Management 490 Theory Exam Study Guide Mark Smith - Practice-Ready Answer Guide

Management 490 Theory Exam Study Guide Mark Smith - Practice-Ready Answer Guide Business Model Canvas - answer - a diagram of how a company creates value for itself and its customers- elevator pitch Business Model Canvas 2 - answer - 1. Key Partners 2. Key Activities 3. Key Resources 4. Value Proposition 5. Channels 6. Relationship 7. Segment 8. Cost Structure 9. Revenue Streams Key Partners - answer - Outsiders - Wholesalers - Suppliers - Manufactures Key Activities - answer - production, problem solving, platform/network - Can you actually make product? Key Resources - answer - materials that are essential for the production of a good or service - Adequate capital (#1 reason a business will fail) Value Proposition - answer - the unique value that a product or service provides to its customers and how it is better than and different from those of competitors. - Why do they give us $ Channels - answer - How you reach the customers Segment - answer - Where to focus on section of the market Cost Structure - answer - - Timing - Fixed vs Variable Revenue Streams - answer - How you make money - Sales - Ads - Services - Accessories Explain the Business Model. - answer - - What does the company do? - Why should the customer buy my product? - Who helps them? - What does the company need? - How is it done? - How do they interact? - Who do they help? - How do they reach them? - What will it cost? - How much will they make? Porter's Five Forces Model - answer - Analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry. Are they organized, different like (union or non union). Porter's 5 - answer - Identifies the terms of the rivalry "are we all competing fairly" or is one of these powers very important either for the whole industry or just for certain people? Porter's Five Forces Model 2 - answer - 1. Industry Competition 2. Suppliers 3. Buyers 4. Barriers to entry and exit 5. Substitutes Industry Competition - answer - Others in the market doing the same thing Suppliers - answer - Where you get your product -How many? -Organized? -Different relationships? Buyers - answer - Who purchases your product -Usually weak - Powerful? - not having many, organized - loyalty - ease of substitutions Barriers to entry and exit - answer - It is a characteristic of a market that prevents new firms from joining, or leaving, the market - Patent - Regulations - Money Substitutes - answer - From another industry - different item than what you sell that serves same or similar purpose Formulation and Implementation - answer - The two types of strategic actions that must be simultaneously integrated to successfully employ the strategic management process Formulation and Implementation 2 - answer - 1. Environment 2. Resources 3. Management Goals 4. Social Responsibility 5. Strategy 6. Structure 7. Systems 8. Leadership Environment - answer - - Porters 5 Forces - Supply Chain Resources - answer - - Ratios Management Goals - answer - Personal Goals Social Responsibility - answer - - Society has evolved to all larger groups - Ethics - 10 Commandments/Sermon on the Mount/Beatitudes/Bill of Rights/7 Deadly Sins Strategy - answer - How to create value better than anyone else - Generic Model - Rumelt's - BCG - Grand Strategy Structure - answer - - Organization Chart - Product/Size/Decision Making/Evaluation Simple/Functional/Divisional/Matrix/Combination Systems - answer - GE Strategic Planning - Reward - Allocation - Information Leadership - answer - - Importance of task structure- how easy you can make job, train supervisors on on how to job to teach employees, invest in training - Position Power- you should provide supervisors with social trappings of authority, money protection - Leader Member Relations- Do what you say, you want them to do Supply Chain - answer - Consists of all parties involved, directly or indirectly, i