Ch 13: Strategic Entrepreneurial Growth

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

distrust of others when formulating a strategic plan.

In many new small ventures planning is often

lacking

Formal planning can be divided into

strategic

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

strategic planning

Which of the following would be considered a fatal mistakes in strategic planning, according to researcher Michael E. Porter?

Fatal Vision #1: Misunderstanding industry attractiveness Fatal Vision #2: No real competitive advantage. Fatal Vision #3: Pursuing an unattainable competitive position Fatal Vision #4: Compromising strategy for growth. Fatal Vision #5: Failure to explicitly communicate the venture's strategy to employees

The second stage of venture development is

start-up activities

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

measures innovation

The entrepreneurial strategy matrix measures:

risk and innovation

A "SWOT" analysis refers to

strength, weaknesses, opportunities, threats

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.

The "best" strategic plan will be influenced by

abilities of the entrepreneur, the complexity of the venture, and the nature of the industry.

New ventures are important to the economy in terms of innovation and

employment

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

false

a key dimension that shapes the strategic management activities of a growing firm?

1. internal political problems 2. speed of decision making 3. environmental uncertainty

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

a risk

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

true

management principles emanate from Steve Jobs

• Help people find what they love in their work. If people do what they love, motivation and performance are never questioned. • Put a dent in the universe. Inspire your workforce to develop a sense of meaning in their performance as it relates to what the firm is trying to accomplish. Develop a sense of purpose in everyone's job. • Sell dreams not products. Everyone wants to work at something significant in this world. Create a dream that is bigger than the entire workforce. • Say no to 1,000 things. Remain focused on the simplicity of what can be done. Avoid the temptation to "add on" constantly and keep everyone aimed on the few areas of excellence. • Master the message. Communicate with your employees continuously. Use stories and examples to make them understand the true message you intend for the atmosphere of the venture.