A business model is like any other model; it represents and summarizes how whole businesses do business. The business model explains, in summary, the fundamental nature of the business and how the business makes money, without having to share complexities of strategies, “processes, units, rules, hierarchies, workflows, and systems” (Business Model Designs and Innovation, 2005, p.1). For example, the business that is chosen is a Geriatric Health Club and Daycare. The company makes money by offering wellness and exercise services to senior citizens all over the Merrillville community; for a reasonable amount of money. The fundamental nature of the club is to encourage the elderly, ages 55 and older, to continue to live a healthier and active life, by offering leisure activities, social interaction with their peers, nutrition education, and exercise (Business Model Designs, and Innovation, 2005).
The business model was chosen because research, indicates that “High-intensity resistance exercise training is a feasible and effective means of counteracting muscle weakness and physical frailty in very elderly people. In contrast, multinutrient supplementation without concomitant exercise does not reduce muscle weakness or physical frailty” (Clements, Evans, Fiatarone, Kehayias, Lipsit, Nelson, O'Neill Roberts, Ryan, and Solares, 2009, 1769).
The impact of this business model helps the company to function and guide the company in a productive direction. The business model helps the company to stay profitable by catering to a fast increasing age group.
“The business structure is the type of legal entity that exists to contract to perform licensed work. Examples of legal entities are