Deck 4: Understanding Your Business Model and Developing Your Strategy

Question 1

The Business Model Canvas is a blueprint to help businesses to implement new strategies.

Answer 1

True

Question 2

The Lean Canvas is better suited for existing businesses and is not an appropriate tool for startups.

Answer 2

False

Question 3

Long tail theory is focused on cultural shift away from mainstream products towards specialty products and services.

Answer 3

True

Question 4

A business strategy that maximizes long tail theory would focus on initial high sale numbers that taper off quickly.

Question 5

People are the most critical component of any new or existing venture.

Question 6

Online ventures are not considered global ventures until they reach $10 million in sales.

Question 7

What of the following is not a component of the Business Model Canvas?

A) Key partners
B) Customer relationships
C) Cost structure
D) Investor financing
E) Revenue stream

Question 8

To successfully exploit being a first mover, one must be able to:

A) Mass sufficient resources (people, cash, expertise) to open and develop a market in order to identify and secure the dominate position
B) Obscure your efforts from competitors until the last possible moment before publicizing your offering to minimize competitors' time to respond
C) Resist installing to much operating leverage until you've identified the new market's dominate position
D) Be prepared to defend the dominate market position through legal means, raising entry costs, or increasing the customers cost of switching.
E) All of the above f) None of the above

Question 9

Which business was mentioned in the chapter as having maximized on the benefits of long tail theory?

A) Amazon
B) Walmart
C) Microsoft
D) Blackberry
E) General Electric

Question 10

The 'tail' of the long tail theory refers to what type of company?

A) Mainstream mass markets sales with high sales
B) Specialty products that experience a short lived spike in sales
C) Specialty products that have low sales numbers but continue for a longer period of time
D) A and C
E) None of the above.

Question 11

Which of the following are keys to successful franchising.

A) Replicability
B) Financing
C) Control
D) B and C
E) A and C f) All of the above

Question 12

What is the side effect of a positive work culture?

A) Open communication and job satisfaction encourages innovation
B) Decreases turnover (lower costs for training new employees)
C) Team unity fosters cooperation and between employees
D) Satisfied employees are more willing to work longer hours to get the job done
E) All of the above

Question 13

What is the Lean Canvas, and how does it differ from the Business Model Canvas?

Question 14

What is long tail theory and how has a company like Amazon used it successfully?

Question 15

Discuss some check points an entrepreneur should confirm before expanding a product mix