BMI 1

Question 1

In the crisis the beer company implemented three primary innovations to create alternate revenue streams:

Answer 1

• From brewery to distillery
• Groceries home delivery
• Beer funding platform

Question 2

Framework for implementing BMI in a crisis

Answer 2

• using readily available resources
• transforming readily available resources
• mobilizing distant resources

Question 3

Business model: three types of (managerial) choices:

Answer 3

• policies
• assets
• governance

Question 4

business model: two types of consequences

Answer 4

• flexible
• rigid

Question 5

Characteristics of an Effective Business Model

Answer 5

1. aligned with company goals
2. self-reinforcing
3. robust

Question 6

Companies can compete in three primary ways by interacting with the models of others:

Answer 6

• strengthen your own virtuous cycles
• weaken competitors’ cycles
• turn competitors into complements

Question 7

Three key strategic business model choices (social business model design):

Answer 7

• scope of venture beneficiaries
• extent of customer-beneficiary overlap
• symbolic use of social values

Question 8

Four distinct archetypes/social business models:

Answer 8

1. social stimulators (broad ben., high ben. overlap, social value prop)
2. social providers (narrow ben., high ben. overlap, functional value prop.)
3. social producers (narrow ben., partial overlap, social value prop.)
4. social intermediaries (broad ben., no overlap, functional value prop.)

Question 9

Propositions regarding how the choice of archetype/BM impacts economic performance:

Answer 9

• Willingness to pay (value capture): social stimulators & social producers incr., social providers decr.
• Operating costs (value creation): social producers and social intermediaries incr.

Question 10

The critique of reductionism in strategy (parsimonious models):

Answer 10

• seeks proximate causality
• assumes independence
• prioritizes the firm level

Question 11

System thinking key principles include:

Answer 11

• relational view and synthesis
• open systems and feedback loops
• nested hierarchies
• emergence and regime shifts

Question 12

Broader theoretical lens to supplement reductionism in three ways:

Answer 12

1. investigate co-evolutionary dynamics
2. advance processual insights
3. recognize tipping points and transformative changes

Question 13

Belief updating process consists of:

Answer 13

• attention
• perception
• memory and reasoning

Question 14

How can individuals react when applying Bayesian belief updating?

Answer 14

• overreaction: shift beliefs abruptly based on new info.
• underreaction: remain entrenched in prior beliefs, failing to adjust.

Question 15

The effectiveness of BBU is contingent (voorwaardelijk) on the level of uncertainty.

Answer 15

• low uncertainty: updating provides advantage because new info is generally reliable and signals are clear.
• high uncertainty: advantage diminishes, initial beliefs are noisy or weak signals, making prior beliefs irrelevant.

Question 16

What are the key findings and implications of Bayesian belief updating for managerial decision-making?

Answer 16

• Heterogeneity in learning: Bayesian updating works well under lower uncertainty, but overreacting to new information reduces accuracy.
• Experience vs. process: A structured learning process matters more than prior expertise or experience.
• Managerial contribution: Good foresight comes from a disciplined thinking process, avoiding both ignoring new information (“blissful blindness”) and overreacting to noise.