Question 1

Market research,such as surveys,has limited effectiveness because it is often difficult for customers to articulate the underlying problems they have with a product or service.

Accepted Answer

Customers may not always be able to accurately identify or articulate the root cause of their dissatisfaction or issues with a product or service. This can limit the effectiveness of market research surveys as a means of identifying problems and improving the customer experience.

Question 2

An error of omission occurs from the decision not to act of a new entry opportunity when in hindsight they should have.

Accepted Answer

An error of omission occurs when a decision not to act leads to a missed opportunity.

Question 3

A franchise is the instrument used to protect the owner of the technology from people imitating the technology.

Accepted Answer

False

Question 4

The knowledge needed to generate innovation cannot be easily learned from a textbook.

Accepted Answer

Innovation often requires a combination of creativity, critical thinking, and practical knowledge that cannot be fully taught in a traditional textbook. It often involves experimentation, trial and error, and a willingness to take risks and think outside the box. Therefore, while textbooks can provide a foundation of knowledge, they are not the sole source for generating innovation.

Question 5

In order to be the basis for a firm's superior performance,a bundle of resources must be valuable,rare,and imitable.

Accepted Answer

The correct statement should include that a bundle of resources must be valuable, rare, inimitable, and non-substitutable to be the basis for a firm's superior performance, according to the VRIN framework.

Question 6

The assessment of a new entry attractiveness is less about whether this opportunity "really" exists or not and more about whether the entrepreneur believes he or she can make it work.

Accepted Answer

The assessment of new entry attractiveness is indeed more about the entrepreneur's belief in their ability to make it work than whether the opportunity truly exists or not. This is because entrepreneurs often have to take calculated risks and persevere through challenges to turn opportunities into successful businesses.

Question 7

A new entry can be either offering a new product to a new market or creating a new organization.

Accepted Answer

A new entry can be introducing a new product to a previously untapped market or creating a completely new organization.

Question 8

Technological knowledge refers to the entrepreneur's possession of information,technology,know-how,and skills that provide insight into a market and its customers.

Accepted Answer

The answer of Technological knowledge refers to the entrepreneur's possession...

Question 9

The longer the entrepreneur takes to research a new entry,the less accurate customer demand estimates are.

Accepted Answer

Longer research time allows for more comprehensive data collection and analysis, leading to more accurate customer demand estimates.

Question 10

If there is a poor fit between its resources and the external environment,then the firm will not enjoy superior performance.

Accepted Answer

A poor fit between a firm's resources and the external environment can lead to a lack of competitiveness and decreased performance. Matching resources to external factors is a key aspect of strategic management.

Question 11

Newness of a new entry is always an advantage.

Accepted Answer

Newness of a new entry can also pose certain disadvantages such as lack of brand recognition, trust, and reputation as compared to established competitors.

Question 12

The period of time when the environment is favorable for entrepreneurs to exploit a particular new entry is called the window of opportunity.

Accepted Answer

This statement defines the commonly accepted definition of a window of opportunity in entrepreneurship.

Question 13

The entrepreneur's market knowledge is deeper than the knowledge that could be gained through market research.

Accepted Answer

The entrepreneur often has an intimate understanding of their target market and industry due to their personal experiences and connections, which may not be fully captured through traditional market research methods.

Question 14

The long-run performance of a firm is dependent upon the ability to generate and exploit numerous new entries.

Accepted Answer

Generating and exploiting numerous new entries is essential for a firm to maintain a competitive edge and sustain long-term growth. Without continuous innovation and adaptation to changing market dynamics, a firm may struggle to maintain its position and profitability in the long run.

Question 15

When the window of opportunity is open,the environment is unfavorable for entrepreneurs to exploit a new product or enter a new market with an existing product.

Accepted Answer

The statement in the question is incorrect. When the window of opportunity is open, it means that the environment is favorable for entrepreneurs to exploit a new product or enter a new market with an existing product. Therefore, the correct answer is B.

Question 16

First movers suffer a cost disadvantage as they are not able to move down the experience curve.

Accepted Answer

The answer of First movers suffer a cost disadvantage as...

Question 17

Knowledge is the basis of the entrepreneurial resource.

Accepted Answer

Knowledge is essential for identifying business opportunities, creating new products or services, and developing strategies for growth and success. It can also help entrepreneurs navigate challenges and make informed decisions. Therefore, knowledge is a critical resource for entrepreneurs.

Question 18

Experience is idiosyncratic-unique to the life of the individual.

Accepted Answer

Experience is shaped by individual factors such as genetics, upbringing, culture, environment, and personal choices, making it unique to each person. Therefore, experience is idiosyncratic to the life of the individual.

Question 19

First movers can monitor changes in the market that might be difficult or impossible to detect for those firms not participating in the market.

Accepted Answer

As first movers are the first ones to enter a new market, they have an advantage in monitoring changes and trends that may be difficult for other firms to detect. They can use this information to adjust their strategies and stay ahead of the competition.

Question 20

An error of commission occurs from the decision not to act on a new entry opportunity.

Accepted Answer

An error of commission occurs when a decision is made to take action but it results in a negative outcome. The decision not to act on a new entry opportunity would be an error of omission.

Quiz 3: Entrepreneurial Strategy: Generating and Exploiting New Entries