A business model describes the rationale of how an organization creates, delivers, andcaptures value- economic, social, or other forms of value. The process of business model designis part of business strategy. Business plan is implemented by a company to generate revenue andmake a profit from operations. The model includes the components and functions of the business,as well as the revenues it generates and the expenses it incurs.
In theory and practice the term business model is used for a broad range of informal andformal descriptions to represent core aspects of a business, including purpose, offerings,strategies, infrastructure, organizational structures, trading practices, and operational processesand policies. Hence, it gives a complete picture of an organization from high-level perspective.Business model is that it defines the manner by which the business enterprise delivers value tocustomers, entices customers to pay for value, and converts those payments to profit: it thus reflects management’s hypothes is about what customers want, how they want it, and how anenterprise can organize to best meet those needs, get paid for doing so, and make a profit
