148 HR Strategies Rationale for business models Business models provide a picture of what the firm is doing or intends to do. Magretta (2002: 92) argued that: `Because a business model tells a good story, it can be used to get everyone aligned around the kind of value the company wants to create. Stories are easy to grasp and easy to remember.' As Casedusus-Masanel and Ricart (2010: 196) suggested, the notion of business models became popular as a means of defining `the logic of the firm ­ the way it operates and creates value for its stakeholders'. Business model innovation defined Business model innovation is the process of developing new business models or changing existing ones in order to deliver better value to customers, achieve competitive advantage and increase profitability. Mark Johnson (2010) defined the concept in more detail as follows.