What does a business model express?

A business model expresses a target business state by outlining how an organization creates, delivers, and captures value. It serves as a comprehensive blueprint that incorporates the essential components of a business's operations, including revenue streams, customer segments, value propositions, and key activities. In doing so, it defines the strategic direction and goals of the business, illustrating how it intends to operate in the market and achieve its objectives.

The concept of a target business state is integral to a business model because it provides a vision for where the organization aims to position itself over time. It goes beyond mere operational details and encompasses the bigger picture of how the business interacts with its environment and stakeholders.

Other options, while relevant to various aspects of business management, do not capture the broader, strategic essence conveyed by a business model. An operational strategy focuses more on day-to-day execution and processes, a financial forecast is concerned with predicting financial performance, and a risk assessment evaluates potential obstacles to success. These elements are important for a business but do not express the comprehensive target state that the overall business model represents.