CH5
What is the relationship between the business plan and the business model?
A business model is a journey to gather evidence while a business plan is a formal document.
Given that startups can be flexible in their business model, what general guide should they follow?
Existing models should be prepared to adjust as markets change.
Blackberry and Kodak are discussed in the text as examples of companies that were able to successfully change their business models in order to adapt to changes in the market. T/F
F
Business models generally discourage experimentation. T/F
F
Doug Halls describes the one big benefit you offer your customer can be determined by asking the question "Why should I care?". T/F
F
Entrepreneurs should try to address every potential customer in a market. T/F
F
In the business model canvas, the offering is comprised of customer relationships and channels. T/F
F
Infrastructure is made up of only the products and suppliers entrepreneurs must have to deliver CVP. T/F
F
Multisided markets describe a variety of services that serve two or more segments with very different needs and problems, which bear no relationship to each other. T/F
F
Tata Motors succeeded in resolving the problem of access for its customers. T/F
F
The "value" portion of the customer value proposition is how much you could expect to sell one share of your company in an initial public offering (IPO). T/F
F
The all-benefits approach is the most impactful for creating a value proposition because of its real insight into what the customer wants or needs. T/F
F
The all-benefits approach produces a stronger CVP than points-of-difference because it focuses on the product or service relative to the competition and recognizes that the offering is unique and different. T/F
F
The business model is just about revenues and costs. T/F
F
The business plan describes the rationale of how a new venture creates, delivers, and captures value. T/F
F
The infrastructure of the business model does not include people--only technology and facilities. T/F
F
When determining your revenue streams, which of the following questions is among those you should ask yourself?
How much are my customers willing to pay?
What is the key feature of the resonating-focus approach to CVP?
It focuses on why people will like your product.
Which of the following is necessary for an effective customer value proposition (CVP)?
It must offer better value than the competition.
A diversified market offers a variety of services to two or more customer segments with different needs and problems, which bear no relationship to each other. T/F
T
Amazon serves a diversified market because it has multiple products and services that serve several unrelated groups of customers. T/F
T
Coke and Pepsi are examples of companies that address the mass market. T/F
T
Delivering existing products and services to existing customers but with unique differentiation is one approach to a business model. T/F
T
Financial viability defines the revenue and cost structures a business needs to meet its expenses and financial obligations. T/F
T
For Justin Gold of Justin's nut butters, old food processors were part of the infrastructure that made his venture a success, T/F
T
For a business model's CVP to be effective, it must offer better value than the competition. T/F
T
In creating their CVPs, both IKEA and FedEx first focused on the jobs that customers needed done before coming up with the solution. T/F
T
MOOCs disrupted higher education by creating free online courses. T/F
T
The resonating-focus CVP is the "gold standard" because it considers your product or service from the perspective of the customer. T/F
T
When determining your cost structure, which of the following questions is among those you should ask yourself?
What resources are the most expensive to get?
Which of the following is most likely to have a diversified market?
a hardware store that sells to contractors and nonprofessionals
Genetic testing services like 23andMe offer DNA analysis based on a saliva sample submitted by mail. Based on the discussion in the text, what need is 23andMe addressing in their CVP?
a lack of access
Which of the following best defines the term mass market?
a large group of customers with similar needs or problems
If an automobile manufacturer advertised an "automobile for all ages," what market is it addressing?
a mass market
Jerry has stated that his business appeals to people 50 years of age and older who are restructuring their finances for retirement plans. What has Jerry defined?
a niche market
The infrastructure generally includes ______.
all the resources that are needed to deliver the CVP
Christine has obtained a job pitching a product at a local state fair. Her job is to demonstrate cookware, highlighting its features and demonstrating its use as she prepares food for visitors who can watch her cook and try samples. Christine will be selling the cookware based on which CVP type?
all-benefits approach
Which term refers to the CVP approach that involves listing all the advantages of your product or service without comparing it to others?
all-benefits approach
A ______ describes the rationale of how a new venture creates, delivers, and captures value.
business model
How do business models help entrepreneurs create value?
by fulfilling unmet needs in an existing market
The answer to the question, "What are the different ways I can reach my customer?" will result in which component of the BMC?
channels
BlackBerry, which gained significant market share in the early 2000s in the business, government, and consumer markets, lost market share because ______.
competitors offered smartphones with better designs and more features
In the business model canvas (BMC), what components are included in financial viability?
cost structure and revenue streams
Danielle will be offering a tool-sharpening service at her garden and landscaping store on the first Tuesday of every month. She believes that this fulfills a customer need and that customers will help spread the word about her location and services. On which BMC component is Danielle focusing?
customer relationships
Which of the following is the BMC component most involved with building positive feelings about your business and customer loyalty?
customer relationships
In the business model canvas (BMC), what components are related to customers?
customer segments, channels, and customer relationships
Andrew owns a popular but expensive Chinese restaurant. In order to introduce more people to his brand, he offers a series of one-time "taste fairs" in which he brings his recipes to a locally sponsored event. Customers are able to pay modest amounts for small servings of his creations while not paying for the ambiance of the famous restaurant. What problem is Andrew addressing?
customers' lack of money
Fulfilling unmet customer needs using an existing product or service is called ______.
differentiation
A common feature in the stories in the text about IKEA, FedEx, and Tata Motors is that ______.
distribution occurs in a different way from traditional services
Which of the following offers a variety of products to two or more customer segments with different needs, even if the resulting markets are unrelated to one another?
diversified market
The practice of hypothesizing, testing, and validating to create a business model is called ______.
evidence-based entrepreneurship
Which of the following would be included when describing the infrastructure?
facilities
The revenue and the cost structures would be included in which of the four parts of the business model?
financial viability
To develop a good CVP, products must not only fulfill a need but also ______.
fit into customers' lifestyles
Which of the following allowed Tata Motors to be successful?
its low-cost cars
In the business model canvas (BMC), what components are included in infrastructure?
key activities, key resources, key partners
When entrepreneurs are figuring out suppliers, associates, and distributors, they are determining ______.
key partners
As described in the text, the UK-based nonprofit Wayfindr provides software that can be used by anyone who needs audio instructions to help them navigate public transportation. For vision-impaired public transportation users, the software addresses what problem?
lack of access
What problem did IKEA solve for customers in its CVP?
lack of attractive low-cost furniture
As presented in the text, what major customer problem did ThedaCare hospital system solve in their CVP?
lack of time
What are the four major categories of problems customers typically experience?
lack of time, lack of money, lack of skill, lack of access
What type of target market do toilet paper manufacturers target?
mass
Which term describes two or more customer segments that are linked but independent of each other?
multisided markets
A ______ market is a small market segment comprised of customers with specific needs and requirements.
niche
As described in the text, entrepreneurs Carlton and Hazel Solle created Bioscarf as an alternative to common filtration masks. This is an example of a ______ market.
niche
Gift Prescriptions is a company that offers small gifts that can be left behind in doctors' offices. Gift Prescriptions sells their gifts to pharmaceutical companies and medical supply stores who want to leave doctors a small gift in appreciation for their time. Gift Prescriptions' market segment would be described as a ______ market.
niche
What are the four parts of a business model?
offering, customers, infrastructure, financial viability
The ______ approach to CVP involves identifying and promoting all the benefits of your product or service relative to the competition and recognizes your offering is unique and different from others in the market.
points-of-difference
Which of the following is considered the "gold standard" for CVPs?
resonating-focus approach
Breaking customers into groups according to their different needs and problems would create which of the following market types?
segmented
It is typically easier for new businesses to change their business model because new businesses ______.
tend to be smaller and more agile
The offering includes which of the following?
the customer value proposition
A CVP requires that you think about your business from the perspective of what group?
the customers
What problem did FedEx solve for customers in its CVP?
the lack of easy, door-to-door, overnight delivery of packages
Within a business model, customers refer to ______.
the people who populate the segments of the market your offering intends to serve
In the business model canvas (BMC), what is covered under the offering?
the value proposition
The first step in creating your CVP is ______.
uncovering what your customer really needs
What is the right side of the BMC focused on?
value creation
What is the left side of the BMC focused on?
value delivery