ch 13

All of the following are characteristic of entrepreneurial cultures except: action orientation hierarchy episodic use of required resources multiple informal networks

hierarchy

The entrepreneurial strategy matrix measures risk and innovation.

true

Lack of expertise has never been considered a reason for the lack of strategic planning in new ventures.

false

New ventures rarely exhibit a typical life cycle.

false

Participation by subordinates in a strategic plan is never appropriate.

false

Small firm owner/managers are usually very open and trusting about their businesses and the decisions that affect them.

false

Which of the following is not a reason for the lack of planning in new ventures? time scarcity lack of trust lack of dominance lack of knowledge

lack of dominance

Analysis of a firm's external and internal environments provides the firm with the information to develop

strategic intent and strategic mission

A reason new venture managers lack knowledge in the strategic planning process is because

they have minimal exposure to the planning process.

The past is the best predictor of the future, according to which mind-set?

the managerial mind-set

Research has shown a distinct lack of planning on the part of new ventures.

true

A "SWOT" analysis refers to

strength, weaknesses, opportunities, threats

Most entrepreneurs are unfamiliar with planning information sources.

true

A reason for lack of strategic planning has been found to be

lack of expertise.

All of the following are characteristic of administrative cultures except: rent of required resources. need to reduce risk. inertia. coordination of activity.

need to reduce risk.

High- and low-performing firms have many similarities and differences in their long-range planning efforts.

true

Formation of long-range plans for effective management in light of a venture's strengths and weaknesses is referred to as

strategic planning.

Improved performance is often the result of better planning.

true

The textbook describes three types of leadership of consequence to new ventures. What are they?

visionary, strategic, and managerial

Small business owners are often guarded about their businesses, which leads to

distrust of others when formulating a strategic plan

Which of the is not a distinct form of tolerance for failure? moral failure innovation failure personal failure uncontrollable failure

innovation failure

When it comes to strategic planning, most small firms

really do not engage in true strategic planning.

The entrepreneurial strategy matrix measures:

risk and innovation.

In the strategy matrix model, innovation is defined as

something new and different.

A "SWOT" analysis refers to analyzing strengths, weaknesses, opportunities, and threats.

true

During the growth stage of a venture, entrepreneurs shift into a managerial style.

true

In administrative cultures, there is a need for clearly defined authority and responsibility.

true

Many research studies suggest that strategic planning influences a venture's survival.

true

Strategic planning is not an easy task for new ventures.

true

The "best" strategic plan will be influenced by the abilities of the entrepreneur, the complexity of the venture, and the nature of the industry.

true

The actual need for systematic planning will vary with the nature, size, and structure of the business.

true

Emerging ventures that are rapidly expanding with constantly increasing personnel size and market operations will need

to formalize planning because there is a great deal of complexity.

In many new small ventures planning is often

lacking

Which of the following would be considered fatal mistakes in strategic planning, according to researcher Michael E. Porter? no real competitive advantage pursuing a solid competitive position compromising strategy for growth a and c only

a and c only

Which of the following management principles does not emanate from Steve Jobs? Sell dreams, not products. Put a dent in the universe Say no to 1,000 things. Strive to reach practical milestones.

Strive to reach practical milestones.

In the entrepreneurial strategy matrix, the probability of a major financial loss is categorized as

a risk.

Unique managerial concerns of growing ventures encompass all of the following except: the one-man-band syndrome community pressures time-management issues agency problems

agency problems

In the entrepreneurial strategy matrix, the creation of something new and different is categorized as

an innovation.

Which is not perceived as a difficulty in long-range planning? arranging vacation time inadequately defined objectives poor planning climate inexperienced managers

arranging vacation time

What is the one-person-band syndrome?

failure to delegate

Formal planning can be divided into strategic and nonstrategic.

false

In principle, incumbents and entrepreneurs face the same challenges in finding new strategic positions. In practice, incumbents often have an edge.

false

The reason many small business managers lack expertise is that they are

generalists.

New ventures are important to the economy in terms of

innovation. employment.

Which of the following factors would not be considered a key dimension that shapes the strategic management activities of a growing firm? speed of decision making internal political problems environmental uncertainty lack of knowledge

lack of knowledge

Misunderstanding industry attractiveness can be a fatal flaw in strategic planning.

true

Wealth creation occurs at the intersection of entrepreneurial and strategic actions.

true