Question 1

Match the business model component with its explanation:

Accepted Answer

A)  core strategy/how a firm structures and nurtures its partnerships 
B)  customer interface/how a firm acquires and uses its resources 
C)  strategic resources/how a firm acquires and uses its resources 
D)  partnership network/how a firm competes 
E)  core strategy/how a firm interfaces with its customers 
A)  core strategy/how a firm structures and nurtures its partnerships 
B)  customer interface/how a firm acquires and uses its resources 
C)  strategic resources/how a firm acquires and uses its resources 
D)  partnership network/how a firm competes 
E)  core strategy/how a firm interfaces with its customers

Question 2

What is meant by the statement, "A firm's business model takes it beyond its own boundaries"? Provide an example to illustrate your answer.

Accepted Answer

Almost all firms partner with others to

Question 3

A firm's target market is the limited group of individuals or businesses that it goes after or tries to appeal to.

Accepted Answer

A) True 
 B)False

Question 4

Steven Tanner is in the process of putting together the business model for his startup and is currently working on his mission statement, product/market scope, and basis for differentiation. Steven is working on the ________ component of his business model.

Accepted Answer

A)  core strategy 
B)  strategic resources 
C)  partnership network 
D)  customer interface 
E)  feasibility analysis 
A)  core strategy 
B)  strategic resources 
C)  partnership network 
D)  customer interface 
E)  feasibility analysis

Question 5

Zappo's competence in customer service, Apple's competence in designing consumer products, and Netflix's competence in supply chain management are examples of ________, which serve as each of these respective firms' competitive advantage of their rivals.

Accepted Answer

A)  foundational competencies 
B)  core competencies 
C)  core elements 
D)  distinguishing attributes 
E)  foundational attributes 
A)  foundational competencies 
B)  core competencies 
C)  core elements 
D)  distinguishing attributes 
E)  foundational attributes

Question 6

Susan Spector is in the process of putting together the business model for her startup and is currently working on her core competencies and strategic assets. Which of the components of her business model is Susan working on?

Accepted Answer

A)  core strategy 
B)  strategic resources 
C)  partnership network 
D)  customer interface 
E)  feasibility analysis 
A)  core strategy 
B)  strategic resources 
C)  partnership network 
D)  customer interface 
E)  feasibility analysis

Question 7

The ________ is the string of activities that moves a product from the raw material stage, through manufacturing and distribution, and ultimately to the end user.

Accepted Answer

A)  consequence sequence 
B)  business chain 
C)  meaning chain 
D)  value chain 
E)  worth procession 
A)  consequence sequence 
B)  business chain 
C)  meaning chain 
D)  value chain 
E)  worth procession

Question 8

Which of the following are the primary elements of a startup's core strategy?

Accepted Answer

A)  target customer, fulfillment and support, pricing structure 
B)  suppliers, partners, other key relationships 
C)  pricing structure, suppliers, strategic assets 
D)  core competencies, strategic assets, funding model 
E)  mission statement, product/market scope, basis for differentiation 
A)  target customer, fulfillment and support, pricing structure 
B)  suppliers, partners, other key relationships 
C)  pricing structure, suppliers, strategic assets 
D)  core competencies, strategic assets, funding model 
E)  mission statement, product/market scope, basis for differentiation

Question 9

The term ________ refers to initiatives, such as Netflix in movie rentals and Zipcar in car sharing, which revolutionize how products are sold in an industry.

Accepted Answer

A)  product model modernism 
B)  business model innovation 
C)  feasibility analysis innovation 
D)  value innovation 
E)  opportunity innovation 
A)  product model modernism 
B)  business model innovation 
C)  feasibility analysis innovation 
D)  value innovation 
E)  opportunity innovation

Question 10

A company's ________ defines the products and markets on which it will concentrate.

Accepted Answer

A)  tactical analysis 
B)  business mission 
C)  product/market scope 
D)  supplier/buyer scope 
E)  basis of differentiation 
A)  tactical analysis 
B)  business mission 
C)  product/market scope 
D)  supplier/buyer scope 
E)  basis of differentiation

Question 11

A supplier is a company that:

Accepted Answer

A)  purchases a company's products 
B)  helps a firm put together its network of contacts 
C)  provides startups with funding 
D)  provides startups with business advice 
E)  provides parts or services to another company 
A)  purchases a company's products 
B)  helps a firm put together its network of contacts 
C)  provides startups with funding 
D)  provides startups with business advice 
E)  provides parts or services to another company

Question 12

A resource chain is the network of all the companies that participate in the production of a product, from the acquisition of raw materials to the final sale.

Accepted Answer

A) True 
 B)False

Question 13

The primary activities in a firm's value chain include: inbound logistics, operations, outbound logistics, marketing and sales, and service.

Accepted Answer

A) True 
 B)False

Question 14

The What Went Wrong? feature in Chapter 6 focuses on Joost, a company that launched in 2006 as a premier online video service that aggregated and streamed premium video online. Joost failed just three years after it launched. According to the feature, Joost's most critical mistake dealt with subtle aspects of its business model. In particular, its:

Accepted Answer

A)  core strategy wasn't focused 
B)  pricing model was misguided 
C)  partnership network never came together 
D)  customer interface was poorly conceived 
E)  customer service strategy was poorly executed 
A)  core strategy wasn't focused 
B)  pricing model was misguided 
C)  partnership network never came together 
D)  customer interface was poorly conceived 
E)  customer service strategy was poorly executed

Question 15

A firm's ________ describes why it exists and what its business model is supposed to accomplish.

Accepted Answer

A)  mission statement 
B)  vision statement 
C)  feasibility statement 
D)  duty statement 
E)  responsibility statement 
A)  mission statement 
B)  vision statement 
C)  feasibility statement 
D)  duty statement 
E)  responsibility statement

Question 16

Fulfillment and support describes:

Accepted Answer

A)  how a firm manages its customer relationships 
B)  the way a firm's product or service "goes to market" or how it reaches its customers 
C)  how a firm manages its employees 
D)  the products and markets on which a firm will compete 
E)  how a firm competes relative to its competitors 
A)  how a firm manages its customer relationships 
B)  the way a firm's product or service "goes to market" or how it reaches its customers 
C)  how a firm manages its employees 
D)  the products and markets on which a firm will compete 
E)  how a firm competes relative to its competitors

Question 17

Kendra Johnson is starting a firm in the shoe industry. Her shoes will be very high quality and will be priced at the top end of the market. Kendra has chosen the generic strategy referred to as:

Accepted Answer

A)  value pricing 
B)  differentiation 
C)  competitive superiority 
D)  separation 
E)  quality plus 
A)  value pricing 
B)  differentiation 
C)  competitive superiority 
D)  separation 
E)  quality plus

Question 18

A firm's ________ is the limited group of individuals or businesses that it goes after or tries to appeal to.

Accepted Answer

A)  target objective 
B)  goal objective 
C)  intention market 
D)  target market 
E)  object market 
A)  target objective 
B)  goal objective 
C)  intention market 
D)  target market 
E)  object market

Question 19

Almost all firms partner with others to make their business models work.

Accepted Answer

A) True 
 B)False

Question 20

In a business model context, the three components of a firm's partnership network are:

Accepted Answer

A)  business mission, partners, and strategic assets 
B)  core competencies, suppliers, and target customer 
C)  suppliers, partners, and other key relationships 
D)  business mission, product/market scope, and basis for differentiation 
E)  pricing structure, fulfillment and support, and target customer 
A)  business mission, partners, and strategic assets 
B)  core competencies, suppliers, and target customer 
C)  suppliers, partners, and other key relationships 
D)  business mission, product/market scope, and basis for differentiation 
E)  pricing structure, fulfillment and support, and target customer

Match the business model component with its explanation:

What is meant by the statement, "A firm's business model takes it beyond its own boundaries"? Provide an example to illustrate your answer.

A firm's target market is the limited group of individuals or businesses that it goes after or tries to appeal to.

Steven Tanner is in the process of putting together the business model for his startup and is currently working on his mission statement, product/market scope, and basis for differentiation. Steven is working on the ________ component of his business model.

Zappo's competence in customer service, Apple's competence in designing consumer products, and Netflix's competence in supply chain management are examples of ________, which serve as each of these respective firms' competitive advantage of their rivals.

Susan Spector is in the process of putting together the business model for her startup and is currently working on her core competencies and strategic assets. Which of the components of her business model is Susan working on?

The ________ is the string of activities that moves a product from the raw material stage, through manufacturing and distribution, and ultimately to the end user.

Which of the following are the primary elements of a startup's core strategy?

The term ________ refers to initiatives, such as Netflix in movie rentals and Zipcar in car sharing, which revolutionize how products are sold in an industry.

A company's ________ defines the products and markets on which it will concentrate.

A supplier is a company that:

A resource chain is the network of all the companies that participate in the production of a product, from the acquisition of raw materials to the final sale.

The primary activities in a firm's value chain include: inbound logistics, operations, outbound logistics, marketing and sales, and service.

A firm's ________ describes why it exists and what its business model is supposed to accomplish.

Fulfillment and support describes:

Kendra Johnson is starting a firm in the shoe industry. Her shoes will be very high quality and will be priced at the top end of the market. Kendra has chosen the generic strategy referred to as:

A firm's ________ is the limited group of individuals or businesses that it goes after or tries to appeal to.

Almost all firms partner with others to make their business models work.

In a business model context, the three components of a firm's partnership network are:

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Industry and Competitor Analysis

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters

Exam 6: Developing an Effective Business Model

Match the business model component with its explanation:

What is meant by the statement, "A firm's business model takes it beyond its own boundaries"? Provide an example to illustrate your answer.

A firm's target market is the limited group of individuals or businesses that it goes after or tries to appeal to.

Steven Tanner is in the process of putting together the business model for his startup and is currently working on his mission statement, product/market scope, and basis for differentiation. Steven is working on the ________ component of his business model.

Zappo's competence in customer service, Apple's competence in designing consumer products, and Netflix's competence in supply chain management are examples of ________, which serve as each of these respective firms' competitive advantage of their rivals.

Susan Spector is in the process of putting together the business model for her startup and is currently working on her core competencies and strategic assets. Which of the components of her business model is Susan working on?

The ________ is the string of activities that moves a product from the raw material stage, through manufacturing and distribution, and ultimately to the end user.

Which of the following are the primary elements of a startup's core strategy?

The term ________ refers to initiatives, such as Netflix in movie rentals and Zipcar in car sharing, which revolutionize how products are sold in an industry.

A company's ________ defines the products and markets on which it will concentrate.

A supplier is a company that:

A resource chain is the network of all the companies that participate in the production of a product, from the acquisition of raw materials to the final sale.

The primary activities in a firm's value chain include: inbound logistics, operations, outbound logistics, marketing and sales, and service.

A firm's ________ describes why it exists and what its business model is supposed to accomplish.

Fulfillment and support describes:

Kendra Johnson is starting a firm in the shoe industry. Her shoes will be very high quality and will be priced at the top end of the market. Kendra has chosen the generic strategy referred to as:

A firm's ________ is the limited group of individuals or businesses that it goes after or tries to appeal to.

Almost all firms partner with others to make their business models work.

In a business model context, the three components of a firm's partnership network are:

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Industry and Competitor Analysis

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters