ENT 396 CH. 13
Choose the appropriate stage of the venture life cycle in which the following activities would occur. Accumulation of resources
New-venture Development
Choose the appropriate stage of the venture life cycle in which the following activities would occur. Venture assessment
New-venture Development
Choose the appropriate stage of the venture life cycle in which the following activities would occur. Consumer indifference to the entrepreneur's goods or services
Stabilization
Choose the appropriate stage of the venture life cycle in which the following activities would occur. Increased competition
Stabilization
Choose the appropriate stage of the venture life cycle in which the following activities would occur. Development of an effective entrepreneurial team
Start-up
Choose the appropriate stage of the venture life cycle in which the following activities would occur. Search for capital
Start-up
T/F A "SWOT" analysis refers to analyzing strengths, weaknesses, opportunities, and threats.
True
T/F During the growth stage of a venture, entrepreneurs shift into a managerial style.
True
T/F In administrative cultures, there is a need for clearly defined authority and responsibility.
True
T/F Many research studies suggest that strategic planning influences a venture's survival.
True
T/F Misunderstanding industry attractiveness can be a fatal flaw in strategic planning.
True
T/F Research has shown a distinct lack of planning on the part of new ventures.
True
T/F 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
T/F The entrepreneurial strategy matrix measures risk and innovation.
True
Which of the following factors would NOT be considered a key dimension that shapes the strategic management activities of a growing firm? a. environmental uncertainty b. speed of decision making c. lack of knowledge d. internal political problems
lack of knowledge
Which of the following would be considered fatal mistakes in strategic planning, according to researcher Michael E. Porter? a. no real competitive advantage b. venture's strategy is too rigid c. compromising strategy for profits d. pursuing a solid competitive position
no real competitive advantage
The entrepreneurial strategy matrix measures: a. risk and innovation. b. commitment and time. c. risk and security. d. opportunity and time.
risk and innovation.
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.
something new and different.
Analysis of a firm's external and internal environments provides the firm with the information to develop a. administrative experience. b. a degree of uncertainty. c. strategic intent and strategic mission. d. competitive strengths.
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. strategic planning. b. tactical planning. c. operational planning. d. dimensional planning.
strategic planning.
A "SWOT" analysis refers to a. strength, weaknesses, opportunities, threats. b. sound warnings of takeovers. c. small, weak, ordinary, tact. d. none of these.
strength, weaknesses, opportunities, threats.
A reason new venture managers lack knowledge in the strategic planning process is because a. they refuse to learn new things. b. they are overconfident. c. they have minimal exposure to the planning process. d. they attempt to implement actions too quickly.
they have minimal exposure to the planning process.
Choose the appropriate stage of the venture life cycle in which the following activities would occur. Attempts to acquire other firms
Innovation or Decline
Choose the appropriate stage of the venture life cycle in which the following activities would occur. New-product development
Innovation or Decline
Stages in Venture Life Cycle
1. New venture development 2. Start up activities 3. Growth plan 4. Business stabilization 5. Innovation/ decline
T/F Lack of expertise has never been considered a reason for the lack of strategic planning in new ventures.
False
T/F Participation by subordinates in a strategic plan is never appropriate.
False
Choose the appropriate stage of the venture life cycle in which the following activities would occur. Major changes in entrepreneurial strategy
Growth
Choose the appropriate stage of the venture life cycle in which the following activities would occur. Transition from one-person leadership to team management leadership
Growth
Unique managerial concerns of growing ventures encompass all of the following except: a. the one-man-band syndrome b. agency problems c. community pressures d. time-management issues
agency problems
Small business owners are often guarded about their businesses, which leads to a. distrust of others when formulating a strategic plan. b. misunderstanding of the economic environment. c. lack of attention to the competition. d. a myopic viewpoint.
distrust of others when formulating a strategic plan.
What is the one-person-band syndrome? a. following a competitor's lead b. effective time management c. an invention d. failure to delegate
failure to delegate
All of the following are characteristic of entrepreneurial cultures except: a. episodic use of required resources b. action orientation c. multiple informal networks d. hierarchy
hierarchy
Which of the following is NOT a reason for the lack of planning in new ventures? a. time scarcity b. lack of knowledge c. lack of trust d. lack of dominance
lack of dominance
A reason for lack of strategic planning has been found to be a. lack of preference. b. lack of expertise. c. lack of dominance. d. time sharing.
lack of expertise.
Emerging ventures that are rapidly expanding with constantly increasing personnel size and market operations will need a. to evaluate company strengths and weaknesses. b. to establish a pattern of subordinate participation. c. to formalize planning because there is a great deal of complexity. d. less formal planning because of constant changes.
to formalize planning because there is a great deal of complexity.
