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Business models in strategic management
Business models in strategic management

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5.1.9 What do you give? Cost structure

This is the final building block and involves you thinking about all the expenses related to your offer. Again, like in the question ‘What do you have?’, the answer to the question ‘What do you give?’ may be given in both monetary and nonmonetary terms. In other words, your expenses may also be measured in terms of time, energy, reputation damage in case of failure, risk to health and disrupted work–life balance (e.g. lack of attention to your family, friends, and hobbies).

A close-up of a pen on top of a list which includes bills, food, travel and taxes and numbers beside each.

Activity 20 Your cost structure

Timing: Allow around 15 minutes

Think about your answer to the question ‘What do you give?’ and make notes in the box below. While answering this question, think about your expenses in both monetary and nonmonetary terms. This will reveal a better picture of what you give while producing your offer. You may mention time, attention and stress, or you could include some financial expenses that are not immediately evident. For instance, your offer may require you to adopt a regime which is more costly. Specifically, to pursue your dream in a large city, you may have to get up and commute at earlier hours when public transport is not available and there is the need to use more expensive private hire vehicles. This may involve eating out which is also more expensive. Staying extra hours at work implies paying extra sitter costs for those with parental and caring responsibilities.

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