Deck 13: Strategic Entrepreneurial Growth

Question 1

Participation by subordinates in a strategic plan is never appropriate.

Answer 1

False

Question 2

Many new ventures find strategic planning difficult because entrepreneurs are typically specialists.

Answer 2

False

Question 3

The entrepreneurial strategy matrix measures risk and innovation.

Answer 3

True

Question 4

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

Question 5

Four specific managerial actions are necessary during the growth stage: control, responsibility, intolerance of failure, and change.

Question 6

In a management structure, there is a need for clearly defined authority and responsibility.

Question 7

A SWOT analysis refers to analyzing strengths, weaknesses, opportunities, and threats.

Question 8

The "best" strategic plan will be influenced by the abilities of the entrepreneur, the complexity of the venture, and the nature of the industry.

Question 9

High- and low-performing firms have many similarities and differences in their long-range planning efforts.

Question 10

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

Question 11

Most entrepreneurs are unfamiliar with planning information sources.

Question 12

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

Question 13

Small firm owners/managers are usually very open and trusting about their businesses and the decisions that affect them.

Question 14

Formal planning can be divided into strategic and nonstrategic.

Question 15

Wealth creation occurs at the intersection of entrepreneurial and strategic actions.

Question 16

In principle, incumbents and entrepreneurs face the same challenges in finding new strategic positions, whereas in practice, incumbents often have an edge.

Question 17

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

Question 18

Research indicates that strategic planning enhances a firm's performance.

Question 19

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

Question 20

The actual need for systematic planning will vary with the nature, size, and structure of the business.

Question 21

Formation of long-range plans for effective management in light of a venture's strengths and weaknesses is referred to as _____ planning.

A)dimensional
B)tactical
C)strategic
D)operational

Question 22

A new venture's lack of strategic planning can be the result of

A)lack of preference.
B)time sharing.
C)lack of expertise.
D)lack of dominance.

Question 23

Analysis of a firm's external and internal environments provides the firm with the information to develop

A)a degree of uncertainty.
B)administrative experience.
C)competitive strengths.
D)strategic intent and strategic mission.

Question 24

Which of the following management principles emanated from Steve Jobs?

A)Sell products, not dreams.
B)Put a dent in the universe
C)Say yes to 1,000 things.
D)Strive to reach practical milestones.

Question 25

Which of the following would be considered a fatal mistake in strategic planning, according to researcher Michael E. Porter?

A)no real competitive advantage
B)no real innovation
C)no real financial forecasts for business
D)no real objectives

Question 26

Which of the following are the three types of leadership of consequence to new ventures described by the text?

A)competitive, innovative, and strategic
B)competitive, innovative, and visionary
C)visionary, strategic, and managerial
D)visionary, managerial, and competitive

Question 27

The past is the best predictor of the future according to the _____ mind-set.

A)entrepreneurial
B)managerial
C)cognitive
D)risk-averse

Question 28

In the entrepreneurial strategy matrix, the creation of something new and different is categorized as a(n)

A)innovation.
B)risk.
C)time lag.
D)psychological commitment.

Question 29

The entrepreneurial strategy matrix measures _____ and _____.

A)risk; security
B)commitment; time
C)risk; innovation
D)opportunity; time

Question 30

Which of the following is not perceived as a difficulty in long-range planning?

A)favorable market conditions
B)inadequately defined objectives
C)poor planning climate
D)inexperienced managers

Question 31

The second stage of venture development is

A)growth.
B)start-up activities.
C)realize cost savings, accurate forecasting, and increased sales.
D)stabilization.

Question 32

Which of the following is not a distinct form of tolerance for failure?

A)moral failure
B)experimental failure
C)personal failure
D)uncontrollable failure

Question 33

All of the following are characteristics of entrepreneurial cultures except

A)flat.
B)hierarchy.
C)episodic use of required resources.
D)many stages.

Question 34

The one-person-band syndrome is

A)an invention.
B)following a competitor's lead.
C)failure to delegate.
D)effective time management.

Question 35

The reason many small business managers lack expertise is that they are

A)optimists.
B)specialists.
C)subordinates.
D)generalists.

Question 36

New venture managers lack knowledge in the strategic planning process because they

A)refuse to learn new things.
B)have minimal exposure to the planning process.
C)attempt to implement actions too quickly.
D)are overconfident.

Question 37

A growth-oriented mind-set values

A)growth.
B)internal political problems.
C)environmental uncertainty.
D)flexibility.

Question 38

Which of the following stages of venture development requires major changes in entrepreneurial strategy?

A)new-venture development
B)start-up activities
C)business stabilization
D)growth

Question 39

In an entrepreneurial culture, strategic orientation is driven by

A)a perception of opportunity.
B)controlled resources.
C)employment of required resources.
D)coordination of activity.

Question 40

Unique managerial concerns of growing ventures encompass all of the following except

A)the one-man-band syndrome.
B)community pressures.
C)time-management issues.
D)agency problems.

Question 41

Define strategic planning, and describe the five basic steps that must be followed in establishing a strategic plan.

Question 42

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.

Question 43

Describe what typically takes place during the new-venture development life-cycle stage.

Question 44

Does strategic planning pay off?

Question 45

What are important questions to ask, from entrepreneurial and administrative points of view, when managing entrepreneurial growth?

Question 46

In the entrepreneurial strategy matrix, the probability of a major financial loss is categorized as a(n)

A)innovation.
B)risk.
C)time lag.
D)psychological commitment.

Question 47

Which of the following strategies is not included in the "I-r" section of the entrepreneurial strategy matrix?

A)Move quickly.
B)Explore joint venture options.
C)Lock in investment costs.
D)Protect innovation.

Question 48

Describe some of the reasons for the lack of distinct planning in new ventures.

Question 49

A SWOT analysis refers to

A)strengths, weaknesses, opportunities, and threats.
B)suppliers, workers, opportunities, and tactics.
C)strengths, warnings, options, and threats.
D)scarcity, weaknesses, opportunities, and tactics

Question 50

In many new small ventures, planning is often

A)well accomplished.
B)overdone.
C)overused.
D)lacking.

Question 51

New ventures are important to the economy in terms of innovation and

A)planning.
B)employment.
C)knowledge.
D)continuing the American way of life.

Question 52

Emerging ventures that are rapidly expanding with constantly increasing personnel size and market operations will need

A)less formal planning because of constant changes.
B)to formalize planning because there is a great deal of complexity.
C)to establish a pattern of subordinate participation.
D)to evaluate company strengths and weaknesses.