...Groupon : In its simplest form Groupon (derived from "group coupon") is a deal-of-the-day website that features discounted gift certificates usable at local or national companies Business Model: The company offers one "Groupon" per day in each of the markets it serves. The Groupon works as an assurance contract using ThePoint's platform: if a certain number of people sign up for the offer, then the deal becomes available to all; if the predetermined minimum is not met, no one gets the deal that day. Groupon makes money by keeping approximately half the money the customer pays for the coupon. Its business model essentially consists of economies of scale and economies of networking. Sustainibility : According to an article published in Forbes titled “Is Groupon's Business Model Sustainable?” (http://www.forbes.com/sites/panosmourdoukoutas/2011/10/22/is-groupons-business-model-sustainable/) Groupon’s business model is not sustainable for two reasons : 1) it is selling other company’s offering who have the upper hand in deal negotiation and 2) they have considerable direct competition from companies with a broad user base like Google, Yahoo, Expedia and so on. The findings of an academic study of Rice University from 2010, from 150 Groupon businesses in 19 cities: (http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1696327) • 66% profitable; 32% unprofitable. • Restaurants were the most unprofitable category...
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...Course: CSR Trimester I Assessment: Oral Presentation Total Marks (15 marks) CLO Students should be able to integrate dimensions of social responsibility in managerial decision making (CLO2) |Aspect/ Performance Area |Exemplary |Satisfactory |Unsatisfactory |Score | | |(3) |(2) |(1) | | |Rational for sustainable |Clarity in describing the |Identifies the rational based |Has a vague idea of the rational | | |business/CSR |alignment between business |on a few pertinent facts |and does not have facts to support| | |(5 marks) |goals and social goals on the | |the same. | | | |basis of facts | | | | |Identifies CSR/Sustainability |Explains the logic of various |Determines some logic to |Is not sure about the logic of | | |Dimensions |CSR/ Sustainability dimensions|explain CSR dimension |various CSR dimensions | | |(5 marks) |incorporated by the company | |incorporated by the company ...
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...1) Groupon doesn’t have sustainable business model: • Less Customer Loyalty • Easily Replicable • Huge Competition • Ponzi Scheme used to make payments to merchant 2) Groupon’s growth has been following exponential trend owing to following reasons: • 1st mover advantage • Large customer base • Continuous new acquisitions • Targeted deals to customers • Increase merchant base with no initial fee Groupon is appealing to customers: • Good Bargain • Customer Service • Local deals available • No membership fees • Huge number of daily deals • Attractive phrases 3) Groupon is a good option for Merchants: • Brings new customer • Helps to sell products which are in inventory from long time • Advertises the brand • Helps in increasing the sales during off peak hours • Builds Customer Merchant relationship • Increases revenue Merchants are excited with Groupon but there are merchants who are skeptical about it because • Can disrupt normal business • Long wait time for advertisements • Negative bargain • Can cause loss if more customer appear than expected • Long time to receive payment • It mostly attracts low end bargain seekers • Deals don’t generate repeat customers • Less customer loyalty 4) To calculate the profitability we need to assume the below mentioned points: a) number of coupons sold b) amount of purchase by returning customers c) kind of agreement(negotiation) between American apparels and Groupon Total 133000 coupons were sold ...
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...computer science. An ad by game developer Gameloft on Naukri.com led him to a job in their Hyderabad office, where he eventually became a game designer. In 2009, he founded Twist Mobile, with apps such as Age Effect. He tied up with VServ to use their app-wrapper technology for ads embedded in apps. Success stories included becoming the first Asian company with 10 million downloads on Noki’s Ovi store. “Today’s killer app is tomorrow’s delete,” says Khutal, who has now branched out into Android and iPhone apps. Sriram Subramanya grew up in Pondicherry and started work in the auto ancillary business, with postings in Chennai and Bangalore and training in Germany. He later moved into the desktop publishing business, migrating from print designs to digital content. Sriram’s wife had to sell her jewellery at one stage to fund the growth of the company, Integra. A tight focus on quality, precision and business culture helped grow the company into one of the world’s Top...
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...company's strategy consists of A. | actions to develop a more appealing business model than rivals. | B. | plans involving alignment of organizational activities and strategic objectives. | C. | offensive and defensive moves to generate revenues and increase profit margins. | D. | competitive moves and approaches that managers have developed to grow the business, attract and please customers, conduct operations, and achieve targeted objectives. | E. | its strategic vision, its strategic objectives, and its strategic intent. | | 3. | The competitive moves and business approaches a company's management is using to grow the business, compete successfully, attract and please customers, conduct operations, respond to changing economic and market conditions, and achieve organizational objectives is referred to as its A. | strategy. | B. | mission statement. | C. | strategic intent. | D. | business model. | E. | strategic vision. | | 4. | A company's strategy is most accurately defined as A. | management's approaches to building revenues, controlling costs, and generating an attractive profit. | B. | management's game plan for growing the business, attracting and pleasing customers, conducting operations, and achieving financial and market performance objectives. | C. | management's concept of "where we are headed." | D. | the business model that a company's board of directors has approved for outcompeting rivals and making...
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...Journal of Business Strategy Business model innovation: coffee triumphs for Nespresso Kurt Matzler Franz Bailom Stephan Friedrich von den Eichen Thomas Kohler Article information: To cite this document: Kurt Matzler Franz Bailom Stephan Friedrich von den Eichen Thomas Kohler, (2013),"Business model innovation: coffee triumphs for Nespresso", Journal of Business Strategy, Vol. 34 Iss 2 pp. 30 - 37 Permanent link to this document: http://dx.doi.org/10.1108/02756661311310431 Downloaded on: 16 June 2015, At: 05:07 (PT) References: this document contains references to 19 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 25789 times since 2013* Users who downloaded this article also downloaded: Gabriela Alvarez, Colin Pilbeam, Richard Wilding, (2010),"Nestlé Nespresso AAA sustainable quality program: an investigation into the governance dynamics in a multi-stakeholder supply chain network", Supply Chain Management: An International Journal, Vol. 15 Iss 2 pp. 165-182 http://dx.doi.org/10.1108/13598541011028769 Claudio Vignali, (2001),"McDonald’s: “think global, act local” – the marketing mix", British Food Journal, Vol. 103 Iss 2 pp. 97-111 http:// dx.doi.org/10.1108/00070700110383154 Mark D. Uncles, Grahame R. Dowling, Kathy Hammond, (2003),"Customer loyalty and customer loyalty programs", Journal of Consumer Marketing, Vol. 20 Iss 4 pp. 294-316 http://dx.doi.org/10.1108/07363760310483676 Access...
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...Chapter 1 > Self-Graded Chapter Quiz Course-wide Content Cases Business Strategy Game GLO-BUS Online Updates and Errata Self-Graded Chapter Quiz (See related pages) Results Reporter Out of 20 questions, you answered 18 correctly with a final grade of 90% 18 correct (90%) 2 incorrect (10%) 0 unanswered (0%) 1. Review Key Points PowerPoint Presentations 2. Apply Assurance of Learning ... 3. Test Self-Graded Chapter Quiz Your Results: The correct answer for each question is indicated by a . 1 CORRECT Which of the following statements about a company's strategy is true? A) Crafting an excellent strategy is more important than executing it well. B) Managers at all companies face three central questions in thinking strategically about their company's present circumstances and prospects: Where are we now? Where do we want to go? How are we going to get there? C) A company's strategy deals with whether the revenue-cost-profit economics of its business model demonstrate the viability of the business enterprise as a whole. D) Masterful strategies come partly (maybe mostly) by doing things in much the same way as the industry leader but then being better than the leader in one particular area that counts heavily with buyers. E) Whether a company's strategy is ethical or not does not matter a lot because most customers and most suppliers are relatively unconcerned whether a company they do business with engages in sleazy practices or turns a blind eye to below-board...
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...think a sustainable business start--‐up shares with a “normal business” start--‐up? What differences do you think there are? Give an example of a business challenge that both Simply Green and a conventional fuel dealer share. Give an example of a business challenge that was unique to Simply Green and would not have affected a conventional fuel dealer from the chapter. Business Start-up Issues Starting a business is both an invigorating yet daunting challenge. Hundreds of new businesses are started every other day across a range of industries. However, the fact is that start-up businesses have a very high rate of failure. Some common consequences that are common to any kind of business – Sustainable or Normal are: Inadequate funding: Securing finance is one of the toughest challenges faced by new business owners. Banks and credit agencies are generally wary of lending to new companies as they are less likely to have any credit history. In this particular case Andrew Keller was fortunate enough to have an existing profitable business which could provide funding as the initial capital for his new venture. Poor marketing: The costs associated with marketing and advertising can be expensive. As a startup the principles need to be very clear with its target market and business environment. Andrew Keller was able to use social media and his existing contacts with greater success. Poor Planning: Proper planning gives you the opportunity to analyze your business idea...
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...The process of developing superior strategies is part planning, part trial and error, until you hit upon something that works. —Costas Markides Professor, London Business School Without a strategy the organization is like a ship without a rudder. —Joel Ross and Michael Kami Authors and Consultants Thompson−Strickland−Gamble: Crafting and Executing Strategy: Concepts and Cases, 16th Edition M I. Concepts and Techniques for Crafting and Executing Strategy 1. What Is Strategy and Why Is It Important? © The McGraw−Hill Companies, 2008 anagers face three central questions in evaluating their company’s business prospects: What’s the company’s present situation? Where does the company need to go from here? How should it get there? Arriving at a probing answer to the question “What’s the company’s present situation?” prompts managers to evaluate industry conditions and competitive pressures, the company’s current performance and market standing, its resource strengths and capabilities, and its competitive weaknesses. The question “Where does the company need to go from here?” pushes managers to make choices about the direction the company should be headed—what new or different customer groups and customer needs it should endeavor to satisfy, what market positions it should be staking out, what changes in its business makeup are needed. The question...
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...their company's present circumstances and prospects: What's the company's present situation? Where does the company need to go from here? How should it get there? | | | C) | A company's strategy deals with whether the revenue-cost-profit economics of its business model demonstrate the viability of the business enterprise as a whole. | | | D) | Masterful strategies come partly (maybe mostly) by doing things in much the same way as the industry leader but then being better than the leader in one particular area that counts heavily with buyers. | | | E) | Whether a company's strategy is ethical or not does not matter a lot because most customers and most suppliers are relatively unconcerned whether a company they do business with engages in sleazy practices or turns a blind eye to below-board behavior on the part of its employees. | | | | | | | | 2 CORRECT | | The competitive moves and business approaches a company's management are using grow the business, attract and please customers, compete successfully, conduct operations, and achieve the targeted levels of organizational performance is referred to as its | | | A) | strategic offensive for becoming a market leader. | | | B) | business model. | | | C) | long-term strategic direction. | | | D) | mission statement. | | | E) | strategy. | | | | | | | | 3 CORRECT | | Which one of the following is not related to actions and approaches that...
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...Fashion Industry Analysis From the Perspective of Business Model Dynamics Author: Lisa Gockeln University of Twente P.O. Box 217, 7500AE Enschede The Netherlands ABSTRACT The fashion industry is a dynamic and volatile place, continuously exposed to macro-environmental factors that trigger fashion business models to change. The fast fashion model is currently at the forefront of the apparel market casting questions on whether its underlying philosophy is about to change as well. Therefore, the purpose of this study is to identify external drivers that might lead to such dynamic changes in the fast fashion model. Moreover, it will be investigated whether these may allude to a possible convergence to the newly emerged slow fashion model which is currently trying to penetrate the fashion market. The international retailer Zara has served as fast fashion representative for this analysis and has been examined for business model adjustments, which might have been triggered by macroenvironmental factors. It was found that especially social, environmental and technological factors have influenced developments in the fast fashion model and that it has indeed adopted slow fashion principles in some of its building blocks to respond to such emerging trends. The future of the fashion industry appears to be tailored by such externalities, continuously reshaping the fast fashion model to eventually arrive at a version that brings a long-lasting competitive edge. However...
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...Long Range Planning 43 (2010) 172e194 http://www.elsevier.com/locate/lrp Business Models, Business Strategy and Innovation David J. Teece Whenever a business enterprise is established, it either explicitly or implicitly employs a particular business model that describes the design or architecture of the value creation, delivery, and capture mechanisms it employs. The essence of a business model is in defining the manner by which the enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit. It thus reflects management’s hypothesis about what customers want, how they want it, and how the enterprise can organize to best meet those needs, get paid for doing so, and make a profit. The purpose of this article is to understand the significance of business models and explore their connections with business strategy, innovation management, and economic theory. Ó 2009 Published by Elsevier Ltd. Introduction Developments in the global economy have changed the traditional balance between customer and supplier. New communications and computing technology, and the establishment of reasonably open global trading regimes, mean that customers have more choices, variegated customer needs can find expression, and supply alternatives are more transparent. Businesses therefore need to be more customer-centric, especially since technology has evolved to allow the lower cost provision of information and customer solutions. These developments...
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...provides innovative solutions to private and public organisations to accelerate their transition towards sustainability. The organisation offers a wide range of services around sustainability and system innovation: from companies’ environmental assessment to sustainable strategic design, from new green services definition to effective implementation of CSR management. Based in Finland, the organisation is active throughout Europe, relying on an extensive network of like-minded organisations and sustainability experts. www.ecovala.eu Author Erwan Mouazan is director and founder of Ecovala. He develops and implements innovative sustainability solutions both at private and public level. Erwan owns a Master's degree in economics, with a specialization in international management. In the last 9 years, he has worked at international level in environmental NGOS and sustainable development / CSR consultancies. He is currently completing a master's degree in Creative Sustainability at Aalto University, Helsinki. Having lived and worked in France, the Netherlands, Belgium and Finland, Erwan brings his international background and sustainability expertise to develop innovative projects for a more resilient and sustainable society. His...
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...the concept of a sustainable competitive advantage. LO 3 Develop an awareness of the four most basic strategic approaches for winning a sustainable competitive advantage. LO 4 Understand that a company’s strategy tends to evolve over time because of changing circumstances and ongoing management efforts to improve the company’s strategy. LO 5 Learn why it is important for a company to have a viable business model that outlines the company’s customer value proposition and its profit formula. LO 6 Learn the three tests of a winning strategy. M PL E C H LO 1 SA Strategy means making clear-cut choices about how to compete. Jack Welch – Former CEO of General Electric If your firm’s strategy can be applied to any other firm, you don’t have a very good one. David J. Collis and Michael G. Rukstad – Consultants and professors One must have strategies to execute dreams. Azim Premji – CEO Wipro Technologies and one of the world’s richest people tho29503_ch01_001-017.indd 2 12/10/12 4:52 PM AP Many factors enter into a full explanation of a company’s performance, of course. Some come from the external environment; others are internal to the firm. But only one thing can account for the kind of long-lived success records that we see in the world’s greatest companies—and that is a cleverly crafted and well executed strategy, one that facilitates the capture of emerging opportunities, produces enduringly good performance, is adaptable to changing business conditions, and...
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...in achieving this advantage. The chapter then explores the idea that strategy is partly proactive and partly reactive. This is followed by a close look at the relationship between a company’s strategy and its business model. The chapter proceeds forward with a look at what makes strategy a winner and then presents reasons for why crafting and executing strategy are important. The chapter concludes with thoughts on the equation: good strategy + good strategy execution = good management. Lecture Outline I. The Importance of Managing Strategically 1. Three questions must be answered by managers of all types of organizations: a. Where are we now? b. Where do we want to go? c. How are we going to get there? 2. “Where we are now?” prompts managers to evaluate industry conditions and competitive pressures, the company’s current performance and market standing, its resource strength and capabilities and its competitive weaknesses. 3. “Where do we want to go?” this lies within managements vision of the company’s future direction. It pushes managers to make choices about the direction the company should be headed—what new or different customer groups and customer needs it should endeavor to satisfy, what market positions it needs to be staking out, what changes in its business makeup are needed. 4. “How are we going to get there?” challenges managers to craft and execute a strategy—a fullblown action plan—capable of moving the...
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