Question 1

Michael Porter's value chain is an example of how one can exploit network effects.

Accepted Answer

Michael Porter's value chain is a framework for analyzing a company's internal activities in creating value for customers. It does not focus on network effects, which refer to the phenomenon where a product or service becomes more valuable as more people use it.

Question 2

Michael Porter and his value chain presented a means for seeing actors "out there" as potential assets and partners in a value-generating collaborative and innovative strategy.

Accepted Answer

Michael Porter's value chain primarily focuses on internal activities within a company to create value, rather than viewing external actors as potential partners.

Question 3

The concept of platform governance is developed in the book. This term can be defined as the way in which the platform owner directs the platform environment, for example arranging a space for attractive meetings (technicalities, legalities, meeting rules, marketing, etc.).

Accepted Answer

The statement is correct. The concept of platform governance is discussed in the book as the way in which the platform owner manages the environment of the platform.

Question 4

Open innovation and closed innovation are two innovation principles addressed in the book. Which concepts and ideas are connected to open innovation? (four are correct)
A) The smart people in our industry work for us.
B) In order to benefit from research and development, we must discover, develop and release products on the market on our own.
C) If we use both internal and external ideas in the best manner, we'll come out ahead.
D) If we pave the way in research in our branch, we'll come out ahead.
E) We will benefit when the competition uses our innovations, and will use the competition's innovations when it strengthens us.
F) We must work with smart people both in our company and in other companies.
G) We must control our innovation process, so that the competition is unable to benefit from our ideas.
H)We do not have to do the research in order to benefit from the research results others have uncovered.

Accepted Answer

Open innovation is based on the idea that a company can benefit from utilizing external ideas, technologies and resources in addition to its internal capability. Options C, E, F and H are all connected to open innovation as they focus on collaboration, sharing and leveraging external ideas and resources to gain a competitive advantage. Options A, B, D and G are more aligned with the closed innovation principle, which emphasizes internal R&D to develop and commercialize new products and technologies without external collaboration.

Question 5

Social enterprise means that people see new opportunities to solve social problems in new ways, that resources are deployed in new combinations and new ways, and that the new vision is pursued in ways that create social value.

Accepted Answer

Social enterprise involves finding innovative solutions to social problems and creating social value through the use of resources in new ways.

Question 6

Social enterprise means that people conduct socially beneficial work using many of the same ideas and tools that make entrepreneurship economically stable and efficient.

Accepted Answer

Social enterprise combines business principles with a desire to achieve social or environmental outcomes.

Question 7

The main difference between traditional enterprise and social enterprise is the motive behind the venture.

Accepted Answer

Traditional enterprises are motivated by profit and financial gain, while social enterprises have a dual mission of creating positive social or environmental impact as well as generating revenue.

Question 8

Social enterprise means that profits are excluded.

Accepted Answer

Social enterprises are businesses that prioritize social or environmental impact over profit maximization.

Question 9

Social enterprise means that a person does not maximize profits.

Accepted Answer

The answer of Social enterprise means that a person does...

Question 10

In social enterprise, the prime mission is to create social value for others rather than economic value for those behind the venture.

Accepted Answer

Social enterprise focuses on creating social impact and solving social issues, while economic value is a secondary objective.

Question 11

In social enterprise, profit is a means, not the goal.

Accepted Answer

Social enterprises are businesses with social or environmental missions, where profit is seen as a means to achieve that mission rather than the primary goal. The primary goal is usually to create positive social or environmental impact.

Question 12

In order to apply the BMC (business model canvas) to social enterprise, two additional components have been recommended as criteria. What are they?
A) shared values
B) social and environmental benefits
C) social and environmental costs
D) what one wishes to change in the world
E) which stakeholders should be involved

Accepted Answer

Social and environmental benefits and social and environmental costs are the two additional components recommended for applying the BMC to social enterprise. These components consider the impact of the enterprise on society and the environment, which is crucial for a social enterprise. Shared values, what one wishes to change in the world, and which stakeholders should be involved are already part of the original nine components of the BMC.

Question 13

The final paragraph in Chapter 6 (Business Model) states that a perfect business model on paper is no guarantee of success. It continues by stating that it is probably better to have a mediocre business model with a strong X than a mediocre X of even the very best of business models! What is the condition (X)?
A) execution of the business model
B) extremely uncertain future
C) if the overall whole is greater than the sum of the parts
D) if one can't get the numbers to add up

Accepted Answer

The condition (X) mentioned in the final paragraph is the execution of the business model. The paragraph states that even a mediocre business model can succeed if it is executed well, whereas the best business model on paper may fail if the execution is poor.

Quiz 6: The Business Model