BUSMHR 2500 Chapter 2 Corporate Entrepreneurship

What is one of the most salient manifestations of corporate entrepreneurship?

Establishment of new corporate ventures

True or false: In order to ensure that corporate entrepreneurial ventures are a success, the parent organization should not allow corporate entrepreneurs to have total authority over expenditures and access to sufficient funds.

False

True or false: Recognize that employees at entrepreneurial firms typically do not have wholehearted support of top management.

False

True or false: The process of loss orientation is not a part of the dual process model of coping with negative emotions.

False

What is the first step in the process of corporate entrepreneurship?

Gaining the commitment of top management

______ ______ refers to product and service innovation, with an emphasis on development and innovation in technology.

Organizational innovativeness

Identify a characteristic of a high entrepreneurial environment.

The latest technology is utilized to help develop a firm's ideas and products.

Identify a feature of entrepreneurially managed firms.

They are capable of withdrawing their resources from a particular opportunity rapidly.

Identify an accurate statement about entrepreneurial firms.

They develop and foster the spirit of teamwork between multidisciplinary teams.

Identify a characteristic of traditionally managed firms.

They have frameworks that are typically focused on efficiency rather than on responding to changes in the external environment.

When an organization seeks to establish corporate entrepreneurship, it should ensure that _____.

it has a group of interested managers who will train employees and share their experiences

An accurate statement about successful corporate entrepreneurship is that _____.

leaders must be able to inspire employees to work well in teams and utilize a multi-disciplined approach

An accurate statement about traditionally managed firms is that _____.

they are not able to easily reverse the investment of resources in a potential opportunity

Managers in an organization strongly supporting corporate entrepreneurship is referred to as ___ ___ ___.

top management commitment

The creation of a new business within an existing organization is known as _____.

internal corporate venturing

A high entrepreneurial environment is most likely to _____.

permit employees to make mistakes in order to assist learning

A true statement about the process of establishing corporate entrepreneurship is that _____.

a robust support structure must be developed for the venture

Entrepreneurial action within an established organization is known as ___ ___.

corporate entrepreneurship

A focus on those factors that are inputs into the formulation of a firm's strategy is known as ___ ___.

strategic orientation

Peter, a young entrepreneur, is depressed because his startup venture is in loss. However, he realizes that his feelings are normal and they are experienced by anyone in his position. Which of the following concepts is most likely exemplified in this scenario? 1. A dual process model of coping with negative emotions 2. A narrow-scope strategy of risk reduction 3. An entrepreneurial orientation toward culture 4. An entrepreneurial orientation toward management structure

1

Which of the following is true of traditionally managed firms? 1. They are more likely to pursue a given opportunity with a much larger initial investment than entrepreneurially managed firms. 2. The strategy of tradition management is driven by the presence of any opportunity for new entry. 3. Resources do not constrain the strategic thinking of a traditionally managed firm. 4. They are unlikely to place considerable emphasis on information. (Answer with number)

1

Identify the features of corporate entrepreneurship. (Check all that apply.) 1. It is most strongly reflected in entrepreneurial activities in organizations. 2. Hypercompetition has led to an increased amount of corporate entrepreneurship. 3. It is not strongly reflected in top management orientations in organizations. 4. It is the only method of stimulating individuals in a company who think that something can be done differently. (Type answer as numbers with spaces)

1 2

A study found that new ventures started within a corporation performed worse than those started independently by entrepreneurs. What were the reasons cited? (Check all that apply.) 1. A lack of freedom to make autonomous decisions 2. A lack of venture capital 3. A constrained environment 4. Distribution of responsibilities to existing employees

1 3

Which of the following statements are true about the dual process of learning from the failure of an entrepreneurial initiative? (Check all that apply.) 1. There are psychological and physiological outcomes caused by the feelings of loss. 2. Oscillation between loss and restoration orientations increases the time taken for the recovery and learning process. 3. There is a process of recovery from failure to learn, which comforts the entrepreneur that his or her current feelings will eventually reduce. 4. Knowledge that the reactions being experienced by the entrepreneur are normal for someone dealing with such a loss increases shame.

1 3

What are the characteristics of high corporate entrepreneurial environments? (check all that apply, type answer as numbers with spaces) 1. Creativity, risk taking, boldness, and even failure is appropriately rewarded. 2. Trial-and-error learning methods are not encouraged. 3. The spirit of corporate entrepreneurship must be forced upon individuals. 4. Firms must have a patient approach to the investment of money in the environment.

1 4

Which of the following statements are true about corporate entrepreneurship? (Check all that apply.) 1. Implementing corporate entrepreneurship can lead to the development of an entirely new corporate environment and culture. 2. New corporate ventures have more freedom to make autonomous decisions than do those started independently by entrepreneurs. 3. New corporate ventures started within a corporation make more profits than do those started independently by entrepreneurs. 4. Independent, venture-capital-based start-ups by entrepreneurs tend to outperform corporate startups significantly.

1 4

Which of the following is true of entrepreneurially managed firms? 1. They have a structure well suited for the internal efficiencies of allocating controlled resources. 2. They gain and communicate more information from the external environment than do traditionally managed firms. 3. They are more concerned about the ownership of resources than are traditionally managed firms. 4. They have a formalized hierarchy with clear roles and responsibilities and highly routinized work. (enter a number)

2

Which of the following are true of the characteristics of successful corporate entrepreneurs? (Check all that apply.) 1. They must create a formalized hierarchy with clear roles and responsibilities and highly routinized work. 2. They should be able to adapt to different situations and develop management options. 3. They should not use open discussions to create something new. 4. They must possess a visionary outlook.

2 4

Identify the steps involved in the process of establishing corporate entrepreneurship in an organization. (Check all that apply.) 1. Forcing the spirit of corporate entrepreneurship upon the organization's employees 2. Creating a system that discourages risk taking and failure 3. Setting a long time horizon to evaluate the success of the overall process 4. Utilizing the latest technology to make the organization more flexible than before

3 4

Identify a true statement about the ways in which traditionally managed firms commit resources to a business opportunity. 1. They "test the waters" by committing small amounts of resources in a multistep manner. 2. They typically use required resources episodically or rent them. 3. They refrain from initially committing any resources to a viable opportunity. 4. They initially commit a great deal of required resources on a large scale. (Type answer as a number)

4

Which of the following is true of the establishment of a corporate entrepreneurship? 1. The venture must not reward employees based on risks and trial-and-error learning. 2. The venture should be established without the help of any top managers of the parent organization. 3. Leaders must primarily focus on the ownership of resources required to pursue the venture. 4. Leaders must take care to develop a set of expectations and target results for the venture.

4

Traditionally managed firms are most likely to _____.

be designed in a manner that favors the internal efficiencies of allocating controlled resources

A true statement about corporate entrepreneurship is that _____.

companies should not force the spirit of corporate entrepreneurship on people

Entrepreneurial firms are most likely to _____.

develop and match sponsors and product champions

A difference between entrepreneurially managed firms and traditionally managed firms is that _____.

entrepreneurially managed firms are able to change direction rapidly as new information about an opportunity or an environment is revealed

While pursuing a potential opportunity, entrepreneurially managed firms are most likely to _____.

focus on how they can minimize the resources they require to pursue the opportunity

Jessica is a mid-level manager at a multinational corporation based in the state of New York. The company permits Jessica to set up an entrepreneurial venture of her own and assures her that she will be given all the tools she requires for success. To ensure that the venture is a success, Jessica should _____.

foster the spirit of teamwork among her subordinates

A successful corporate entrepreneur is most likely to _____.

have a comprehensive understanding of the work environment

Entrepreneurially managed firms are most likely to _____.

have few layers of bureaucracy between top management and customers

An attribute of restoration orientation is that _____.

it allows an individual to decrease the short-term level of negative feelings

An approach to negative emotions that involves working through, and processing, some aspect of the loss experience and, as a result of this process, breaking emotional bonds to the object lost is the approach of ___ ___.

loss orientation

Firms that are said to have high entrepreneurial environments are most likely to _____.

make easily accessible resources for experimentation

Traditionally managed firms are more likely than entrepreneurially managed firms to _____.

place a great deal of emphasis on acquiring information (desire to grow at a pace that is stable and manageable)

While establishing a corporate entrepreneurial venture, entrepreneurs should _____.

recognize ideas that top management is likely to be interested in

An approach to negative emotions based on both avoidance and a proactiveness toward secondary sources of stress arising from a major loss is the approach of ___ ___.

restoration orientation

The transformation of an organization through the revitalization of the key ideas on which it is built is known as _____.

self-renewal

Entrepreneurially managed firms are more likely than traditionally managed firms to _____.

take action on potential opportunities

A feature of an entrepreneurially managed firm is that _____.

the firm is likely to want to grow at a rapid pace

The strategic orientation of entrepreneurial management is driven by _____.

the nature of business opportunities for new entry