What is value proposition

Value proposition is what makes the business different from it’s competitors. The product or service on offer and the value that this product or service brings to the consumer

What are the 3 parts of the operational model of business

1. Key partners. 2. Key activities. 3. Key resources

What are key partners

Key partners are the external people or organisations a business works with to operate effectively. These aren’t employees, but other parties the business depends on to supply goods, provide services or support it’s operations in some way e.g suppliers, d

Why partners may change over time

1. Business growth, may need bigger more capable suppliers. 2. Expansion, new markets require new specialists. 3. Digital transformation, digital tools shift partner needs

What are key activities

Key activities in an operational model are the essential tasks and processes a business needs to preform to deliver it’s value proposition and achieve it’s objective, encompassing areas like operations, marketing, production and problem-solving e.g produc

Why key activities change over time

1. Business growth. 2. Digital transformation. 3. Changing customer needs

What are key resources

These are essential assets a business requires to create, deliver and capture value and achieve it’s objectives. They can include physical assets, human capital, financial resources and intangible assets (brand, software, licenses)

Expenses that don’t change as output changes e.g loan repayments, insurance & rent

What are variable costs

Expenses that vary according to use e.g direct wages, raw materials, energy costs. They are sensitive to demand and subject to change

A performance indicator (a measurable indicator of progress towards a goal)

Types of revenue stream

1. Single transaction e.g generated by once-off customer payments for a product or service. 2. Recurring sales, regular payments for a continued service or after sales support

What is a cash flow forecast

Shows planned income & expenditure over a certain period of time

Why carry out a cash flow statement

It helps ensure the business has enough cash to cover it’s day to day expenses

Why a business prepares a cash flow forecast

1. To help avoid deficits. 2. Improved financial control. 3. Raise finance. 4. Plan for positive net cash flows

How to deal with a cash flow deficit

1. Borrow. 2. Cut down. 3. Defer payments. 4. Earn extra income. 5. Fixes assets/factoring debts (spread the cost of an asset over time)

Help

Options

focusNode

Didn't know it?
click below

Knew it?
click below

Don't Know

Remaining cards (0)

Know

retry

shuffle

restart

0:00

Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

Normal Size Small Size show me how

Busi ch 15

Question	Answer
What is value proposition	Value proposition is what makes the business different from it’s competitors. The product or service on offer and the value that this product or service brings to the consumer
What are the 3 parts of the operational model of business	1. Key partners. 2. Key activities. 3. Key resources
What are key partners	Key partners are the external people or organisations a business works with to operate effectively. These aren’t employees, but other parties the business depends on to supply goods, provide services or support it’s operations in some way e.g suppliers, d
Why partners may change over time	1. Business growth, may need bigger more capable suppliers. 2. Expansion, new markets require new specialists. 3. Digital transformation, digital tools shift partner needs
What are key activities	Key activities in an operational model are the essential tasks and processes a business needs to preform to deliver it’s value proposition and achieve it’s objective, encompassing areas like operations, marketing, production and problem-solving e.g produc
Why key activities change over time	1. Business growth. 2. Digital transformation. 3. Changing customer needs
What are key resources	These are essential assets a business requires to create, deliver and capture value and achieve it’s objectives. They can include physical assets, human capital, financial resources and intangible assets (brand, software, licenses)
What are fixed costs	Expenses that don’t change as output changes e.g loan repayments, insurance & rent
What are variable costs	Expenses that vary according to use e.g direct wages, raw materials, energy costs. They are sensitive to demand and subject to change
What is revenue	A performance indicator (a measurable indicator of progress towards a goal)
Types of revenue stream	1. Single transaction e.g generated by once-off customer payments for a product or service. 2. Recurring sales, regular payments for a continued service or after sales support
What is a cash flow forecast	Shows planned income & expenditure over a certain period of time
Why carry out a cash flow statement	It helps ensure the business has enough cash to cover it’s day to day expenses
Why a business prepares a cash flow forecast	1. To help avoid deficits. 2. Improved financial control. 3. Raise finance. 4. Plan for positive net cash flows
How to deal with a cash flow deficit	1. Borrow. 2. Cut down. 3. Defer payments. 4. Earn extra income. 5. Fixes assets/factoring debts (spread the cost of an asset over time)

Created by: Louie Masterson

"Know" box contains:
Time elapsed:
Retries: