Corporate Entrepreneurship
A 2003 survey by Bain & Co. revealed a high level of managerial satisfaction with the overall results of corporate venturing activity.
False
A primary motive for pursuing an internal corporate venture appears to be the provison of "insurance" for the corporate parent in the event that its core businesses fail to yield desired results.
False
Access to financial capital is the key to success in an entrepreneurial venture.
False
According to Porter (1996), strategy involves the development of core competencies that allow a company to perform similar activities better than competitors perform them.
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An entrepreneur's primary focus should be on the efficient and effective utilization of the resources currently under his or her control
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An example of the Experimenter persona is that of the 3M employee responsible for the development of masking tape.
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As Google's "idea gatekeeper", Marissa Mayer's primary duty is to function as a bottleneck, keeping commercially unfeasible ideas from consuming any company resources.
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As currently designed, reward and measurement systems within public sector organizations serve as effective mechanisms for the encouragement of entrepreneurial behavior.
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Because "entrepreneurship" is a relatively new term (less than 100 years old), most scholars agree on it's precise definition.
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Bill O'Brien and Pete Nielsen's primary reason for leaving GTE to form Starlight Communications was to capitalize on the potentially greater financial rewards realizable from ownership of an enterprise.
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Chaos theory describes systems with outcomes that are governed by linear differential equations.
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Due to the ongoing global entrepreneurial revolution, none of the traditional theories and principles that previously guided good business practice any longer applies.
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Entrepreneurially conceptualized, success is a continuum along which one moves, where movement in one direction produces increments of success, and movement in the other results in increments of failure.
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Entrepreneurship is an attribute exhibited only by small, creative start-up companies; or by highly successful firms in R&D-intensive industries.
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Environments that produce imitation or continuous innovation typically require more specialization than those producing discontinuous or dynamically continuous innovation.
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Improved financial performance in a nonprofit organization invariably leads to improved social performance.
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In order to maximize long-term success rates and minimize downside risks, it is imperative that managers fully commit all necessary resources when commencing any given project of innovation.
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Intuit exemplifies the "zero error culture".
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Involvement in organizational politics only distracts the corporate entrepreneur from the achievement of his or her goals, and thus should be avoided as much as possible.
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Jet Blue is the only airline that has managed to compete successfully with Southwest on a head-to-head basis.
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Large financial rewards always have more impact on produciing a desired behavior than any other type of compensation or recognition.
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Major innovation is most likely under sructures that most closely mimic the simple structure.
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Most public sector managers strongly agree with the statement "entrepreneurship does not really apply to organizations such as mine".
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Most researchers agree that entrepreneurs have a strong external locus of control.
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Not all people are inherently creative.
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Nucor's dramatic re-shaping of the steel industry justifies its placement in the Revolutionary segment of the entrepreneurial grid.
False
Once set, a company's dominant logic should not change, as it provides the "lens" through which the firm views and interprets the environment.
False
Organizational structure becomes simpler as a company moves from a traditional R&D department to a cross-functional team.
False
Public sector organizations do not have to contend with the risk of failure, as bankruptcy is not a threat.
False
Research clearly indicates that managers who are less entrepreneurial in their behavior have a positive impact on their subordinates' satisfaction.
False
Sear's attempt to re-position itself as a more high-end, branded merchandiser constitutes an example of Organizational Rejuvenation.
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Senior management has direct control over all the factors that influence the work environment.
False
Senior managers require at least 225 square feet of office space in order to have an optimal flow of "creative juices".
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Technology strategy should follow from and help to operationalize business strategy.
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The core purpose of a company is a clear and compelling goal that the organization commits to achieve over the next ten or twenty years.
False
The creative process can be designed in such a way as to reach an innovative solution in an orderly and linear succession of logical steps.
False
The evidence in recent research is inconclusive in regards to whether or not entrepreneurship has any impact on the performance of nonprofits.
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The evidence is quite clear that the first-mover always has the advantage in regards to dominating a new product category.
False
The fundamental problem in innovation is a lack of good ideas.
False
The organizational conditions leading to the accusation that Microsoft's heirarchy has frustrated the efforts of it's innovators are best described by the "crisis of autonomy" that theoretically occurs as "Growth through Direction" slows.
False
The outcome of a "ray of light" project is a formal business plan to be submitted to the directors of a review board.
False
The possibility of revolutionary change comes only with the acceptance of high risk.
False
The primary source of most of Walmart's entrepreneurial growth has been through traditional R&D.
False
The purpose of "creative abrasion" is to create a "colloseum" of ideas, in which colliding viewpoints battle to the death; with one winning out or dominating, and the other losing and being discarded.
False
The three dimensions of entrepreneurship are highly correlated with each other.
False
The ultimate purpose of the various techniques and methods available for use in the creative process is to increase the quantity of creative ideas generated.
False
To be highly successful, companies should approach corporate entrepreneurship as Babe Ruth approached baseball: swing for a home run every time.
False
Values are highly visible or observable manifestations of an organizational culture.
False
While it is important not to stigmatize failure, it is equally important not to recognize it as having a positive outcome; failure should thus be downplayed as much as possible.
False
Zero errors are proof of high performance standards.
False
3M does not focus on technologies as products, but as means to addressing customer or societal needs.
True
A "one-size-fits-all" mentality with respect to entrepreneurial organization structures is not feasible.
True
A primary goal of introducing entrepreneurship into public sector organizations is to shift the emphasis from the "process" of government programs to the "outcomes" of government programs.
True
According to Greiner (1972), companies enter the "Growth through Coordination" stage; prosper until they encounter "a crisis of red tape"; and then must either find a way to enter the "Growth through Collaboration" stage, or fall into decline and failure.
True
According to the Domain Framework, corporate entrepreneurship involves two innovative processes: the creation of new businesses within existing organizations and the transformation of organizations through the design of revolutionary corporate initiatives.
True
Ad hoc venture teams tend to do well when given a specific mission, but are not so successful at developing a continuous stream of innovative ideas.
True
Alternative terms used to describe the concept of "corporate entrepreneurship" include "intrapreneurship" and "corporate venturing".
True
An important element of corporate entrepreneurship is recognizing when the product is "good enough": perfection is unnecessary.
True
Any process that attempts to move a traditional hierarchical company to the point that sustainable entrepreneurship becomes a meaningful and important component of the organization will necessarily be long and complicated.
True
As part of the process of creating an entrepreneurial culture, managers must often strike a balance between conflicting values that must nevertheless coexist in an organization.
True
Changing an organizational culture is like trying to alter the course of a large ocean vessel.
True
Entrepreneurship is a core element of the culture of a truly innovative organization.
True
Experimentation with different organizational designs is becoming much more common in larger companies.
True
Given their intangible nature and the ease with which they can be replicated, services are prime candidates for continuous innovation.
True
Highly innovative companies tend to manage multiple projects simultaneously, utilizing a systematic and well-defined process.
True
Interactions among tactical components of the business model can make it very difficult for competitors to imitate.
True
It is impossible to evaluate the success or failure of a corporate venture without a clear understanding of the venture's initial goals.
True
It is not clear that companies can sustain a high rate of entrepreneurial intensity over prolonged periods of time; it is conceivable that they cycle between periods of high intensity and periods of less intensity.
True
Management must be proactive in regards to change, so that the ongoing healthy business forms a "protective bubble" in which to experiment with new methods.
True
Managers design an organizational structure to address emerging conditions at one point in time; however, this structure produces side effects that ultimately require the design of a new structure.
True
Many of the studies on the psychological and sociological makeup of entrepreneurs suffer from major methodological problems.
True
Mechanistic structures are better suited to the execution of established innovative projects.
True
Of all the decision areas that can affect the work environment, HRM is perhaps the most vital.
True
Of all the elements necessary for successful corporate entrepreneurship, the individual champion is most critical.
True
Performance appraisals should be conducted at intermittent and irregular time intervals, and tailored to the life cycle of an entrepreneurial project.
True
Social entrepreneurs seek opportunities that will allow them to attack the primary causes of needs, rather than merely remedying symptoms.
True
The amount of control that any given firm can possibly exert over its external environment is extremely limited.
True
The basic six steps of the entrepreneurial process found in the corporate context are no different in a nonprofit or public sector context.
True
The corporate entrepreneur is insulated from turbulence in the external environment to a far greater degree than is the start-up entrepreneur.
True
The essence of proactiveness lies in the commitment displayed towards the successful, widespread implementation and adoption of an entrepreneurial concept.
True
The establishment of intermediate, achievable goals is an essential element of the successful implementation of an entrepreneurial business concept.
True
The formulation of plans for the effective management of external opportunities and threats in light of a company's internal strengths and weaknesses is a major component of strategic management.
True
The higher the degree of bureaucratization, the greater the potential conflict with entrepreneurship.
True
The marketplace usually wants a new product that is good enough, not the best possible.
True
The most appropriate way to approach employee recruitment and selection decisions depends upon whether organizations are pursuing an entrepreneurial-based strategy or an efficiency-based strategy.
True
The popularity of corporate venture capital investment activity appears to be correlated with the strength of the IPO market.
True
The reason that most innovations succeed is that most innovations are incremental in nature; failure rates increase dramatically for discontinous or revolutionary ventures.
True
The same type of thinking that allows a person to function efficiently on a day-to-day basis becomes a major constraint when trying to be creative.
True
The shortage in most companies is not of dreamers, but of doers.
True
The structure of a company is generally determined by the strategy of the company.
True
The two most precious words in the organization should be "what if?"
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The viewpoint of the authors of this textbook is that the core source of sustainable competitive advantage is entrepreneurship.
True
There are fundamental questions as to whether or not entrepreneurship has any legitimate role to play in public enterprises.
True
Too much individualism can have a negative impact on an entrepreneurial culture.
True
Two companies that exhibit the same overall level of entrepreneurial intensity can differ significantly in how entrepreneurship is manifested.
True
Virtually anyone is capable of being entrepreneurial, and many people manage to be entrepreneurial on a continuous basis.
True
Walmart's early growth was due to succesful domain redefinition, in that it redrew the boundaries of the mass retail industry and made its current competiton moot.
True
When outcomes meet or exceed expectations, entrepreneurial behavior is positively reinforced, and vice versa.
True
When the external environment is highly turbulent, departments that interact more with that environment may develop entrepreneurial subcultures somewhat at odds with the mainstream organizational culture.
True
Where senior managers attempt to personally select individuals to be "champions", the results are typically disappointing.
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