Chapter 3 - The Entrepreneurial Mindset in Organization: Corporate Entrepreneurship

Which of the following is not a reason for the increase in entrepreneurial mindset in organizations? a. Significant changes in the internal environment b. the need for strategies that satisfy multiple stakeholders c. significant changes in the external environment d. resistance to global change

d. resistance to global change

Groups that function outside traditional lines of authority permitting rapid turnaround of new ideas as well as instilling a high level of group loyalty are called a. champions. b. multiple approaches. c. strategic innovators. d. skunk works.

d. skunk works.

Transformational triggers in a corporate entrepreneurial environment initiates the need for a. changing company location. b. achieving higher productivity standards. c. laying off workers. d. strategically adapting to change.

d. strategically adapting to change.

Which of the following terms refers to the systematic evolution of a product or service into newer or larger markets? a. incremental innovation b. collective entrepreneurship c. strategic entrepreneurship d. radical innovation

a. incremental innovation

Airbnb's opening of a new headquarters in Atlanta to manifest its commitment to developing a diverse team could be considered a(n) ________ in recruiting strategies, as it evolved its techniques to attract new markets. a. radical innovation b. incremental innovation c. bootlegging d. innovation champion

b. incremental innovation

In restructuring corporate thinking, top management should a. identify potential entrepreneurs after an innovation program is in operation. b. create diversity and order in strategic activities. c. promote entrepreneurship through experimentation. d. make the entrepreneur follow strict corporate guidelines.

c. promote entrepreneurship through experimentation.

Which of the following is not an element in the manifestation of a corporate entrepreneurial strategy? a. An entrepreneurial strategic vision b. A consciously chosen, quickly enacted decision c. A pro-entrepreneurial organizational architecture d. Entrepreneurial processes in the organization

d. Entrepreneurial processes in the organization

Which of the following is true of corporate venturing? a. It is adding new businesses or portions of new businesses via equity investments to the corporation. b. It may or may not result in new businesses for the corporation. c. Innovation can be in the firm's strategy, product offerings, served markets, internal organization, or business model. d. Exhibition of large-scale or otherwise highly consequential innovations are adopted in the firm's pursuit of competitive advantage.

a. It is adding new businesses or portions of new businesses via equity investments to the corporation.

All of the following are reasons for the growth of corporate entrepreneurship, except a. a desire to dramatically increase profitability. b. a sense of distrust in the traditional methods of corporate management. c. an exodus of some of the best people out of corporations. d. a rapidly growing number of new and sophisticated competitors

a. a desire to dramatically increase profitability.

Forbes recently named Progressive as America's Best Employer for Diversity. As such, Forbes does an exceptional job of creating ________, or a meaningful sense of purpose, as a part of the company's shared vision. a. belonging b. structure c. relationships d. commitment

a. belonging

Secretly working on new ideas on company time as well as on personal time is referred to as a. bootlegging. b. skunk works. c. interactive learning. d. champion.

a. bootlegging.

Which of the following practices is important for establishing innovation-driven organizations? a. create a system of feedback and positive reinforcement b. punish failures to encourage learning c. allow innovation goals to remain broad and flexible d. emphasize team responsibility

a. create a system of feedback and positive reinforcement

The major thrust of corporate entrepreneurship is to a. encourage innovation. b. raise profitability. c. increase morale. d. encourage greater risk taking.

a. encourage innovation.

For a strategic, entrepreneurial change to be effective, which of the following statements is true? a. Both the individual and the organization must perceive the change as equitable. b. Only the organization must perceive the change as equitable. c. Only individuals must perceive the change as equitable. d. Neither the organization nor the individual must perceive the change as equitable.

c. Only individuals must perceive the change as equitable.

In an entrepreneurial context, which statement best describes the practice of "bootlegging"? a. searching for organizational funding for new ideas b. employees engaging in collaborative idea generation c. employees secretly working on new ideas on company and personal time d. creating a prototype for a new idea

c. employees secretly working on new ideas on company and personal time

Collective entrepreneurship, as a concept, refers to a. socialist enterprising. b. the collective spirit of innovation that resides in the firm's founder. c. entrepreneurial thinking that is diffused throughout the company. d. the joint recognition of the CEO and CFO as champions of innovation.

c. entrepreneurial thinking that is diffused throughout the company.

Cricket works for a company that has recently updated its diversity, equity, and inclusion (DEI) policy. Although the improvements were only minor and could have been strengthened more meaningfully, Cricket doesn't consider addressing them as she struggles to examine anything outside her job scope. Cricket is dealing with ________. a. time availability b. a Corporate Entrepreneurship Assessment Instrument (CEAI) c. organizational boundaries d. autonomy

c. organizational boundaries

Identified by researchers, which of the following are specific factors identified by the Corporate Entrepreneurship Assessment Instrument (CEAI) that managers in organizations can concentrate on in structuring an entrepreneurial climate? a. rewards, resources, innovation, and vision b. radical innovation, incremental innovation, and vision c. skunk works, multiple approaches, and vision d. top management support, time, autonomy, rewards, and organizational boundaries

d. top management support, time, autonomy, rewards, and organizational boundaries

Wailua enterprises has committed to truly transforming its DEI program—not just as an exercise but to overhaul it to ensure that it is culturally relevant, meaningful, and aligned with its mission. As the company is seeking real innovation, it may establish a(n) ________ to manage the initiative. This unit will be semiautonomous, have its own budget, and can make its own decisions—within limits. a. senior-level manager b. first-level manager c. I-team d. middle-level manager

c. I-team

The first step in planning a strategy of entrepreneurship for enterprise is a. applying the exact tools of the entrepreneur. b. sharing the vision of innovation. c. developing radical innovation. d. identifying specific objectives.

b. sharing the vision of innovation.

What is one of the reasons many companies have restructured their operations in fundamental ways? a. to reduce costs and streamline operations b. to adapt to rapid changes in their external and internal environments c. to strengthen their competitive approach and culture d. to increase profits and market share

b. to adapt to rapid changes in their external and internal environments

The second step in planning a strategy of entrepreneurship for the enterprise is a. applying the exact tools of the entrepreneur. b. identifying specific objectives. c. developing and encouraging innovation. d. sharing the vision of innovation.

c. developing and encouraging innovation.

Which of the following terms refers the inaugural breakthroughs launched from experimentation and determined vision? a. incremental innovation b. strategic entrepreneurship c. radical innovation d. collective entrepreneurship

c. radical innovation

Suppose a company agrees that its existing DEI policy could be more closely tied to its mission, and the management team generates ideas about tackling the issue and examines the structural barriers it is facing as it pursues this project. In that case, the company is engaging in ________. a. Skunk Works b. the innovation action plan c. the idea acceleration process d. the entrepreneurial experience

c. the idea acceleration process