UNIVERSIDAD DE GUAYAQUIL

FACULTY OF BUSINESS ADMINISTRATION

BUSINESS MANAGEMENT ENGINEERING

Name: Lady Gonzabay B.

Date: 5th July, 2020.

Choose and support the correct answer

1- What is a business model about?

A. It is about how a company creates value for its customers

B. It is about the value of a company on the stock market
C. It is about how a company captures value for itself
D. Both A and C are true

Support:
I think that a business model is a description of how your business makes money and it is an
explanation of how you deliver value to your customers at an appropriate cost. The business
model helps us to see what situation we are in, to improve our processes and give us value.

2- Joe has a hair salon. His value proposition consists of his offering and the intended value
that he creates. What would not be a part of the value that he creates for customers?

A. Personal attention for his customers’ hair and looks and look nice again after wards.
B. Removing an inch or so from his customers’ hair.
C. Small talk about personal and local life.
D. A complimentary cup of coffee while waiting to be served.

Support:
I think that option B is the one that does not give value to the client, and in fact I have a
dilemma because really if someone goes to a hair salon, the least they expect is quality care
and a result that they like, then options A and B are the least I expect from a service. Option
B can be pleasant, but I don't know if it can be representative or give value, since I can talk
without having to pay for a service. Perhaps option D represents value for the salon and its
clients, perhaps.