ENTR 321 Chapter 13

A "SWOT" analysis refers to analyzing strengths, and weaknesses, opportunities and threats. True or False

True

During the growth stage of a venture, entrepreneurs shift into a managerial style. True or False

True

In administrative cultures, there is a need for clearly defined authority and responsibility True or False

True

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

lack of dominance

Research has shown a distinct lack of planning on the part of new ventures True or False

True

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

True

The entrepreneurial strategy matrix measures risk and innovation True or False

True

Misunderstanding industry attractiveness can be a fatal flaw in strategic planning True or Flase

True

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.) enviormnetal uncertainty c.) lack of knowledge d.) internal political problems

lack of knowledge

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

strength, weaknesses, opportunities, threats

Many research studies suggest that strategic planning influences a venture's survival. True or False

True

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

agency problems

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

distrust of others when formulating a strategic plan

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

failure to delegate

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

hierarchy

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

lack of expertise

Which of the following would be considered fatal mistakes in strategic planning, according to researcher Michael E. Porter? a.) compromising strategy for profits b.) venture's strategy is too rigid c.) no real competitive advantage d.) pursuing a solid competitive position

no real competitive advantage

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

they have minimal exposure to the planning process

Choose the appropriate stage of the venture life cycle in which the following activities would occur. 1. Transition from one-person leadership to team management leadership 2. New-product development 3. Search for capital 4. Increased competition 5. Venture assessment 6. Attempts to acquire other firms 7. Consumer indifference to the entrepreneur's goods or services 8. Accumulation of resources 9. Major changes in entrepreneurial strategy 10. Development of an effective entrepreneurial team

1 - Growth 2 - Innovation or Decline 3 - Start-Up 4 - Stabilization 5 - New-Venture Development 6 - Innovation or Decline 7 - Stabilization 8 - New-Ventrue Development 9 - Growth 10 - Start-Up

Following are the five basic phases or stages of the typical life cycle of a venture. Rank these from 1 to 5, beginning with the first phase and continuing to the last. -Growth -Innovation or Decline -Start-Up -Stabilization -New-Venture Development

1 - New-Venture Development 2 - Start-Up 3 - Growth 4 - Stabilization 5 - Innovation or Decline

Lack of expertise has never been considered a reason for the lack of strategic planning in new ventures True or False

False

Participation by subordinates in a strategic plan is never appropriate True or False

False

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

risk and innovation

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

something new and different

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

strategic intent and strategic mission

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

strategic planning

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

to formalize planning because there is a great deal of complexity