Essentials of Strategic Management: The Quest for Competitive Advantage 4th Edition by John Gamble, Arthur Thompson, Margaret Peteraf

Exercise 6

After you have read the Participant's Guide or Player's Manual for the strategy simulation exercise that you will participate in this academic term, you and your co-managers should come up with brief one- or two-paragraph answers to the questions that follow before entering your first set of decisions. While your answers to the first of the four questions can be developed from your reading of the manual, the remaining questions will require a collaborative discussion among the members of your company's management team about how you intend to manage the company you have been assigned to run.
What are the primary elements of your company's business model?
• Describe your customer value proposition.
• Discuss the profit formula tied to your business model.
• What level of revenues is required for your company's business model to become a moneymaker?