Vocabulary
What is cost leadership strategy?
Having a lower cost than your competitors.
What is a business model?
A business model is the representation of how a company creates and delivers value.
OR
describes the rationale of how an organization create, delivers, and captures value.
What are the three generic competitive strategies?
cost leadership, differentiation, focus
What does LTVC stand for?
Long Term Value Creation
What is Market Materiality?
In the proposed triple layered business model, what are the new layers in addition to profit?
an environmental layer (based on a lifecycle perspective) and a social layer (based on stakeholder perspective).
Name 3 of the 4 sources of competitive advantage?
resources, knowledge, human capital, networks
What is the difference between a linear business model and a circular business model?
Circular business model is restorative or regenerative by intention and design. Aims to eliminate waste or recycle waste. Retain product's added value for as long as possible.
What is Business Materiality?
Refers to anything that significantly affects the company's ability to operate its business model and its future cash generating capacity.
A successful business model has 3 components...What is the profit formula?
The model generates value for the company through factors such as the revenue model, cost structure, margins, and/or inventory turnover.
A company can only perform better than its competitors if it offers...?
more value to customers or the same value but at a lower cost.
Companies with stronger corporate governance tend to high _____ valuations and ____ cost of capital.
(higher/lower), (higher/lower)
higher, lower
What is Panarchy?
a conceptual framework to account for the dual characteristics of complex systems: stability and change.
A successful business model has 3 components...What is Customer Value Proposition?
The model helps customers perform a specific job that alternative offerings do not address.
What is a newly recognized key resource? hint: increased concerns of privacy and market power
DATA (companies like Alphabet and Facebook)
What is the value hill in a circular economy?
when value is added while the product moves uphill and circular strategies keep the product at its highest value (top of the hill)
What are two of the three major nexuses of intangibles?
Innovation/discovery, organizational practices/designs, human resources
Name three of the nine elements that make up the Business Model Canvas (Osterwalder and Pigneur 2010).
Key Partners, Key Activities, Value Propositions, Key Resources, Cost Structure, revenue Streams, Customer Relationships, Channels, Customer Segments
Name two of the three conditions culture needs to drive competitive advantage.
1. cultures have to valuable
2. rare
3. hard to imitate
Name one of the two challenges the come with transitioning to a circular economy?
1. need for a business to maintain control over its resources.
2. preserve a product at its highest value and optimize its residual value