U1 AOS2/KK3: Business models

Question 1

Business MODELS

Answer 1

a plan that outlines how the business will run its operations to generate profit

Question 2

5 types of business models

Answer 2

1. online business
2. bricks and motar business
3. franchise
4. importer
5. exporter

Question 3

1. ONLINE BUSINESS define

Answer 3

no psychical presence which conducts its primary activated through the internet

Question 4

1. ONLINE BUSINESS strengths and weaknesses

Answer 4

S :
- easy 24/7 access for customers
- ▼ costs ☞ no rent, ▼ staffing
- global access
W :
- hard to build loyalty w customers
- risk for online fraud

Question 5

1. ONLINE BUSINESS

7 types of online business models

Answer 5

1. advertising model
2. affiliates model
3. brokerage model
4. merchant model
5. subscription model
6. information model
7. community model

Question 6

2. bricks and motar def

Answer 6

a physical presence that clients/cust attend ignorer to purchase goods/services

Question 7

2. bricks and motar S+W

Answer 7

S:
- face to face interaction
- physical presence = builds trust
W:
- ▲ overhead costs
- less convent for busy customers

Question 8

3. franchise def

Answer 8

agreement where franchisor grants the franchise the rights to use its bus name and distribute its products/services

Question 9

3. franchise S+W

Answer 9

S:
- access to free training and marketing
- easier to make $ bc apart of an established bus
W:
-has to play % to franchisor of profits
-$$$$$$ to set up

Question 10

4. importer and exporters def

Answer 10

bus that buy and sells products across an International boarder

Question 11

4. importer and exporter S+W

Answer 11

S:
- make profits buy buying “low” selling “high”
W:
-must be susceptible to changes in macro environment