Business model and strategy must be aligned to succeed
SUPER MODELS: Francine Newth, associated professor of management at PC, says that a business model is key to becoming profitable.
COURTESY PROVIDENCE COLLEGE
By Rebecca Keister PBN Staff Writer
Francine Newth, an associate professor of management at Providence College’s School of Business, has penned a new book, “Business Models and Strategic Management: A New Integration,” as part of a collection of 13 targeted books that has been acquired by university libraries worldwide and also is available as a corporate learning tool.
Newth has extensive experience in teaching strategic business management, including to Prince Alwaleed in Saudi Arabia, and has focused her research on global alliances, corporate strategy, business models and corporate governance.
She is using her book this semester in her capstone seminar in strategy, where student teams run boardroom meetings.
PBN: To whom is this book targeted and why?
NEWTH: Students, managers and executives. Publishing house Business Expert Press targets to executives. They are categorizing these books as textbooks but they are considered applied textbooks, so that if an executive or manager wants to refresh his memory he could quickly look and get a brief overview with enough depth to bring the information to a meeting. I wanted to write a book where I could bring the model at the center when you do a strategic analysis, which really in a way changes the paradigm of how we teach strategy. The model was to target all these audiences. … Many companies are now talking about the business model but we weren’t talking about it in a classroom to the effect that students would adapt a business-model mindset, which is what they need.
PBN: How are business strategy and business models interrelated?
NEWTH: Indeed they are very deeply interrelated and build on one another. The business model drives the strategy. Your business model is how a company needs to operate internally to be profitable. It’s the capabilities you develop, the systems you have, all to deliver on the value proposition, which is the unique idea you have. It’s the internal side. On the external side are your strategies and how you compete. It’s using your model and leveraging all your capabilities.