Ch. 13

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. Select one: True False

True

Misunderstanding industry attractiveness can be a fatal flaw in strategic planning. Select one: True False

Employment

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

False

Participation by subordinates in a strategic plan is never appropriate. Select one: True False

strategic

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. dimensional b. operational c. strategic d. tactical

False

Four specific managerial actions are necessary during the growth stage: control, responsibility, intolerance of failure, and change. Select one: True False

False

Many new ventures find strategic planning difficult because entrepreneurs are typically specialists. Select one: True False

True

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

Experimental failure

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

Risk

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

Have minimal exposure to the planning process

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

True

The actual need for systematic planning will vary with the nature, size, and structure of the business. Select one: True False

Favorable market conditions

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

innovation

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

Growth

Which of the following stages of venture development requires major changes in entrepreneurial strategy? Select one: a. new-venture development b. start-up activities c. business stabilization d. growth

Flexibility

A growth-oriented mind-set values Select one: a. internal political problems. b. growth. c. environmental uncertainty. d. flexibility

strategic intent and strategic mission.

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

True

Research indicates that strategic planning enhances a firm's performance. Select one: True False

Hierarchy

All of the following are characteristics of entrepreneurial cultures except Select one: a. episodic use of required resources. b. many stages. c. flat. d. hierarchy.

to formalize planning because there is a great deal of complexity.

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

A perception of opportunity

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

Lacking

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

False

In principle, incumbents and entrepreneurs face the same challenges in finding new strategic positions, whereas in practice, incumbents often have an edge. Select one: True False

False

Small firm owners/managers are usually very open and trusting about their businesses and the decisions that affect them. Select one: True False

Generalists

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

Start up activities

The second stage of venture development is Select one: a. realize cost savings, accurate forecasting, and increased sales. b. stabilization. c. growth. d. start-up activities.

True

Wealth creation occurs at the intersection of entrepreneurial and strategic actions. Select one: True False

No real competitive advantage

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

Visionary, strategic and managerial

Which of the following are the three types of leadership of consequence to new ventures described by the text? Select one: a. visionary, managerial, and competitive b. competitive, innovative, and strategic c. competitive, innovative, and visionary d. visionary, strategic, and managerial

Put a dent in the universe

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. Strive to reach practical milestones. d. Put a dent in the universe