2. Elements of Business Models: Value I Flashcards Preview

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Flashcards in 2. Elements of Business Models: Value I Deck (26)
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1
Q

What are the 4 contributors to defining value?

A
  1. Identifying stakeholders
  2. Prioritising stakeholders
  3. Identifying the needs of stakeholders
  4. Formulating the value proposition
2
Q

What are the 5 contributors to creating value?

A
  1. Partners
  2. Resources
  3. Processes
  4. Activities
  5. Outputs
3
Q

What are the 2 contributors to delivering value?

A
  1. Segments

2. Channels

4
Q

What are the 3 considerations in capturing value?

A
  1. Cost model
  2. Revenue model
  3. Sharing surplus
5
Q

What are the 3 (Ts) factors that influence value?

A
  1. ‘Tenner’ - financial and non financial factors
  2. Tangibility
  3. Time
6
Q

What are the 3 main groups of stakeholder?

A
  1. Internal (primary)
  2. Connected (primary)
  3. External
7
Q

What does Mendelow’s matrix show?

A

How stakeholders should be treated, based on their level of power/influence and interest

8
Q

What are the 4 categorie’s in Mendelow’s matrix?

A
  1. Make acceptable (high interest, high power)
  2. Keep satisfied (low interest, high power)
  3. Keep informed (high interest, low power)
  4. Minimal effort (low interest, low power)
9
Q

What is an example of a ‘make acceptable’ stakeholder?

A

Major customers

10
Q

What is an example of a ‘keep satisfied’ stakeholder?

A

Large institutional shareholder

11
Q

What is an example of a ‘keep informed’ stakeholder?

A

Lobbyists

12
Q

What 3 elements are considered in Stakeholder Salience theory?

A
  1. Power to influence
  2. Legitimacy of relationship
  3. Urgency of relationship
13
Q

How are customers usually defined under stakeholder salience theory?

A

Definitive - high salience

14
Q

What are the 3 categories of low salience?

A
  1. Dormant (only power)
  2. Demanding (only urgency)
  3. Discretionary (only legitimacy)
15
Q

What are the 3 categories of medium salience?

A
  1. Dangerous (power and urgency, not legitimate e.g. employee)
  2. Dominant (power and legitimacy e.g. the board)
  3. Dependent (urgency and legitimacy e.g. local residents impacted)
16
Q

Who are the 4 participants that an organisation exists to create value for?

A

Customers, owners, employees and suppliers

17
Q

What are Drucker’s 5 questions for defining strategy?

A
  1. What is our mission?
  2. Who is our customer?
  3. What does the customer value?
  4. What are our results?
  5. What is our plan?
18
Q

Using a network orchestration model, what is the extension of value creation?

A

Co-creation

19
Q

What are the 3 characteristics (Vs) of big data?

A
  1. Volume
  2. Velocity
  3. Veracity
20
Q

What are the 3 key uses of big data?

A
  1. Building a more complex picture of competitions
  2. Understanding trends in customer behaviour
  3. Revealing insight into performance
21
Q

What is customer segmentation?

A

Dividing a customer base into groups of individuals that are similar in specific ways

22
Q

What are the 3 factors of channel management?

A
  1. Targeted marketing
  2. Customisation of products
  3. Targeted delivery
23
Q

What are the 2 conflicts in value creation?

A

Employees want pay vs shareholders want profit

Customers want quality for low price vs company wants higher prices

24
Q

What is the cost model of pricing?

A

Calculating all associated costs and using that as a basis for price

25
Q

What is the revenue model of pricing?

A

Considering how revenue will be generated

26
Q

What are the two uses for ‘surplus’ (profit)?

A

Dividends to shareholders or re-investment