E2 - 2. Value in Business Models (I)

Question 1

What are the 3 factors that influence value?

Answer 1

1. Financial/non financial
2. Time
3. Tangibility

Question 2

What is a stakeholder?

Answer 2

Any party who can influence or be influenced by an organisation

Question 3

What are the 7 main groups of stakeholders?

Answer 3

1. Customers
2. Shareholders
3. Lenders
4. Employees
5. Suppliers
6. Government
7. Community

Question 4

What is the classification for high power, high interest stakeholders?

Answer 4

Key Players - must make acceptable, and perhaps even consult over strategy (e.g. major customer)

Question 5

What is the classification for high power, low interest stakeholders?

Answer 5

Passive - keep satisfied (e.g. large institutional shareholder)

Question 6

What is the classification for low power, low interest stakeholders?

Answer 6

Minimal effort

Question 7

What is the classification for low power, high interest stakeholders?

Answer 7

Keep informed (e.g. environmental groups)

Question 8

What are the 3 categories in stakeholder salience theory?

Answer 8

1. Power
2. Urgency
3. Legitimacy

Question 9

What is the salience classification for a stakeholder with high power only?

Answer 9

Dormant

Question 10

What is the salience classification for a stakeholder with high legitimacy only?

Answer 10

Discretionary

Question 11

What is the salience classification for a stakeholder with high urgency only?

Answer 11

Demanding

Question 12

What is the salience classification for a stakeholder with high power, legitimacy and urgency?

Answer 12

Definitive

Question 13

What is the salience classification for a stakeholder with high power and legitimacy?

Answer 13

Dominant

Question 14

What is the salience classification for a stakeholder with high power and urgency?

Answer 14

Dangerous

Question 15

What is the salience classification for a stakeholder with high urgency and legitimacy?

Answer 15

Dependent

Question 16

What are the 5 contributors to value creation?

Answer 16

Partners, resources, processes, activities, outputs

Question 17

What is the value that an organisation brings to customers?

Answer 17

The final product/service

Question 18

What is the value that an organisation brings to owners?

Answer 18

Dividends

Question 19

What is the value that an organisation brings to employees?

Answer 19

A good place to work, personal development, opportunities

Question 20

What is the value that an organisation brings to suppliers?

Answer 20

Prompt payment and convenient systems

Question 21

What is co-creation?

Answer 21

Involving customers in the creation of products and services

Question 22

What are the 4 risks/considerations attached to big data?

Answer 22

1. Volume
2. Velocity
3. Variety
4. Veracity

Question 23

What are the 5 main advantages of using big data?

Answer 23

1. Uncovering unexpected relationships
2. More complete picture of competitors
3. Uncovers trends in customer behaviours
4. Insights into business performance
5. Better customer segmentation

Question 24

What is customer segmentation?

Answer 24

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

Question 25

How can technology enhance the customer online ordering process?

Answer 25

1. Prompt of forgotten items 2. Suggest similar items 3. Keep shopping lists 4. Choosing delivery method

Question 26

What are the 3 options for targeted marketing?

Answer 26

1. Undifferentiated 2. Differentiated 3. Concentrated

Question 27

What are the 3 value distribution models?

Answer 27

1. Cost model 2. Revenue model 3. Sharing of residual value

Question 28

What are the 4 ways that residual value is redistributed?

Answer 28

1. Dividends 2. Re-investment 3. To society (taxes) 4. Rewarding partners (e.g. profit related pay)