Deck 13: Strategic Entrepreneurial Growth

Question 1

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

Answer 1

False

Question 2

Most entrepreneurs are unfamiliar with planning information sources.

Answer 2

True

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

Participation by subordinates in a strategic plan is never appropriate.

Question 7

New ventures rarely exhibit a typical life cycle.

Question 8

The entrepreneurial strategy matrix measures risk and innovation.

Question 9

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 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

Strategic planning is not an easy task for new ventures.

Question 16

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

Question 17

Formal planning can be divided into strategic and nonstrategic.

Question 18

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

Question 19

Improved performance is often the result of better planning.

Question 20

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

Question 21

Which of the following factors would not be considered a key dimension that shapes the strategic management activities of a growing firm?

A) speed of decision making
B) internal political problems
C) environmental uncertainty
D) lack of knowledge

Question 22

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 23

When it comes to strategic planning, most small firms

A) do quite well.
B) survive and prosper.
C) realize cost savings, accurate forecasting, and increased sales.
D) really do not engage in True strategic planning.

Question 24

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

A) arranging vacation time
B) inadequately defined objectives
C) poor planning climate
D) inexperienced managers

Question 25

In the strategy matrix model, innovation is defined as

A) an invention.
B) something new and different.
C) copying and improving on competitor's products.
D) using practical milestones.

Question 26

A "SWOT" analysis refers to

A) strength, weaknesses, opportunities, threats
B) small, weak, ordinary, tact
C) sound warnings of takeovers
D) none of the above

Question 27

In the entrepreneurial strategy matrix, the creation of something new and different is categorized as

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

Question 28

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.

Question 29

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

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

Question 30

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

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

Question 31

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 32

A reason new venture managers lack knowledge in the strategic planning process is because

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

Question 33

New ventures are important to the economy in terms of

A) innovation.
B) employment.
C) both a and b
D) continuing the American way of life.

Question 34

A reason for lack of strategic planning has been found to be

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

Question 35

In many new small ventures planning is often

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

Question 36

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

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

Question 37

All of the following are characteristic of administrative cultures except:

A) rent of required resources.
B) need to reduce risk.
C) inertia.
D) coordination of activity.

Question 38

The entrepreneurial strategy matrix measures:

A) risk and security.
B) commitment and time.
C) risk and innovation.
D) opportunity and time.

Question 39

Which of the following is not a reason for the lack of planning in new ventures?

A) time scarcity
B) lack of trust
C) lack of dominance
D) lack of knowledge

Question 40

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

A) no real competitive advantage
B) pursuing a solid competitive position
C) compromising strategy for growth
D) a and c only

Question 41

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

Question 42

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

Question 43

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

Question 44

Does strategic planning pay off?

Question 45

The textbook describes three types of leadership of consequence to new ventures. What are they?

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

Question 46

Which of the following management principles does not emanate from Steve Jobs?

A) Sell dreams, not products.
B) Put a dent in the universe
C) Say no to 1,000 things.
D) Strive to reach practical milestones.

Question 47

Research has shown that there is a distinct lack of strategic planning in new ventures. Relate some of the reasons for this lack of planning.

Question 48

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

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

Question 49

The past is the best predictor of the future, according to which mind-set?

A) the entrepreneurial mind-set
B) the managerial mind-set
C) the cognitive mind-set
D) the risk-averse mind-set

Question 50

All of the following are characteristic of entrepreneurial cultures except:

A) action orientation
B) hierarchy
C) episodic use of required resources
D) multiple informal networks

Question 51

What is the one-person-band syndrome?

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

Question 52

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