Deck 14: Growing the Enterprise

Question 1

Structural or contextual factors have an influence on the likely success of a new venture.Which of the followings is not positively associated with success?

A)rate of firm entry at time of foundation
B)GDP growth at time of foundation
C)size of firm at time of foundation
D)concentration of sector at time of foundation

Answer 1

A

Question 2

Which of the following factors is not associated with the success of a new venture?

A)product attractiveness to market
B)education of founders
C)business management skills
D)leadership skills

Answer 2

D

Question 3

Product innovation can create value through a number of mechanisms.Which of the following is not typical?

A)reputation as an innovator
B)higher quality
C)improved functionality
D)greater differentiation

Answer 3

B

Question 4

According to the PIMS (Profit Impact of Market Strategy) database, which of the following does not have a positive influence on profitability?

A)standardization
B)relative quality
C)differentiation
D)capacity utilization

Question 5

Which of the following is not necessarily associated with high growth firms?

A)commercial experience of founders
B)degree-level education of founders
C)a product strategy of differentiation
D)high R&D expenditure

Question 6

Which of the following is generally predictive of the success of a new venture?

A)age of founders
B)profit potential
C)financial forecasts
D)R&D planning

Question 7

According to the PIMS (Profit Impact of Market Strategy) database, which of the following is not necessarily associated with high growth?

A)increasing investment
B)increasing quality
C)increasing gross margins
D)increasing value-added

Question 8

Process innovation can create value through a number of mechanisms.Which of the following is not typical?

A)reduced waste
B)higher quality
C)faster response
D)greater differentiation

Question 9

Which of the following is not necessarily part of a business model?

A)capabilities and processes
B)intellectual property rights
C)position in the network
D)the value proposition

Question 10

A fast-follower strategy is likely to require:

A)licensing the pioneers technology
B)exploiting non-technological competencies
C)lower cost competition
D)raising barriers to entry

Question 11

Blue Ocean strategies should focus on:

A)lower cost offerings than the competition
B)higher quality offerings than the competition
C)differentiating to avoid direct competition
D)better products than the competition

Question 12

Research on the factors which influence the success of new ventures often produces ambiguous or contradictory advice.Which of the following factors has the strongest support from research?

A)use of external capital
B)development of formal business plan
C)characteristics of founders
D)entrepreneurial experience

Question 13

Which of the following is not typically a positional advantage in a business model?

A)creation of an innovative concept
B)ownership of intellectual property
C)access to customers
D)complementary assets

Question 14

The weak relationships between R&D, patents and market performance depends on all but which of the following factors?

A)differences in firm-level management
B)scale effects
C)sector effects
D)technological opportunity

Question 15

The distinction between the creation and capture of value is critical in a business model because:

A)the creation and capture of value are closely related
B)the creation and capture of value may be separated
C)innovation is associated with value creation
D)intellectual property is associated with value capture