2. Elements of Business Models: Value I Flashcards
What are the 4 contributors to defining value?
- Identify stakeholders
- Prioritise stakeholders
- Identify needs of stakeholders
- Formulate value proposition
What are the 5 contributors to creating value?
- Partners
- Resources
- Processes
- Activities
- Outputs
What are the 2 contributors to delivering value?
- Segments
- Channels
What are the 3 considerations in capturing value?
- Cost model
- Revenue model
- Sharing surplus
What are the 3 (Ts) factors that influence value?
- Financial and non-financial factors
- Tangibility
- Time
What are the 3 main groups of stakeholder?
- Internal
- Connected (financial relationships)
- External
What does Mendelow’s matrix show?
The type of relationship an organisation should seek with its stakeholders
What are the 4 categories in Mendelows matrix?
- Minimal Effort (low influence, low interest)
- Keep Informed (low influence, high interest)
- Keep Satisfied (High influence, low interest)
- Key Player/Make Acceptable (High influence, high interest)
What is an example of a make acceptable stakeholder?
Major Customer
What is an example of a keep satisfied stakeholder?
Large institutional shareholder
What is an example of a keep informed stakeholder?
Environmental Group
What 3 elements are considered in Stakeholder Salience theory?
- Power
- Legitimacy
- Urgency
How are customers usually defined under stakeholder salience theory?
Definitive
What are 3 categories of low salience?
- Dormant (Power)
- Discretionary (Legitimacy)
- Demanding (Urgency)
What are 3 categories of medium salience?
- Dominant (Power/Legitimacy)
- Dependent (Legitimacy/Urgency)
- Dangerous (Power/Urgency)
Who are the 4 participants that an organisation exists to create value for?
- Customers (outputs)
- Owners (dividends, asset growth)
- Employees/Partners (good working environment, opportunities)
- Suppliers (prompt payment, convenient systems)
What are Drucker’s 5 questions for defining strategy?
- What is our mission?
- Who is our customer?
- What does the customer value?
- What are our results?
- What is our plan?
What are the 3 characteristics (Vs) of big data?
- Volume
- Velocity
- Variety
What are the 3 key uses of big data?
- Organisations can build a more complete picture of their competitors
- Big data enables trends in customer behaviour to be compared against an organisation’s own behaviour, and the behaviour of competitors.
- Although big data, by definition, is big and complex, systems need to ensure information can be made available and acted upon quickly. A system that is slow and cumbersome will likely present competitors with an opportunity to act first.
What is customer segmentation?
Customer segmentation is dividing a customer base into groups of individuals that are similar in specific ways relating to marketing.
What are the 3 factors of channel management?
- Undifferentiated marketing
- Differentiated marketing
- Concentrated marketing
What are the 2 conflicts in value creation?
- Employees want to be paid premium, shareholders want payroll costs cut.
- Customers want quality goods at low prices, suppliers want higher prices for quality goods
What is the cost model of pricing?
Calculating all associated costs of making/distributing products and factor that into pricing considerations (inwards approach)
What is the revenue model of pricing?
Identifies what product will be created to generate revenues and the ways in which it will be sold (outwards approach)
What are the 4 ways surplus value is used?
- Dividends (shareholders)
- Funding new projects
- Profit-related pay (employees)
- Taxes (governments)
