1. Why is a business model important? Business models translate information about a company including their plan to generate profits. A business model is a company’s core strategy which identifies the value proposition, the target audience, collaboration opportunities, costs and sources of financing, marketing strategy, and projections of revenues and expenses. Business models are crucial to attract investments, recruit talent, and satisfy client needs at a competitive price and a sustainable cost (Kopp, 2019). 2. How are business models influenced by internal and external factors? The main external factors that influence business models are government policy, culture, market pressure, and technology. Internal factors include entrepreneurship, strategy, human resources, and organizational capabilities (Tian, Zhang, Yu, & Cao, 2019). These factors can effect business models by imposing limitations, or hindrances from success. 3. Conduct a little research on models and discuss the difference between the product model and the marketing model. Is one model better than the other? Explain. The product model relies on producing a high-quality product and theorizes that the product will be successful in the market place when offered at an acceptable consumer price. This model focuses on the product without considering consumers’ wants and needs. The marketing model seeks to understand the needs and wants of consumers in a target audience and tailors the product to the consumer. While companies may experience initial success with product modeling, eventually they must adopt the marketing model to compete with rival businesses, or to maintain relevancy. 1. The business model sets the ground work for everything. It is also what an entrepreneur shows potential investors to get them on board. A proper & well put together model is essential to a start up. 2. A business model can be influenced internally by few things. Like if the company is failing in certain areas & you need to move money around or change that part of the business model. It can also be influenced by external factors also. Say a new social media monster comes along & now everyone has to try to get their product advertisement on that platform now. Same way companies had to switch up from Facebook to twitter or instagram. They constantly need to evolve with the times. 3. The product model focuses on the pricing & quality of the given product. Whereas the marketing model is for determining what a consumer actually wants in order to satisfy them. It also determines the target market so they are showing the right people their product.