ISOM 351 ACTUAL TEST PAPER QUESTIONS AND SOLUTIONS PROFESSIONAL REVIEW RESOURCE

ISOM 351 ACTUAL TEST PAPER QUESTIONS
AND SOLUTIONS PROFESSIONAL REVIEW
RESOURCE

●● What does the BMC do?
Answer: Helps align strategy & execution; helps align internal
capabilities to market expectations


●● 4 elements of strategy
Answer: Decisions, tradeoffs, activities, resources


●● What are the goals of strategy?
Answer: - Competitive advantage
- Create, capture, and deliver value


●● 4 questions that a business model answers
Answer: Who is the customer? What does the customer value? How do
we make money in this business? What is the underlying economic logic
that explains how we can deliver value to customers at an appropriate
cost?


●● Business model vs strategy

, Answer: Business model describes how your business runs, while
strategy explains how you will do better than your rivals


●● Right side of the BMC
Answer: Who are our customers (segments), what problem do they want
solved (value proposition), how do they want to interact with us
(relationships), and how do they want to get access to our service or
product (channels)?


●● Left side of the BMC
Answer: key partners, key activities, key resources, value propositions
- "the operating model," how the firm executes strategy


●● Bottom of the BMC
Answer: Economic logic = cost structure, revenue streams


●● Willingness to pay
Answer: Belongs to the customer; the maximum amount of money a
customer would spend in order to solve their problem; aka benefits


●● Price
Answer: the amount of a money a customer actually spends to buy the
product/service