Week 2: Business Models

Question 1

What is The Vision?

Answer 1

An informed, forward-looking statement of purpose that defines the long-term destiny of the firm

Question 2

What are the 4 elements of a Vision Statement?

Answer 2

1. Clarity - Easily understood
2. Consistency - Constant core but adjustable as conditions warrant
3. Uniqueness - Special to the enterprise
4. Purposeful - Provides reason for being and reason to care

Question 3

What is a Mission Statement?

Answer 3

A more detailed, concrete plan to implement the vision in less than 100 words to develop a strategic plan for better focus

Question 4

What are the 6 elements of the Mission Statement?

Answer 4

1. Core values
2. Description of customers/stakeholders
3. Description of product/service
4. Competitive advantage
5. Values provided to customer
6. Market/industry description

Question 5

What is a Value Proposition?

Answer 5

Used to target customers who will benefit most by concisely appealing to customer’s decision-making drivers

Question 6

What are the 5 key values of a Value Proposition?

Answer 6

1. Product
2. Price
3. Access
4. Service
5. Experience

Question 7

What is a Business Model?

Answer 7

The outcome of a business design process describing how a business will operate to generate revenue and profits (how do I make something and sell it?)

Question 8

What are the 7 elements of a Business Model?

Answer 8

1. Customer selection
2. Value proposition
3. Differentiation
4. Scope of product and activities
5. Organizational design
6. Value capture
7. Value for talent

Question 9

What are some differences between the Business Model Canvas and Lean Canvas?

Answer 9

• BMC for new and existing businesses with focus on customers/investors/entrepreneurs and value preposition
• LC for startup businesses only with focus on entrepreneurs only and assesses for advantage over competition to capitalize on