BUSMHR 2500 Chapter 2

Peter, a young entrepreneur, is depressed because his startup venture is in loss. However, he realizes that his feelings are normal and they are experienced by anyone in his position. Which of the following concepts is most likely exemplified in this scenario? An entrepreneurial orientation toward culture An entrepreneurial orientation toward management structure A narrow-scope strategy of risk reduction A dual process model of coping with negative emotions

A dual process model of coping with negative emotions

While pursuing a potential opportunity, entrepreneurially managed firms are most likely to _____.

focus on how they can minimize the resources they require to pursue the opportunity

Entrepreneurially managed firms are more likely than traditionally managed firms to _____.

take action on potential opportunities

Entrepreneurial management

This type of management is more focused on gathering resources after generating or finding an opportunity for new entry.

True or false: In corporate entrepreneurship, leaders must possess the ability to persevere in the face of numerous frustrations and obstacles. True False

True Reason: This is true. In corporate entrepreneurship, leaders must possess the ability to persevere in the face of numerous frustrations and obstacles. Only through the corporate entrepreneur's persistence will a new venture be created and successful commercialization result.

Traditionally managed firms are most likely to _____. be concerned about having access to others' resources compensate employees based on their contribution toward the generation and exploitation of opportunity be designed in a manner that favors the internal efficiencies of allocating controlled resources focus on minimizing resources required to pursue an opportunity

be designed in a manner that favors the internal efficiencies of allocating controlled resources

Traditionally managed firms are more likely than entrepreneurially managed firms to _____. initially invest small amounts of money in a potential opportunity be less concerned about the ownership of resources be interested in ideas that concern their current resources desire to expand the size of their firm at a rapid pace

be interested in ideas that concern their current resources

Entrepreneurial action within an established organization is known as ________ ________.

corportate entrepreneurship

Entrepreneurial firms are most likely to _____. develop and match sponsors and product champions be concerned about the ownership of resources required to pursue an opportunity encourage people to work as individuals rather than in teams on new ventures let resources constrain their strategic thinking

develop and match sponsors and product champions

An attribute of restoration orientation is that _____. it allows an individual to decrease the short-term level of negative feelings it provides a far greater opportunity to learn than loss orientation it primarily involves an individual working through a loss experience it primarily involves an individual processing a loss experience

it allows an individual to decrease the short-term level of negative feelings

Traditionally managed firms are more likely than entrepreneurially managed firms to _____.

place a great deal of emphasis on acquiring information

An approach to negative emotions based on both avoidance and a proactiveness toward secondary sources of stress arising from a major loss is the approach of ________ ________.

restoration orientation

True or false: The process of loss orientation is not a part of the dual process model of coping with negative emotions. True False

False Reason: This is false. The process of loss orientation is one part of the dual process model of coping with negative emotions, the other being restoration orientation.

True or false: Recognize that employees at entrepreneurial firms typically do not have the wholehearted support of the top management. True False

False Reason: This is false. An entrepreneurial firm is one that has a top management team that wholeheartedly supports and embraces the entrepreneurial actions of employees. That is, through their physical presence and allocation of sufficient resources to new ventures, managers explicitly and implicitly send signals to the employees that their entrepreneurial endeavors are valued and supported.

What are the characteristics of high corporate entrepreneurial environments? (Check all that apply.) The spirit of corporate entrepreneurship must be forced upon individuals. Trial-and-error learning methods are not encouraged. Firms must have a patient approach to the investment of money in the environment. Creativity, risk taking, boldness, and even failure is appropriately rewarded.

Firms must have a patient approach to the investment of money in the environment. Creativity, risk taking, boldness, and even failure is appropriately rewarded.

Which of the following statements are true about corporate entrepreneurship? (Check all that apply.) Implementing corporate entrepreneurship can lead to the development of an entirely new corporate environment and culture. New corporate ventures have more freedom to make autonomous decisions than do those started independently by entrepreneurs. Independent, venture-capital-based start-ups by entrepreneurs tend to outperform corporate startups significantly. New corporate ventures started within a corporation make more profits than do those started independently by entrepreneurs.

Implementing corporate entrepreneurship can lead to the development of an entirely new corporate environment and culture. Independent, venture-capital-based start-ups by entrepreneurs tend to outperform corporate startups significantly.

Identify the features of corporate entrepreneurship. (Check all that apply.) It is not strongly reflected in top management orientations in organizations. It is most strongly reflected in entrepreneurial activities in organizations. It is the only method of stimulating individuals in a company who think that something can be done differently. Hypercompetition has led to an increased amount of corporate entrepreneurship.

It is most strongly reflected in entrepreneurial activities in organizations. Hypercompetition has led to an increased amount of corporate entrepreneurship.

Identify the attributes of a successful corporate entrepreneurship. (Check all that apply.) Criticism and feedback must only be accepted from selected or favored team members. Leaders must have frank and open conversations with employees to foster teamwork and creativity. Leaders must be able to develop a strong base of supporters and motivators. Firms must create a reward system that rewards routinized performance over risk taking and ingenuity.

Leaders must have frank and open conversations with employees to foster teamwork and creativity. Leaders must be able to develop a strong base of supporters and motivators.

Identify the steps involved in the process of establishing corporate entrepreneurship in an organization. (Check all that apply.) Setting a long time horizon to evaluate the success of the overall process Forcing the spirit of corporate entrepreneurship upon the organization's employees Utilizing the latest technology to make the organization more flexible than before Creating a system that discourages risk taking and failure

Setting a long time horizon to evaluate the success of the overall process Utilizing the latest technology to make the organization more flexible than before

Identify a true statement about firms with an entrepreneurial orientation. They typically have structures well suited for the internal efficiencies of allocating controlled resources. They actively encourage employees to produce ideas and be as creative as they can be. They are mostly interested in ideas that revolve around currently controlled assets. They are primarily concerned about the resources that may be required to pursue opportunities.

They actively encourage employees to produce ideas and be as creative as they can be.

Identify a feature of entrepreneurially managed firms. They are capable of withdrawing their resources from a particular opportunity rapidly. They believe that if they control their own resources then they are self-contained. They typically have a larger initial investment in a business opportunity than do traditionally managed firms. They typically place more emphasis on information than do traditionally managed firms.

They are capable of withdrawing their resources from a particular opportunity rapidly.

A difference between entrepreneurially managed firms and traditionally managed firms is that _____. traditionally managed firms are less likely to place considerable emphasis on in-depth analysis of available information about an opportunity entrepreneurially managed firms are more concerned about their accessibility to others' resources, such as financial capital and intellectual capital traditionally managed firms are more likely to "test the waters" by committing small amounts of resources to an opportunity entrepreneurially managed firms are more likely to allow their resources to constrain the firms' strategic thinking

entrepreneurially managed firms are more concerned about their accessibility to others' resources, such as financial capital and intellectual capital

A difference between entrepreneurial management and traditional management is that _____.

traditionally managed firms are more likely to effectively pursue opportunities that require only available resources

A difference between entrepreneurial management and traditional management is that _____. resources are more likely to constrain the strategic thinking of an entrepreneurially managed firm traditionally managed firms are more likely to effectively pursue opportunities that require only available resources the strategy of entrepreneurial management is to use the resources of a firm efficiently the strategy of traditional management is driven by the presence of opportunities for new entry

traditionally managed firms are more likely to effectively pursue opportunities that require only available resources

An accurate statement about successful corporate entrepreneurship is that _____. the trial-and-error method of learning should not be used by corporate entrepreneurs leaders only need to have a clear understanding of a firm's internal environment leaders must be able to inspire employees to work well in teams and utilize a multidisciplined approach resolving relationship conflict will always be more important than resolving task conflict

leaders must be able to inspire employees to work well in teams and utilize a multidisciplined approach

An approach to negative emotions that involves working through, and processing, some aspect of the loss experience and, as a result of this process, breaking emotional bonds to the object lost is the approach of ________ ________.

loss orientation

Firms that are said to have high entrepreneurial environments are most likely to _____. develop only product champions and not sponsors make easily accessible resources for experimentation discourage multidisciplinary teams from working on new ventures worry about the ownership status of resources required to pursue an opportunity

make easily accessible resources for experimentation

A high entrepreneurial environment is most likely to _____. permit employees to make mistakes in order to assist learning possess a formalized hierarchy with clear roles and responsibilities discourage multidisciplinary teams from working on new ventures reward employees based on their responsibilities rather than their creativity

permit employees to make mistakes in order to assist learning

The transformation of an organization through the revitalization of the key ideas on which it is built is known as _____.

self-renewal

A focus on those factors that are inputs into the formulation of a firm's strategy is known as _____.

strategic orientation

Entrepreneurially managed firms are more likely than traditionally managed firms to _____. focus on the ownership of resources take action on potential opportunities place considerable emphasis on information have a high initial investment in an opportunity

take action on potential opportunities

Traditional management

This type of management is most likely to be concerned with utilizing the available resources of a company efficiently.

A study found that new ventures started within a corporation performed worse than those started independently by entrepreneurs. What were the reasons cited? (Check all that apply.) Distribution of responsibilities to existing employees A lack of freedom to make autonomous decisions A constrained environment A lack of venture capital

A lack of freedom to make autonomous decisions A constrained environment

Identify a characteristic of a high entrepreneurial environment. The latest technology is utilized to help develop a firm's ideas and products. Opportunity parameters are set. The spirit of corporate entrepreneurship is forced upon individuals. Trial-and-error learning is discouraged.

The latest technology is utilized to help develop a firm's ideas and products.

Which of the following statements are true about the dual process of learning from the failure of an entrepreneurial initiative? (Check all that apply.) There is a process of recovery from failure to learn, which comforts the entrepreneur that his or her current feelings will eventually reduce. Oscillation between loss and restoration orientations increases the time taken for the recovery and learning process. Knowledge that the reactions being experienced by the entrepreneur are normal for someone dealing with such a loss increases shame. There are psychological and physiological outcomes caused by the feelings of loss.

There is a process of recovery from failure to learn, which comforts the entrepreneur that his or her current feelings will eventually reduce. There are psychological and physiological outcomes caused by the feelings of loss.

Entrepreneurially managed firms are more likely than traditionally managed firms to _____.

They are more likely to pursue a given opportunity with a much larger initial investment than entrepreneurially managed firms.

Which of the following is true of traditionally managed firms? They are unlikely to place considerable emphasis on information. The strategy of tradition management is driven by the presence of any opportunity for new entry. Resources do not constrain the strategic thinking of a traditionally managed firm. They are more likely to pursue a given opportunity with a much larger initial investment than entrepreneurially managed firms.

They are more likely to pursue a given opportunity with a much larger initial investment than entrepreneurially managed firms.

Traditionally managed firms

They are most likely to reward employees based on a predetermined set of responsibilities.

Entrepreneurially managed firms

They are most likely to reward employees based on employees' contribution toward the detection of a viable business opportunity.

Identify an accurate statement about entrepreneurial firms. They create a reward system that only encourages creativity. They must force the spirit of corporate entrepreneurship upon individuals. They typically do not encourage trial-and-error learning. They develop and foster the spirit of teamwork between multidisciplinary teams.

They develop and foster the spirit of teamwork between multidisciplinary teams.

Which of the following is true of entrepreneurially managed firms? They have a formalized hierarchy with clear roles and responsibilities and highly routinized work. They have a structure well suited for the internal efficiencies of allocating controlled resources. They gain and communicate more information from the external environment than do traditionally managed firms. They are more concerned about the ownership of resources than are traditionally managed firms.

They gain and communicate more information from the external environment than do traditionally managed firms.

Identify a characteristic of traditionally managed firms. They are unlikely to have a high amount of initial investment in a potential opportunity. They are more structured than entrepreneurially managed firms to make use of both their internal networks. They are unlikely to be concerned about the ownership of resources required for an opportunity. They have frameworks that are typically focused on efficiency rather than on responding to changes in the external environment

They have frameworks that are typically focused on efficiency rather than on responding to changes in the external environment.

Identify a true statement about the ways in which traditionally managed firms commit resources to a business opportunity. They initially commit a great deal of required resources on a large scale. They refrain from initially committing any resources to a viable opportunity. They "test the waters" by committing small amounts of resources in a multistep manner. They typically use required resources episodically or rent them.

They initially commit a great deal of required resources on a large scale.

Which of the following are true of the characteristics of successful corporate entrepreneurs? (Check all that apply.) They should be able to adapt to different situations and develop management options. They must create a formalized hierarchy with clear roles and responsibilities and highly routinized work. They must possess a visionary outlook. They should not use open discussions to create something new.

They should be able to adapt to different situations and develop management options. They must possess a visionary outlook.

Which of the following is a difference between entrepreneurially managed firms and traditionally managed firms? Unlike the resources of traditionally managed firms, the resources of entrepreneurially managed firms constrain strategic thinking. Unlike entrepreneurially managed firms, traditionally managed firms focus on minimizing the resources needed to initially pursue an opportunity. Traditionally managed firms are more concerned about the ownership of resources than are entrepreneurially managed firms. Entrepreneurially managed firms are more likely than traditionally managed firms to invest in a potential opportunity on a large scale.

Traditionally managed firms are more concerned about the ownership of resources than are entrepreneurially managed firms.

A true statement about corporate entrepreneurship is that _____. a corporate environment need not establish a long time horizon for evaluating the success of the overall program companies should not force the spirit of corporate entrepreneurship on people there is no difference between corporate thinking and entrepreneurial thinking new ventures do not need to use the industry's latest cutting-edge technology

companies should not force the spirit of corporate entrepreneurship on people

Traditionally managed firms are more likely than entrepreneurially managed firms to _____. desire to grow at a pace that is stable and manageable make small initial investments in a potential opportunity be less concerned about the ownership of resources minimize the resources required to pursue an opportunity

desire to grow at a pace that is stable and manageable

A difference between entrepreneurially managed firms and traditionally managed firms is that _____.

entrepreneurially managed firms are able to change direction rapidly as new information about an opportunity or an environment is revealed

A difference between traditionally managed firms and entrepreneurially managed firms is that _____. entrepreneurially managed firms are more likely to allow employees to experiment with viable business ideas entrepreneurially managed firms are more likely to focus on the ownership of the resources required for an opportunity traditionally managed firms are more likely to be driven by the presence or generation of opportunities for new entry traditionally managed firms are more likely to place less emphasis on information accumulation

entrepreneurially managed firms are more likely to allow employees to experiment with viable business ideas

Jessica is a mid-level manager at a multinational corporation based in the state of New York. The company permits Jessica to set up an entrepreneurial venture of her own and assures her that she will be given all the tools she requires for success. To ensure that the venture is a success, Jessica should _____. foster the spirit of teamwork among her subordinates only promote employees based on their performance of predetermined responsibilities not utilize the trial-and-error method learning be primarily concerned about the ownership of resources required

foster the spirit of teamwork among her subordinates

A successful corporate entrepreneur is most likely to _____. create a reward system that does not encourage risk taking have a comprehensive understanding of the work environment not favor the use of a multidisciplined approach be primarily concerned about the ownership of resources required

have a comprehensive understanding of the work environment

Entrepreneurially managed firms are most likely to _____. encourage the resources to constrain the firms' strategic thinking have few layers of bureaucracy between top management and customers pursue an available opportunity based on the amount of resources they own focus on the ownership of resources and having access to others' resources

have few layers of bureaucracy between top management and customers

Entrepreneurially managed firms are most likely to _____. have few layers of bureaucracy between top management and customers encourage the resources to constrain the firms' strategic thinking focus on the ownership of resources and having access to others' resources pursue an available opportunity based on the amount of resources they own

have few layers of bureaucracy between top management and customers

When an organization seeks to establish corporate entrepreneurship, it should ensure that _____. it has a group of interested managers who will train employees and share their experiences it learns to be more productive with a lot of resources rather than with fewer resources its leaders accept feedback and criticism exclusively from a few hand-picked employees it refrains from encouraging creativity, risk taking, and failure

it has a group of interested managers who will train employees and share their experiences

A feature of an entrepreneurially managed firm is that _____. the firm is more likely to be concerned about ownership of resources than a traditionally managed firm resources constrain the strategic thinking of an entrepreneurially managed firm the firm is likely to want to grow at a rapid pace the firm is most likely to have a very large initial investment in an opportunity

the firm is likely to want to grow at a rapid pace

An accurate statement about traditionally managed firms is that _____. they do not place considerable emphasis on in-depth analysis of available information about an opportunity they are less likely than entrepreneurially managed firms to be concerned about the required resources to pursue an opportunity they are not able to easily reverse the investment of resources in a potential opportunity they are less likely than entrepreneurially managed firms to invest in an opportunity on a large scale

they are not able to easily reverse the investment of resources in a potential opportunity