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