MGMT 340 Chapter 13

The past is the best predictor of the future according to the _____ mind-set. Select one: a. managerial b. risk-averse c. entrepreneurial d. cognitive

A

A SWOT analysis refers to Select one: a. strengths, weaknesses, opportunities, and threats. b. suppliers, workers, opportunities, and tactics. c. strengths, warnings, options, and threats. d. scarcity, weaknesses, opportunities, and tactics

A

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

C

In an entrepreneurial culture, strategic orientation is driven by Select one: a. controlled resources. b. coordination of activity. c. a perception of opportunity. d. employment of required resources.

C

In the entrepreneurial strategy matrix, the probability of a major financial loss is categorized as a(n) Select one: a. innovation. b. psychological commitment. c. risk. d. time lag.

C

A new venture's lack of strategic planning can be the result of Select one: a. lack of preference. b. lack of dominance. c. lack of expertise. d. time sharing.

C

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

C

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

True

In the entrepreneurial strategy matrix, the creation of something new and different is categorized as a(n) Select one: a. innovation. b. risk. c. psychological commitment. d. time lag.

A

Many new ventures find strategic planning difficult because entrepreneurs are typically specialists. T/F

False

A SWOT analysis refers to analyzing strengths, weaknesses, opportunities, and threats. T/F

True

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

D

Participation by subordinates in a strategic plan is never appropriate. T/F

False

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

True

In many new small ventures, planning is often Select one: a. overused. b. lacking. c. well accomplished. d. overdone.

B

Which of the following is not a distinct form of tolerance for failure? Select one: a. personal failure b. experimental failure c. uncontrollable failure d. moral failure

B

New ventures are important to the economy in terms of innovation and Select one: a. employment. b. planning. c. knowledge. d. continuing the American way of life.

A

Four specific managerial actions are necessary during the growth stage: control, responsibility, intolerance of failure, and change. T/F

False

Many research studies suggest that strategic planning influences a venture's survival. T/F

True

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

A

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

A

Small firm owners/managers are usually very open and trusting about their businesses and the decisions that affect them. T/F

False

Which of the following is not perceived as a difficulty in long-range planning? Select one: a. inadequately defined objectives b. favorable market conditions c. inexperienced managers d. poor planning climate

B

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

C

Research has shown a distinct lack of planning on the part of new ventures. T/F

True

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

False

Which of the following management principles emanated from Steve Jobs? Select one: a. Sell products, not dreams. b. Say yes to 1,000 things. c. Put a dent in the universe d. Strive to reach practical milestones.

C

Which of the following would be considered a fatal mistake in strategic planning, according to researcher Michael E. Porter? Select one: a. no real innovation b. no real competitive advantage c. no real objectives d. no real financial forecasts for business

B

Research indicates that strategic planning enhances a firm's performance. T/F

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. T/F

True