Ch.13

Which of the following is not a reason for the lack of planning in new ventures?

a. lack of dominance

The entrepreneurial strategy matrix measures:

a. risk and innovation.

In the strategy matrix model, innovation is defined as

a. something new and different.

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

True

Unique managerial concerns of growing ventures encompass all of the following except:

a. agency problems

Participation by subordinates in a strategic plan is never appropriate.

b. False

A "SWOT" analysis refers to

strength, weaknesses, opportunities, threats

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

c. they have minimal exposure to the planning process.

What is the one-person-band syndrome?

c. failure to delegate

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

True

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

True

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

a. True

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

a. True

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

a. 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.

a. True

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

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

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

d. no real competitive advantage

All of the following are characteristic of entrepreneurial cultures except:

hierarchy

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

lack of expertise.

Which of the following factors would not be considered a key dimension that shapes the strategic management activities of a growing firm?

lack of knowledge

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

False

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

c. distrust of others when formulating a strategic plan.

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

strategic intent and strategic mission.

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

strategic planning.

The entrepreneurial strategy matrix measures risk and innovation.

a. True