Multiple choice exam questions BMI
(1) According to the framework proposed by Markides, which three
components must be uniquely combined to constitute a business
model?
a. Who to target, what to offer, and how to serve.
b. Resources, processes, and profit formula.
c. Customer segments, value propositions, and revenue streams.
d. Value creation, value delivery, and value capture.
(2) According to Markides, what is the fundamental theoretical
difference between a firm’s ‘strategy’ and its ‘business model’?
a. There is no theoretical difference; the terms are synonymous
interpretations of the profit equation.
b. Strategy is concerned with value capture, while the business
model is solely concerned with value creation.
c. Strategy represents high-level positioning choices, while a
business model is the activity system that translates strategy into
action.
d. A business model is the long-term goal of the firm, whereas
strategy is the daily operational plan.
(3) What does Markides (2023) identify as a necessary condition for a
change to qualify as ‘business model innovation’?
a. The introduction of a new digital technology to an existing value
chain.
b. A change in the target customer segment without modifying the
delivery method.
c. A pivot that results in a 10% increase in short-term profitability.
d. The discovery of a new combination of Who-What-How that is
new to the industry.
(4) How does Markides (2013) suggest established firms can best
compete with dual business models (the old and the new)?
a. Complete and immediate cannibalisation of the old model to
focus on the new one.
b. Borrowing insights from the ‘ambidexterity’ literature to balance
exploration and exploitation.
c. Ignoring the new model until it reaches at least 50% market
share.
d. Keeping the two models strictly integrated within the same
operational team.
,(5) Markides argues that innovation is a two-part process. If start-up
firms are good at ‘discovery’, what are big, established firms
uniquely good at?
a. Avoiding all forms of market entry failure.
b. Identifying technical flaws in early-stage prototypes.
c. Managing the creative culture of ‘young and arrogant’ external
recruits.
d. Scaling up the discovery into a mass market.
(6) According to De Cuyper et al. (2024), which type of social business
model is characterised by a broad scope of beneficiaries and a low
overlap between customers and beneficiaries?
a. Social producers
b. Social providers
c. Social intermediaries
d. Social stimulators
(7) Leppänen et al. (2023) introduce the concept of ‘equifinality’ in
business model innovation. What does this concept imply?
a. Firm performance is solely determined by external environmental
factors.
b. Multiple different configurations of business model elements can
lead to high performance.
c. There’s one optimal configuration of business model elements for
any given industry
d. BMI always leads to an eventual decline in established firm
performance.
(8) In the evolutionary ecological lens described by Burgelman et al.
(2023), what is the primary role of the internal selection
environment?
a. To eliminate all forms of ‘strategic dissonance’ within the 1st year
of a new BM.
b. To filter and prioritise strategic initiatives across different
managerial levels.
c. To automate resource allocation based on historical performance
data alone.
d. To mirror the external market perfectly to ensure immediate
survival.
, (9) How do Casadesus-Masanell and Ricart (2010) distinguish between
‘strategy’ and a ‘business model’?
a. There is no functional difference; the terms are interchangeable
in competitive analysis.
b. Strategy is the system of activities, while the business model is
the plan for future growth.
c. Strategy is a choice of a business model, while the business
model is a reflection of strategy.
d. A business model is a static blueprint, while strategy is a dynamic
process of innovation.
(10) True or false: Research suggests that neuroscientifically, the brain
uses different and unrelated mechanisms for remembering the past
and imaging the future.
a. False
b. True
(11) In the ‘internal ecology’ perspective, what is the specific role of the
‘selection’ process within an organisation?
a. The preservation and duplication of selected activities to ensure
they are repeated in the future.
b. The administrative and cultural mechanisms that regulate the
allocation of attention and resources.
c. The struggle for scarce resources between different organisations
within a specific population.
d. The departure from routine or tradition, whether intentional or
occurring by chance.
(12) According to Tool I (the Strategy Diamond), which component
mediates the relationship between corporate strategy and strategic
action?
a. Structural context
b. Internal selection environment
c. Basis of competitive advantage
d. Distinctive competence
(13) Which type of strategic action is characterised by being ‘driven by
the existing corporate strategy’ and aligned with the current
structural context?
a. Strategic inflection points
b. Co-evolutionary lock-in
c. Autonomous strategic action
d. Induced strategic action
(1) According to the framework proposed by Markides, which three
components must be uniquely combined to constitute a business
model?
a. Who to target, what to offer, and how to serve.
b. Resources, processes, and profit formula.
c. Customer segments, value propositions, and revenue streams.
d. Value creation, value delivery, and value capture.
(2) According to Markides, what is the fundamental theoretical
difference between a firm’s ‘strategy’ and its ‘business model’?
a. There is no theoretical difference; the terms are synonymous
interpretations of the profit equation.
b. Strategy is concerned with value capture, while the business
model is solely concerned with value creation.
c. Strategy represents high-level positioning choices, while a
business model is the activity system that translates strategy into
action.
d. A business model is the long-term goal of the firm, whereas
strategy is the daily operational plan.
(3) What does Markides (2023) identify as a necessary condition for a
change to qualify as ‘business model innovation’?
a. The introduction of a new digital technology to an existing value
chain.
b. A change in the target customer segment without modifying the
delivery method.
c. A pivot that results in a 10% increase in short-term profitability.
d. The discovery of a new combination of Who-What-How that is
new to the industry.
(4) How does Markides (2013) suggest established firms can best
compete with dual business models (the old and the new)?
a. Complete and immediate cannibalisation of the old model to
focus on the new one.
b. Borrowing insights from the ‘ambidexterity’ literature to balance
exploration and exploitation.
c. Ignoring the new model until it reaches at least 50% market
share.
d. Keeping the two models strictly integrated within the same
operational team.
,(5) Markides argues that innovation is a two-part process. If start-up
firms are good at ‘discovery’, what are big, established firms
uniquely good at?
a. Avoiding all forms of market entry failure.
b. Identifying technical flaws in early-stage prototypes.
c. Managing the creative culture of ‘young and arrogant’ external
recruits.
d. Scaling up the discovery into a mass market.
(6) According to De Cuyper et al. (2024), which type of social business
model is characterised by a broad scope of beneficiaries and a low
overlap between customers and beneficiaries?
a. Social producers
b. Social providers
c. Social intermediaries
d. Social stimulators
(7) Leppänen et al. (2023) introduce the concept of ‘equifinality’ in
business model innovation. What does this concept imply?
a. Firm performance is solely determined by external environmental
factors.
b. Multiple different configurations of business model elements can
lead to high performance.
c. There’s one optimal configuration of business model elements for
any given industry
d. BMI always leads to an eventual decline in established firm
performance.
(8) In the evolutionary ecological lens described by Burgelman et al.
(2023), what is the primary role of the internal selection
environment?
a. To eliminate all forms of ‘strategic dissonance’ within the 1st year
of a new BM.
b. To filter and prioritise strategic initiatives across different
managerial levels.
c. To automate resource allocation based on historical performance
data alone.
d. To mirror the external market perfectly to ensure immediate
survival.
, (9) How do Casadesus-Masanell and Ricart (2010) distinguish between
‘strategy’ and a ‘business model’?
a. There is no functional difference; the terms are interchangeable
in competitive analysis.
b. Strategy is the system of activities, while the business model is
the plan for future growth.
c. Strategy is a choice of a business model, while the business
model is a reflection of strategy.
d. A business model is a static blueprint, while strategy is a dynamic
process of innovation.
(10) True or false: Research suggests that neuroscientifically, the brain
uses different and unrelated mechanisms for remembering the past
and imaging the future.
a. False
b. True
(11) In the ‘internal ecology’ perspective, what is the specific role of the
‘selection’ process within an organisation?
a. The preservation and duplication of selected activities to ensure
they are repeated in the future.
b. The administrative and cultural mechanisms that regulate the
allocation of attention and resources.
c. The struggle for scarce resources between different organisations
within a specific population.
d. The departure from routine or tradition, whether intentional or
occurring by chance.
(12) According to Tool I (the Strategy Diamond), which component
mediates the relationship between corporate strategy and strategic
action?
a. Structural context
b. Internal selection environment
c. Basis of competitive advantage
d. Distinctive competence
(13) Which type of strategic action is characterised by being ‘driven by
the existing corporate strategy’ and aligned with the current
structural context?
a. Strategic inflection points
b. Co-evolutionary lock-in
c. Autonomous strategic action
d. Induced strategic action
