Question 1

Erin Hill is working on the box in the Barringer/Ireland Business Model Template that defines the products and markets on which her firm will concentrate. Erin is working on the ________ scope portion of the business model template.

Accepted Answer

The box that defines the products and markets on which the firm will concentrate is part of the product/market scope portion of the business model template.

Question 2

Which of the following is NOT one of the four elements of the core strategy section of the Barringer/Ireland Business Model Template?

Accepted Answer

The four elements of the core strategy section are Business Mission, Basis of Differentiation, Target Market, and Product/Market Scope. Key Assets is not one of the elements in this section.

Question 3

According to the textbook, Southwest Airlines introduced a new market disruption type of disruptive business model.

Accepted Answer

Southwest Airlines is known for its low-cost carrier model, which is a sustaining innovation rather than a disruptive one. Disruptive innovation typically refers to a new market disruption that creates a new market and value network, eventually disrupting existing markets.

Question 4

In the Barringer/Ireland Business Model Template, ________ describes how the firm plans to compete relative to its competitors.

Accepted Answer

The core strategy in the Barringer/Ireland Business Model Template outlines how the firm plans to compete relative to its competitors, focusing on its strategic approach to gaining a competitive advantage.

Question 5

A business's ________ statement describes why it exists and what its business model is supposed to accomplish.

Accepted Answer

A mission statement defines the purpose of a business and helps guide decision-making, business strategies, and actions. It communicates why the business exists, what it aims to achieve, and how it will go about achieving its goals. It is different from values, importance, differentiation, and significance statements.

Question 6

It is important to understand that there are several perfect business models.

Accepted Answer

There is no "perfect" business model as the effectiveness of a business model depends on various factors including the market environment, customer needs, and the specific goals of the business. What works well for one company may not work for another.

Question 7

Standard business models depict existing plans or recipes firms can use to determine how they will create, deliver, and capture value for their stakeholders.

Accepted Answer

Standard business models are designed to provide a framework for firms to create, deliver, and capture value. These models describe the key elements of a business and the relationships between them, such as the target customer segments, the product or service offering, the channels used to reach customers, and the revenue streams generated from sales. By following a standard business model, firms can reduce the risk of failure and increase the chances of success in their chosen market.

Question 8

Which of the following is NOT one of the four major categories in the Barringer/Ireland Business Model Template?

Accepted Answer

The Barringer/Ireland Business Model Template includes four major categories: Core Strategy, Resources, Financials, and Operations. Channels is not listed among these categories.

Question 9

Nathan Green is starting a firm in the organic produce industry. Nathan has developed a statement-"Helping Make Your Life Better, Healthier, and Fuller"-that describes the reason his company exists and what his business model is supposed to accomplish. In the terminology used in the Barringer/Ireland Business Model Template, Nathan's statement is referred to as his ________ statement.

Accepted Answer

Nathan's statement describes the reason his company exists and what his business model is supposed to accomplish, which aligns with the definition of a mission statement in the Barringer/Ireland Business Model Template.

Question 10

The Barringer/Ireland Business Model Canvas consists of ________ major category(ies) and ________ parts.

Accepted Answer

The Barringer/Ireland Business Model Canvas consists of 4 major categories (Customer Segments, Value Proposition, Channel, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Key Partnerships, and Cost Structure) and 12 parts (as described in the book "Entrepreneurship: Successfully Launching New Ventures" by Bruce Barringer and Duane Ireland).

Question 11

A company's ________ scope defines the products and markets on which it will concentrate.

Accepted Answer

The term "product/market" refers to the specific products and markets that a company chooses to focus on. This includes the range of products that the company will offer and the specific market segments it will target.

Question 12

What is the difference between standard business models and disruptive business models? Include examples of both in your answer.

Accepted Answer

The answer of What is the difference between standard business...

Question 13

The Barringer/Ireland Business Model Template has five major categories and 14 individual parts.

Accepted Answer

The Barringer/Ireland Business Model Template actually consists of four major categories and nine individual parts.

Question 14

The first box in the Barringer/Ireland Business Model Template is ________.

Accepted Answer

The first box in the Barringer/Ireland Business Model Template is the business mission, which outlines the purpose and aims of the business, setting the foundation for the model.

Question 15

Jamie Finch is crafting the business model for her fashion design firm. She just completed the section that describes how her firm plans to compete relative to her rivals. Jamie just completed the ________ portion of her business model template.

Accepted Answer

The section that describes how a firm plans to compete relative to its rivals is typically referred to as its core strategy, which involves identifying the unique value that the firm offers to customers and how it differentiates itself from competitors. Other sections of a business model may include operations, resources, strategic plans, and tactical strategies, but these do not necessarily focus on competition or the firm's unique value proposition in the same way that the core strategy does.

Question 16

Kaitlyn Harris is opening up a women's fashion boutique that will focus on professional women that are 18-30 years old. The age range of women that Kaitlyn plans to focus on is referred to as her ________ market.

Accepted Answer

The age range of women that Kaitlyn plans to focus on is her target market. A target market is a specific group of consumers that a business aims to reach with advertising and marketing efforts.

Question 17

A firm's ________ market is a place within a larger market segment that represents a narrower group of customers with similar interests.

Accepted Answer

A target market is a specific group of customers that a business aims to reach with its products and marketing message. It is a narrower group of customers within a larger market segment with similar needs, interests, and characteristics. Aspirational, ambitious, constrained, and objective do not accurately describe a market segment.

Question 18

When completing the basis of differentiation box in the Barringer/Ireland Business Model Template, it is best to limit the description to ________.

Accepted Answer

It is best to limit the description to two to three points when completing the basis of differentiation box in the Barringer/Ireland Business Model Template. This ensures that the key points are easily identifiable and memorable.

Question 19

Disruptive business models are impactful enough that they disrupt or change the way business is conducted in an industry or an important niche within an industry.

Accepted Answer

Disruptive business models are designed to bring significant changes to an industry or a particular niche within it. They challenge the existing norms and transform the way business is conducted in that area. Examples of disruptive business models include Uber (disrupting the taxi industry) and Netflix (disrupting the video rental industry) among others.

Question 20

The four major categories in the Barringer/Ireland Business Model Template are ________.

Accepted Answer

The Barringer/Ireland Business Model Template includes core strategy, resources, financials, and operations as its four major categories.

Quiz 4: Developing an Effective Business Model