Exam 6: Developing an Effective Business Model

Their is a standard business model that most startups follow.

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

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

________ are anything rare and valuable that a firm owns.

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

The Partnering for Success feature in Chapter 6 focuses on Cameron Hughes Win and Partsearch. The overarching point of the feature is:

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

Describe the two potential fatal flaws of business models.

The clothing retailer Abercrombie & Fitch targets 18- to 22-year-old men and women. This demographic is Abercrombie & Fitch's:

A clearly articulated business model serves as an ongoing extension of feasibility analysis.

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

A supplier is a company that:

________, 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.

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

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.

Andrew Bowser 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. Andrew is working on the ________ component of his business model.

Which of the following statement is incorrect regarding the "core strategy" component of a firm's business model?

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

A ________ 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.

From a broad perspective, firms choose one of two generic strategies to position themselves in the marketplace. These are: