Question 1

Max DePree, the former head of Herman Miller, thinks organization leadership is similar to that of leading a jazz band. He says that the leader of a jazz band has the "beautiful opportunity to _____________________."

Accepted Answer

Max DePree believes that the leader of a jazz band has the opportunity to draw the best out of the other musicians. This is similar to organization leadership, where the leader's role is to bring out the best in their employees and encourage them to perform at their highest potential.

Question 2

Kurt has built his new healthy snack company over the past year into a viable business with six employees. He is focused on innovating the company's products to fit with the current trends among older population to lead healthier lives. He understands clearly that among other things innovation must consider creating _____________.

Accepted Answer

The question is asking for what Kurt must consider in order to innovate his products. While creating a wider customer base and increasing profits may be benefits of innovation, they are not necessarily essential considerations. However, economic and social prosperity is important to consider because the company's products should not only be healthy for consumers, but also have a positive impact on the community and society as a whole.

Question 3

For the past year, Jessie has been running her sports marketing/advertising agency and has managed to retain four significant clients-one more than she needed to break even for the year. She is thinking about how to organize the growth of her business in a way that will allow for bringing on staff the talented people she wants without creating too much chaos all at once. Jessie realizes that she needs to look at three key areas to support her growth, and if she does this properly, her business will expand with greater ease. She needs to focus on ensuring she has enough capital, hiring the right people before she needs them, and, most importantly, ____________________.

Accepted Answer

While all of the options may be beneficial for her business growth, focusing on strengthening the organizational culture is the most important factor for managing staff expansion and maintaining a cohesive team. A strong culture will guide decision-making, help with communication, and ensure all employees are working towards a common goal. Without a strong foundation in place, bringing on new staff could create chaos and confusion. Therefore, prioritizing the organizational culture will ultimately support the success of the other areas of growth necessary for the business.

Question 4

You are the entrepreneur behind a two-year-old firm whose main business is engineering and servicing road salting equipment. You entered the field via an innovation in salt distribution technology that reduces the need for environmentally damaging road salt by 25 percent and yet provides effective coverage in icy conditions. You are continually engaging in _____________ via worldwide sources to seek other, complementary innovations and developments so you can enhance your services to clients.

Accepted Answer

The answer of You are the entrepreneur behind a two-year-old...

Question 5

As their ventures grow, entrepreneurs need to put certain controls in place to ensure the organization runs smoothly. This does not come easy for many of them. All but one of the following are typical growth challenges of an entrepreneurial venture: ___________________.

Accepted Answer

A changing marketplace is not a typical growth challenge of an entrepreneurial venture.

Question 6

Rob is the new bookkeeper at your one-year-old company. Your business provides travellers in North America with access to people's apartments for rent for short-term accommodation. Your biggest competition is Air BnB. You have noticed that your website traffic is going up exponentially as word is spreading, and there are starting to be occasional system crashes and lost reservations. You need to rebuild your servers and related infrastructure, but your cash flow is not keeping up with the reinvestment required. Because you had planned carefully for this event, you knew this time might come. It is time to call in a potential investor to provide a capital injection because your ____________ are lagging behind increasing demand.

Accepted Answer

The answer of Rob is the new bookkeeper at your...

Question 7

Along with business planning, it is imperative that an entrepreneur think ahead about what would happen if things do not go well. In order to know how to deal with a worst-case situation or crisis, he or she should create a ____________ or plan B.

Accepted Answer

A contingency plan is specifically designed for worst-case scenarios or crisis situations. It outlines a plan of action to be taken if certain events occur that could negatively impact the business. An operational plan focuses on day-to-day activities, a sustainability plan is centered around environmental and social responsibility, a feasibility study analyzes the potential success of a business idea, and a disaster relief plan is typically used for natural disasters and emergencies, making option E the best choice.

Question 8

Once a new venture establishes good financial controls, the next step is to _____________ them.

Accepted Answer

Once good financial controls are established in a new venture, the next step is to reinforce them. This ensures that the financial controls are being followed consistently and that the business is operating in a financially responsible manner. Ignoring or easing up on financial controls can lead to problems down the line. Revision may be necessary if changes in the business impact the effectiveness of the financial controls, but reinforcement should always be a priority. Letting employees be responsible for financial controls may be appropriate in some cases, but ultimately it is the responsibility of the business owner or management team to ensure that financial controls are in place and functioning effectively.

Question 9

For successful companies ____________ matter more than R & D in enabling innovation.

Accepted Answer

Employee talent and knowledge are essential in enabling innovation as they bring new ideas, insights, and perspectives to the company. Without a team of talented and knowledgeable employees, R&D efforts may not be effectively utilized or even possible. A business plan and execution, feasibility studies, and hiring processes are also important for overall success, but in terms of enabling innovation, employee talent and knowledge are typically the most crucial factor. Employee personality may play a role in overall company culture and collaboration, but it is not as directly tied to innovation as employee talent and knowledge.

Question 10

Research supports entrepreneurial innovation, but not all types of research are the same. Research that focuses on investigative activities that an organization conducts to lead to discoveries that will fuel new products or procedures is known as _____________________.

Accepted Answer

The type of research described in the question is known as Research and Development (R&D), which is focused on investigative activities that lead to discoveries to fuel new products or procedures. Applied research is typically focused on solving practical problems, while curiosity-driven research is driven by the desire to explore and understand phenomena without necessarily having a specific practical goal in mind. Competitor intelligence is focused on understanding the strategies and actions of other companies in the same market, and value-added research typically involves adding new insights or perspectives to existing knowledge.

Question 11

Research is a key contributor to the vital process of innovation. The type of research that is generating new knowledge in its purest form rather than focusing on a specific, practical objective is known as ____________.

Accepted Answer

The type of research that is generating new knowledge in its purest form rather than focusing on a specific, practical objective is known as curiosity-driven research. Applied research, R&D, and competitor intelligence are all types of research focused on meeting specific objectives, while value-added research adds value to existing products or services.

Question 12

A contingency plan is there to help the entrepreneur be prepared if there are problems or if an emergency occurs. The plan needs to focus on specific details for controlling the most fundamental aspects of running the organization: cash flow, accounts receivables, ____________ and _____________.

Accepted Answer

The answer of A contingency plan is there to help...

Question 13

Entrepreneurs need to address growth strategies as part of their business planning and should not be _______________ in that planning.

Accepted Answer

Entrepreneurs need to consider various growth strategies and be open to adapting their plans as circumstances change. However, being overly rigid in their plans may not allow for flexibility and responsiveness to market changes. It's important to find a balance between having a solid plan and being able to make adjustments as needed.

Question 14

Because organizational change of any type can be disruptive and scary, an entrepreneur must support the change efforts by ____________.

Accepted Answer

Motivating employees to put forth their best efforts is crucial during organizational change as it helps in reducing resistance, maintaining morale, and ensuring a smooth transition.

Question 15

Janice was thrilled with the first two years of operations. Her new company-specializing in manufacturing and distributing yoga mats, props, and yoga wear-had been growing steadily and was on track to make a 14 percent profit at the end of this, her second year. Then she started to notice sales slipping in the 11th month of the year. This is a month that normally starts to see sales increases. She had just hired a key employee to work on business development, and she wondered if this downturn would trend into the 12th month and then into her third year of business. Thankfully Janice had some good advice when she launched her venture because she knew exactly how to handle the situation. Along with her business plan, she had created a(n) _____________.

Accepted Answer

A contingency plan is a backup plan or alternative course of action that a business can use if unexpected events or situations arise. In this case, Janice's sales slipping in the 11th month is an unexpected event, and having a contingency plan in place can help her navigate the situation effectively. The other options (layoff plan, golden parachute, escape plan) are not relevant to the situation at hand, and a strategic plan is a broader plan for achieving long-term goals rather than a specific backup plan. Therefore, the best choice is B: contingency plan.

Question 16

In face of change, an entrepreneur must take into consideration how the change impacts the company and immediately_______________.

Accepted Answer

When facing change, it is important for entrepreneurs to communicate the changes to employees in order to manage any impact on morale and performance. This can also help employees adapt to any changes in company procedures or goals. While preparing a new business plan or starting a new R&D project may be necessary in some cases, communication with employees should always be a top priority. Hiring an external consultant or planning for the sale of the company may not be necessary or appropriate depending on the nature of the change.

Question 17

You have been running your new raw-food café, and all evidence indicates the business is growing faster than anticipated. You bring in an accountant to discuss what you need to do next to keep your business stable. She mentions that you, as well as most entrepreneurs, face three unique control issues: managing growth, managing downturns, and ___________________.

Accepted Answer

Exiting the venture is a unique control issue for entrepreneurs as it involves planning for the eventual sale or closure of the business, ensuring a smooth transition and maximizing returns.

Question 18

Studies have shown that visionary companies outperformed nonvisionary ones by six times based on standard financial criteria. To become a visionary organization the entrepreneur must articulate a ____________, ______________, and ___________ vision of the future to the best of his or her ability.

Accepted Answer

The entrepreneur must articulate a coherent, inspiring, and attractive vision of the future to become a visionary organization. This aligns with the characteristics of a visionary company that outperforms nonvisionary ones by six times based on standard financial criteria. A crisp and brief vision may lack detail and fail to inspire, while a lengthy and nebulous vision may be confusing and lack focus. Therefore, a coherent, inspiring, and attractive vision is the best choice.

Question 19

According to our textbook, the best growth strategy is _______________.

Accepted Answer

A well-planned growth strategy takes into consideration the company's strengths and weaknesses, the market conditions, and the competition to create a roadmap for the company's future growth. This approach ensures that the company is focused on the right goals and has a plan to achieve them. A well-executed strategy is important, but without a proper plan, it is difficult to execute effectively. A clearly studied document is also important, but it is only a part of the planning process. Copying from competitors is not recommended as it may not be a good fit for the company's unique situation, and an unchangeable strategy may not be adaptable to changing market conditions.

Question 20

The ability to adapt and fashion new tools to solve problems is referred to as _____________.

Accepted Answer

The ability to adapt and fashion new tools to solve problems is considered an innovation in management. Therefore, the best option is B) management innovation.

Quiz 4: Managing Entrepreneurially