Question 1

ValTek engages in international entrepreneurship.In contrast to a company that is involved only in domestic entrepreneurship, ValTek must concentrate more on:

Accepted Answer

ValTek, being involved in international entrepreneurship, must focus on building capabilities to innovate and acquiring resources to make strategic decisions due to the complexities and competitive nature of global markets.

Question 2

WayWard Products has a deliberate strategy to encourage internal innovations.It has established processes to support autonomous strategic behavior as well as induced strategic behavior.WayWard Products is involved in:

Accepted Answer

WayWard Products is involved in internal corporate venturing, which involves encouraging internal innovations through processes that support both autonomous and induced strategic behavior.

Question 3

Panera Bread has innovated to improve the quality of its distribution system, to improve the quality of its bread dough, and to introduce new menu items.These are examples of:

Accepted Answer

These actions by Panera Bread represent incremental innovation, which involves making small improvements or upgrades to existing products, services, or processes.

Question 4

QuadroVax is investing heavily in research and development on new methods of vaccine development that would speed up the creation of vaccines for newly emerging viruses and to get these vaccines to the market rapidly.QuadroVax's shareholders can expect:

Accepted Answer

Investing in research and development, especially in new methods, typically involves a long-term commitment with uncertain outcomes. The payoff is not immediate and depends on the success of the research and market acceptance.

Question 5

AgroPharm is searching for a top-level executive.AgroPharm has marketed its products only to U.S.farmers and agribusinesses in the past.Now, the company plans to expand operations to Mexico and Central America in the next two years.To maximize the chances of success, it is critical that the new executive:

Accepted Answer

Having international experience is crucial for expanding operations to new countries, as it involves understanding different markets, cultures, and business practices.

Question 6

The development of the original personal computer (PC) was a(n) __________ innovation at the time, whereas adding a different kind of whitening agent to a soap detergent is an example of a(n) __________ innovation.

Accepted Answer

The original personal computer was a novel innovation because it was a groundbreaking and new development at the time. Adding a different kind of whitening agent to a soap detergent is an incremental innovation because it involves making small improvements or updates to an existing product.

Question 7

Why do entrepreneurial ventures tend to produce more radical innovations than larger, more established firms do?

Accepted Answer

Entrepreneurial ventures tend to have more strategic flexibility, allowing them to adapt quickly and pursue radical innovations without the constraints often faced by larger, more established firms.

Question 8

Innovations that involve significant technological breakthroughs and create new knowledge:

Accepted Answer

Innovations that involve significant technological breakthroughs and create new knowledge often come with substantial uncertainty and risk due to their novel nature and the unpredictability of their market acceptance and technological feasibility.

Question 9

One of the distinguishing differences between the two sources of internal corporate venturing (autonomous strategic behavior and induced strategic behavior) is whether the innovation process:

Accepted Answer

Autonomous strategic behavior is typically a bottom-up process where employees at various levels initiate innovations, while induced strategic behavior is a top-down process driven by the organization's existing strategy and management directives.

Question 10

The idea that it is necessary to sell the ideas to others in the organization so that innovations will be commercialized is the rationale behind the use of:

Accepted Answer

Product champions are individuals who promote and push for the adoption and commercialization of innovations within an organization. They are responsible for selling the idea to others to gain support and resources needed for successful implementation.

Question 11

Research suggests that __________ is needed to encourage entrepreneurial behavior.Two surveys were conducted in 2017 to identify the world's 10 most entrepreneurial or innovative countries.Why weren't all of the same countries on both lists?

Accepted Answer

Knowing the criteria to use in this identification is difficult.

Question 12

A negative effect of acquiring other firms for the purpose of innovation is:

Accepted Answer

Acquiring other firms for innovation can negatively impact the acquiring firm's own innovation capabilities by potentially reducing its focus on internal R&D and creating dependency on external sources for innovation.

Question 13

A successful __________ innovation will be less risky but less profitable than a successful __________ innovation.

Accepted Answer

Incremental innovations involve making small improvements to existing products or services, which typically carry less risk and yield lower profits compared to novel innovations that introduce entirely new concepts or technologies.

Question 14

__________ is one reason for the different rates of entrepreneurship among countries across the globe.

Accepted Answer

Culture influences entrepreneurship by shaping attitudes towards risk, innovation, and business ownership, leading to varying rates of entrepreneurship across countries.

Question 15

The new abrasive, Cubitron II, was developed through cooperative relationships among 3M business units.As such, Cubitron II is an example of:

Accepted Answer

Cubitron II is an example of induced strategic behavior because it was developed through cooperative relationships among 3M business units, indicating a structured and guided approach to innovation within the organization.

Question 16

Charles is a customer service representative for a home improvement store.He has creative ideas about how to increase customer satisfaction.Charles's talents will MOST likely be used in a firm that:

Accepted Answer

Autonomous strategic behavior involves employees at all levels contributing innovative ideas, which aligns with Charles's creative ideas for customer satisfaction.

Question 17

The level of entrepreneurial activity in a nation is __________ the nation's level of economic productivity.

Accepted Answer

Entrepreneurial activity often leads to innovation, job creation, and increased competition, which can enhance a nation's economic productivity.

Question 18

Autonomous strategic behavior is a(n) __________ process in which product champions pursue new ideas.

Accepted Answer

Autonomous strategic behavior is a bottom-up process where individuals or teams within an organization, often product champions, take initiative to pursue new ideas and innovations independently of the formal strategic direction set by top management.

Question 19

__________ involves internally developed incremental and novel innovations that result from deliberate efforts.

Accepted Answer

Internal corporate venturing involves deliberate efforts within a company to develop incremental and novel innovations.

Question 20

Internal corporate venturing does NOT involve:

Accepted Answer

Strategic alliances involve partnerships between companies, which is external venturing, not internal corporate venturing.

Quiz 13: Strategic Entrepreneurship