Question

Describe the building blocks of a Business Model Canvas and how these elements interrelate. What key building blocks is your organization's Business Model leveraged around? How does this compare to common patterns of Business Models in today's innovation economy?

Answer 1

Major Building Blocks pertaining to any business model are:

1. Capital Structure: The major factor to be considered for business is the capital structure i.e., the mix of debt and equity. Financial leverage can be obtained with appropriate mixture.

2. Profitability Ratios: The profitability ratios like gross profit, operating profit and net profit for the business shall be predicted in advance.

3. Product Mix: The product mix is also important to be identified by the management.