2 marks

1. To bring down the cost of Tata Nano, the Tata Group removed the passenger’s
side-wing mirror, reduced the amount of steel in the body, and did away with air
conditioning. Which element of the Four Actions Framework did the Tata Group
use?
Ans:

The Tata Group used the elements “eliminate” and “reduce” in the following way:
· Reduce - by reducing the amount of steel in the car body
· Eliminate - by removing passenger’s side wing mirror and air-conditioning option

2. Melvin always served ice cream in 300 ml and 350ml qualities, which increased the
price of each serving. To increase sales, he starts serving ice-cream in 125ml and
150ml quantities. Which element of the Four Actions Framework has been adopted
by Melvin?
Ans:
Melvin has adopted the “reduce” element of the Four Actions Framework here. By
reducing the quantity of ice-cream servings, he has made the helpings more affordable.
3. Rick’s pizza outlet in his neighbourhood mall is spacious and has seating provision.
To reduce his fixed costs, he switched to a smaller no-seating setup. Which
element of the Four Actions Framework is being adopted here?
Ans:
The element being adopted from the Four Actions Framework here is “Eliminate,” where the
benefits that the industry takes for granted are eliminated.

4. Melvin hardly has any customers in his neighbourhood mall. So, he shifts his ice-
cream outlet from the mall to place outside the mall that has no air-conditioning.
Which element of the Four Actions Framework has Melvin adopted here?
Ans:
Melvin has adopted the “reduce” element of the Four Actions Framework here by
reducing the benefits a little below the industry standards.
5. James starts a restaurant for young people. Keeping the tastes of his young
clientele in mind, James designs the interiors of his restaurant to give it a fun
ambiance. Which element of the Four Actions Framework has James adopted
here?
Ans:
 6. Explain Bootstrapping with relevant examples?
7. If you are starting a food joint, under which type of cost should you put the monthly
salaries of your staff members?
8. Kirk buys supplies for his restaurant every alternate day. Due to increased demand
around Christmas, he has to buy higher quantities of supplies every day. What kind
of costs are being considered here?
9. Which costs are needed to calculate your gross profit margin?
10. For high-tech and low-availability products and involves selling at a high price initially
and gradually lowering the price of the product to broaden the customer base.
What strategy does it use here?
11. Sal lets his friend Raghu use his library during the night for his voice-over recordings.
Raghu agrees to pay him every month for the space. What type of revenue is Sal
collecting from Raghu?
12. Dorothy has started a day care centre in her neighbourhood. What costs she should
consider for her variable cost?
13. A luxury resort chain offers adventure sports at a discounted rate to its customers.
But not many customers were aware of its adventure sports facility. To spread
awareness, it tied up with a trekking services company. Will it be effective?
14. Barry wants to launch a takeaway restaurant for people with different food allergies.
How can he reach his targeted segment?
15. Go DESi sells native confectionery made by rural women. The company sells the
confectionery through its sales and distribution network across the country. Which
channels should Go DESi choose for a better outreach?
16. Which of these is a website that acts as a journal or diary and can help drive traffic to
your website?
17. Cathy launched a cab service for school-going kids in her locality. She now wants to
extend her cab services to other cities but has a very limited budget. What sales and
marketing strategies can she adopt?
18. How can the strategy of putting your company logo and address on your products
help your business?
19. Arnold wants to publish a children’s encyclopaedia. In his preliminary survey, he
found 70 households in the neighbourhood with children in the age group of 5-15,
who can be his customers. Where in the customer acquisition funnel would you
place these customers?
20. What is the difference between Distributors and Retailers?
21. What is the difference between Distributors and Wholesalers?
22. After you create your Business Model, which are the top two risk areas that you
should test?
Ans:

The top areas of risk include:

· Market size for your customer segment
· Price of your product
 23. Jeff, an aspiring entrepreneur, has filled up all the blocks of his Lean Canvas except
the Channels and Unfair Advantage blocks. What advice would you give him to
update his business model?
Ans:
You should ask Jeff to fill up the Channels block to indicate how he proposes to promote his
venture and attract revenue. As per the Lean methodology, an entrepreneur should start building
and testing Channels right from day 1 of the venture. The Unfair Advantage block can be left
empty and can be filled later.

24. Nathan has developed a carry bag that dissolves in water. This product is the first
of its kind in the market. While sketching his Lean Canvas, Nathan uses “First-to-
Market” as his Unfair Advantage. Do you think Nathan is using the right Unfair
Advantage?
Ans:
No, “First-to-Market” is not an Unfair Advantage and should not be termed so. Unfair Advantage
is something that can’t be easily copied or bought.

25. Pamela launched an online tailoring shop for men, women, and kids. After the
initial success, the number of customers started going down. Most of the women
customers complained about the long turn-around time. Pamela’s team countered
that if they speed up delivering to women customers, the other categories – men
and kids – will suffer. How can Pamela resolve this problem?
Ans:

As part of a logical solution, Pamela can do either of the two:

· Pamela should remove men and kids from her customer segments and cater to women alone
since they make up the largest customer segment.
· Pamela should go back to the drawing board and create different business models/Lean
Canvas for each customer segment.

26. Mention a feedback loop that emphasizes on talking to customers and receiving
feedback at every stage of development of the solution?
Ans:
Build-Measure-Learn is a feedback loop that emphasizes talking to customers and receiving
feedback at every stage of development of the solution.

27. What is considered as an assumption in your Lean Canvas?

Ans:
 28. Sam opened a video gaming parlour, and most of his customers are young adults. A
coffee chain approached him to place some coffee kiosks in his hallway. Where
should Sam capture this arrangement on the Lean Canvas?
Ans:
Sam should capture this arrangement under the Solution and the Revenue Streams blocks of the
Lean Canvas.

29. An entrepreneur who owns most of the mango orchards in a locality wants to
launch bottled mango salsa. His premium quality mangoes are rated high in the
market. In which block of the Lean Canvas should he capture this information?
Ans:
He should capture this information in the block titled “Unfair Advantage.”

30. After completing their 15-day driving package, Brent’s driving school customers in
the age group of 40-60 years often request him to offer an additional week-long
training on their cars for which they are willing to pay extra. How should Brent
update his business model to reflect this new requirement?
Ans:
As per Ash Maurya, Brent should create a separate business model/Lean Canvas for this new
requirement as these customers form a different customer segment.

5 marks
1. Andy is an interior designer who wants to create a solution demo for his business.
What are the point of consideration for preparing a Solution Demo?
Ans:
Andy should use photos and videos of his completed projects as his solution demo. 

2. Zoya built an automatic mop. Now she wants to finalize on the Solution Demo.
Give suggestions on the Solution Demo.
Ans:
It is best to make a solution demo using one’s resources and without investing a lot of time and
effort in it. Zoya can either record a video of the mop in action with the help of friends and family
or use a basic model of the mop in front of prospects.

3. Before launching his pizza chain, Daniel sets up a kiosk in a popular multiplex and
offers free samples. Customers love his pizzas and give feedback. Do you think this
solution demo is effective? Please elaborate your answer.
Ans:
This solution demo is not quite effective. Though Daniel receives great feedback on the taste after
the customers sample the pizzas, he doesn’t know whether his customers are willing to buy these
pizzas at a certain price.

4. What is the difference between a solution demo and a MVP?

5. Before setting up his Italian restaurant, Raman sets up a kiosk in a popular mall as a
solution demo. He places a screen by his kiosk, which keeps playing the videos of his
offerings. He also offers samples of the food shown in the video. Does Raman’s
solution demo meet all the criteria of a solution demo?
6. You want to set up a fast-food restaurant chain. What should you do to come up
with an effective Solution Demo?
7. John plans to launch a momo chain. He sets up a kiosk and arranges a flash sale
outside a movie theatre. The results aren’t promising at the end of the first week, as
people feel that it is messy to eat momos inside a theatre. What should John do
now?
8. Barry wants to launch a takeaway restaurant for people with different food allergies.
But he realizes that the food & beverage industry is a Red Ocean. How can Barry
create a Blue Ocean for his business idea?
9. Barry wants to launch a takeway restaurant for people with different food allergies.
But she realizes that the food & beverage industry is a Red Ocean. How can Barry
create a Blue Ocean for his business idea?
10. Arnold started a sandwich outlet near an IT park. Most of his customers are regular
and well-paid. What type of pricing strategy should he adopt for pricing his
sandwich?
11. Samuel is a freelance photographer. He starts his online stock photo business to sell
his photo business to sell his photographs. How many revenue streams he can
target?
12. You are planning to start an Event Management Company, but you don’t have
enough money. You decide to approach you father for some money. As a best
practice, what should you clarify before asking for money?
13. If you are drawing up the financial plan for your upcoming bakery, which of the costs
should you consider as your fixed costs for running the bakery?
14. Explain which cost an entrepreneur incur before starting a business?
15. What are the bootstrapping options available for an entrepreneur after using up
his/her own savings?
16. Which costs are required to calculate the payback period?
17. Sal invested on setting up his library. She decides on premium charges for best-
sellers. Which pricing strategy is he following?
18. For setting up your bakery business, what are the variable costs you need to
consider?
19. For selling soaps door-to-door, what channels are being used by a soap
manufacturing company?
20. Zena bakes only vegetarian cakes. During preliminary research, she found that
people in her neighbourhood are looking for vegetarian cakes and are willing to pay
 more than Rs 800-Rs 1000 per pound for such cakes. To set up the customer
acquisition funnel how would you plan these points?
21. Arthur, a young architect, started his firm recently. His firm focuses on redesigning
old buildings using new technologies. To promote his business, he is looking to
create a website. How can Arthur make his company’s profile page attractive to his
customers?
22. A luxury resort chain offers adventure sports at a discounted rate to its customers.
But not many customers were aware of its adventure sports facility. To spread
awareness, it tied up with a trekking services company. Customers who take up
trekking could climb up the hilltop and stay overnight at the resort and enjoy three
complimentary adventure sports. This increased the revenues of the resort. What
kind of marketing strategy is this?
23. Cathy started a private cab service for school-going kids in her locality. Punctuality
and quality of service are her USPs. She now wants to extend her cab service to
other cities. What aspects of her business should her positioning statement
highlight?
24. A footwear company wants to achieve an annual turnover of 5 Crore. But the
company’s owner does not want to spend a lot on promotion. Which channel should
he choose to increase his brand’s popularity and turnover?
25. Zeba started a snack delivery for school-going kids. Initially, her business flourished,
but gradually it became stagnant. Meanwhile, a few parents got back to her and
requested her to extend her services to office lunches. This business also flourished
at the beginning, but as the number of customers increased, Zeba’s service quality
declined. Also, Zeba relied solely on word-of-mouth to promote her business. Why
did Zeba’s business fail?
26. Cathy started her cab services for school-going kids in her locality. She now plans to
extend her services to office goers as well. The first people she thought of were the
parents of the school-going kids who take her cabs. How should she approach this
segment to turn them into customers?
27. Dorothy has started a day care center in her neighbourhood. She has created a
Facebook page to post details about her services. What else can Dorothy do to
promote her business?
28. Go DESi is an Indian FMCG brand that sells native confectionery online. The
manufacturing plant is in rural India. The confectionery is in the form of lollipops in
Indian flavors such as tamarind, ginger, etc. What aspects of the products should Go
DESi’s positioning statement highlight?
29. Annie, who started a home-based food business, realized that though there were
customers who were willing to take her services, they were not willing to pick the
food from her house. What should Annie do to address this issue?
30. Zeba started a snack delivery service for school-going kids. The business started well,
but soon her customer base became stagnant. What can be the probable causes of
this?
10 marks
1. When the Tata Group came up with Tata Nano – the car that the common man could
afford – it was considered a game changer. The launch of Tata Nano reflects the
successful implementation of which Strategy? Explain in details.
2. An entrepreneur plans to set up a bottle-manufacturing plant. What should he do
to ensure that the bottles he manufactures are what exactly the customers need?
3.
a. Zoya decides to use a basic model of her automatic mop for solution demo
and also sets a price of Rs 1050. She finds that her prospects readily agree
to pay this price. Should Zoya consider this price final and go ahead with it?
Ans:
No, Zoya shouldn’t consider this price final. As per the pricing strategy, if your prospects
readily agree to your pricing, consider testing your solution demo with a higher price.

b. Zoya increases the price by Rs 200. While some prospects agree to pay the
price, others are unwilling to pay this price for a gadget they feel they don’t
need. What should Zoya do now?
Ans:

4. Aretha has started a fast food outlet. She estimates spending of Rs 50,000 on Startup
costs, Rs 10,000 on fixed costs per month, and Rs 1,000 on Variable costs per unit
per month. She estimates a revenue of Rs 8,000 and an additional revenue of Rs
3,000 through home delivery service. How would calculate the estimated profit /
loss?
5. For your boutique’s launch, you have bought mannequins, designing tables, sewing
machines and hangers. What type of costs need to be considered here?
6. Ray realized that it was not easy to justify the high price of his coffee at his exclusive
café and decided to promote his brand by telling customers that they had a right to
demand coffee the way they wanted it and not settle for anything else. What
strategy should Ray adopt here?
7. Ken estimates a start-up cost of Rs 2, 00,000 for his hot dog store. His monthly fixed
costs are Rs 2000, and his variable costs per hot dog would be Rs 20. He has priced
his hot dogs at Rs 120 per piece, and expects approximately 20 customer per day.
Assuming that each customer would buy only one hot dog, how would you estimate
profit / loss per month at the end of 6 months?
8. Cathy started her cab services for school-going kids in her locality. She received very
good response from her customers. She went with a profit sharing model with the
cab owners. She also installed CCTV cameras on the cars with GPS facility on the
parents mobile. The parents were very happy. Now tell me how she should work on
the pricing strategy to generate as much revenue as possible? Should she also look
at any alternative revenue streams?
9. Zeba started a snack delivery service for school-going kids. The business started well,
but soon her customer base became stagnant. Then some parents requested her to
extend her service to office lunches. The business started well, but as the number of
customers increased, the quality of Zeba’s food declined. Also, she completely relied
on word-of-mouth for promotion. Suggest other ways by which Zeba can acquire
new customers?
10. Pamela launched an online tailoring shop for men, women, and kids. After the initial
success, the customer numbers started decreasing. Most of her women customers –
her biggest customer segment – felt her designs were not trendy. Tailoring orders
from men and kids were also very few. What should Pamela do now? Suggest her
ideas on pivoting for better performance.