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AFM 132 > AFM 132 Chp 7 - Business Models > Flashcards

AFM 132 Chp 7 - Business Models Flashcards

1
Q

what’s the role of a business model

A

helps suggest how a company plans to make money

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2
Q

What are some questions to consider when creating a business model - consider what those questions factor in

A

what are you providing? - factors in the effort + resource involved to design a product or service offering

who are you providing the product/service to? - factors the consumers that would be interested in what the company has to offer

how do you survive + thrive as a company? - factors how for a business to stay in the business, they must be profitable in order to maintain + grow the business

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3
Q

Define a business model

A

model that captures how a company creates, deliver + capture’s value

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4
Q

how do a company create or deliver value?

A

by providing a product or service that meets the needs of their customers

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5
Q

how does a company capture value?

A

by being profitable

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6
Q

what’s the business model freemium?

A

combining free + premium - apps that can be downloaded + played for free but has a premium version where consumers can get additional perks

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7
Q

What are the 9 factors in a business model canvas?

A
  1. customer segments
  2. channels
  3. customer relationship
  4. value propositions
  5. key activities
  6. key resources
  7. key partners
  8. cost structure
  9. revenue streams
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8
Q

Which factors on a BMC create value?

A

customer segments
channels
customer relationship
value propositions

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9
Q

which factors on a BMC deliver value?

A

value propositions
key activities
key resources
key partners

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10
Q

which factors on a BMC capture value?

A

cost structure
revenue streams

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11
Q

define a Business Model canvas (BMC)

A

a tool which helps new or existing businesses design + map out their business models

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12
Q

What are the different segments a company may look into in customer segments

A

business segment
geographic segments
consumers segment
- demographic factors

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13
Q

define a value proposition

A

describes the features + benefits offered through a company’s products/services that customers will value

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14
Q

What question does the value proposition answer?

A

why would a customer purchase this product offering?

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15
Q

What are some values consumers value?

A
  1. product + packaging
  2. quality of service
  3. convenience
  4. Brand Name
  5. Design
  6. Price
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16
Q

What are the 4 different channels

A
  1. marketing channels
  2. sales channels
  3. Distribution channels
  4. service channels
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17
Q

what’s the purpose of a marketing channel

A

to create awareness about product/services

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18
Q

what’s the purpose of sales channels

A

how customers purchase hteir products/services

19
Q

what’s the purpose of distirbution channels

A

how to deliver products/services to customers

20
Q

What’s the purpose of service channels

A

how to provide support to customers after a sale

21
Q

define a direct channel

A

when a company has its own stores + salespeople

22
Q

define an indirect channel

A

when a company’s products/services are provided through an intermediary

23
Q

what’s a benefit of distributing products through a retailer?

A

reach a larger base of customers

24
Q

What’s the value in building long-term relationships with customers?

A

increased customer loyalty

25
Q

What are some of the ways a company may interact with a customer to help develop relationships

A
  1. customer support
  2. timeliness of support
  3. convenience
26
Q

What are the tangible + intangible assets a company has

A

human resources
physical resources
financial resources
intellectual property

27
Q

what’s the role of patents

A

protect new inventions or improvement to existing invention + gives the inventor the right to stop others from making, using, or selling their invention for the period of the patent

28
Q

what’s the purpose of copyright

A

provides an exclusive right to make, reproduce, publish or perform artistic/literary works where others that want to use the work have to buy it or get permission to use it

29
Q

how long does copyright exist in canada for?

A

for the lifetime of the creator plus 50 years following their death, after which the work becomes part of the public domain where anyone can use it

30
Q

what are key activities

A

what a company does to operate successfully + deliver value

31
Q

What’s an important consideration for companies to operate effectively in regards to key activities

A

prioritize what key activities they should tackle + dedicate resources to and what could be outsources

32
Q

why might a company outsource an activity?

A

if the activity does not directly help them deliver value

33
Q

provide some examples of key partners for a business

A

supply chain
sales
international expansion

34
Q

What’s the importance of a supply chain in delivering value (key partners context)

A

working collaboratively with another company in their supply chain to deliver high quality value.

35
Q

What’s the importance of a sales in delivering value (key partners context)

A

to work with other companies to sell their products such as retailers

36
Q

What’s the importance of international expansion in delivering value (key partners context)

A

A COMPANY MAY WANT TO TEAM UP WITH ANOTHER COPMANY through A JOINT VENTURE OR A STRATEGIC ALLIANCE

37
Q

What’s the purpose of revenue streams

A

examine the cash inflows received from selling a product or service

38
Q

What are the different types of revenue stream

A

transactional - 1 time payments
recurring - ongoing payments

39
Q

What should we consider when understanding the cost structure for a company and why?

A

cost types - looks at costs from a financial reporting perspective
cost behaviour - looks at the types of costs that may change if production levels increase

40
Q

define fixed costs

A

costs that stay the same even if production increases

41
Q

define variable costs

A

costs that will change if production increases

42
Q

What major business function is in creating value

A

marketing

43
Q

what major business function is in delivering value

A

operations
human resources
finance

44
Q

what major business function is in capturing value

A

accounting

AFM 132 (12 decks)

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