Question 1

As discussed in the Opening Profile to Chapter 11, the story of the PowerBar is a good example of__________.
A) early growth fueled by diversification
B) entrepreneurs pursuing an opportunity based on market knowledge gained through experience
C) achieving long-term success by focusing all efforts on just one product
D) the creative use of venture capital funding
E) None of the answers apply.

Accepted Answer

The PowerBar story exemplifies entrepreneurs leveraging their market knowledge and experience to identify and pursue a business opportunity.

Question 2

As discussed in the Opening Profile to Chapter 11, the strategic mistake made by the creators of PowerBar was __________.
A) not considering the effects of competition
B) following a broad-scope market strategy
C) failing to look beyond their original product to continue their growth
D) not fully protecting their intellectual property
E) None of the answers apply.

Accepted Answer

The creators of PowerBar failed to look beyond their original product, which limited their ability to continue growing in a competitive market.

Question 3

As discussed in the Opening Profile to Chapter 11, their vision of finding a solution to a serious runner's energy source wasn't the only factor in forming this new venture. Both Brian and Jennifer were determined to __________________________.
A) create a work environment where employees would feel important
B) follow a broad-scope market strategy
C) look beyond their original product to continue their growth
D) fully protect their intellectual property
E) None of the answers apply.

Accepted Answer

Brian and Jennifer were determined to create a work environment where employees would feel important. This is evident in the Opening Profile to Chapter 11, which states that "Brian and Jennifer were determined to create a work environment where employees would feel important and valued."

Question 4

Negative implications arising from an organization's newness is referred to (in the text) as__________.
A) penetration strategy
B) product development strategy
C) market development strategy
D) assets of newness
E) liabilities of newness

Accepted Answer

The term "liabilities of newness" refers to the challenges and negative implications that organizations face due to their newness, such as lack of established processes, reputation, and experience.

Question 5

Advantages that a new organization has over a mature one is referred to (in the text) as __________.
A) penetration strategy
B) product development strategy
C) market development strategy
D) assets of newness
E) liabilities of newness

Accepted Answer

"Assets of newness" refers to the advantages that a new organization has over a mature one, such as flexibility, innovation, and the ability to adapt quickly to changes.

Question 6

Define and discuss how a firm might use a product development growth strategy, using an example to illustrate your understanding.

Accepted Answer

The answer of Define and discuss how a firm might...

Question 7

Define and discuss how a firm might use a market development growth strategy, using an example to illustrate your understanding.

Accepted Answer

The answer of Define and discuss how a firm might...

Question 8

Lowering prices, increasing inventory levels, advertising and sales promotion in existing markets, and adding more highly trained sales staff for existing locations would all be tactics of a __________ growth strategy.
A) penetration
B) product development
C) market development
D) diversification
E) None of the answers apply.

Accepted Answer

These tactics are aimed at increasing sales in existing markets with existing products, which is characteristic of a market penetration strategy.

Question 9

The growth strategy that attempts to better exploit its original entry is known as a __________ growth strategy.
A) penetration
B) product development
C) market development
D) diversification
E) None of the answers apply.

Accepted Answer

A penetration growth strategy focuses on increasing market share for existing products or services in existing markets, thereby better exploiting the original entry.

Question 10

Define and discuss how a firm might use a penetration growth strategy, using an example to illustrate your understanding.

Accepted Answer

The answer of Define and discuss how a firm might...

Question 11

Describe the factors that must be considered by entrepreneur when choosing to grow their business, and what issues they will need to address once the decision has been made.

Accepted Answer

The answer of Describe the factors that must be considered...

Question 12

Selling in new geographical markets, to new groups of customers, and finding new uses of the product would all be tactics of a __________ growth strategy.
A) penetration
B) market development
C) product development
D) diversification
E) None of the answers apply.

Accepted Answer

These tactics are part of a market development strategy, which involves expanding into new geographical areas, targeting new customer segments, or finding new uses for existing products.

Question 13

A(n) __________ is a system for storing and using customer information.
A) market grid
B) database
C) inventory
D) spreadsheet
E) None of the answers apply.

Accepted Answer

A database is specifically designed for storing and managing data, including customer information, making it the correct choice.

Question 14

An entrepreneur seeking to follow a market development growth strategy may need to take into account which of the following factors?
A) possible regional differences in customer preferences
B) differences in language requirements for packaging and communications
C) differences in legal requirements for selling in foreign markets
D) All of the answers are correct.
E) None of the answers apply.

Accepted Answer

A market development growth strategy involves expanding into new markets, which requires understanding regional differences, language requirements, and legal considerations.

Question 15

Targeting a new market segment for a firm's existing products would be considered a tactic of which of the following growth strategies?
A) penetration
B) market development
C) product development
D) diversification
E) None of the answers apply.

Accepted Answer

Market development involves targeting new market segments for existing products.

Question 16

The makers of baking soda continually develop and promote new uses for their staple product to increase sales in new markets, which is a tactic of which of the following growth strategies?
A) penetration
B) market development
C) product development
D) diversification
E) None of the answers apply.

Accepted Answer

Market development involves finding new markets or new uses for existing products to increase sales.

Question 17

The entrepreneur has which of the following responsibilities regarding taxes?
A) withhold and remit federal and provincial income taxes for employees
B) pay employer's portions of Employment Insurance (EI) and Canada Pension Plan (CPP) premiums
C) file end-of-year tax returns
D) withhold and remit employee's portions of Employment Insurance (EI) and Canada Pension Plan (CPP) premiums
E) All of the answers are correct.

Accepted Answer

Entrepreneurs are responsible for withholding and remitting income taxes, EI, and CPP for employees, paying the employer's portions of EI and CPP, and filing end-of-year tax returns.

Question 18

The __________ growth strategy uses the firm's experience with a particular customer group as a source of knowledge on the problems they may have with existing technology and ways in which they can be better served.
A) penetration
B) market development
C) product development
D) diversification
E) None of the answers apply.

Accepted Answer

Product development involves creating new or improved products to serve existing customers better, leveraging the firm's knowledge of customer needs and problems with current technology.

Question 19

When Home Depot actively pursues the contractor market by offering them one-stop shopping for all of their building needs including special order services, this would be an example of which of the following growth strategies?
A) penetration
B) market development
C) product development
D) diversification
E) None of the answers apply.

Accepted Answer

The answer of When Home Depot actively pursues the contractor...

Question 20

A product development growth strategy is consistent with a focus on customer relationship management for which of the following reasons?
A) Developing new products for new markets increases sales which keeps everyone happy.
B) Developing and selling more to your existing customers increases your sales and profits while also increasing their satisfaction.
C) Customer retention programs require new markets to leverage corporate learning.
D) Customers prefer to do business with high market share companies, as it increases their level of confidence and satisfaction.
E) None of the answers apply.

Accepted Answer

Developing and selling more to existing customers aligns with customer relationship management by enhancing customer satisfaction and loyalty, which can lead to increased sales and profits.

Quiz 11: Sources of Capital

As discussed in the Opening Profile to Chapter 11, the story of the PowerBar is a good example of__________.

As discussed in the Opening Profile to Chapter 11, the strategic mistake made by the creators of PowerBar was __________.

As discussed in the Opening Profile to Chapter 11, their vision of finding a solution to a serious runner's energy source wasn't the only factor in forming this new venture. Both Brian and Jennifer were determined to __________________________.

Negative implications arising from an organization's newness is referred to (in the text) as__________.

Advantages that a new organization has over a mature one is referred to (in the text) as __________.

Define and discuss how a firm might use a product development growth strategy, using an example to illustrate your understanding.

Define and discuss how a firm might use a market development growth strategy, using an example to illustrate your understanding.

Lowering prices, increasing inventory levels, advertising and sales promotion in existing markets, and adding more highly trained sales staff for existing locations would all be tactics of a __________ growth strategy.

The growth strategy that attempts to better exploit its original entry is known as a __________ growth strategy.

Define and discuss how a firm might use a penetration growth strategy, using an example to illustrate your understanding.

Describe the factors that must be considered by entrepreneur when choosing to grow their business, and what issues they will need to address once the decision has been made.

Selling in new geographical markets, to new groups of customers, and finding new uses of the product would all be tactics of a __________ growth strategy.

A(n) __________ is a system for storing and using customer information.

An entrepreneur seeking to follow a market development growth strategy may need to take into account which of the following factors?

Targeting a new market segment for a firm's existing products would be considered a tactic of which of the following growth strategies?

The makers of baking soda continually develop and promote new uses for their staple product to increase sales in new markets, which is a tactic of which of the following growth strategies?

The entrepreneur has which of the following responsibilities regarding taxes?

The __________ growth strategy uses the firm's experience with a particular customer group as a source of knowledge on the problems they may have with existing technology and ways in which they can be better served.

When Home Depot actively pursues the contractor market by offering them one-stop shopping for all of their building needs including special order services, this would be an example of which of the following growth strategies?

A product development growth strategy is consistent with a focus on customer relationship management for which of the following reasons?