5 Social Business & Innovative Business Models Flashcards Preview

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Flashcards in 5 Social Business & Innovative Business Models Deck (11)
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1
Q

Why do we need a change in our curent business models?

A
  • Business models form the engine of our economy
  • many existing business models rely on the assumption that natural and social capital are in virtually limitless supply
  • not convinceable to change a business model based on threats/ opportunities
  • incremental innovation would be needed
  • fundamental different approaches to value creation and consumption are needed
2
Q

What does consumerism refer to? What does the “degrowth” movement intend to do?

A
  • Consumerism as a social and economic order and ideology encourages the acquisition of goods and services in ever-increasing amounts
    • e.g. more than 300.000 items in the average US home
    • average house size has tripled in past 50 years
  • Degrowth-Movement: Reserach and actions to consume less and share more:
    • “It is high time to develop economic and social models that are independent of growth and can provice for a good life for everybody”
3
Q

When can we speak of “artificial demand”?

A
  • demand for something that, in the absence of exposure to the vehicle of creating demand, would not exist
  • increases customer utility very inefficiently
  • e.g. mass media advertising
4
Q

Please describe examples of startup companies that try to address the problem of the proliferation of plastic in consumer products.

A
  • The “Tiffin Project” offers plastic-free food-containers:
    • can be borrowed from partnering restauramts
    • can be taken home or to work
    • returned later to be cleaned and reused
5
Q

How does Alexander Osterwalder define the term business model? Please discuss whether you think that according to this definition the startup you described in (4) can be seen as a business model innovation. You may also use the elements of the business model canvas to argue for your position.

A
  • business model: “fundamental structures for how companies create, deliver, and capture value”
  • yes, the “Tiffin Project” can be seen as a business model, and also as innovative
6
Q

What are “sustainable business models”? Please name examples of characteristics that these business models should have.

A
  • Sustainable business models incorporate a triple bottom-line approach and consider a wide range of stakeholder interests, including environment and society
  • characteristics
    • minimizing of consumption
    • maximize societal and environmental benefit
    • closed-loop systems
    • delivery of functionality and experience
    • fulfilling, rewarding work experiences
    • collaboration and sharing
7
Q

How do companies usually set prices? When would we refer to price setting as “unfair”? How do innovative pricing mechanisms like pay what you want work?

A
  • Usually prices are set by using of these methods:
    • demand-based pricing
    • cost-based pricing
    • competition-based pricing
  • We refer to a price setting as unfair when there is no relation between the costs and the price. e.g. if there is a monopoly
  • These innovative mechanism do work and customers are voluntarily paying non-zero prices!
8
Q

Why do you think are many companies reluctant to communicate their price structure transparently?

A
  • to veil / to cover up are potential artfically inflated prices
  • because they might be commercially sensible informations
9
Q

Name three archetypes of business models as developed by Bocken, Short, Rana, and Evans (2014). What could be exemplary companies implementing these business models?

A
  • Technological:
    • Maximize material and energy efficiency
    • create value from waste
    • substitute with renewables and natural processes
  • Social:
    • deliver functionality rather than ownership
    • adopt a stewardship role
    • encourage sufficiency
  • Organisational:
    • repurpose for society/ environment
    • develope scale up solutions
10
Q

What do we mean when we speak of a social business?

A

As defined by Yunus, a social business:

  • is created and designed to address a social problem
  • is financially self-sustainable
  • prime aim is not to maximize profits
  • is not dependent on donations or grants
11
Q

Discuss: what are advantages and disadvantages of provision of public goods through social businesses instead of governments?

A

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