UARK MGMT 3013 Exam 2 – Launder
Questions and Answers
Business Model - Answers -How the company intends to implement its' strategy for a
product or group of products
- companies can have multiple
Components of a Business Model - Answers -- Revenue Model:
Price x Volume, and other revenue streams
- Cost Structure:
Direct and Indirect costs
Inputs
- Margin/Finance Model:
Contribution needed from each sale given expected volume
- Resource Velocity/Turnover Model:
Speed at which assets utilized, revenue realized, etc.
Characteristics of Functional Business Model - Answers -- Customer Value Concept
- Well defined and actionable revenue and expenditure streams
Dynamic Nature of Business Models - Answers --Many companies have multiple
business models
-Models can evolve
-Models can be disruptive (Netflix disrupted the movie rental industry)
Criteria to assess and evaluate Business Models - Answers -- Imitation Protection
(secrecy, trade mark, lead time)
- Protection from stakeholder holdups
- Slack: ability to weather failure of some elements of the business plan
Strategic Moves - Answers -Market based move that involves a significant commitment
of organizational resources and is difficult to implement or reverse
Tactical Moves - Answers -a market based move that is taken to "fine-tune" a strategy
- usually involves fewer resources
- relatively easy to implement and reverse
Competition - Answers -the struggle among producers for the dollars of consumers
, Customer Value Concept - Answers -The unique characteristics of your product or
service that the customer sees as adding value to the product and making it desirable to
purchase
- developed relative to your competitors
Kinds of Business Models - Answers -- Razor-razorblades
- Pay as you go
- Subscription
- Freemium
- Wholesale
- Agency
- Bundling
Razor-razorblades - Answers -razor handle cheap, blades expensive
Pay as you go - Answers -uber, pay every time you use service
Subscription - Answers -a payment up front to use or get something over time
Freemium - Answers -most apps, pay to remove the ads or for additional content
Wholesale - Answers -in large quantity; less than retail in price
Agency - Answers -service provided and then take a % of sale as payment
Bundling - Answers -phone and tv bundling, get multiple things for a price lower than
buying them separately
Things firms compete for: - Answers -- Customers
- Geographic Resources
- Inputs
- Talent
- Capital
- Technology
Competitive Advantage - Answers -
Market Commonality - Answers -The number of markets with which the firm and a
competitor are jointly involved and the degree of importance of the individual markets to
each
Resource Similarity - Answers -the extent to which the firm's tangible and intangible
resources compare favorable to a competitor's in terms of type and amount
Driver of Competitive Behavior - Answers -- Awareness
- Motivation
Questions and Answers
Business Model - Answers -How the company intends to implement its' strategy for a
product or group of products
- companies can have multiple
Components of a Business Model - Answers -- Revenue Model:
Price x Volume, and other revenue streams
- Cost Structure:
Direct and Indirect costs
Inputs
- Margin/Finance Model:
Contribution needed from each sale given expected volume
- Resource Velocity/Turnover Model:
Speed at which assets utilized, revenue realized, etc.
Characteristics of Functional Business Model - Answers -- Customer Value Concept
- Well defined and actionable revenue and expenditure streams
Dynamic Nature of Business Models - Answers --Many companies have multiple
business models
-Models can evolve
-Models can be disruptive (Netflix disrupted the movie rental industry)
Criteria to assess and evaluate Business Models - Answers -- Imitation Protection
(secrecy, trade mark, lead time)
- Protection from stakeholder holdups
- Slack: ability to weather failure of some elements of the business plan
Strategic Moves - Answers -Market based move that involves a significant commitment
of organizational resources and is difficult to implement or reverse
Tactical Moves - Answers -a market based move that is taken to "fine-tune" a strategy
- usually involves fewer resources
- relatively easy to implement and reverse
Competition - Answers -the struggle among producers for the dollars of consumers
, Customer Value Concept - Answers -The unique characteristics of your product or
service that the customer sees as adding value to the product and making it desirable to
purchase
- developed relative to your competitors
Kinds of Business Models - Answers -- Razor-razorblades
- Pay as you go
- Subscription
- Freemium
- Wholesale
- Agency
- Bundling
Razor-razorblades - Answers -razor handle cheap, blades expensive
Pay as you go - Answers -uber, pay every time you use service
Subscription - Answers -a payment up front to use or get something over time
Freemium - Answers -most apps, pay to remove the ads or for additional content
Wholesale - Answers -in large quantity; less than retail in price
Agency - Answers -service provided and then take a % of sale as payment
Bundling - Answers -phone and tv bundling, get multiple things for a price lower than
buying them separately
Things firms compete for: - Answers -- Customers
- Geographic Resources
- Inputs
- Talent
- Capital
- Technology
Competitive Advantage - Answers -
Market Commonality - Answers -The number of markets with which the firm and a
competitor are jointly involved and the degree of importance of the individual markets to
each
Resource Similarity - Answers -the extent to which the firm's tangible and intangible
resources compare favorable to a competitor's in terms of type and amount
Driver of Competitive Behavior - Answers -- Awareness
- Motivation
