BUSINESS MODELS
INTRODUCTION
A stock market is a market where securities
are sold
 Only listed companies are allowed to trade at
the stock exchange
 Companies that are listed need to fulfill
some conditions for them to continue trading
at the stock exchange
 Due to the conditions, companies are forced
to perform as per expectation
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IMPACTS OF STOCK MARKET ON COMPANIES
Stock Markets helps companies to grow
because failure to meet conditions will lead
to deregistration.
 They expose companies to wider markets
hence more growth opportunities
 Listed companies have more opportunities
to raise capital unlike the unlisted once that
are limited to private sources.

STRUCTURE AND VOTING RIGHTS
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Companies that trade at the stock market are
owners by directors who are voted in by the
shareholders
The shareholders elect directors at the annual
general meeting
The stock exchange market is managed by a
chair person who is elected by Company
directors
Members of the board can vote out the
chairperson in the event that does not perform
MODELS
Business models define companies make
money
 Models can be purely profit oriented e.g.
Low cost model, advertising model, pay s you
go model among others.
 For the business model to be helpful, it
should be well integrated into the business
 Purely profit oriented models are focused on
generating revenue for the companies
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HOW PURELY PROFIT ORIENTED MODEL
INFLUENCE PUBLIC COMPANIES
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They motivate the companies to operate the
optimum level by ensuring that the
objectives and goals are followed
Encourages sustainability of the companies
activities (Kumar 200)
Helps in establishing governance structures
for companies for directors of the
companies that trade at the stock market
Sustainable decision making and processes
in companies
OTHER MODELS
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There are other models that are not majorly
concerned with making profits, rather they
focus on the needs of people and the world
Such models also take care of the needs of
employees for value addition at various levels
Through creating value in the company, the
models are able to give quality services to
customers (Gregory 2003).
The model that focus on the needs of the
society factors in the needs of everyone
ALTERNATIVE MODEL
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One of the alternative model that can be
implemented by a trading company is the
sustainable model
Coca cola is one of the example of a
company that has implemented the
sustainable model
The sustainable model is good because it
take into consideration all the aspects of the
company including value and external
interest
COMPARISONS
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The pure profit model focus on profits, which
means that companies which use this model
are under pressure to meet the profit target
The sustainability model grows all the
sectors of the companies from employees,
customers and the society
The pure for profit model can lead to skewed
development because the focus is purely on
money, this means that other sectors are
likely to suffer.
REFERENCES
Gregory, K.(2003). How to make money in the
stock market. Oxford :Oxford University Press
Higgins, R. C. (2009). Analysis for Financial
Management (9th ed.). McGraw Hill/Irwin
Kumar, P.(2009). Introduction to business
models. New York: NYP
REFERENCES CONT.
"Towards Sustainability." Http://www.cocacolahellenic.com. Coca-Cola HBC AG, 2013. Web.
09 Sept. 2013. <http://www.cocacolahellenic.com/sustainability/>.