ch 13
All of the following are characteristic of entrepreneurial cultures except: action orientation hierarchy episodic use of required resources multiple informal networks
hierarchy
The entrepreneurial strategy matrix measures risk and innovation.
true
Lack of expertise has never been considered a reason for the lack of strategic planning in new ventures.
false
New ventures rarely exhibit a typical life cycle.
false
Participation by subordinates in a strategic plan is never appropriate.
false
Small firm owner/managers are usually very open and trusting about their businesses and the decisions that affect them.
false
Which of the following is not a reason for the lack of planning in new ventures? time scarcity lack of trust lack of dominance lack of knowledge
lack of dominance
Analysis of a firm's external and internal environments provides the firm with the information to develop
strategic intent and strategic mission
A reason new venture managers lack knowledge in the strategic planning process is because
they have minimal exposure to the planning process.
The past is the best predictor of the future, according to which mind-set?
the managerial mind-set
Research has shown a distinct lack of planning on the part of new ventures.
true
A "SWOT" analysis refers to
strength, weaknesses, opportunities, threats
Most entrepreneurs are unfamiliar with planning information sources.
true
A reason for lack of strategic planning has been found to be
lack of expertise.
All of the following are characteristic of administrative cultures except: rent of required resources. need to reduce risk. inertia. coordination of activity.
need to reduce risk.
High- and low-performing firms have many similarities and differences in their long-range planning efforts.
true
Formation of long-range plans for effective management in light of a venture's strengths and weaknesses is referred to as
strategic planning.
Improved performance is often the result of better planning.
true
The textbook describes three types of leadership of consequence to new ventures. What are they?
visionary, strategic, and managerial
Small business owners are often guarded about their businesses, which leads to
distrust of others when formulating a strategic plan
Which of the is not a distinct form of tolerance for failure? moral failure innovation failure personal failure uncontrollable failure
innovation failure
When it comes to strategic planning, most small firms
really do not engage in true strategic planning.
The entrepreneurial strategy matrix measures:
risk and innovation.
In the strategy matrix model, innovation is defined as
something new and different.
A "SWOT" analysis refers to analyzing strengths, weaknesses, opportunities, and threats.
true
During the growth stage of a venture, entrepreneurs shift into a managerial style.
true
In administrative cultures, there is a need for clearly defined authority and responsibility.
true
Many research studies suggest that strategic planning influences a venture's survival.
true
Strategic planning is not an easy task for new ventures.
true
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
The actual need for systematic planning will vary with the nature, size, and structure of the business.
true
Emerging ventures that are rapidly expanding with constantly increasing personnel size and market operations will need
to formalize planning because there is a great deal of complexity.
In many new small ventures planning is often
lacking
Which of the following would be considered fatal mistakes in strategic planning, according to researcher Michael E. Porter? no real competitive advantage pursuing a solid competitive position compromising strategy for growth a and c only
a and c only
Which of the following management principles does not emanate from Steve Jobs? Sell dreams, not products. Put a dent in the universe Say no to 1,000 things. Strive to reach practical milestones.
Strive to reach practical milestones.
In the entrepreneurial strategy matrix, the probability of a major financial loss is categorized as
a risk.
Unique managerial concerns of growing ventures encompass all of the following except: the one-man-band syndrome community pressures time-management issues agency problems
agency problems
In the entrepreneurial strategy matrix, the creation of something new and different is categorized as
an innovation.
Which is not perceived as a difficulty in long-range planning? arranging vacation time inadequately defined objectives poor planning climate inexperienced managers
arranging vacation time
What is the one-person-band syndrome?
failure to delegate
Formal planning can be divided into strategic and nonstrategic.
false
In principle, incumbents and entrepreneurs face the same challenges in finding new strategic positions. In practice, incumbents often have an edge.
false
The reason many small business managers lack expertise is that they are
generalists.
New ventures are important to the economy in terms of
innovation. employment.
Which of the following factors would not be considered a key dimension that shapes the strategic management activities of a growing firm? speed of decision making internal political problems environmental uncertainty lack of knowledge
lack of knowledge
Misunderstanding industry attractiveness can be a fatal flaw in strategic planning.
true
Wealth creation occurs at the intersection of entrepreneurial and strategic actions.
true
