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MAC3761
ASSIGNMENT 1 2021
UNIQUE NUMBER: 662442
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PREVIEW OF QUESTION 1
1. 3 Reference: Managerial finance 8th Ed PG 9
The business model or value creation model therefore provides a design or brief description, which
explains the company’s overall organisational activities and process that are undertaken to achieve
sustainable value for shareholders and major stakeholders.
The King IV Report defines business model as the entity’s system of transforming inputs through its
business activities into outputs and outcomes that aim to fulfil the organisation’s strategic purposes
and create value over the short, medium and long term. Furthermore, the value creation process is
described as the process that results in increases, decreases or transformations of the six capitals
caused by the business activities and outputs. These can include neutral outcomes, but also positive
and negative outcomes
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