Business Methods Final

Question 1

Reasons Strategic Plans fail

Answer 1

1) Lack of Focus, 2) Lack of Discipline, 3) Lack of Analysis.

Question 2

Difference between Strategic and Business Plan

Answer 2

Business plan starts up. Strategic plan maintains.

Question 3

2 ways to change culture

Answer 3

Change out people – easy

Communication – hard

Question 4

Difference between branding and marketing

Answer 4

Marketing

Tactical
Communication
Messaging
Push – tell them to come

Branding

Strategic
Expression
Identity
Pull – the hunt me down

Question 5

Four branding strategies

Answer 5

Rational
1. Best buy – Price and quality
2. Logical choice – Features and Benefits
Emotional
3. Implicit Processing – Response triggers
4. Attentive thought – Personal Experience

Question 6

Market Service Area

Answer 6

Where are you going to service your customers – geographic location.

Question 7

10 Revenue Sources

Answer 7

1. New Sales
2. Renewals
3. Account expansion
4. Online
5. Training
6. Consulting
7. Market segmentation
8. Intellectual Property
9. SaaS subscription
10. Channel Partners

Question 8

Three Major Long-Term Roadmaps that make up the L-T Plan.

Answer 8

1. Product Management Road Map – Most Important, and the others support this.
2. Mfg Technology roadmap
3. Information Technology Roadmap

Question 9

Successful long term plans pay respect to

Answer 9

Vision, Mission, History, Business objectives, Market analysis, BUS

Question 10

Three kinds of entrepreneurs

Answer 10

• Elon Musk – Something the world has never seen before.
• Jeff Bezos – Doing something better than anyone else.
• Ben Stuart – Truth Telling

Question 11

Consequences of bad decisions

Answer 11

• Lack of opportunity,
• Lost absorptions
• Cost cutting vs. cost outs.
• Research and development spending is decreased.
• Good people leave – Take care of, and protect your people.

Question 12

How to increase cash generation

Answer 12

• Increase inventory  Production
• Increase Receivables  Sales and marketing
• Decrease Payables  Purchasing

Question 13

Discipline of Market Leaders three generic strategies

Answer 13

Operational Excellence
Customer Intimacy
Product Leadership

Question 14

Porter’s three generic strategies

Answer 14

Overall Cost Leadership
Differentiation of Products and/or Services
Focus

Question 15

Pro Forma Financial Statements

Answer 15

• Income statement/P&L: Rev – Cost = Profit (MOM) This gives you Margin to measure against your assets
• Balance Sheet: Assets vs. Liabilities (YOY/QOQ)This gives you Assets for ROA and Debt/Asset ratio
• Cashflow statements: Cash in and out. (If I don’t have any cash, watch it every day). This shows you cash generation.