Strategic Decision Making Underwater Hotel Essay

Strategic Decision Making Underwater Hotel - Essay ExampleHowever, some other elements, particularly the individual actions that supported the goals and objectives of the representative, are deficient. Components like cost structure or key activities are also ill-placed, especially when the framework should provide a logical and structured framework where the hotels characteristics and potential can be clearly converted into economic outputs. (Chesbrough, 2011 94) This must have been what Neely (2007 200) had in mind when explaining how a model improperly grounded in the performing unit as a phenomenon will most likely overlook the variables that influence how the system functions. Because of these cited weaknesses, the bank line model will fail in the areas of theoretical and operational coherence. To address this, an improved framework should be adopted. An appropriate framework is outlined below. Fig. 1 Suggested Framework (Osterwalder, 2009 44) The model shown above has been perfected by Osterwalder and could actually be modified into several other versions to accommodate the differences in both components and objectives. What the model offers is not only an powerful framework description, but also the capacity to be flexible and envision alternatives. Hence, this particular model can optimize processes for underwater hotel ventures and its objectives, especially in the vast term. II. Integration of the Business molding In terms of integration, the ancestry model is quite efficient. The framework outlines clear practices and activities as well as future objectives and visions. This strengthens the business model, especially considering the fact that the venture is entering into the market for the first time. However, as has been previously cited, the modelin effectively integrating componentsmust provide nodes to identify their relationships and connections. Jaakola, Kiyoki and Tokuda (2008 154) identified this as the node structure, an element in business models that explain processes such as rank creation and business transactions. III. Feasibility of the Business Model Elements unique to a business model add to the complexity of how framework should be examined in the context of its feasibility. The most important criteria, however, is economic viability. This should made a crucial precondition, because without it there is no reason for existence, as the project being undertaken cannot be supported by the market. The project, as defined by the business model, should be profitable. What this means is that rewards must either equal or surpass the expectations of diversified investors on a risk-adjusted basis from investments made and resources consumed (Johnson, 2007 42). Currently, the business model lacks value-added development and thus misses out on the profits available. Another important aspect in a business model is the way it creates value or shared value among business partners. According to Vermeulen and Cotula ( 2010 35), there are four criteria that should be used to determine how a business model shares value 1. Ownership of business equity shares 2. Ability to take part in decisionmaking process 3. Commercial risk and other types of risk such as governmental and reputational risks 4. Sharing of economic costs and benefits and other financial arrangements All of these variables are related to each other. One may be linked or is responsible for the existence of another. Nonetheless, these elements collectively bring about value and, hence, must be present in a business