Deck 8: Module Special Topics in Strategy

Question 1

Small businesses employ over half of all private workers.

Answer 1

True

Question 2

A not-for-profit organization has as its purpose to provide some service or good with no intention or goal of earning a profit and has met the requirements of the U.S. Internal Revenue Service tax code as a tax-exempt organization.

Answer 2

True

Question 3

Research has shown that small firms that mixed efficiency (low-cost)and flexibility (differentiation)strategies significantly outperformed those firms that utilized one or the other.

Answer 3

False

Question 4

In almost every study, strategy research has shown positive linkages between planning and business performance.

Question 5

Small businesses represent more than 99 percent of all employers.

Question 6

Entrepreneurial ventures pursue opportunities, are characterized by innovative practices, and have growth and profitability as their main goals.

Question 7

Public sector organizations are not considered to be not-for-profit organizations.

Question 8

Economists suggest that most small businesses are not particularly good at creating jobs.

Question 9

A small business is one that has fewer than 100 employees.

Question 10

Both small businesses and entrepreneurial ventures play an important role in the global economy.

Question 11

Entrepreneurial ventures and small businesses are not the same.

Question 12

Recruiting, motivating, and retaining employees is a big challenge for all organizations.

Question 13

Developing a sustainable competitive advantage is important for all organizations.

Question 14

Small businesses account for over 90 percent of the private sector output.

Question 15

Some small businesses are ineffective in part due to the "boiled frog phenomenon."

Question 16

The process in which existing products, processes, ideas, and businesses are replaced with better ones is creative destruction.

Question 17

A small business is defined as one that is independently owned, operated, and financed; has fewer than 100 employees; engages in innovation marketing practices; and has relatively little impact on its industry.

Question 18

Small businesses and entrepreneurial ventures can compete successfully in narrow market niches by developing a low-cost, differentiation, or integrated competitive advantage.

Question 19

The main difference between large and small organizations' strategy evaluation efforts will be in terms of the magnitude or extent of evaluation that is done.

Question 20

Innovation is the process of creating, changing, experimenting, transforming, and revolutionizing.

Question 21

A marketing alliance is a strategic practice in which for-profit businesses link up with a social cause that fits well with the company's product or service.

Question 22

One difference between an entrepreneurial venture and a small business is the former's

A) willingness to take risks
B) innovative strategic practices
C) strategic goals are profitability and growth
D) interest in seeking out new opportunities
E) All of the answer choices are correct.

Question 23

Small businesses employ over ________ of all private workers.

A) 90 percent
B) 25 percent
C) a third
D) half
E) 75 percent

Question 24

Small businesses represent more than ________ percent of all employers.

A) 40
B) 50
C) 99
D) 60
E) None of the above answer choices is correct.

Question 25

Which of these is NOT a characteristic of entrepreneurial ventures?

A) Little impact on industry
B) Innovative practices
C) Pursue opportunities
D) Have growth and profitability as main goals
E) All of the answer choices are correct.

Question 26

Small businesses and entrepreneurial ventures are the driving force of change in the process of

A) market positioning.
B) strategic positioning.
C) creative destruction.
D) competitor interrelationships.
E) cause-related marketing.

Question 27

According to the Global Entrepreneurship Monitor (GEM)2011 report, there are more than ________ million entrepreneurs in the 54 countries covered.

A) 25
B) 36
C) 400
D) 250
E) 700

Question 28

Small businesses account for ________ percent of the private sector output.

A) 10
B) 20
C) 25
D) 50
E) 99

Question 29

Strategic piggybacking is the development of a new activity that would generate revenue for the not-for-profit organization.

Question 30

Which of the following is a strategic advantage of small businesses and entrepreneurial ventures over larger businesses?

A) Willingness to take risks
B) Seek out new opportunities
C) Respond quickly to changing conditions
D) Strategic goals are profitability and growth
E) None of the answer choices is correct.

Question 31

Which of the following is not a source of revenue for not-for-profit organizations?

A) Dues
B) Product sales
C) User fees
D) Grants
E) All of the answer choices are correct.

Question 32

The strategic management process differs for small businesses and entrepreneurial ventures when compared to larger organizations because

A) small businesses and entrepreneurial ventures have inexperienced managers.
B) small businesses and entrepreneurial ventures have limited resources.
C) small businesses and entrepreneurial ventures have smaller organizational objectives.
D) small businesses and entrepreneurial ventures have low growth potential.
E) small businesses and entrepreneurial ventures have more exposure to lobbying groups.

Question 33

Small businesses are independent businesses that have fewer than ________ employees.

A) 100
B) 200
C) 300
D) 500
E) 1000

Question 34

The competitive strategy choices for small businesses and entrepreneurial ventures are

A) often limited to focus strategies.
B) often limited to a low-cost strategy.
C) often limited to a differentiated strategy.
D) limited because of technological advances.
E) almost nonexistent.

Question 35

A strategic advantage of entrepreneurial ventures/small businesses over large businesses is

A) economics of scale.
B) flexibility.
C) marketing options.
D) distribution.
E) profit potential.

Question 36

A not-for-profit organization must meet the requirements of ________ of the U.S. Internal Revenue Service tax code.

A) Section 501(c)(3)
B) Section 301(d)(4)
C) Section 503(c)(4)
D) Section 401(c)(3)
E) Section 403(d)(4)

Question 37

A business that is characterized by innovative strategic practices and which has as its main goals profitability and growth is called

A) a small business.
B) an entrepreneurial venture.
C) strategically positioned.
D) a cash cow.
E) a star.

Question 38

Strategic managers at not-for-profit organizations face similar constraints of limited resources, competition for customers and resources, performance measurement, and long-run survival, just as strategic managers at for-profit organizations do.

Question 39

The number of markets served by a small organization is determined predominantly by

A) the resources of the organization.
B) the size of the organization.
C) the management of the organization.
D) strategic planning in the organization.
E) the culture of the organization.

Question 40

A small business is not characterized by

A) being independently owned.
B) having fewer than 100 employees.
C) engaging in innovative practices.
D) having little impact on its industry.
E) None of the answer choices is correct.

Question 41

A strategic practice in which for-profit businesses link up with a social cause that fits in well with the company's product or service is referred to as

A) licensing.
B) franchising.
C) cause-related marketing.
D) strategic piggybacking.
E) marketing alliances.

Question 42

Charles Hanson has employed 25 employees even though the repair facility is located in a small rural town. Chuck's Bikes and Trikes is an example of

A) an entrepreneurial venture.
B) a small business.
C) an innovative business.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 43

Examples of measurement of a church's strategic performance include all of the following except

A) member contributions.
B) percentage increase or decrease of members.
C) number of members.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 44

Both public sector and not-for-profit organizations must develop a(n)________ to ensure their continued existence.

A) competitive advantage
B) strong management pool
C) lobbying group
D) link with companies
E) None of the answer choices is correct.

Question 45

Public services provided by public-sector organizations include

A) police protection.
B) paved roads.
C) recreation facilities.
D) assistance for the needy.
E) All of the answer choices are correct.

Question 46

To evaluate strategy, there must be a connection between the evaluation and the ________ of the not-for-profit organization.

A) revenues
B) goals
C) objectives (moderate)
D) goals and objectives
E) None of the answer choices is correct.

Question 47

One study reported that the global nonprofit sector had total operating expenditures of over ________ trillion

A) $1.6
B) $2.5
C) $3
D) $5
E) $6

Question 48

An example of a cause-related NFP is

A) Camp Fire.
B) the University of Minnesota.
C) Save the Whales.
D) Bill and Melinda Gates Foundation.
E) Rockefeller Foundation.

Question 49

Which of the following is not an example of a not-for-profit organization?

A) A religious organization
B) A private educational institution
C) A charitable organization
D) A professional membership association
E) All of the answer choices are correct.

Question 50

Not-for-profit organizations face the constraint of

A) limited resources.
B) competition for customers and resources.
C) performance measurement.
D) long-run survival.
E) All of the answer choices are correct.

Question 51

Research on community arts organizations has indicated that Porter's strategy(ies)of ________ is(are)utilized.

A) cost leadership
B) differentiation
C) focus
D) differentiation and focus
E) cost leadership, differentiation, and focus

Question 52

Which of the following is not one of the unique strategies that have been developed for not-for-profit organizations in order to cope with changing environmental conditions?

A) Cause-related marketing
B) Not-for-profit marketing alliances
C) Licensing
D) Direct investment
E) Strategic piggybacking

Question 53

An alliance in which the not-for-profit organization proposes and initiates the partnership is referred to as

A) a not-for-profit marketing alliance.
B) cause-related marketing.
C) effect-related marketing.
D) licensing.
E) strategic piggybacking.

Question 54

A not-for-profit organization created, funded, and regulated by the public sector or government can be referred to as

A) a private-sector organization.
B) an efficient organization.
C) a public-sector organization.
D) an effective organization.
E) a quasi-government organization.

Question 55

A strategic partnership between a not-for-profit organization and a corporate partner is referred to as

A) licensing.
B) strategic piggybacking.
C) a not-for-profit marketing alliance.
D) cause-related marketing.
E) None of the answer choices is correct.

Question 56

All of the following organizations are examples of social service NFPs except

A) Junior League.
B) Camp Fire.
C) Mothers Against Drunk Drivers.
D) Academy of Management.
E) American Red Cross.

Question 57

The strategy that has the primary intent to enhance the image of the supporting company is known as

A) cause-related marketing.
B) not-for-profit marketing alliances.
C) licensing.
D) direct investment.
E) strategic piggybacking.

Question 58

Public sector organizations are most affected by ________ constraints.

A) internal
B) external
C) efficiency
D) managerial
E) None of the answer choices is correct.

Question 59

The not-for-profit marketing alliance is an extension of

A) mergers and acquisitions.
B) divestment.
C) cause-related marketing.
D) licensing.
E) None of the answer choices is correct.

Question 60

The United States Postal Service faces competition from

A) e-mail.
B) fax machines.
C) Federal Express.
D) Airborne Express.
E) All of the answer choices are correct.

Question 61

Describe the types of NFP marketing alliances.

Question 62

Compare the terms cause-related marketing and not-for-profit marketing alliances.

Question 63

What are the features of entrepreneurial ventures?

Question 64

How do small businesses impact jobs?

Question 65

You recommend performing an external analysis for Chuck's Bikes and Trikes. The arguments to support this external analysis recommendation include

A) external environment aspects can affect the company.
B) gaining information on changes in customer expectations, competitors and their actions, economic factors, technological advances, and other marketplace features are important to the future of the company.
C) to detect subtle, but potentially damaging changes.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 66

Describe the characteristics of an entrepreneurial venture and a small business.

Question 67

Explain the advantages and disadvantages of strategic planning with entrepreneurial ventures and small businesses.

Question 68

Chuck's Bikes and Trikes is likely using the ________ strategy.

A) differentiation
B) low cost
C) focus
D) best cost
E) All of the answer choices are correct.

Question 69

Chuck Hanson encourages his employees to come with new ideas and ways to do business to replace existing practices. This process is called

A) destructive creativity.
B) innovation.
C) creative destruction.
D) All of the answer choices are correct.
E) None of the answer choices is correct.