Strategic Decision Making Underwater Hotel Essay

Strategic Decision Making semiaquatic Hotel - Essay ExampleHowever, other elements, particularly the individual actions that supported the goals and objectives of the case, are deficient. Components like cost organise or key activities are also ill-placed, especially when the amaze should provide a logical and structure framework where the hotels characteristics and potential can be clearly converted into scotch outputs. (Chesbrough, 2011 94) This must(prenominal) gift been what Neely (2007 200) had in mind when explicateing 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 headache model will pass in the areas of theoretical and operational coherence. To address this, an improved framework should be adopted. An appropriate framework is outline below. Fig. 1 Suggested Framework (Osterwalder, 2009 44) The model shown above has been per fected by Osterwalder and could actually be modified into some(prenominal) other versions to accommodate the differences in both components and objectives. What the model offers is not only an effective framework description, just also the capacity to be flexible and envision alternatives. Hence, this particular model can optimize processes for submerged hotel ventures and its objectives, especially in the long term. II. Integration of the Business Model In terms of integration, the business 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 accompaniment that the venture is entering into the market for the first time. However, as has been previously cited, the modelin effectively integration componentsmust provide nodes to depict their relationships and connections. Jaakola, Kiyoki and Tokuda (2008 154) identified this as the node structure, an e lement in business models that explain processes such as value 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 primal criteria, however, is economic viability. This should made a crucial precondition, because without it there is no reason for existence, as the project world 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. harmonize 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 decision fashioning process 3. Commercial risk and other types of risk such as political 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