Chapter 13 M/C, T/F

A "SWOT" analysis refers to a. strength, weaknesses, opportunities, threats b. small, weak, ordinary, tact c. sound warnings of takeovers d. none of the above

a. strength, weaknesses, opportunities, threats

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

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

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

b. hierarchy

Small business owners are often guarded about their businesses, which leads to a. distrust of others when formulating a strategic plan b. a myopic viewpoint c. misunderstanding of the economic environment d. lack of attention to the competition

a. distrust of others when formulating a strategic plan

In the strategy matrix model, innovation is defined as a. an invention. b. something new and different. c. copying and improving on competitor's products. d. using practical milestones.

b. something new and different.

A reason new venture managers lack knowledge in the strategic planning process is because a. they refuse to learn new things. b. they have minimal exposure to the planning process. c. they attempt to implement actions too quickly. d. they are overconfident.

b. they have minimal exposure to the planning process.

Analysis of a firm's external and internal environments provides the firm with the information to develop a. a degree of uncertainty b. administrative experience c. competitive strengths d. strategic intent and strategic mission

d. strategic intent and strategic mission

8. The entrepreneurial strategy matrix measures risk and innovation.

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

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Emerging ventures that are rapidly expanding with constantly increasing personnel size and market operations will need a. less formal planning because of constant changes. b. to formalize planning because there is a great deal of complexity. c. to establish a pattern of subordinate participation. d. to evaluate company strengths and weaknesses.

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

What is the one-person-band syndrome? a. an invention b. following a competitor's lead c. failure to delegate d. effective time management

c. failure to delegate

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

c. lack of dominance

A reason for lack of strategic planning has been found to be a. lack of preference. b. time sharing. c. lack of expertise. d. lack of dominance.

c. lack of expertise.

The entrepreneurial strategy matrix measures: a. risk and security. b. commitment and time. c. risk and innovation. d. opportunity and time.

c. risk and innovation.

Formation of long-range plans for effective management in light of a venture's strengths and weaknesses is referred to as a. dimensional planning. b. tactical planning. c. strategic planning. d. operational planning.

c. strategic planning.

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

d. a and c only

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

d. agency problems

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

d. lack of knowledge

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

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

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

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

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