1st Comprehensive Test Part 1 - 1st Comprehensive Test Part...

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1 st Comprehensive Test Part 1
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What is a Business Model.? What are the two issues it explores and what is its relationship with strategy? ( 5 marks; approximate time 05 minutes) A business model addresses “How do we make money in this business?” Is the strategy capable of delivering good bottom-line results? Do the revenue-cost-profit economics of the strategy make good business sense? Look at revenue streams the strategy is expected to produce Look at associated cost structure and potential profit margins Do resulting earnings streams and ROI indicate the strategy makes sense and the company has a viable business model for making money? Relationship Between Strategy and Business Model Strategy . . . Deals with a company’s competitive initiatives and business approaches Business Model . . . Concerns whether revenues and costs flowing from the strategy demonstrate a business can be amply profitable and viable
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2. Differentiate between Vision and Mission? (3 marks; approximate time 03 minutes) A strategic vision concerns a firm’s future business path - “where we are going Markets to be pursued ;Future product/market/ customer/technology focus; Kind of company management is trying to create The mission statement of a firm focuses on its present business purpose - “who we are and what we do” Current product and service offerings; Customer needs being served; Technological and business capabilities 3. What is a strategic inflection point? Why it is important to recognize strategic inflection points Dramatic changes in company’s environment that dramatically alters its prospects and mandates radical revision of its strategic course((5 marks; approximate time 5minutes) When a company reaches its strategic inflection point, management has some tough decisions to make Often it is question of what to do to sustain company success and not just to avoid possible disaster
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This note was uploaded on 07/21/2011 for the course BUS 10001 taught by Professor All during the Spring '11 term at Shaheed Zulfiqar Ali Bhutto Institute of Science and Technology.

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1st Comprehensive Test Part 1 - 1st Comprehensive Test Part...

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