Define and describe a business ecosystem. Give an example of a business ecosystem
What will be an ideal response?
A business ecosystem is a collection of loosely coupled but interdependent industries (suppliers, distributors, technology manufacturers, etc.) that provides related services and products. It is similar to a value web, except that cooperation takes place across many industries rather than many firms.
Business ecosystems can be characterized as having one or a few keystone firms that dominate the ecosystem and create the platforms used by other niche firms. Keystone firms in the Microsoft ecosystem include Microsoft and technology producers such as Intel and IBM. Niche firms include thousands of software application firms, software developers, service firms, networking firms, and consulting firms that both support and rely on the Microsoft products.
Another example of a business ecosystem is the mobile Internet platform. In this ecosystem there are four industries: device makers (Apple iPhone, RIM BlackBerry, Motorola, LG, and others), wireless telecommunication firms (AT&T, Verizon, T-Mobile, Sprint, and others), independent software applications providers (generally small firms selling games, applications, and ring tones), and Internet service providers (who participate as providers of Internet service to the mobile platform).
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Firms following which of the following strategies are likely to be particularly sensitive to the impact of labor surpluses?
A. A cost-leadership strategy B. A differentiation strategy C. An innovation strategy D. A customer service strategy
Which one of the following statements about costs of sales and operations plans is BEST?
A) Overtime wages are typically 50% of regular time wages, exclusive of fringe benefits. B) The cost of capital is not generally included in the inventory-holding cost. C) Fringe benefits, which are a part of regular-time costs, do not typically include health insurance and paid vacations. D) Hiring costs include the costs of advertising jobs, interviews, training programs for new employees, and initial paperwork.