MGMT 310 EXAM 2 || WITH ACCURATE ANSWERS
100%.
competes, resources, customers, value correct answers business model: a business' plan or
diagram for how it _____, uses its _____, structures its relationships, interfaces with _____, and
creates ____ to sustain itself
feasibility, elements, logic correct answers a business model is important because it serves as an
ongoing extension of _____ analysis (does this business make sense?), it focuses attention on
how all the ___ of a business fit together and constitute a working whole, describes why the
network of participants needed to make a business idea viable are willing to work together, and
articulates a company's core ____ to all stakeholders, including employees
value chain correct answers _____: the string of activities that moves a product from the raw
material stage, through manufacturing and distribution, and ultimately to the end user
customer, economics correct answers Two fatal flaws that can render a business model untenable
from the beginning are : a complete misread of the ____ and unsound _____
core strategy, strategic resources, partnership network, customer interface correct answers the 4
components of a business model: cs, sr, pn, ci
core strategy correct answers (components of a business model): first component, describes how
a firm competes relative to its competitors; includes the mission statement, product/market
scope, and basis for differentiation
mission statement correct answers _____: describes why it exists and what its business model is
supposed to accomplish
(product/market) scope correct answers _____: defines the products and markets on which it will
concentrate
strategic resources correct answers (components of a business model) 2nd component, a firm is
unable to implement strategy without this; two important ones are a firm's core competencies and
strategic assets
core competencies correct answers _____: resource or capability that serves as a source of a
firm's competitive advantage
strategic assets correct answers ____: anything rare and valuable that a firm owns (i.e. plant
equipment, location, brands, patents, customer data, a highly qualified staff, partnerships...)
partnership network correct answers (components of a business model) 3rd component, building
a net of suppliers and other key relationships; new ventures rely heavily on these
, supplier correct answers _____: a company that provides parts or services to another company
key relationships correct answers _____: firms partner with other companies to make their
business models work.
joint venture correct answers ____: an entity created by two or more firms pooling a portion of
their resources to create a separate, jointly own org
network correct answers ____: a hub-and-wheel configuration with a local firm at the hub
organizing the inter-dependencies of a complex array of firms
consortia correct answers ____: a group of orgs with similar needs that band together to create a
new entity to address those needs
strategic alliance correct answers _____: an arrangement between two or more firms that
establishes an exchange relationship but has no joint ownership involved
trade associations correct answers _____ orgs (typically nonprofit) that are formed by firms in
the same industry to collect and disseminate trade info, offer legal and tech advice, furnish
industry-related training, and provide a platform for collective lobbying
customer interface correct answers (components of a business model) 4th component, the way a
firm interacts with its customer hinges on how it chooses to compete; 3 elements are target
customer, fulfillment and support, and pricing model
target market correct answers ____: the limited group of individuals or businesses that it goes
after or tries to appeal to
fulfillment (support) correct answers ____: describes the way a firm's product/service reaches its
customers; channels used and what level of customer support it provides
ethical (legal) correct answers initial ____ issues facing a new firm include establishing a
culture, choosing an attorney, drafting a founders agreement, avoiding legal disputes, obtaining
licenses and permits, and choosing a form of business organization
code of conduct correct answers ____: a formal statement of an org's values on certain ethical
and social issues; provides specific guidance to managers and employees regarding expectations
of them in terms of ethical behavior
ethical culture correct answers in order to establish a strong _____, founders must lead by
example, create a code of conduct, and implement an ethics training program
founder's agreement correct answers ____: a written document that deals with issues such as the
relative split of the equity among the founders of the firm, how individual founders will be
compensated for the cash or the "sweat equity" they put into the firm, and how long the founders
will have to remain with the firm for their shares to fully vest
