Exam 6: Developing an Effective Business Model

A ________ is a group of organizations with similar needs that band together to create a new entity to address those needs.

A hub and wheel configuration with a local firm at the hub organizing the interdependencies of a complex array of firms is referred to as a:

In a business model context, the three components of a firm's customer interface are target customer, fulfillment and support, and:

Why is it important for a firm to have a well-thought-out business model?

________ is the process of adapting a firm's core competencies to exploit new opportunities.

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

An arrangement between two or more firms that establishes an exchange relationship but has no joint ownership involved is called a:

A company's product/market scope defines the products and markets on which it will concentrate.

A network is a hub-and-wheel configuration with a local firm at the hub organizing the interdependencies of a complex array of firms.

Gary Smith just launched a firm in the sports drink industry. He has decided to focus his efforts on appealing to extreme sports enthusiasts (examples include hang gliders, rock climbers, and parachutists). In Gary's case, extreme sports enthusiasts represent his firm's:

Which of the following is not one of the components of a firm's business model?

The four components of a firm's business model are:

Two fatal flaws can render a business model untenable from the beginning: a complete misread of the customer and underutilization of the Internet.

________, a relatively new approach to partnering, takes place when a service provided comes inside a partner's facilities and helps the partner design and manage its supply chain.

Firms that have a ________ strategy strive to have the lowest costs in the industry, relative to competitors' costs, and typically attract customers on that basis. In contrast, firms using a ________ strategy compete on the basis of providing unique or different products and typically compete on the basis of quality, service, timeliness, or some other important dimension.

A core competency is a resource or capability that serves as a source of a firm's competitive advantage over its rivals.

________ involves all the activities required to manufacture a product.

By studying a product's value chain, an organization can identify ways to create additional value and assess whether it has the means to do so.

The process of adapting a company's core competencies to exploit new opportunities is referred to as resource leverage.

Organizations (typically nonprofit) that are formed by firms in the same industry to collect and disseminate trade information, offer legal and technical advice, furnish industry-related training, and provide a platform for collective lobbying are called: