M1 A 2 Draft

Kenawa E. Jigba
Module 1: Assignment 2
Solutions to Organizational Challenges: A Capstone Experience | B6028 BLO | SU213 |
Dr. Andrea Banto
Due June 28, 2013
(Summer II – 2013)

A company can have a strong business model but a weak strategy.
In regard to the statement, a company can have a strong business model but a weak strategy; one must first identify the definitions of model and strategy. Though closely related in the business world, a business model and an organizational strategy are actually two separate entities that could potentially contribute to an organization’s success. While a business model pertains to customer benefits, relative market segments, and introductory processes, an organizational strategy focuses on how well an organization can compete within its respective industry (Sherman, 2012). Therefore, a model serves as an idea and an objective, and a strategy relates to execution and action. Optimization of both of these properties is essential to ensure an organization’s success. However, a business model and an organizational strategy can co-exist and result in failure; it is entirely possible for a company to fail because it possesses a strong business model but employs weak business strategies.
This is evident in several companies, including Japanese companies, which rarely possess strategies to create competitive advantage. For example, Japanese business models acknowledge that recognize the wealth of competition that exist, but few actually employ strategies that will set themselves apart from competitors. In fact, Porter (1996) insinuates, “Most Japanese companies imitate and emulate one another. All rivals offer most if not all product varieties, features, and services ” (p. 63). Conversely, other Japanese companies exhibit that by executing effective strategies in conjunction with a strong business model, success will