Business Models Quiz: P2P, Crowdsourcing, Affiliate
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Questions and Answers

What is the primary purpose of a peer-to-peer business model?

  • To collect data from a large group of users
  • To act as an intermediary between individuals (correct)
  • To promote products through advertising
  • To provide a subscription service for exclusive content

    • Which of the following is NOT an example of a crowdsourcing model?

  • Uber rideshare service (correct)
  • Kickstarter fundraising platform
  • Local community feedback surveys
  • Waze traffic app

    • In affiliate marketing, how do influencers earn commissions?

  • By creating and selling their own products
  • When followers use a specific offer code (correct)
  • Through advertising revenue alone
  • Through subscription fees

    • What distinguishes the crowdsourcing model from other business models?

    <p>It harnesses information from a large group of people</p> Signup and view all the answers

    Which of the following platforms is an example of a peer-to-peer business model?

    <p>Etsy</p> Signup and view all the answers

    What is a common characteristic of platforms that use the peer-to-peer model?

    <p>They provide a means for direct transactions between users</p> Signup and view all the answers

    What role does the crowdsourcing model play in innovative problem-solving?

    <p>It leverages collective wisdom for innovative solutions</p> Signup and view all the answers

    Which of the following best describes the role of affiliate marketing in content creation?

    <p>It provides additional income through product promotion</p> Signup and view all the answers

    What is the primary assumption behind the razor blades business model?

    <p>Customers will consistently buy more expensive accessories.</p> Signup and view all the answers

    In which scenario does the reverse razor blades model operate?

    <p>When high-margin initial products promote the sale of lower-margin ones.</p> Signup and view all the answers

    What defines the retailer business model?

    <p>Selling products directly to consumers at a profit.</p> Signup and view all the answers

    How do manufacturers differ from retailers?

    <p>Retailers do not handle raw materials.</p> Signup and view all the answers

    What is a potential drawback of the bundling model?

    <p>Reduced profits due to lower prices for bundled items.</p> Signup and view all the answers

    Which example illustrates the razor blades model?

    <p>A company that sells printers with generic ink replacements.</p> Signup and view all the answers

    Which type of companies primarily utilize the bundling business model?

    <p>Fitness centers offering packages for multiple classes.</p> Signup and view all the answers

    What is a common characteristic of manufacturers?

    <p>They convert raw materials and sell products.</p> Signup and view all the answers

    Which group is NOT typically considered a customer segment?

    <p>Consultants</p> Signup and view all the answers

    What does the term 'Value Proposition' refer to?

    <p>The benefits a product/service offers to customers</p> Signup and view all the answers

    Which of these is NOT listed as a value delivered to the customer?

    <p>Legal support services</p> Signup and view all the answers

    Which component is part of the Operating Model?

    <p>Key Channels</p> Signup and view all the answers

    What type of activities might be included as 'Key Activities' for a business?

    <p>Talent recruitment</p> Signup and view all the answers

    Who are considered 'Key Partners' in the business model?

    <p>Content partners like Sony and Universal</p> Signup and view all the answers

    What type of relationships does a business maintain with its customers?

    <p>Various types based on customer needs</p> Signup and view all the answers

    Which of the following is NOT part of how a business makes money?

    <p>By minimizing customer complaints</p> Signup and view all the answers

    What is one major advantage of opening a franchise compared to being an independent retailer?

    <p>Access to a proven business model</p> Signup and view all the answers

    Which of the following is NOT a source of funding for public sector organizations?

    <p>Private investments</p> Signup and view all the answers

    Cooperatives are primarily characterized by which feature?

    <p>Shared profits and losses among members</p> Signup and view all the answers

    What differentiates a Non-Profit Organization (NPO) from a regular business?

    <p>An NPO does not aim to generate profits</p> Signup and view all the answers

    What classification is common for businesses based on the number of employees and annual turnover?

    <p>Small, Medium, Large</p> Signup and view all the answers

    Which example best represents a function of public sector organizations?

    <p>Providing healthcare services</p> Signup and view all the answers

    Which of the following best describes the term SME?

    <p>Small and Medium Enterprises</p> Signup and view all the answers

    Which of the following is NOT typically a characteristic of public sector organizations?

    <p>Aims to maximize profit</p> Signup and view all the answers

    How would Ibrahim Fairweather LLP be classified based on its characteristics?

    <p>An SME in the service sector</p> Signup and view all the answers

    What is the recommended size range for effective teams according to the provided information?

    <p>2 to 25 people</p> Signup and view all the answers

    What is a common issue faced by large teams?

    <p>Insufficient time for meetings</p> Signup and view all the answers

    Which of the following skills is not necessary for an effective team?

    <p>Fitness levels</p> Signup and view all the answers

    Who developed the Value Chain Model?

    <p>Michael Porter</p> Signup and view all the answers

    What do the activities within the Value Chain Model aim to accomplish?

    <p>Add value to the final product</p> Signup and view all the answers

    What is one of the benefits of carrying out activities at a lower cost within the Value Chain Model?

    <p>Advantage over competitors</p> Signup and view all the answers

    What size of team is considered a guide to success?

    <p>Less than 10 members</p> Signup and view all the answers

    Which IT system is most appropriate for supporting inbound logistics?

    <p>Automated warehousing system</p> Signup and view all the answers

    Which primary activity is matched correctly with its corresponding IT system?

    <p>Outbound Logistics - Automated distribution</p> Signup and view all the answers

    Which IT system is best suited for customer service activities?

    <p>Automated service scheduling</p> Signup and view all the answers

    Which of the following IT systems could support organizational infrastructure?

    <p>Financial planning models</p> Signup and view all the answers

    What type of IT system is typically used in operations?

    <p>Computer-controlled machining system</p> Signup and view all the answers

    Which IT system can assist with procurement activities?

    <p>E-procurement</p> Signup and view all the answers

    Which of the following IT systems is associated with telemarketing?

    <p>Telemarketing</p> Signup and view all the answers

    Which primary activity does space optimisation support?

    <p>Procurement</p> Signup and view all the answers

    Study Notes

    Course Information

    • Course title: Information Systems and Organisations
    • Week: 11
    • Block: 4
    • Topic: Business Models
    • Lecturers: Dr. Navid Dorudian, Dr. Oussama Alsabek

    Module Content

    • Block 1: Human Information Systems
    • Block 2: Modelling and Design
    • Block 3: Methodology
    • Block 4: Business Systems & Organisations

    Previously Covered

    • SWOT analysis
    • PESTLE analysis
    • Used to develop strategies, assess ideas, make decisions

    Plan for Today

    • Learning about business models
    • Defining a business model
    • Types of business models

    From Idea to Profit

    • Transition from idea to generating profit

    What is a Business Model?

    • A simplified description of how a company plans to make money
    • For new companies, it attracts investment
    • For established companies, it serves as a strategy

    How Does X Make Money?

    • Examples of business models : Snapchat, LinkedIn, Netflix, Amazon

    Business Model Types

    • Numerous types of business models exist
    • Companies often employ multiple types of business models

    Some Types of Business Models

    • Franchise model
    • Subscription model
    • Freemium model
    • Advertisement model
    • Razor blades model
    • Retailer model
    • Manufacturer model
    • Distributor model
    • Peer-to-Peer/platform model
    • Leasing model
    • Crowdsourcing model
    • Bundling model
    • Product-as-a-service model

    Franchise Model

    • A blueprint for reproducing an established business
    • Franchisor (original owner) guides the franchisee
    • Franchisee pays a percentage of profits in return

    Subscription Model

    • Recurring payments for access to a service or product

    Freemium Model

    • Use parts of a product for free, but pay for advanced features
    • Often seen in software-as-a-service (SaaS) space

    Razor Blades Model

    • A cheaper product is sold with costly replacement components or accessories

    Retailer Model

    • Purchases goods (from suppliers) and resells them to the end customer

    Manufacturer Model

    • Converted raw materials into a new product & subsequently sell it

    Bundling Model

    • Two or more products are sold together at a lower price than if purchased individually

    Leasing Model

    • Leasing agreements are usually most efficient for large items like equipment
    • Leasing has a longer term than product as a service business model

    Product-as-a-Service Model

    • Businesses charge customers for use of physical products
    • Varying fees - by subscription, per use or per mile

    Distribution Model

    • Reselling manufactured products in bulk

    Advertising or Affiliate Marketing Model

    • Leveraging the audience as an asset
    • Advertisers pay for space allocated by a business's audience
    • Affiliate marketing - commission earned from referrals.

    Peer-to-Peer/Platform Model

    • Acts as an intermediary between individuals / entities wanting something and who have something
    • Platforms connect both sides (buyer/seller, etc.)
    • Established rules and regulations.

    Crowdsourcing Model

    • Obtaining information/opinions from a large group of people

    Developing a Business Model

    • Answers four key questions
    • Who is the customer?
    • What value does the business deliver to customers?
    • How does the business operate?
    • How does the business make money?

    Who is the Customer?

    • Defining the target market/customer base for a product/service

    What Value Does the Business Deliver to the Customer?

    • Functional value (practical)
    • Societal value
    • Emotional value
    • Connectivity
    • Sharing ideas and content
    • Brand expansions
    • Marketplace
    • Payment infrastructure
    • Work tools

    How does the Company Operate?

    • Key Activities
    • Key Partners
    • Key Resources
    • Key Channels
    • Customer Relationships

    How Does the Business Make Money?

    • Cost Structure
    • Revenue Streams

    Business Model Canvas

    • A template for presenting business model information
    • Developed by Alexander Osterwalder

    Objectives for Today

    • Business organisations
    • Sectors and types
    • Business activities
    • Value Chain model
    • Supply Chain and Supply Chain Management
    • Understanding how systems support them

    Definition by Max Weber

    • An organisation is a group of people intentionally organised to achieve a common goal, not necessarily a legal entity

    Organisations as Systems

    • Diagram illustrating the components & inputs/outputs of an organisation

    Private and Public Sectors

    • Private Sector
    • Run for profit, not controlled by the government
    • Allocate goods/services
    • Public Sector
    • Run by the government
    • Provide services to the public

    Types of Business Organisations in the Private Sector

    • Sole Traders
    • Partnerships
    • Companies
    • Private limited Companies (Ltd)
    • Public Limited Companies (PLC)
    • Franchises

    The Private Sector - Sole Trader

    • Business owned by one person
    • Small in size
    • Funded by personal savings or loans

    The Private Sector - Partnerships

    • Minimum of two to a maximum of 20 partners
    • Common in professions like law, estate agency, and dentistry
    • Deed of Partnership outlines roles, investments

    The Private Sector - Limited Company

    • Companies often become limited companies to grow beyond the partner limit

    The Private Sector - Public Limited Company (PLC)

    • Can offer shares to the public
    • Requirements for becoming a PLC include minimum capital and required parties

    The Private Sector - Multinational Organisations

    • Headquarters in one country but international production facilities in other countries

    Reasons for Becoming a Multinational

    • Increasing market share
    • Securing cheaper resources, e.g., labour and premises
    • Avoiding tax or trade barriers
    • Taking advantage of government grants

    The Private Sector - Franchises

    • Joint venture between franchisor and franchisee
    • Franchisee purchases the right to use a business's format
    • Reduces the risk compared to starting a business from scratch

    The Public Sector

    • Run by the state for the people
    • Financed by public money/taxes (e.g., income tax)

    Other Business Types: Cooperatives

    • Owned by their members
    • Profits & losses are shared amongst members

    Business Size

    • Classified into small, medium, and large enterprises based on number of employees and annual turnover
    • SME: Small and Medium Enterprises
    • Different classifications based on industry type

    Classify Businesses - Examples

    • Rowantree PLC
    • Ibrahim Fairweather LLP

    Teams

    • Video on Apple's use of teams

    The Best Teams

    • Effective teams range from 2 to 25 members

    Value Chain Model

    • Developed by Michael Porter in 1985
    • Identifies activities required for effective business function
    • Value added by efficiently executing activities at lower costs compared to competitors

    Value Chain Model Summary

    • Four-minute summary video available

    Porter's Value Chain Model

    • General-purpose model to analyze value-chain activities
    • Helps understand value sources

    IT through the Value Chain

    • IT systems and how they support primary business activities

    Supply Chain

    • Definition of the supply chain
    • Video URLs
    • Diagram showing components

    Supply Chain Management (SCM)

    • Overseeing/controlling the movement of goods/services from manufacturer to customer
    • Managerial objective is to increase efficiency & decrease costs

    Quiz Questions (Multiple Choice)

    • Various questions regarding the private sector, NPOs, value chain, and ICT support of businesses

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    Quiz Team

    Related Documents

    Week 11 Business Models_Different Types PDF

    Description

    Test your knowledge on different business models including peer-to-peer, crowdsourcing, and affiliate marketing. This quiz will challenge your understanding of their purposes, characteristics, and roles in innovative problem-solving and content creation.

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