Exam 6: Developing an Effective Business Model

The Partnering for Success feature in Chapter 6 focuses on 99designs, an online company that features a "crowdsourcing" model for getting design work done. 99designs' approach to partnering with ________ is the essence of its disruptive business model.

In regard to business models, which of the following statements is incorrect?

Catherine Smith has just finished writing a business plan for a startup in the medical products industry. She has now reached the point where she needs to develop a plan for how her firm will compete, use its resources, structure its relationships, interface with customers, and create value to sustain itself on the basis of the profits it earns. Jennifer needs to establish her firm's:

In the WebHouse example included in Chapter 6, WebHouse failed because:

Two fatal flaws can render a business model untenable from the beginning. These are utterly unsound economics and:

Fortunately, if three of the four components of a firm's business model are in place, the firm has a high probability of success.

Which of the following is not a "primary" activity in the value chain?

According to the textbook, by studying a product's or service's value chain an organization can:

A clearly articulated business model articulates a company's core logic to all stakeholders, including the firm's employees.

Jared King is starting a firm in the electronic games industry. The firm will produce games similar to popular games on the market, but they won't be as sophisticated and will be priced at the low end of the market. Jared has chosen the generic strategy referred to as:

________ involves a firm's relationship with its suppliers and involves all the activities of receiving, storing, and shipping component parts to the place where they will be added to the final product.

The Savvy Entrepreneurial Firm feature in Chapter 6 focuses on three business model innovators: Warby Parker, Shopkick, and SunRun. What is Shopkick's business model innovation?

Historically, it has been difficult for a new venture to use a differentiation strategy.

Companies ultimately try to combine their core competencies and strategic assets to create a sustainable competitive advantage.

The four components of an effective business model include: core strategy, strategic resources, partnership network, and customer interface.

There is no standard business model that dictates how firms in a particular industry should compete.

Strategic assets are anything rare and valuable that a firm owns.

Which of the following is a "primary" activity in the value chain?

A business plan is a firm's plan or diagram for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the profits it earns.

Which of the following is not one of the purposes of a business model?