Entrepreneurship Management

QUESTION 1: WHAT DEFINITION OF BUSINESS MODEL DO YOU FIND MOST  USEFUL AND WHY?

First, to me, both definitions are pretty much the same; however, I find the first one to be most useful because  it clearly states that a company must create value through not just the combination of products, or services image but also  “the underlying organization of people, and the operational infrastructure that they use to accomplish their work.” A lot of companies focus too much on the service or product they offer, but what about the other essential aspects of a business plan, such as the organization of the people that make up the company and the tools used to provide the service or products to customers. The second definition is too broad; therefore, to me, the first one can be most useful since it specifies in more detail the aspects that are essential and must be considered when companies examine business plans.

QUESTION 2: WHAT ARE THE SIMILARITIES AND DIFFERENCES BETWEEN THE TWO TOOLS FOR DESIGNING  BUSINESS MODELS?

Some similarities I was able to find between these two models is that  both emphasize the importance of identifying the company’s  customers  or “market segment” as well as “key partners,” also the importance of creating and contributing to the “value proposition.” I also find   that in Model 1’s component # 3 and Model 2’s topic # 4 are very similar, both ask to identify the key resources or assets that are needed  for the firm to perform its activities and function  in the business environment.

A difference  between these two models, is that Model #2 is more creative  and innovative and  I believe can generate more ideas than Model #1, the reason is that it is composed specifically of questions made to each participant and is recommended to be used in team-sessions, and the more brains  working together, the better results.  Another difference is the vocabulary used to refer to customers. Model 1 mentions “market segment” and “users” (in component #2), where as Model 2 refers as “customers” in most of all its key topics.

QUESTION 3: WHY WAS GREIF PACKAGING, DESCRIBED IN CHAPTER 2, ABLE TO CAPTURE  MORE OF THE VALUE  IN THE SUPPLY CHAIN? WHERE DID THE EXRA VALUE COME FROM, AND WERE THERE OTHERS WHO LOST THE VALUE THEY WERE SELLING?

Grief Packaging was able to capture more of the value in the supply chain because the company focused on identifying customers’ needs. It realized what customers really wanted which was the efficient and safe transportation of the toxic chemicals. The extra value came from being able to identify the unmet needs and develop new solutions; Grief created a way to solve the trip problems for customers. It took care of the details that customers did not want to deal with which were “finding a licensed trucker; filling in the government forms; and washing, cleaning, and refurbishing the drums.” I think that the drum suppliers  are some who lost the value they were selling because now Grief was the one capturing more of the value in the supply chain by dominating and taking care of customer’s  needs and wants.

QUESTION 6: NAME THREE SIMILARITIES AND THREE DIFFERENCES BETWEEN A FRANCHISE AND A LICENSE.

Three similarities between a franchise and a license are: 1)Both require a type of agreement or contract between an issuing party and a receiving party, 2) both  require  that the contract clearly defines and identifies each  party based on the reasons for entering into the agreement, and 3) both can provide intellectual property which has to be precisely defined. Both agreements may give patent numbers, trademarks, or list of secrets.

Three differences between a franchise and a license are: 1) in  a franchise agreement the limitations of the franchisee’s business are clearly defined, whereas,  in a license one, the licensee  could have more freedom if  these limitations are not indicated in the agreement, 2) in contrast to a franchise agreement, a license agreement clearly defines the territory where a licensee would be doing business, and 3)a franchisor is required by law to provide the franchisee with the Uniform Franchise Offering Circular document, so that  the purchase is aware of the risks and dangers of the franchise agreement; this is not necessarily required in a license agreement.