Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
21 Cards in this Set
- Front
- Back
|
Def of business model |
Describes how an organisation creates, delivers and captures values around new business or existing ones In general terms, the business model describes how the engine works. |
|
|
What are the nine components of BMC ( 9) |
1) value proposition 2) customer segments 3) channels 4) customer relationships 5) revenue streams 6) key resources 7) key partners 8) key activities 9) cost structure |
|
|
What’s the canvas man objective |
Is to help companies move beyond product centric thinking and towards business mode thinking |
|
|
When do we use the BMC |
We use it to : 1) analyse the company 2)design new venture |
|
|
Does using a BMC ensure success |
It doesn’t ensure successful, however it helps not to forget anything and maintain the coherence of all the 9 blocks. |
|
|
Is the BMA static or dynamic |
BMC is dynamic as it changes according the market conditions, and therefore it has to be frequently redisigned |
|
|
What is the value proposition and it’s relevance to Mc |
What are building and for whom? This is a statement that conveys what a brand does and how it differs from its competitors. For instance Mc delivers the need to be fed in an easy, quick and cheap way, by serving standard, low cost and well known products |
|
|
2) customer segment and example to Mc Donald, and Reckitt’s |
These are the people in the organisation for which you’re creating value. Such as families, tourists etc For each segment you have a specific value proposition. Does my offer match their needs ? Mc Donald customer segments - families, low budget people, young people Reckitt families, young people, |
|
|
3) classification of channels and Mc example |
Describes how the products is delivered from the company to to the final customer. Does it have to be purchased to delivered ? Physical or Virtual channel ? Mc does both physical and virtual products by delivering or purchasing |
|
|
3) classification of channels and Mc example |
Describes how the products is delivered from the company to to the final customer. Does it have to be purchased to delivered ? Physical or Virtual channel ? Mc does both physical and virtual products by delivering or purchasing |
|
|
4) customer relationships and Mc relevance |
This outlines the type of relationship you’re establishing with your customers. How does a company get, keep or grow customers ? Get- promotions, incentives, encouraging words keep an and grow - encourage repeat purchases, growing customers purchases Mc gets new customers by defending the quality and by the customisation according to natural cultures 2) keep- special promotions, hosting kids birthday parties |
|
|
5) revenue streams |
Make clear how and through which pricing mechanism your business model is using |
|
|
5) revenue streams |
Make clear how and through which pricing mechanism your business model is using |
|
|
What is the revenue model? Where is the money coming from and explain Mc Donald case study |
The strategy the company uses to generate cash from each customer segment Money comes from : physical revenue models, virtual revenue models and subsidy models. Physical revenue models are : asset sale(sale of of ownership right to a physical product), advertising, renting, subscript fee Virtual revenue models are: subscription, sales, advertising sales Subsidy are financials aids such as grants, donations, crowd funding Mc Donald uses asset sale |
|
|
Def pricing model |
The tactics you use to set the price for each customer segment |
|
|
Describe 4 possible pricing choices and Mc Donald |
1) competitive pricing 2) value pricing( set the price based on a consumer’s perceived value of a product ) 3) cost based pricing( pricing method that is based on the cost of production) 4) volume pricing ( discounts for large quantity) Mc Donald uses a cost based pricing, portfolio pricing |
|
|
6) activities and Mc |
This shows what assets are indispensable for the business. Mc Donald activities : setting standards processes, purchasing ingredients, preparing food |
|
|
6) activities and Mc |
This shows what assets are indispensable for the business. Mc Donald activities : setting standards processes, purchasing ingredients, preparing food |
|
|
7) resources and Mc Donald |
This refers to what are the most important assets to make a business model work. What are the most important resources Mc uses ? Tangible such as facilities, intangible such as brand recognition, capabilities such as coordination |
|
|
7. Partners and Mc Donald |
Who are the key suppliers and partners needed to make the business model work ?Who can help you leverage your business model since you won’t have all the key resources yourself and also you won’t perform all key activities. Mc Donald : suppliers, Mc Donald foundation |
|
|
9. Cost structure and Mc Donald |
Once you have an idea of the cost infrastructure, you also have an idea of its costs structure. Therefore what are the cost to operate the business mode ? Variable costs: ingredients, utilities Fixed costs : equipment, rent, |
