu, F., 2013. Business model innovation and competitive imitation: The case of sponsorà ¢Ã¢â€š ¬Ã‚ based business models.Strategic management journal,34(4), pp.464-482. Ghemawat, P., 2013.Redefining global strategy: Crossing borders in a world where differences still matter. Harvard Business Press. Gobble, M.M., 2014. Business model innovation.Research-Technology Management,57(6), pp.58-61. Jain, V.K., 2016.Global Strategy: Competing in the Connected Economy. Routledge. Massa, L. and Tucci, C.L., 2013. Business model innovation.The Oxford Handbook of Innovafion Management, pp.420-441. Moalla, E. and Mayrhofer, U., 2014.How do different dimensions of distance affect market entry mode choice? An application of the CAGE-distance framework(No. hal-01134087). Motohashi, K., 2015.Global Business Strategy. Springer-Verlag GmbH.