NPTEL Online Certification Courses
Indian Institute of Technology Kharagpur
Entrepreneurship Essentials
Assignment- Week 4
TYPE OF QUESTION: MCQ/MSQ
Number of questions: 10 Total mark: 10 X 1 = 10
______________________________________________________________________
________
Many of the questions may seemingly have multiple correct answers. You should
choose the option that best satisfies the problem statement.
QUESTION 1:
Which of the following statements is wrong as regards major building blocks of business
model canvas?
a) The ‘Revenue model’ is one of the building blocks of the Business model
canvas.
b) The ‘Value proposition’ is one of the building blocks of the Business Model
Canvas.
c) The ‘Customer relationship’ is one of the building blocks of the Business
Model Canvas.
d) ‘Key suppliers’ is one of the building blocks of the Business Model
Canvas.
e) The ‘Key partners’ is one of the building blocks of the Business Model
Canvas.
Answer: d
---------------------------------------
Detailed Solution: ‘Key suppliers’ is an element of ‘Key partners’. However, by itself, it
is not a dedicated building block of the business model canvas.
---------------------------------
NPTEL Online Certification Courses
Indian Institute of Technology Kharagpur
QUESTION 2:
Which of the following statements is NOT correct as regards the business model
canvas?
a. The value proposition is the central part and it explains how the value
proposition is made, how is it dispensed to the market segment, and some
idea on profitability thereof.
b. The vision, mission, and value statement is one of the important building
blocks of the business model canvas.
c. The revenue model is one of the blocks that explains the ways and means for
an enterprise to earn money.
d. The cost structure is one of the blocks that explains the various expenses to
be incurred to dispense the value proposed.
e. Pricing power, entry barrier, competitive forces, and market structure are
missing from the business model canvas.
Answer: b
--------------------------
Detailed Solution:
The central component of the BMC is the ‘value proposition’. In the right part, we explain
who the value is to be dispensed to, how we reach out to them, how we create a lasting
relationship so that they come back to us to make a repeat purchase and we have a brand
presence in their minds and they talk to their friends about our products to convert them
into our customers. We also show how we make money. In the left part, we talk about all
that is required to create the value and how much cost we incur so that we have some
idea about the profitability. However, the canvas does not contain the mission, vision, and
values that the company aspired to keep. So are pricing power, entry barrier, competitive
forces, and market structure.
-----------------------
NPTEL Online Certification Courses
Indian Institute of Technology Kharagpur
QUESTION 3:
Which of the following are not contained in the Value Proposition in the Business
Model?
a. Customer’s pain that we are trying to alleviate.
b. The superior features of our products and services giving customers
reasons to choose our products or services over those of the competitors.
c. The efficiencies of the process of making the products or services.
d. The ease of purchase, the promise of after-sales services, and buy-back
offers, etc.
e. Market segment, channel, and key partners who help create the values.
Answer: d
------------
Detailed solution
Value proposition contains all that makes the customers winners such as superior
features, lower price, ease of purchase, and after-sales services, etc. However, the
operational efficiencies of the company are not directly connected to any of them and
are not part of the value proposition.
--------------------
QUESTION 4:
Choose the correct answer:
Innovation is
a) Developing new technologies with novelties, not obvious to people with adequate
technical knowledge in the relevant domain and is useful to people or
enterprises.
b) Developing new technology and putting in place all infrastructure necessary to
make the solution available to the people who are direct beneficiaries.
c) Developing new cutting-edge technology that is yet to emerge in the market and
that is far ahead of time.
d) Developing solutions that do a lot of good to society.
Correct answer: b
--------------------------------
NPTEL Online Certification Courses
Indian Institute of Technology Kharagpur
Detailed Solution: Invention is creating new knowledge that did not exist, whereas,
innovation is taking all other actions so that the benefits of the new invention reach the
people or businesses who need them. Thomas Edison invented a technology for the
long useful life of the electric light bulb. That was an invention. He laid electric cable, the
electricity generating unit, and all other infrastructure for the people to get the benefit of
the electric light. The whole process of inventing the technology and reaching the
benefits to the people is innovation.
-------------------------
Question 5:
In the early 1900s, General Electric (GE) of Thomas Edison disciplined the chaotic
process of scientific discovery into a systematic process of innovation. Results: over the
next 70 years, won more patents than any other company in the US. Much of GE’s
competitive prowess during the century following can be traced to that extraordinary
accomplishment. Which of the following describes the above revolutionary act of GE?
a. This is a technological invention that gave General Electric many patents.
b. This is an innovation that gave the end-beneficiary enormous advantages and
thus GE enjoyed competitive advantages for many years to come.
c. This is an example of management innovation.
d. This is an innovation that gave GE enormous competitive advantages.
Answer: c
------------------------------------
Detailed Solution: Innovation is possible in every sphere of business. There are
wonderful examples of gaining unassailable competitive advantages through
management innovation. General Electric innovated a system of scientific discovery that
systematized the whole process improving efficiency and reducing redundancy. Over
the next 70 years, GE won more patents than any other company in the US. Much of
GE’s competitive prowess during the century following can be traced to that
extraordinary accomplishment.
------------------------------------
NPTEL Online Certification Courses
Indian Institute of Technology Kharagpur
Question 6:
In 1903, DuPont systematized capital-budgeting techniques. A few years later, the
company also developed a standardized way of estimating the return on investment.
They used it in comparing the performance of its numerous product departments.
These innovations and more helped DuPont become one of America’s industrial giants.
a. This is a core part of business process management that gave DuPont many
patents.
b. This is an innovation that gave the end-beneficiary enormous advantages and
thus DuPont enjoyed competitive advantages for many years to come.
c. This falls under management innovation.
d. This is an innovation that gave DuPont enormous competitive advantages.
e. This is an accounting innovation giving DuPont huge competitive advantages.
Answer: c
--------------------------
Detailed Solution: Innovation is possible in every sphere of business. There are
wonderful examples of gaining unassailable competitive advantages through
management innovation. DuPont did the same through management innovation as
mentioned in the statement.
-------------------------
Question 7:
Business model innovation is NOT possible through which of the following?
a. Changing the value proposition
b. Changing business system architecture
c. Introducing employee stock option
d. Through management innovation
e. Adoption of efficient process technologies
Answer: c
-----------------------
Detailed Solution:
Employee stock option is neither an innovation nor define a new business model and is
the answer.
-------------------
NPTEL Online Certification Courses
Indian Institute of Technology Kharagpur
Question 8:
Uber could define the pain points and it could apply the latest technologies to solve
them. In urban places of high mobility. It is very difficult to get a taxi. One that would
come and pick you up
One with some identity for reliability and safety. To know when a taxi will arrive.
Ease of paying for the tip. They innovated the solution based on the pains.
The above text is related to which block in the business model canvas?
a. Customer segment
b. Key activities
c. Key partners
d. Value proposition
e. Revenue model
f. Key resources
Answer: d
--------------------------
Detailed Solution:
All the points relate to the understanding of customer pains and the gap between
customers’ needs and what is provided by the existing solutions. This helps to
determine the values to be proposed to customers. Therefore, they relate to the value
proposition.
---------------------
Question 9:
Long after the traditional candle lamp lost its primary use as an essential light source,
“Yankee Candle” was launched at a very high price with one candle selling at more than
₹5,000/-. Each candle of high-quality wax is contained in a smart-looking glass jar, is
nicely packed, and emits a variety of aromas. Customers can pick up the ones with the
aroma they like. At the end of the day, back from the office, they can lighten the candle,
immerse in some music of choice and forget the day’s travail.
Yankee Candles are facing high price because of the product differentiation created in
the form of
a. Product features
b. Customer experience
c. Premium price
d. Extremely good quality
e. The aesthetic design of the packaging
Correct answer: b
NPTEL Online Certification Courses
Indian Institute of Technology Kharagpur
---------------------------
Detailed Solution:
Yankee candles do not serve a basic need. Such products should give the customers
new meaning and new experience. The more unique the experience, the higher is the
perceived value for them and the higher can be the price.
----------------------
Question No. 10
Which of the following statements is most appropriate?
a. A business model is mostly a written document or slide deck delineating the
process of execution, marketing and growth plan, and the projected financial
performance.
b. A business model describes the rationale of how an organization creates,
delivers, and captures value, in economic, social, cultural, or other contexts.
c. A business model describes the rationale of how an organization develops
products or services using modern cutting-edge and futuristic technologies.
d. A business model describes the rationale of how an organization builds a
team, identifies opportunities, and goes-to-market.
e. A business model describes the team of co-founders, marketing strategies,
financial performance, and business process management.
Correct answer: b
--------------------------------
Detailed Solution:
A business model describes the rationale of how an organization creates, delivers, and
captures value for the customers, in economic, social, cultural, or other contexts so that
an increasing number of customers will find their products or services more attractive
compared to those of competitors.
************END*******
