Lecture 1

Question 1

How does a firm create value?

Answer 1

Creates: producing an offering (good or service) worth more to customers than to produce

Question 2

How does a firm deliver value?

Answer 2

Delivers: customers are 1) willing to accept and use your value, 2) aware of your company, 2) has belief that the offer will increase utility

Question 3

How does a firm capture value?

Answer 3

Capture: whatever amount is left after subtracting your costs of value creation and delivery from the offering’s sales price

Question 4

What is a value chain?

Answer 4

Activities that firms perform to deliver a productorserviceto the market

Question 5

What are the five I’s of Service Economy?

Answer 5

Intangibility

Inventory (perishability)

Inseparability

Inconsistency (variability)

Involvement

Question 6

What is a business model?

Answer 6

How a firm creates, deliver and capture value

Question 7

What four theories (motors) does Ven and Poole use to explain how and why orginasations change?

Answer 7

Evolution, dialectic, life cycle, teleology

Question 8

According to Ven and Poole, explain the evolution theory (motor).

Answer 8

Development is explained as a series of events related and governed by a natural selection processes

Just like in nature these selection processes are inherent

Competition is present

Key pioneer: Darwin

Question 9

According to Ven and Poole, explain the life cycle theory (motor).

Answer 9

Events progress in a linear and sequential manner
Change can be anticipated in a logical way in line with the logical constructs of institutions.

Key pioneer: Penrose, Greiner, Piaget and Comte

Question 10

According to Ven and Poole, explain the dialectic theory (motor).

Answer 10

Focus on stability and change based on the collision of power between opposing entities.

Based on the assumption that organisations or members within organisations compete with each other for domination and control.

Think of thesis-antithesis-synthesis.

Key pioneer: Hegel, Marx, Freud

Question 11

According to Ven and Poole, explain the teleology theory (motor).

Answer 11

Change is enacted through goal-setting mechanisms
Co-operation and consensus building being the key words
The managerial goal (e.g. growth) is the final cause for the organisation

Key pioneer: Weber, Simon and Penrose