SEVI 3013 Exam 2 Questions & Answers
100% Correct!
Business Model - ANSWERS-how a company intends to implement its strategy for a
product or group of products
-companies can have multiple models
Characteristics of a Functional Business Model - ANSWERS-robust elements: ability to
weather challenges and adversity
-Identifies and acquires key needed resources and processes
-have compatibility of multiple business models: synergy and leverage resources
Components of a business model - ANSWERS-revenue model
-cost structure
-margin/finance model
-resource velocity/turnover model
Revenue Model - ANSWERSprice x model and other revenue streams
Cost Structure - ANSWERS-direct and indirect costs
-inputs are usually key controllable components
Margin/Finance Model - ANSWERS-contribution needed from each sale given expected
volume
-considers the impact of multiple revenue streams
Resource Velocity/Turnover Model - ANSWERSspeed at which assets are utilizes,
revenues realized, etc.
Consumer Value Concept (CVC) - ANSWERSthe unique characteristics of your product
or service that the customer sees as adding value to the product and making it desirable
to purchase and is developed relative to competitors
Revenue Streams - ANSWERSsales, accessories, accessory royalty, royalty games,
and fees for online communication (xbox live)
Cost Streams - ANSWERSmanufacturing and operating costs, raw materials, seminars
and training for game makers
Razor-razorblade Model - ANSWERSfocus on selling products at low cost and
supplemental products
-ex: Gillette, PS4, and printers
, Pay as You Go Model - ANSWERSonly pay for amount used
-ex: utilities/electricity
Subscription - ANSWERSsign up customers for subscription products
-ex: media, like magazines or streaming services
Freemium - ANSWERSoffer basic product for free when consumer pays for a premium
product
-ex: apps are free to download but contains in app purchases
Wholesale Model - ANSWERSmake the product, then sell to retailer, then they sell to
consumer
-ex: Tyson sells to Walmart, Walmart sells to consumers
Agency Model - ANSWERSmodel/acting agencies
Bundling Model - ANSWERSbundle multiple products then sell at a reduced price
-ex: Microsoft Office or fast food places when offer meals at cheaper price
Dynamic Nature of Business Models - ANSWERS-many companies have multiple
business models
-models can evolve (freemium to subscription)
-models can be disrupted
-Beer Distributorships: breweries don't allow other brands "in house" and craft beers
and non-alcoholic products demanded locally
-Failed Business Models: blockbuster and kodak
Assess and Evaluate Business Models - ANSWERS-Imitation Protection: secrecy,
trademark, and lead time
-Protected from stakeholder holdups
-Slack: ability to weather failure of some elements of the business plan
Strategic Action/Response - ANSWERSmarket-based move that involves a significant
commitment of organizational resources and is difficult to implement or reverse
Tactical Action/Response - ANSWERS-market-based move that is taken to fine-tune a
strategy
-usually involves fewer resources and is relatively easy to implement and reverse
Competition - ANSWERSthe struggle among producers for the dollars of consumers
Firms Compete for - ANSWERS- customers
- geographic resources
- inputs
- talent
- capital
100% Correct!
Business Model - ANSWERS-how a company intends to implement its strategy for a
product or group of products
-companies can have multiple models
Characteristics of a Functional Business Model - ANSWERS-robust elements: ability to
weather challenges and adversity
-Identifies and acquires key needed resources and processes
-have compatibility of multiple business models: synergy and leverage resources
Components of a business model - ANSWERS-revenue model
-cost structure
-margin/finance model
-resource velocity/turnover model
Revenue Model - ANSWERSprice x model and other revenue streams
Cost Structure - ANSWERS-direct and indirect costs
-inputs are usually key controllable components
Margin/Finance Model - ANSWERS-contribution needed from each sale given expected
volume
-considers the impact of multiple revenue streams
Resource Velocity/Turnover Model - ANSWERSspeed at which assets are utilizes,
revenues realized, etc.
Consumer Value Concept (CVC) - ANSWERSthe unique characteristics of your product
or service that the customer sees as adding value to the product and making it desirable
to purchase and is developed relative to competitors
Revenue Streams - ANSWERSsales, accessories, accessory royalty, royalty games,
and fees for online communication (xbox live)
Cost Streams - ANSWERSmanufacturing and operating costs, raw materials, seminars
and training for game makers
Razor-razorblade Model - ANSWERSfocus on selling products at low cost and
supplemental products
-ex: Gillette, PS4, and printers
, Pay as You Go Model - ANSWERSonly pay for amount used
-ex: utilities/electricity
Subscription - ANSWERSsign up customers for subscription products
-ex: media, like magazines or streaming services
Freemium - ANSWERSoffer basic product for free when consumer pays for a premium
product
-ex: apps are free to download but contains in app purchases
Wholesale Model - ANSWERSmake the product, then sell to retailer, then they sell to
consumer
-ex: Tyson sells to Walmart, Walmart sells to consumers
Agency Model - ANSWERSmodel/acting agencies
Bundling Model - ANSWERSbundle multiple products then sell at a reduced price
-ex: Microsoft Office or fast food places when offer meals at cheaper price
Dynamic Nature of Business Models - ANSWERS-many companies have multiple
business models
-models can evolve (freemium to subscription)
-models can be disrupted
-Beer Distributorships: breweries don't allow other brands "in house" and craft beers
and non-alcoholic products demanded locally
-Failed Business Models: blockbuster and kodak
Assess and Evaluate Business Models - ANSWERS-Imitation Protection: secrecy,
trademark, and lead time
-Protected from stakeholder holdups
-Slack: ability to weather failure of some elements of the business plan
Strategic Action/Response - ANSWERSmarket-based move that involves a significant
commitment of organizational resources and is difficult to implement or reverse
Tactical Action/Response - ANSWERS-market-based move that is taken to fine-tune a
strategy
-usually involves fewer resources and is relatively easy to implement and reverse
Competition - ANSWERSthe struggle among producers for the dollars of consumers
Firms Compete for - ANSWERS- customers
- geographic resources
- inputs
- talent
- capital
