Chapter 8 MGT-409

Select all that apply Which of the following are characteristics necessary for successful entrepreneurial leadership? (Check all that apply.)

dedication and drive commitment to excellence vision

Small companies are especially suited to using a focus strategy because they __________.

have limited resources

A(n) ______ new entry describes a firm's entry into an industry with products or services that capitalize on proven market successes and that usually includes a strong marketing orientation.

imitative

Select all that apply Tactical actions ______. (Check all that apply.)

include product/service enhancements and new distribution channels are refinements or extensions of strategies, such as price cuts and increased marketing

Well-established incumbents may pose a threat to smaller new entries due to their ______.

larger resource bundle

A firm that has a high concentration of its business in a particular industry is said to have high ______ dependence in that industry.

market

Acts that might provoke competitors to react, such as new market entry or price cutting, is the component of competitive dynamic analysis known as ______.

new competitive action

Which of the following is the most common reason why the cycle of competitive actions and reactions gets started?

new entrants

Crowdfunding investment systems bring together potential investors and entrepreneurs by announcing business ideas __________.

on a website

A(n) ______ new entry is a firm's entry into an industry with a radical new product or highly innovative service that changes the way business is conducted.

pioneering

Select all that apply New venture managers in the process of evaluating the threats and industry conditions should use Porter's Five Forces model to consider which of the following? (Check all that apply.)

the likelihood of incumbent firm retaliation whether the barriers to entry are too high

Select all that apply Which of the following are reasons companies launch new competitive actions? (Check all that apply.)

to capitalize on growing demand to obtain first-mover advantages to improve their market position

Select all that apply The keys to successfully implementing overall cost leadership include ______. (Check all that apply.)

using resources efficiently keeping costs low

Entrepreneurial leaders must possess the characteristics of ______.

vision; dedication and drive; and a commitment to excellence

Select all that apply A competitor that has been attacked has to decide which of the following? (Check all that apply.)

whether or not they should respond if they are capable of responding how to respond

______ are private individuals who provide equity capital to new ventures.

Angel investors

______ is the major factor that creates all viable opportunities that emerge in the business landscape.

Change

______ is funding a venture by pooling small investments from a large number of investors, usually through a website.

Crowdfunding

Select all that apply Which of the following statements about threat analysis are true? (Check all that apply.)

Environmental scanning and monitoring are an important part of threat analysis. Being aware of competitors and what their potential threats are is the first step in assessing the level of a competitive threat. Market commonality and resource similarity are used to assess whether companies are close competitors.

True or false: New value is only associated with start-up companies.

False

Select all that apply Which of the following statements about the types of financial resources for new business are true? (Check all that apply.)

Funding tends to be limited for most start-ups. Personal savings and friends and family fund the majority of new businesses. The types of financial resources depend on two factors: the stage of the venture development and the scale of the venture.

A larger firm with "deep pockets" would likely respond to a competitor by doing which one of the following?

Mount and sustain a costly counterattack.

Which of the following statements about single-industry businesses and competitive reactions is true?

Single-industry businesses are more likely to mount a competitive response.

Select all that apply Which of the following statements regarding financial resources are true? (Check all that apply.)

The level of financing is a strong determining factor of how a business is launched. Financial resources are as important to new-venture creation as the product or service's market. Cash is highly important, but access to capital is also important to the new venture's success.

Select all that apply Which of the following statements regarding pioneering new entries are correct? (Check all that apply.)

They are usually technology-based breakthroughs. They are disruptive to the status quo of an industry. They sometimes create new industries and change the competitive landscape.

______ is a firm's awareness of its closest competitors and the kind of competitive actions they might be planning.

Threat analysis

True or false: Small businesses create the majority of U.S. jobs.

True

Select all that apply Which of the following statements about the major dangers that new entrants face are correct? (Check all that apply.)

Using combination strategies may lessen the threat posed by larger, established firms. Larger firms may copy successful new products or services. Established firms may use their market power to overwhelm young, small firms.

Select all that apply Which of the following are the most important sources of financial resources for entrepreneurs? (Check all that apply.)

angel investors venture capitalists bank financing

Entrepreneurial start-ups and small businesses ______.

are responsible for more innovations and new jobs in the United States than any other type of U.S. business

Select all that apply Which of the following factors must be present in order for an entrepreneurial venture to create new value? (Check all that apply.)

at least one entrepreneur resources to pursue the opportunity an entrepreneurial opportunity

Creators of new ventures should be particularly careful to evaluate both the ______ before entering a new market.

barriers to entry and threat of retaliation by incumbents

Motivation for response and ______ should be evaluated before deciding how to respond to an attack by competitors.

capability to respond

A firm's strategy of both cooperating and competing with rival firms is called ______.

co-opetition

The intense rivalry, involving actions and responses, among similar competitors that has the potential to alter a company's strategy is known as ______.

competitive dynamics

An overall cost leadership strategy requires new entrants to ______.

do more with less

Hobbies, past work experiences, suggestions by family and friends, technological developments and needs of customers are all sources of ______.

entrepreneurial opportunities

A venture's social capital consists of the firm's ______.

external contacts and advisers

Start-ups that enter mature industries to create a niche market lend themselves to using a(n) ______ strategy.

focus

A firm's choice not to react to a rival's new competitive action is known as ______.

forbearance

When local businesses, prior jobs, industry organizations, and other contacts support an entrepreneur's new venture it is called ______ capital.

social

A type of competitive action that requires significant planning and resource allocation is called ______ actions.

strategic

In responding to an attack by a larger company, a small firm may be limited to ______.

tactical actions

A key to using an imitative new entry successfully is to introduce the product or service to a market _______.

that is underserved