Module 2: Business Development and the Architecture Firm Business Models

Question 1

This describes the rationale for how an organization creates, delivers, and capture value.

Answer 1

Business Model

Question 2

This may refer only to an abstract concept that may exist in a leader’s mind.

Answer 2

Business Model

Question 3

This improve communication among business executives because they provide a common perspective for the organization’s core business logic, thus helping executives “get on the same page”

Answer 3

Business Model

Question 4

How can a Business Model help executives?

Answer 4

it helps them to “get on the same page”

Question 5

This provide clarity of thought using different point of view from the one provided by traditional strategic planning methods, and can foster a greater level of thinking required for innovation.

Answer 5

Business Model

Question 6

True or false:
Business models cannot be represented in different ways.

Answer 6

False

Question 7

True or False:
Having a common perspective, structure, and understanding of a business model allows for more effective business design but it does not enable the successful deployment of an organization’s target-state Enterprise Architecture.

Answer 7

False

Question 8

True or False:
A successful architecture firm does not just create aesthetically pleasing buildings.

Answer 8

True

Question 9

These seeks to ensure its clients receive the best service possible.

Answer 9

Key Partnerships

Question 10

When it comes to Key Partnerships, this means offering a comprehensive range of services to clients in addition to design and construction, such as?

Answer 10

1. Project Management
2. Cost-management
3. Feasibility Studies

Question 11

When it comes to Key Partnerships, customers look for three things when selecting an architecture firm. What are dies three things?

Answer 11

1. Aesthetic Taste
2. Excellent Customer Service
3. Comprehensive Solutions

Question 12

True or False:
The goal of this firm is to not only attract customers with its comprehensive approach to architecture, but to make them its long-standing clients through excellent customer service.

Answer 12

True

Question 13

An ____________ can be establish many important partnerships to ensure their success.

Answer 13

Architecture Firm

Question 14

What are the great ways to increase the firm’s clout and recognition in the industry?

Answer 14

• “Networking” with Landscape and Interior Designers, contractors, property appraisers, engineers.
• “Forming relationships” with local retailers and suppliers.

Question 15

This gives the firm an added level of stability, expertise, and recognition.

Answer 15

Establishing Alliances

Question 16

Creating and managing blueprints and other design documents

Answer 16

Key Activities

Question 17

Facilitating communication between contractors, subcontractors, and the customer

Answer 17

Key Activities

Question 18

Sourcing and ordering materials

Answer 18

Key Activities

Question 19

Developing and maintaining relationships with local retailers and suppliers

Answer 19

Key Activities

Question 20

Conducting feasibility studies and cost-management services

Answer 20

Key Activities

Question 21

Working with local government and urban planning projects

Answer 21

Key Activities

Question 22

Referrals and testimonials from existing and former customers to
demonstrate their reliability and quality of work.

Answer 22

Key Resources

Question 23

Needed by architecture firms in order to successfully design and construct buildings.

Answer 23

Key Resources

Question 24

The architecture firm must build strong, mutually beneficial relationship to ensure that their current and future demands are met with quality, service and fulfilment.

Answer 24

Customer Relationships

Question 25

The Architecture Firm will focus on multiple __________ to generate potential clients, as well as generate leads and promote its services.

Answer 25

Channels

Question 26

This will provide customers with an online resource that displays the firm's most impressive projects and awards.

Answer 26

Channels

Question 27

Social media presence on Instagram and Facebook: This presence will help create an online community that showcases current projects, provides updates on new projects, and motivates customers to reach out.

Answer 27

Channels

Question 28

Networking with contractors, engineers, interior designers, etc. in local industry-related events: This will allow the firm to build relationships with other

Answer 28

Channels

Question 29

professionals in order to broaden its customer base and offer more options to its customer base.

Answer 29

Channels

Question 30

The architecture firm serves three main types of customer segments:

Answer 30

-High net-worth individuals requiring luxury residential homes -Business owners and entrepreneurs requiring commercial spaces -Local governments and urban planning projects

Question 31

High net-worth individuals requiring luxury residential homes

Answer 31

Customer Segments

Question 32

Business owners and entrepreneurs requiring commercial spaces

Answer 32

Customer Segments

Question 33

Local governments and urban planning projects

Answer 33

Customer Segments

Question 34

Ensuring that each customer segment receives adequate care and attention is critical for the firm to maintain its position in the industry.

Answer 34

Customer Segments

Question 35

employees of the architecture firm must be compensated for their work, including both regular salaries and benefits.

Answer 35

Cost Structure: Personnel salary costs

Question 36

the architecture firm may need to rent certain pieces of equipment or vehicles for job-specific tasks.

Answer 36

Cost Structure: Equipment and vehicle rental costs

Question 37

software used to design or review plans must be licensed from the developer.

Answer 37

Cost Structure: Design software costs

Question 38

rent and utilities must be paid for any office space the architecture firm utilizes.

Answer 38

Cost Structure: Office space costs

Question 39

any materials needed for the project such as lumber or tools must be purchased in addition to any subcontractors that are hired.

Answer 39

Cost Structure: Material and subcontractor costs

Question 40

Project fees

Answer 40

Revenue Streams

Question 41

Residential and commercial building design and construction fees

Answer 41

Revenue Streams

Question 42

Fees for cost-management, feasibility studies, and other services

Answer 42

Revenue Streams

Question 43

Loyalty program and referral fees

Answer 43

Revenue Streams

Question 44

three business models for architecture firms

Answer 44

efficiency-based experience-based expertise-based

Question 45

it will help you direct how you should manage marketing, staffing, and, ultimately, profitability

Answer 45

ARCHITECTURAL BUSINESS MODELS

Question 46

well-defined value propositions, innovative branding, differentiation strategies, and marketing in the success of their businesses.

Answer 46

ARCHITECTURAL BUSINESS MODELS

Question 47

This model is for architecture offices that can deliver projects faster or for less money than the firms you are competing with for work.

Answer 47

EFFICIENCY BASED

Question 48

This business model is for the architects who have a great depth of knowledge about a specific project type or topic, or for those who have demonstrated exceptional design abilities.

Answer 48

EXPERTISE BASED

Question 49

developed a design and production process that is efficient and streamlined and are constantly looking for ways to improve

Answer 49

EFFICIENCY BASED

Question 50

selected projects that are simple to execute and allow for repetitive processes.

Answer 50

EFFICIENCY BASED

Question 51

These firms are the “starchitects” who have built a reputation based on their award-winning design abilities or consultant firms of specific technically challenging projects

Answer 51

EXPERTISE BASED

Question 52

probably the most common model that architects pursue when setting out to start their own firms

Answer 52

EXPERIENCED BASED

Question 53

often do less complex projects, or take on similar projects to those they have already completed.

Answer 53

EFFICIENCY BASED

Question 54

aim to provide design services to clients and solve unique and challenging problems. By relying on their past experience and expertise

Answer 54

EXPERIENCED BASED

Question 55

these firms tend to offer a limited range of services, or standard scope of work, that is familiar and repeatable

Answer 55

EFFICIENCY BASED

Question 56

keep the work hours to a minimum while still delivering quality documents

Answer 56

EFFICIENCY BASED

Question 57

The goal is to be efficient in every aspect of your practice.

Answer 57

EFFICIENCY BASED

Question 58

these firms can take on more complex project types and market themselves as knowing what they are doing to address the needs of their clients.

Answer 58

EXPERIENCED BASED

Question 59

this business model is also potentially lucrative for sole practitioners or small partnerships who offer a unique skillset or base of knowledge

Answer 59

EXPERTISE BASED

Question 60

This model lends itself to having a large production staff working under a smaller group of experienced architects and partners.

Answer 60

EFFICIENCY BASED

Question 61

the staffing needs tend to be very top heavy, where the principal or partners are in high-demand and thus need to work directly on the billable projects.

Answer 61

EXPERTISE BASED

Question 62

the principals are really engaged in the work itself, rather than being focused on managing the firm or finding new clients.

Answer 62

EXPERTISE BASED

Question 63

these project types they would design custom solutions based on the specific needs of the client, responding to site context and budget, and the technical requirements of the building’s program.

Answer 63

EXPERIENCED BASED

Question 64

developed a strong reputation as being able to successfully deliver significant, complex, and technically challenging projects. At the same time, they utilized their reputation to expand into new markets and go after a variety of portfolio to acquire new work, often through the public RFP/Q process.

Answer 64

EXPERIENCED BASED

Question 65

rely on the reputations and past portfolio of you and your business partners.

Answer 65

EXPERIENCED BASED

Question 66

Design awards, publications, research, and their portfolio is what sells their services and attracts new clients.

Answer 66

EXPERTISE BASED

Question 67

requires continual education to maintain your expertise and reputation in the field.

Answer 67

EXPERTISE BASED

Question 68

expresses your organization’s purpose, core values and foundational aims.

Answer 68

mission statement

Question 69

expresses your organization’s aspirations, strategic goals and plans for the future.

Answer 69

vision statement

Question 70

encapsulates your business’s heart an concisely communicates its primary focus, brand identity and approach.

Answer 70

mission statement

Question 71

It serves as a general guide for your company.

Answer 71

mission statement

Question 72

It communicates where your business is going next and serves as an actionable map toward success.

Answer 72

vision statement

Question 73

Benefits of Mission Statements:

Answer 73

Attract and retain customers, employees, leaders, partners or stakeholders whose values align with yours.  Provide a foundation guiding all business practices.  Highlight your unique value proposition and set your brand apart from the competition.

Question 74

Benefits of Vision Statements

Answer 74

 Optimize company culture, motivate your team and enhance employee well-being.  Assist with strategic planning, goal-setting and decision-making.  Guide leadership through shifting contexts, ensuring your company stays on track and adheres to the business plan throughout any changes.  Remind your customers, employees and partners why they should believe in your business.

Question 75

a marketing process that provides statistics about the market potential of your business products and services

Answer 75

Industry Analysis

Question 76

This section of your plan needs to have specific information about the current state of the industry, and its target markets

Answer 76

Industry Analysis

Question 77

Step-By-Step Checklist Industry Analysis

Answer 77

-Identify your industry and provide a brief overview. -Summarize the nature of the industry -Provide a forecast for your industry. -identify government regulations that affect the industry. -Explain your unique position within the industry -List potential limitations and risks.

Question 78

may contain reference materials such as spreadsheets, pie charts, and bar graphs in order to represent the data.

Answer 78

Industry Analysis