CH 13 HW

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.

a. distrust of others when formulating a strategic plan.

T/F During the growth stage of a venture, entrepreneurs shift into a managerial style.

T

T/F In administrative cultures, there is a need for clearly defined authority and responsibility.

T

T/F Many research studies suggest that strategic planning influences a venture's survival.

T

T/F Misunderstanding industry attractiveness can be a fatal flaw in strategic planning.

T

T/F Research has shown a distinct lack of planning on the part of new ventures.

T

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.

b. lack of expertise.

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

a. 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.

a. risk and innovation.

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.

a. 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.

a. strength, weaknesses, opportunities, threats.

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

b. agency problems

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.

b. something new and different.

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.

T

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.

F

T/F Participation by subordinates in a strategic plan is never appropriate.

F

T/F A "SWOT" analysis refers to analyzing strengths, weaknesses, opportunities, and threats.

T

T/F The entrepreneurial strategy matrix measures risk and innovation.

T

Strategic Planning

The formulation of long-range plans for the effective management of environmental opportunities and threats in light of a venture's strengths and weaknesses. Includes: - Defining the venture's mission - Specifying achievable objectives - Developing strategies - Setting policy guidelines

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

c. lack of knowledge

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.

c. strategic intent and strategic mission.

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.

c. they have minimal exposure to the planning process.

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.

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

What is the one-person-band syndrome? a. following a competitor's lead b. effective time management c. an invention d. failure to delegate

d. 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

d. 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

d. lack of dominance