1.A business model is the framework of a business. It is the way a business is built and how the creators or innovators feel like it will add value to the lives of people that will use it. The main purpose of a business model is to be able to capture the idea of what the business is suppose to provide and build how they are going to get there.

 

2.There are two tools for designing business models the first is the “5 component model” and “The second the business model canvas.” They are both similar in the way that they both help define the framework of a business. They define roles and build a plan to be followed and help the business grow and generate revenue.

While both have the same end goal they differ in the method of getting there. In the 5 components model users would start off by evaluating the value created to the customer continues by how you will market your product to generate revenue. The second the business model canvas takes a different first step. They believe that identifying who you will be working with is the most important, who will be getting and giving your goods/services to in the supply chain. It is then followed by the innovator or owner figuring out what to make unique about what they are offering and not thinking about what the customer wants.

I believe that the over all difference of these two methods are the step and ideas in which you would need to get to the same end result. The result of making sure that a company is making money and is profitable.

3. Grief Packaging was a smart man because he resolved an issue that would add value to the experience of his customers. He was able to provide a better experience for his customers which none of his competitors were willing to do. This is how he was able to capture the market and steal it from his competition. People will pay to have a better experience than pay less and have a bad one.

6. 3 similarities between Franchising and Licensing

1. People are paying to use something that you have not built
2. Businesses profit from selling the rights to parts of their companies
3. There are terms and agreements to what the person buying can do with the license or franchise

3 differences between Franchising and Licensing

1. In franchising you use everything a company has already built  framework and operate under the same name but independently, while in licensing you take a component of the product or service and you can use it in your own business.
2. When Franchising you are unable to do whatever you please with what you have purchased. There are guidelines that need to obey by. In licensing, once you have paid or the right to use the licensee in any way you please.
3. In franchising there is some kind of territory that you have and it is a way of making sure that no one that also buys the franchise can steal potential revenue