Alternative approaches to business models (Chapter 2)

Question 1

what should a business model have

Answer 1

-how the firm is structured
-the markets the firm operates in
-how it engages with those markets
-its products and services
-types of customers
-distribution methods

Question 2

key aspects of a traditional business model

Answer 2

-define value
-create value
-deliver value
-capture residual value

Question 3

who are the key aspects of a traditional model aimed to

Answer 3

stakeholders

Question 4

value can be

Answer 4

-financial or non-financial
-tangible or intangible
-past, present or future
-short term and long term

Question 5

financial or non-financial

Answer 5

differentiate from price, cost, profit or cash flow

Question 6

past

Answer 6

reporting

Question 7

present

Answer 7

operational management

Question 8

future

Answer 8

investment

Question 9

short term and long term

Answer 9

survive in the short term but have long term prospects

Question 10

why are business models used

Answer 10

-legal and regulatory requirements
-a way to create long term value
-a way to exploit business opportunities
-respond to disruptions

Question 11

defining value

Answer 11

-identify stakeholders
-specify their roles
-prioritise them based on their demands

Question 12

what do you use for stakeholder analysis

Answer 12

the Mendelow Model

Question 13

power

Answer 13

amount of influence the stakeholder has

Question 14

interest

Answer 14

actively interested

Question 15

what is the process firms use to determine who they’re creating value for

Answer 15

1. Identify
2. Prioritize
3. Establish and identify their needs
4. Formulate value propositions

Question 16

what should stakeholders be ranked on

Answer 16

-power
-legitimacy
-urgency

Question 17

the operating model of value consists of

Answer 17

-partners
-resources
-processes
-activities
-outputs

Question 18

how do you deliver value to customers

Answer 18

through goods and services

Question 19

what can customer aspects be based on

Answer 19

any aspect of demographics

Question 20

what did traditional segmentation look at

Answer 20

-geographical variables
-demographic
-psychological
-behavioral

Question 21

what does value based look at

Answer 21

revenue they generate and cost of establishing and maintaining a cost relationship

Question 22

the segment must be

Answer 22

-measurable and meaningful
-mutually exclusive
-stable
-substantial
-easy to understand

Question 23

what are channels

Answer 23

ways firms connect with customers

Question 24

what are the key aspects of customer data

Answer 24

-collect
-clean
-connect
-transform

Question 25

capturing residual value

Answer 25

value is captured when the costs for delivering the value is lower than sales

Question 26

the models to cosider when capturing value

Answer 26

-cost model
-revenue model
-sharing residual value

Question 27

cost model

Answer 27

defining value

Question 28

the cost model is established by

Answer 28

-efficiency of processes
-levels of activity
-resources consumed during activity
-price paid for resources

Question 29

revenue model

Answer 29

deliver value
prices must align with segments, market conditions and regulatory control

Question 30

sharing residual value

Answer 30

-based on principle of creating shared value

Question 31

what is shared value

Answer 31

shareholder value and value delivered

Question 32

what does shared value depend of

Answer 32

environment