Quiz 1

The "Business Model Canvas" consists of nine basic building blocks. Sketch the canvas and label each of the nine blocks. For each labeled block, describe it in a sentence or two.

1. Customer Service: The Customer Segments Building Block defines the different groups of people or organizations an enterprise aims to reach and serve. 2. The Value Propositions Building Block describes the bundle of products and services that create value for a specific Customer Segment 3. Channels: The Channels Building Block describes how a company communicates with and reaches its Customer Segments to deliver a Value Proposition. 4. Customer Relationships: The Customer Relationships Building Block describes the types of relationships a company establishes with specific Customer Segments 5. Revenue Streams: The Revenue Streams Building Block represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings) 6. Key Resources: The Key Resources Building Block describes the most important assets required to make a business model work 7. Key Activities: The Key Activities Building Block describes the most important things a company must do to make its business model work 8. Key Partnerships: The Key Partnerships Building Block describes the network of suppliers and partners that make the business model work 9. Cost Structure: The Cost Structure describes all costs incurred to operate a business model

List the three types of "fit" discussed in the text. Specifically, for each "fit", list the "name" (e.g. foo-bar fit), the "slang" term used for each (e.g. "on-the-exam fit"). Describe the key attributes of each fit in a sentence of two.

1. Problem-Solution Fit (On Paper): occurs when you have evidence that customers care about pains, gains, and certain jobs. Have a value proposition design that addresses these jobs, pains, and gains. 2. Product-Market Fit(In the Market): Have evidence that your products and services, pain relievers, and gain creators are actually creating customer value and getting traction in the market 3. Business Model Fit(In the Bank): Have evidence that your value proposition can be embedded in a profitable and scalable business model

The text discusses that a business model can involve two different types of revenue streams. What are the two types?

1. Transaction revenues resulting from one-time customer payments. 2. Recurring revenues resulting from ongoing payments to either deliver a Value Proposition to customers or provide post-purchase customer support

According to Osterwalder & Pigneur, what is the definition of a "business model"?

A business model describes the rationale of how an organization creates, delivers, and captures value.

Fill-in-the-blank-question: In the article, Prof. Stevenson defines "Entrepreneurship as a ____________________ Phenomenon".

Behavioral Phenomenon

Fill-in-the-blank question: In the article, Prof. Stevenson discusses each critical dimension varying from the "____________________ domain" to the "_________________ domain" along the continuum. Hint: these were shown as overlapping two-headed arrows in the case for each critical dimension.

Entrepreneurial domain to the Administrative domain.

True / False: in the article, Prof. Stevenson argues that entrepreneurship can only be practiced by startups and not well established firms. In a few sentences, describe Prof. Stevenson's reasoning to justify his position.

False. Stevenson states that his perspective on entrepreneurship highlights the false dichotomy of entrepreneurship and intrapreneurship. The same principles that are applied in entrepreneurship can be applied to larger established firms. As a firm has more resources, entrepreneurial behavior is more difficult, however, the fundamental behaviors apply. Start-up fundamentals can be applied in large corporate settings.

The text discusses "pricing mechanisms" when discussing revenue streams. What are the two types of pricing mechanisms discussed in the text? Describe each in a sentence or two and cite an example for each.

Fixed "Menu Pricing: predefined prices are based on static variables. Example: List price: Price for individual products, services, or other value propositions. Dynamic Pricing: Prices change based on market conditions. Example: Real-time market: price is established dynamically based on supply and demand.

When describing "Customer Jobs", the text distinguishes between three main types of customer jobs to be done and supporting jobs. List the three types of customer jobs to be done and briefly describe in a sentence

Functional jobs:When your customer tries to solve a specific task or problem like mowing lawn. Social Jobs: When your customers want to look good or gain social status. Ex: How customers want to be perceived by others, ex: trendy consumer or professional Personal/emotional jobs: Customer seeking specific emotional state such as feeling good or secure. Example: seeking peace of mind with an investment or job satisfaction.

Fill-in-the-blank question: In the article, Prof. Stevenson discussed strategic orientation as a continuum from "_______________________" (nickname) to "_________________" (nickname) as the level of controlled resources increased. Hint: we are not looking for a definition here in the blanks, but rather the nickname that Prof. Stevenson assigned to each.

Promoter to Trustee

When describing "Customer Gains", the text distinguishes between four main types of customer gains. List the four types of customer gains OR list two types and briefly describe each in a sentence or two

Required gains: without a solution wouldn't work. ex: smartphone Expected gains: basic gains customers expect from a solution even if it could work without them. ex: iPhone release caused people to expect smartphones to be designed nicely. desired gains: gains that go beyond customer expectations but would love to have. ex: smartphones to be seamlessly integrated with other devices. unexpected gains: go beyond customer expectations and desires. ex: touch screens and app store.

In addition to "Strategic Orientation", there were five additional critical dimensions of business practice as defined by Stevenson. List the five additional dimensions.

Strategic Orientation Commitment to Opportunity Commitment of Resources Control of Resources Management Structure Reward Philiosophy

Define entrepreneurship

The pursuit of opportunity without regard to resources currently controlled.

Professor Stevenson discusses two historical definitions of entrepreneurship which he argues are both flawed. What were the two "Schools of Thought" on the way to define entrepreneurship according to Stevenson? According to Stevenson, what is the major flaw to each of the two?

Two Schools of Thought: Economic Function: entrepreneurship is defined as an economic function and entrepreneur is defined by the role in society. Economic function: Major Flaw: doesn't make sense to decide what economic functions are "entrepreneurial". Entrepreneurs have a common sets of individual traits: Major flaw: single psychological profile of an entrepreneur doesn't exist.