Scenario C. Four entrepreneurs are discussing the potential for success or failure of their ventures. A few of them realize that they did not understand the risk involved in their undertaking. They describe their start-ups in the following manner:
1. Raymond: "I had very little money invested but I was the first on the market with my product."
2. Lotina: "My firm had a very substantial amount of money invested in my venture because I had a completely new and unique product that was expensive to create."
3. Sharida: "I had almost nothing invested in my business which produced a product with many similar competitors already on the market."
4. Kevin: "I have spent an incredible amount of money getting my business going in an industry with many well-established competitors."

-According to the Entrepreneurial Strategy Matrix,Lotina most likely runs
A)a business with high start-up costs.
B)a completely novel services business.
C)an intrapreneurial team for a product with high R&D costs.
D)a small shop manufacturing simple and unique handmade products.
E)a non-profit.

Question

Scenario C. Four entrepreneurs are discussing the potential for success or failure of their ventures. A few of them realize that they did not understand the risk involved in their undertaking. They describe their start-ups in the following manner:
1. Raymond: "I had very little money invested but I was the first on the market with my product."
2. Lotina: "My firm had a very substantial amount of money invested in my venture because I had a completely new and unique product that was expensive to create."
3. Sharida: "I had almost nothing invested in my business which produced a product with many similar competitors already on the market."
4. Kevin: "I have spent an incredible amount of money getting my business going in an industry with many well-established competitors."

-According to the Entrepreneurial Strategy Matrix,Lotina most likely runs
A)a business with high start-up costs.
B)a completely novel services business.
C)an intrapreneurial team for a product with high R&D costs.
D)a small shop manufacturing simple and unique handmade products.
E)a non-profit.

Quizplus · Accepted Answer

According to the Entrepreneurial Strategy Matrix, Lotina's firm falls under the category of high investment/high uniqueness ventures as she mentions having a completely new and unique product that was expensive to create. Therefore, option A (a business with high start-up costs) is the best choice.