TECHNOPRENEURSHIP FINALS - QUIZ 1

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It is a firm's plan or diagram for how it competes, uses its re-
Business Model sources, structures its relationships, interfaces with customers,
and creates value to sustain itself based on the profits it earns.
_ refers to a business model that revolutionizes how a product is
Business Model Innovation
produced, sold, or supported after the sale.
1. Serves as an ongoing extension of feasibility analysis (a busi-
ness model continually asks the question, Does the business
make sense?)
2. Focuses attention on how all the elements of a business fit
together and how they constitute a working whole. Importance of Business Models
3. Describes why the network of participants needed to make a
business idea viable is willing to work together.
4. Articulates a company's core logic to all stakeholders, including
the firm's employees.
Over time, the most successful business model (or models) in an
industry predominates and the weaker models lag behind.
Diversity of Business Models
There are always opportunities for business model innovation.
1. Core strategy (how a firm competes)
2. Strategic resources (how a firm acquires and uses its re-
sources)
A business model consisting of the following components:
3. Partnership network (how a firm structures and nurtures its
partnerships)
4. Customer interface (how a firm interfaces with its customers.
1. Business Mission
2. Product/Market Scope Core Strategy Subcomponents
3. Basis for Differentiation
1. Core competencies
Strategic resources subcomponents
2. Strategic assets
1. Supplier
2. Partners Partnership network subcomponents
3. Other key relationship
1. Target customer
2. Fulfillment and Support Customer interface subcomponents
3. Pricing Structure
_ describes how a firm competes relative to its competitors. The
primary elements of a core strategy are the firm's mission state-
Core Strategy ment, the product/market scope, and the basis for differentiation.
Experience suggests that things can go wrong quickly for a com-
pany that doesn't have a focused core strategy.
A firm is not able to implement a strategy without adequate re-
Strategic Resources sources. This reality means that a firm's resources substantially
affect how its business model is used.
New ventures, in particular, typically do not have the resources
to perform all the tasks required to make their businesses work,
so they rely on partners to perform key roles. In most cases,
Partnership Network
a business does not want to do everything itself because the
majority of tasks needed to build a product or deliver a service
are not core to a company's competitive advantage.
_ how a firm interacts with its customers. The type of customer
Customer Interface
interaction depends on how a firm chooses to compete.
Describes why it exists and what its business model is supposed
Mission Statement
to accomplish.
_ prevents a firm from seeing an opportunity that might fit its
Business Concept Blind Spot
business model.

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Product/Market Scope
1. Cost Leadership Strategy
2. Differentiation Strategy
Cost Leadership Strategy
Differentiation Strategy
Core Competencies
1. Unique
2. Valuable to customers
3. Difficult to imitate
4. Transferable to new opportunities
Resource Leverage
Strategic Assets
Sustainable Competitive Advantage
Supplier
Supply Chain
Supply Chain Management
Insourcing
Target Market
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Defines the products and markets on which it will concentrate. The
choice of product has an important impact on a firm's business
model.
Two Generic Strategies
- strive to have the lowest costs in the industry, relative to com-
petitors' costs, and typically attract customers by offering them a
low, if not the lowest, price for the products they sell.
- requires a business model that is focused on efficiency, cost
minimization, and large volume. As a result, a cost leader's fa-
cilities typically aren't fancy, as the emphasis is on keeping costs
low rather than on creating products that differ substantially from
competitors' products in terms of features.
- compete on the basis of providing unique or different products,
typically on the basis of quality, service, timeliness, or some other
dimension that is important to customers.
- requires a business model focused on developing products and
services that are unique in ways that are important to targeted
customers and that command a premium price.
Is a resource or capability that serves as a source of a firm's
competitive advantage over its rivals. It is a unique skill or ca-
pability that transcends products or markets, makes a significant
contribution to the customer's perceived benefit, and is difficult to
imitate.
In distinguishing its core competencies, a firm should identify the
skills it has that are:
refers to process of adapting a company's core competencies to
exploit new opportunities.
are anything rare and valuable that a firm owns. They include plant
and equipment, location, brands, patents, customer data, a highly
qualified staff, and distinctive partnerships.
is created when Companies ultimately try to combine their core
competencies and strategic asset. This factor is one to which
investors pay close attention when evaluating a business.
_ also known as a vendor, is a company that furnishes parts or
services to another business.
_ is the network of all the companies that participate in the pro-
duction of a product, from the acquisition of raw materials to the
final sale.
Is the coordination of all the activities involved in creating and
delivering a product or service, from getting raw materials to the
final delivery to customers. The goal is to do this in the most
efficient and cost-effective way possible.
Hybrid forms of business partnerships, such as insourcing, enable
companies to optimize their efficiencies. In insourcing, a service
provider operates within a partner's facilities, assisting in both the
design and management of the supply chain.
A firm's target market refers to the specific group of individuals or
businesses it aims to attract or appeal to. This strategic choice sig-
nificantly influences various aspects of the business, including the
acquisition of strategic resources, the formation of partnerships,
and promotional campaigns.
TECHNOPRENEURSHIP FINALS - QUIZ 1
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_ refer to the way a firm's product or service is brought to the mar-
ket and how it reaches customers. It encompasses the channels
Fulfillment and Support
used and the level of customer support provided, both of which
significantly impact a company's business model.
Pricing structures vary based on the firm's target market and
Pricing Structure
pricing philosophy.
It is any product of human intellect that is intangible but has value
Intellectual Property in the marketplace. It is called "intellectual" property because it is
the product of human imagination, creativity, and inventiveness.
1. Patents
2. Trademarks
The Four Key Forms of Intellectual Property
3. Copyrights
4. Trade Secrets
_ is a grant from the federal government conferring the rights to
Patents exclude others from making, selling, or using an invention for the
term of the patent.
1. Utility Patents
2. Design Patents Type of Patents
3. Plant Patents
Utility Patents _ the most common, covering new inventions.
20 years The term of a utility patent is _.
The requirement that a patent application must be filed within one
One Year First Use Deadline
year of the milestones referred to previously is called the _.
_ is a patent that protects an invention that is or facilitates a method
Business Method Patent
of doing business.
1. Useful
2. Novel Three Basic Requirements for a Patent
3. Not Obvious
_ are the second most common type of patent, covering the in-
Design Patents vention of new, original, and ornamental designs for manufactured
products.
_ protect asexually reproduced plant varieties, providing essential
Plant Patents
protection for companies specializing in plant genetics.
Only the inventor of a product. Who Can Apply for a Patent?
If an invention is made during the course of the inventor's employ-
Assignment of Invention Agreement ment, the employer typically is assigned the right to apply for the
patent through an _.
_ occurs when one party uses another's patent without permis-
Patent Infringement
sion.
_ is any word, name, symbol or device used to identify the source
Trademarks or origin of products or services and to distinguish those products
or services from others.
1. Trademarks
2. Service Marks
The 4 Types of Trademarks
3. Collective Marks
4. Certification Marks
_ are like ordinary trademarks. They are used to identify the ser-
Service Marks vices or intangible activities of a business rather than a business's
physical product.
_ are trademarks or service marks used by the members of a
Collective Marks cooperative, association or other collective group including marks
indicating membership in a union or similar organization.
_ are marks, words, names, symbols, or devices used by a person
other than its owner to certify a particular quality about a product or
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service. The most familiar certification mark is the UL mark, which
Certification Marks certifies that a product meets the safety standards established by
Underwriters Laboratories.
Words
Numbers and letters
Designs or logos
Sounds Trademark law, which falls under Lanham Act, passed in 1946
Fragrances protects the following items:
Shapes
Colors
Trade dress
1. Immoral or scandalous matter
2. Deceptive matter There are notable exclusions from trademark protection that are
3. Descriptive marks set forth in the U.S. Trademark Act:
4. Surnames
_ is a form of intellectual property protection that grants the owner
Copyrights of a work of authorship the legal right to determine how the work
is used and to obtain economic benefits from the work.
1. Literary Works
2. Musical Compositions
3. Derivative Works
4. Computer Software What Is Protected by a Copyright?
5. Dramatic Works
6. Pantomimes and choreographic works
7. Pictorial, graphic and sculptural works
ideas
facts Exclusions from Copyright Protection
titles and list of ingredients
_ which is the legal principle when the 'idea' is not copyrightable
Idea-expression dichotomy
but the specific expression of an idea.
copyright protection can be enhanced for anything written by
Copyright bug
attaching the copyright notice, or _.
_ occurs when one work derives from another, is an exact copy,
or shows substantial similarity to the original work. To prove in-
Copyright Infringement fringement, a copyright owner is required to show that the alleged
infringer had prior access to the copyrighted work and that the
work is substantially similar to the owner's.
Any formula, pattern, physical device, idea, process, or other
information that provides the owner of the information with a
competitive advantage in the marketplace.
Trade Secrets
Include marketing plans, product formulas, financial forecasts,
employee rosters, logs of sales calls, and laboratory notebook.
1. Is not known outside the company
2. Is known only inside the company on a "need-to-know" basis
3. Is safeguarded by stringent efforts to keep the information
confidential The strongest case for trade secret protection is information that
4. Is valuable and provides the company a compelling competitive is characterized by the following:
advantage
5. Was developed at great cost, time, and effort
6. Cannot be easily duplicated, reverse engineered, or discovered
_ arise most frequently when an employee leaves a firm to join a
Trade Secret Disputes
competitor and is accused of taking confidential information along
There are a number of physical measures firms use to protect
trade secrets, from security fences around buildings, to providing
Physical Measures employees access to file cabinets that lock, to much more elab-
orate measures. The level of protection depends on the nature of
the trade secret.
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1. Restricting access
2. Labeling documents
3. Password protecting confidential computer files The following are examples of commonly used physical measures
4. Maintaining logbooks for visitors for protecting trade secrets:
5. Maintain logbooks for access to sensitive material
6. Maintaining adequate overall security measures
It is important for a company's employees to know that it is their
duty to keep trade secrets and other forms of confidential informa-
Written Agreements
tion secret. For the best protection, a firm should ask its employees
to sign nondisclosure and noncompete agreements.
1. Physical Measures
Trade Secret Protection Method
2. Written Agreement

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