12/04/2024, 19:06 GSL M7 – Module Quiz 1 - KnowledgEquity

GSL M7 – Module Quiz 1

YOU SCORED 4 OUT OF A POSSIBLE 10 [40%]

Question 1 Marks: 0
Technology has been perhaps the key driver of change and the key facilitator of new
business models over the past 20 years. However, it is important to recognise that
technology itself does not create these changes. Rather, it is the deliberate use of
technology in a business model intended to create or meet a market need that drives
the change.

Which of the following key technological changes are an example of extension?

Answer Options
You answered A. The correct answer is D
USER SELECTION CORRECT ANSWER

A Robotics, Autonomous Vehicles, AI.

B Mobile Internet, IoT, Autonomation.

C 3D printing, Autonomous Vehicles, AI.

D 3D printing, Cloud, Renewable Energy.

Answer Explanation

D is correct because these are all examples of extension where business is done using
new technology. Rather than physically building something it is built via 3D printing.
Cloud is a new way to run software and store data. Renewable energy is a new way to
power business. The underlying business is the same, it is just a new way to do things.

A, B and C are not examples of Extension, but are combinations of examples of

automation and transformation.

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Module: 7 > 7.1 The changing business environment 419 > Change
drivers > Page: 420-421

Question 2 Marks: 0
Newvines Ltd was established in 1910 in Wales as an upmarket men’s tailor, producing
high-quality shirts, suits and overcoats. In 2014, Newvines launched an Australian
website selling executive style business shirts and ties, targeting businessmen and
office workers who wanted to ‘dress well, save time and avoid the shopping centres’.
Key activities and revenue streams are identified as the elements of Newvines Ltd’s
business model canvas that would have the most change in moving from selling
through physical stores to an online store.

Which of the following options best explains why these elements will have a major
change?

Answer Options
You answered D. The correct answer is A
USER SELECTION CORRECT ANSWER

A The online store is a new sales channel for Newvines.

Prices will be different in the online store and so revenue streams will be
B
affected.

The online store means people who have not bought from Newvines
C
previously will become customers.

Newvines is selling a different product via the online store as it is only

D
executive style business shorts and ties.

Answer Explanation

A is correct because this is the only reason why this is a change to the business activity
and revenue streams of Newvines.

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B is incorrect because there is nothing that says the prices will be different in the online
store and this does not address the business model canvas aspects of business activity
or revenue streams.

C is incorrect because there is nothing to indicate new customers will shop online. The
shop is targeting customers who want to avoid shopping centres. Further this option
does not address the business model canvas aspects of business activity or revenue
streams.

D is incorrect because there is nothing to indicate a new product is being sold and the
revenue stream aspect is not addressed.
Module: 7 > 7.2 Business models and strategy > Business model
canvas > Page: 428

Question 3 Marks: 1
HelloFresh is a company that supplies you fresh produce each week, with recipes to
match the ingredients. They offer $100 off your first 4 boxes that you order. You then
sign up to a weekly meal plan.

Which one of the following statements best describes the type of hyper disruptive
business model described above that is used by HelloFresh?

Answer Options
You answered C. The correct answer is C

USER SELECTION CORRECT ANSWER

A Free Model.

B Experience model.

C Subscription model.

D Digital platform model.

Answer Explanation

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C is correct because consumers choose to pay a weekly fee for meal plans and
produce. The discount at the start is to entice them in, but there is no free component.

A is incorrect because the product is not free.

B is incorrect because there is no added experience component that elevates its value
to the customer beyond that provided by the product or service itself.

D is incorrect because there are no buyers and sellers coming together on a digital
platform.

Module: 7 > 7.2 Business models and strategy > Hyperdisruptive

business models > Page: 435

Question 4 Marks: 1
Mable was established in 2014 as Australia’s first online care and support worker
marketplace to take advantage of the gig economy and is now Australia’s largest such
marketplace. Mable connects aged care and disability clients directly with carers and
support workers and enabling these clients to schedule work and pay through the
website.

Prior to commencing business in 2014, clients were provided care and support services
through a traditional provider model where the aged care or disability organisation
employed the support worker and provided the service to the client. The time taken to
match clients with workers and changing needs for people needing disability services
meant disabled people were often frustrated and left without services for periods of
time.

Under the Mable model, matching is done through an automated system that matches
skills, location, availability for clients. Clients pay a rate directly to the worker. The
worker pays a Mable a fee based on the total amount earned per month and for
bookings made through them. Founders Peter Scutt and Tony Charara have been cited
in business press as entrepreneurs for bringing a disruptive model to the care and
support worker service provision.

Which of the following statements best explains how the Mable online marketplace
demonstrates entrepreneurial orientation?

Answer Options
You answered C. The correct answer is C

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USER SELECTION CORRECT ANSWER

Risk-taking - Scutt and Charara left well paid executive roles in an aged
A
care organisation to start Mable.

Proactiveness - market data showed a large market for aged care services
B
existed, with strong historical growth.

Innovativeness - Mable is a market platform that can react faster to demand

C
changes and increase value for provider and client.

Innovativeness - care workers can get paid more than by being employed
D
by the aged care or disability organisation by being engaged directly.

Answer Explanation

C is correct because the market platform, assuming there are enough care workers on
it, will better service changing demand. The careworker gets works faster, does not
have to sign up to multiple care provider organisations and will likely take home more
money. The client receives the services faster and hopefully with a better match to a
care worker.

A is incorrect because we don't know from the question information if the two founders
left well-paid jobs, nor about how they committed resources. There is the risk of failure,
as with all new business ventures.

B is incorrect because proactiveness is about predicting future demand not meeting

current demand.

D is incorrect because being paid more is not innovative.

Module: 7 > 7.5 Shaping the organisation for new business models >
Entrepreneurial orientation > Page: 467

Question 5 Marks: 0
A start-up has developed an innovative product with limited resources and is
considering what choices it needs to make in setting its strategy to succeed. It hopes to
establish itself as the industry standard go-to product in the industry value chain.

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In relation to the two dimensions of the strategy compass, which of the following
options should the company focus on to position themselves against competitors?

Answer Options
You answered A. The correct answer is D

USER SELECTION CORRECT ANSWER

A Collaboration and competing.

B Building a moat and competing.

C Collaboration and storming a hill.

D Collaboration and building a moat.

Answer Explanation

D is correct because the organisation has an innovative product concept to protect, but
has not got the resources to be successful alone so will likely need to collaborate with
others within the industry. The company wants to be the go-to product in the value
chain. Therefore it needs to create value for partners and also needs to build a moat to
protect its intellectual property. Becoming the industry standard is hard to protect if it is
easy for others to copy.

A is incorrect because there is information telling us that they need to protect their IP.
They will need to collaborate but both terms are from the same dimension and we need
to consider both dimensions.

B is incorrect because it is missing the angle of collaboration.

C is incorrect because they have an innovative product concept so protecting IP is

critical and they must build a moat, rather than try to storm the hill.

Module: 7 > 7.3 Implications for strategy > The strategy compass >
Page: 446

Question 6 Marks: 1
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Kodak developed the digital camera in 1975, and sold the technology to photographic
equipment producer Nikon after seeing no value in it and that it would cannibalise its
film business which it was the market leader in.

Which type of strategy to respond to digital disruption was the purchase of the digital
camera technology by Nikon who was a photographic equipment manufacturer and
why?

Answer Options
You answered D. The correct answer is D
USER SELECTION CORRECT ANSWER

A Block strategy - it would stop Kodak from becoming a competitor.

Disrupt the current business strategy - Nikon was adding a new product
B
range to its business.

Milk strategy - Kodak didn't want the technology so it was a way to get the
C
technology without spending a lot on R&D.

Invest in disruption model - digital photography is a new technology for

D
Nikon compared to existing camera technology at the time.

Answer Explanation

D is correct because Nikon was investing in the new technology to add its is existing
photographic equipment range.

A is incorrect because this did not stop other competitors from producing digital
camera technology, it just meant Nikon did not need to develop its own.

B is not correct because Nikon added a new photographic technology only and did not
redefine its core business by purchasing this technology from Kodak.

C is not correct as Nikon was not extracting value from a vulnerable business at the
time Kodak was the market leader in photographic film.

Module: 7 > 7.4 Strategic responses to new business models >

Strategic options related to the change drivers > Page: 456

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Question 7 Marks: 0
Japan Airlines was in deep financial trouble when Kazuo Inamori was asked to become
CEO. The airline operated as a government division for over thirty years before being
privatised. However, Inamori found that the company still operated as a government
department. The management style was bureaucratic and seemed ill-equipped to deal
with macro-environmental shocks such as the 9-11 attacks in 2001 and the financial
crisis in 2008.

The company was accustomed to operating in a heavily regulated industry, however,

made some poor strategic choices regarding aircraft fleet purchases which deepened
their problems.

Which approach to strategy had Japan Airlines been using until Inamori came to join
the company?

Answer Options
You answered C. The correct answer is B
USER SELECTION CORRECT ANSWER

A Classical

B Systemic

C Processual

D Evolutionary

Answer Explanation

B is correct because the company was heavily influenced by a government culture, to

the point where it affected their ability to make good strategic decisions in an
increasingly competitive market. The behaviour of management was bureaucratic and
most likely slow to react to changes in the external environment. Factors like industry
regulations also would influence their strategy, although interestingly, they seemed to
also struggle with this aspect.

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A is incorrect because there isn't strong evidence for the rational approach in the
question information.

C is incorrect as the processual approach assumes incremental change, more fluid and
likely less bureaucratic.

D is incorrect because the evolutionary approach assumes you are adapting to the
industry. There were environmental shocks, but they didn't adapt well.
Module: 7 > 7.3 Implications for strategy > Alternative approaches to
strategy > Page: 439-440

Question 8 Marks: 0
Netflix is a video streaming service through which consumers pay a monthly fee to
enjoy as video content as they want. Industry experts have described the approach
taken by Netflix as a subscription model type of hyperdisruptive business model.

Which one of the following statements best describes why this is a subscription model
that Netflix is using?

Answer Options
You answered A. The correct answer is C

USER SELECTION CORRECT ANSWER

A Netflix does not offer a free service where options are paid for.

Netflix offers video content recommendations to consumers using its

B
service.

Consumers pay a monthly fee for access to the video content regardless of
C
how much or little is watched.

Netflix enables movie producers to make movies available directly to

D
consumers and avoid the major movie distribution houses.

Answer Explanation

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C is correct because consumers pay a fee per month for access to the streaming
service not for content watched.

A is not correct because this is a paid-only service and there are no free options
available with payment to upgrade so this is not a freemium model.

B is not correct because offering content recommendations is an added experience

component that elevates its value to the customer beyond that provided by the product
or service itself and is an experience model.

D is incorrect because there are no buyers and sellers. Netflix buys the video content
that is available on their site, it does not enable movie makers to make their movies
available directly to consumers via the streaming service.

Module: 7 > 7.2 Business models and strategy > Hyperdisruptive

business models > Page: 435

Question 9 Marks: 1
Business innovation is one of the most difficult tasks for leaders and managers.
However, it is the basis of the future of business and must therefore be a key focus.

Which of the following tasks is most important in leading a future-oriented business

model?

Answer Options
You answered A. The correct answer is A
USER SELECTION CORRECT ANSWER

A Learning, adapting and risk taking.

B Managing profits, margins and costs.

C Investing and making plans for future business growth.

D Investing adequate resources to expand and build new business models.

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Answer Explanation

A is correct because this is the only task related to managing a future business. The
other options all relate to managing a mature or growth business.

Module: 7 > 7.6 Leadership and management roles in strategy for

emerging business models > Leadership for established businesses
> Page: 480

Question 10 Marks: 0
Research suggests that emotional intelligence plays a key role in leaders being able to
work within an environment of unprecedented change with the ongoing emergence of
new business models.

Which of the following options best explains why emotional intelligence is important in
a leader in the future?

Answer Options
You answered C. The correct answer is D
USER SELECTION CORRECT ANSWER

A Dynamic capabilities need to be developed for the organisation to thrive.

In order to make effective decisions, the CEO must have good soft skills as
B
the peak decision maker.

The role of managers has changed from being administrators and

C
controllers into entrepreneurs, coaches and team leaders.

Innovative thinking, individual initiative-taking, problem solving and

D
collaboration need to be embedded in the organisation.

Answer Explanation

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D is correct because collaboration, taking initiative, thinking and problem solving are
better performed through strong emotional intelligence.

A is incorrect because this is not related to emotional intelligence.

B is incorrect because the role of CEO as the peak decision-maker is no longer feasible,
let alone desirable.

C is incorrect because embedding these skills is important but not part of emotional
intelligence.

Module: 7 > 7.6 Leadership and management roles in strategy for

emerging business models > Leadership and management
development > Page: 484

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