Corporate Entrepreneurship

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A 2003 survey by Bain & Co. revealed a high level of managerial satisfaction with the overall results of corporate venturing activity.

False

A primary motive for pursuing an internal corporate venture appears to be the provison of "insurance" for the corporate parent in the event that its core businesses fail to yield desired results.

False

Access to financial capital is the key to success in an entrepreneurial venture.

False

According to Porter (1996), strategy involves the development of core competencies that allow a company to perform similar activities better than competitors perform them.

False

An entrepreneur's primary focus should be on the efficient and effective utilization of the resources currently under his or her control

False

An example of the Experimenter persona is that of the 3M employee responsible for the development of masking tape.

False

As Google's "idea gatekeeper", Marissa Mayer's primary duty is to function as a bottleneck, keeping commercially unfeasible ideas from consuming any company resources.

False

As currently designed, reward and measurement systems within public sector organizations serve as effective mechanisms for the encouragement of entrepreneurial behavior.

False

Because "entrepreneurship" is a relatively new term (less than 100 years old), most scholars agree on it's precise definition.

False

Bill O'Brien and Pete Nielsen's primary reason for leaving GTE to form Starlight Communications was to capitalize on the potentially greater financial rewards realizable from ownership of an enterprise.

False

Chaos theory describes systems with outcomes that are governed by linear differential equations.

False

Due to the ongoing global entrepreneurial revolution, none of the traditional theories and principles that previously guided good business practice any longer applies.

False

Entrepreneurially conceptualized, success is a continuum along which one moves, where movement in one direction produces increments of success, and movement in the other results in increments of failure.

False

Entrepreneurship is an attribute exhibited only by small, creative start-up companies; or by highly successful firms in R&D-intensive industries.

False

Environments that produce imitation or continuous innovation typically require more specialization than those producing discontinuous or dynamically continuous innovation.

False

Improved financial performance in a nonprofit organization invariably leads to improved social performance.

False

In order to maximize long-term success rates and minimize downside risks, it is imperative that managers fully commit all necessary resources when commencing any given project of innovation.

False

Intuit exemplifies the "zero error culture".

False

Involvement in organizational politics only distracts the corporate entrepreneur from the achievement of his or her goals, and thus should be avoided as much as possible.

False

Jet Blue is the only airline that has managed to compete successfully with Southwest on a head-to-head basis.

False

Large financial rewards always have more impact on produciing a desired behavior than any other type of compensation or recognition.

False

Major innovation is most likely under sructures that most closely mimic the simple structure.

False

Most public sector managers strongly agree with the statement "entrepreneurship does not really apply to organizations such as mine".

False

Most researchers agree that entrepreneurs have a strong external locus of control.

False

Not all people are inherently creative.

False

Nucor's dramatic re-shaping of the steel industry justifies its placement in the Revolutionary segment of the entrepreneurial grid.

False

Once set, a company's dominant logic should not change, as it provides the "lens" through which the firm views and interprets the environment.

False

Organizational structure becomes simpler as a company moves from a traditional R&D department to a cross-functional team.

False

Public sector organizations do not have to contend with the risk of failure, as bankruptcy is not a threat.

False

Research clearly indicates that managers who are less entrepreneurial in their behavior have a positive impact on their subordinates' satisfaction.

False

Sear's attempt to re-position itself as a more high-end, branded merchandiser constitutes an example of Organizational Rejuvenation.

False

Senior management has direct control over all the factors that influence the work environment.

False

Senior managers require at least 225 square feet of office space in order to have an optimal flow of "creative juices".

False

Technology strategy should follow from and help to operationalize business strategy.

False

The core purpose of a company is a clear and compelling goal that the organization commits to achieve over the next ten or twenty years.

False

The creative process can be designed in such a way as to reach an innovative solution in an orderly and linear succession of logical steps.

False

The evidence in recent research is inconclusive in regards to whether or not entrepreneurship has any impact on the performance of nonprofits.

False

The evidence is quite clear that the first-mover always has the advantage in regards to dominating a new product category.

False

The fundamental problem in innovation is a lack of good ideas.

False

The organizational conditions leading to the accusation that Microsoft's heirarchy has frustrated the efforts of it's innovators are best described by the "crisis of autonomy" that theoretically occurs as "Growth through Direction" slows.

False

The outcome of a "ray of light" project is a formal business plan to be submitted to the directors of a review board.

False

The possibility of revolutionary change comes only with the acceptance of high risk.

False

The primary source of most of Walmart's entrepreneurial growth has been through traditional R&D.

False

The purpose of "creative abrasion" is to create a "colloseum" of ideas, in which colliding viewpoints battle to the death; with one winning out or dominating, and the other losing and being discarded.

False

The three dimensions of entrepreneurship are highly correlated with each other.

False

The ultimate purpose of the various techniques and methods available for use in the creative process is to increase the quantity of creative ideas generated.

False

To be highly successful, companies should approach corporate entrepreneurship as Babe Ruth approached baseball: swing for a home run every time.

False

Values are highly visible or observable manifestations of an organizational culture.

False

While it is important not to stigmatize failure, it is equally important not to recognize it as having a positive outcome; failure should thus be downplayed as much as possible.

False

Zero errors are proof of high performance standards.

False

3M does not focus on technologies as products, but as means to addressing customer or societal needs.

True

A "one-size-fits-all" mentality with respect to entrepreneurial organization structures is not feasible.

True

A primary goal of introducing entrepreneurship into public sector organizations is to shift the emphasis from the "process" of government programs to the "outcomes" of government programs.

True

According to Greiner (1972), companies enter the "Growth through Coordination" stage; prosper until they encounter "a crisis of red tape"; and then must either find a way to enter the "Growth through Collaboration" stage, or fall into decline and failure.

True

According to the Domain Framework, corporate entrepreneurship involves two innovative processes: the creation of new businesses within existing organizations and the transformation of organizations through the design of revolutionary corporate initiatives.

True

Ad hoc venture teams tend to do well when given a specific mission, but are not so successful at developing a continuous stream of innovative ideas.

True

Alternative terms used to describe the concept of "corporate entrepreneurship" include "intrapreneurship" and "corporate venturing".

True

An important element of corporate entrepreneurship is recognizing when the product is "good enough": perfection is unnecessary.

True

Any process that attempts to move a traditional hierarchical company to the point that sustainable entrepreneurship becomes a meaningful and important component of the organization will necessarily be long and complicated.

True

As part of the process of creating an entrepreneurial culture, managers must often strike a balance between conflicting values that must nevertheless coexist in an organization.

True

Changing an organizational culture is like trying to alter the course of a large ocean vessel.

True

Entrepreneurship is a core element of the culture of a truly innovative organization.

True

Experimentation with different organizational designs is becoming much more common in larger companies.

True

Given their intangible nature and the ease with which they can be replicated, services are prime candidates for continuous innovation.

True

Highly innovative companies tend to manage multiple projects simultaneously, utilizing a systematic and well-defined process.

True

Interactions among tactical components of the business model can make it very difficult for competitors to imitate.

True

It is impossible to evaluate the success or failure of a corporate venture without a clear understanding of the venture's initial goals.

True

It is not clear that companies can sustain a high rate of entrepreneurial intensity over prolonged periods of time; it is conceivable that they cycle between periods of high intensity and periods of less intensity.

True

Management must be proactive in regards to change, so that the ongoing healthy business forms a "protective bubble" in which to experiment with new methods.

True

Managers design an organizational structure to address emerging conditions at one point in time; however, this structure produces side effects that ultimately require the design of a new structure.

True

Many of the studies on the psychological and sociological makeup of entrepreneurs suffer from major methodological problems.

True

Mechanistic structures are better suited to the execution of established innovative projects.

True

Of all the decision areas that can affect the work environment, HRM is perhaps the most vital.

True

Of all the elements necessary for successful corporate entrepreneurship, the individual champion is most critical.

True

Performance appraisals should be conducted at intermittent and irregular time intervals, and tailored to the life cycle of an entrepreneurial project.

True

Social entrepreneurs seek opportunities that will allow them to attack the primary causes of needs, rather than merely remedying symptoms.

True

The amount of control that any given firm can possibly exert over its external environment is extremely limited.

True

The basic six steps of the entrepreneurial process found in the corporate context are no different in a nonprofit or public sector context.

True

The corporate entrepreneur is insulated from turbulence in the external environment to a far greater degree than is the start-up entrepreneur.

True

The essence of proactiveness lies in the commitment displayed towards the successful, widespread implementation and adoption of an entrepreneurial concept.

True

The establishment of intermediate, achievable goals is an essential element of the successful implementation of an entrepreneurial business concept.

True

The formulation of plans for the effective management of external opportunities and threats in light of a company's internal strengths and weaknesses is a major component of strategic management.

True

The higher the degree of bureaucratization, the greater the potential conflict with entrepreneurship.

True

The marketplace usually wants a new product that is good enough, not the best possible.

True

The most appropriate way to approach employee recruitment and selection decisions depends upon whether organizations are pursuing an entrepreneurial-based strategy or an efficiency-based strategy.

True

The popularity of corporate venture capital investment activity appears to be correlated with the strength of the IPO market.

True

The reason that most innovations succeed is that most innovations are incremental in nature; failure rates increase dramatically for discontinous or revolutionary ventures.

True

The same type of thinking that allows a person to function efficiently on a day-to-day basis becomes a major constraint when trying to be creative.

True

The shortage in most companies is not of dreamers, but of doers.

True

The structure of a company is generally determined by the strategy of the company.

True

The two most precious words in the organization should be "what if?"

True

The viewpoint of the authors of this textbook is that the core source of sustainable competitive advantage is entrepreneurship.

True

There are fundamental questions as to whether or not entrepreneurship has any legitimate role to play in public enterprises.

True

Too much individualism can have a negative impact on an entrepreneurial culture.

True

Two companies that exhibit the same overall level of entrepreneurial intensity can differ significantly in how entrepreneurship is manifested.

True

Virtually anyone is capable of being entrepreneurial, and many people manage to be entrepreneurial on a continuous basis.

True

Walmart's early growth was due to succesful domain redefinition, in that it redrew the boundaries of the mass retail industry and made its current competiton moot.

True

When outcomes meet or exceed expectations, entrepreneurial behavior is positively reinforced, and vice versa.

True

When the external environment is highly turbulent, departments that interact more with that environment may develop entrepreneurial subcultures somewhat at odds with the mainstream organizational culture.

True

Where senior managers attempt to personally select individuals to be "champions", the results are typically disappointing.

True


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