Ch. 13

Research has shown a distinct lack of planning on the part of new ventures. a. True b. False

a

The entrepreneurial strategy matrix measures risk and innovation. a. True b. False

a

A "SWOT" analysis refers to analyzing strengths, weaknesses, opportunities, and threats. a. True b. False

a

All of the following are characteristic of entrepreneurial cultures except: a. episodic use of required resources b. hierarchy c. action orientation d. multiple informal networks

b

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 formalize planning because there is a great deal of complexity. c. less formal planning because of constant changes. d. to establish a pattern of subordinate participation

b

Formation of long-range plans for effective management in light of a venture's strengths and weaknesses is referred to as a. operational planning. b. strategic planning. c. dimensional planning. d. tactical planning.

b

Lack of expertise has never been considered a reason for the lack of strategic planning in new ventures. a. True b. False

b

Participation by subordinates in a strategic plan is never appropriate. a. True b. False

b

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

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

b

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. speed of decision making c. lack of knowledge d. environmental uncertainty

c

A reason for lack of strategic planning has been found to be a. lack of dominance. b. lack of preference. c. time sharing. d. lack of expertise.

d

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 attempt to implement actions too quickly. d. they have minimal exposure to the planning process.

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

Which of the following would be considered fatal mistakes in strategic planning, according to researcher Michael E. Porter? a. compromising strategy for profits b. venture's strategy is too rigid c. pursuing a solid competitive position d. no real competitive advantage

d

Managing entrepreneurial growth is critical for future success of business enterprises. Specific skills and abilities are needed at different stages of venture development. Understanding the different stages of the venture life cycle will help determine which skills are needed during each stage. 1. 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. Growth Innovation or decline Start-up Stabilization New-venture development

1. New Venture Development 2. Start up 3. Growth 4. Stabilization 5. Innovation or Decline

During the growth stage of a venture, entrepreneurs shift into a managerial style. a. True b. False

a

A "SWOT" analysis refers to a. sound warnings of takeovers. b. none of these. c. strength, weaknesses, opportunities, threats. d. small, weak, ordinary, tac

c

Analysis of a firm's external and internal environments provides the firm with the information to develop a. a degree of uncertainty. b. competitive strengths. c. strategic intent and strategic mission. d. administrative experience.

c

The entrepreneurial strategy matrix measures: a. commitment and time. b. opportunity and time. c. risk and innovation. d. risk and security.

c

In administrative cultures, there is a need for clearly defined authority and responsibility. a. True b. False

a

In the strategy matrix model, innovation is defined as a. something new and different. b. an invention. c. copying and improving on competitor's products. d. using practical milestones.

a

Many research studies suggest that strategic planning influences a venture's survival. a. True b. False

a

Misunderstanding industry attractiveness can be a fatal flaw in strategic planning. a. True b. False

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