ENT 396 Ch 13

8. The reason many small business managers lack expertise is that they are a. optimists. b. specialists. c. subordinates. d. generalists.

D

10. Lack of expertise has never been considered a reason for the lack of strategic planning in new ventures.

F

18. New ventures rarely exhibit a typical life cycle.

F

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

T

6. Most entrepreneurs are unfamiliar with planning information sources.

T

The actual need for systematic planning will vary with the nature, size, and structure of the business.

T

13. 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

18. In the entrepreneurial strategy matrix, the creation of something new and different is categorized as a. an innovation. b. a risk. c. a time lag. d. a psychological commitment.

A

5. 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

9. Which is not perceived as a difficulty in long-range planning? a. arranging vacation time b. inadequately defined objectives c. poor planning climate d. inexperienced managers

A

19. 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

20. All of the following are characteristic of administrative cultures except: a. rent of required resources. b. need to reduce risk. c. inertia. d. coordination of activity.

B

21. 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

22. Which of the following is not a distinct form of tolerance for failure? a. moral failure b. innovation failure c. personal failure d. uncontrollable failure

B

24. The past is the best predictor of the future, according to which mind-set? a. the entrepreneurial mind-set b. the managerial mind-set c. the cognitive mind-set d. the risk-averse mind-set

B

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

C

2. 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

25. 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

26. The textbook describes three types of leadership of consequence to new ventures. What are they? a. competitive, innovative, and strategic b. competitive, innovative, and visionary c. visionary, strategic, and managerial d. visionary, managerial, and competitive

C

7. 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

14. When it comes to strategic planning, most small firms a. do quite well. b. survive and prosper. c. realize cost savings, accurate forecasting, and increased sales. d. really do not engage in true strategic planning.

D

15. 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

23. Which of the following management principles does not emanate from Steve Jobs? a. Sell dreams, not products. b. Put a dent in the universe c. Say no to 1,000 things. d. Strive to reach practical milestones.

D

27. 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

4. 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

6. 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

17. In principle, incumbents and entrepreneurs face the same challenges in finding new strategic positions. In practice, incumbents often have an edge.

F

2. Formal planning can be divided into strategic and nonstrategic.

F

5. Participation by subordinates in a strategic plan is never appropriate.

F

9. Small firm owner/managers are usually very open and trusting about their businesses and the decisions that affect them.

F

12. Improved performance is often the result of better planning.

T

13. High- and low-performing firms have many similarities and differences in their long-range planning efforts.

T

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

T

15. The entrepreneurial strategy matrix measures risk and innovation.

T

16. Wealth creation occurs at the intersection of entrepreneurial and strategic actions.

T

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

T

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

T

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

T

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

T

7. Strategic planning is not an easy task for new ventures.

T

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

T

1. 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

12. 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

17. In the entrepreneurial strategy matrix, the probability of a major financial loss is categorized as a. an innovation. b. a risk. c. a time lag. d. a psychological commitment.

B

10. New ventures are important to the economy in terms of a. innovation. b. employment. c. both a and b. d. continuing the American way of life.

C

11. 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

3. In many new small ventures planning is often a. well accomplished. b. overdone. c. overused. d. lacking.

D