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Question
A strategy of related diversification requires a need to reorganize around product lines and geographic markets. This leads to a divisional structure.
Answer
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Related questions
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What are the five dilemmas that most firms face, when trying to determine the best way to manage the innovation process?
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Innovation is an important source of growth opportunity. Explain this statement, providing examples to support your argument.
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Which kind of risk taking requires that a company borrow heavily or commit a large portion of its resources in order to grow?
A. business risk taking
B. financial risk taking
C. personal risk taking
D. technological risk taking
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One of the following is not a type of risk that executives must address. Which is it?
A. business risk taking
B. financial risk taking
C. personal risk taking
D. product-market risk taking
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Amazon was able to define the online bookselling market by entering the market early and defining the user experience. This is an example of _____________.
A. innovativeness
B. proactiveness
C. competitive aggressiveness
D. autonomy
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Which of the following is not one of the dimensions of entrepreneurial orientation?
A. proactiveness
B. risk taking
C. autonomy
D. opportunism
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On average, approximately what percentage of corporate ventures reaches profitability within six years?
A. 80 percent
B. 65 percent
C. 50 percent
D. 35 percent
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In corporations with a strong entrepreneurial culture, the willingness and ability to change _____________.
A. is imposed from the top-down
B. is considered a core capability
C. often leads to instability
D. often worries stakeholders such as suppliers and creditors
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Two common forms of a focused approach to corporate entrepreneurship include ______________ and _____________.
A. internal collaboration; internal venturing
B. social capital; collaboration capital
C. business incubators; new venture groups
D. focus groups; business incubators
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In a typical corporation, which of the following factors does not determine how entrepreneurial projects will be pursued?
A. structural features that guide and constrain action
B. corporate culture
C. organizational systems that foster learning and manage rewards
D. number of innovation projects in the pipeline
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Individuals with highly innovative DNA traits have the ability to connect seemingly unrelated questions, problems, and ideas from different fields that allows them the opportunity to creatively see opportunities others miss. This is referred to as _____________.
A. associating
B. integrating
C. visioning
D. allocating
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The innovation dilemma known as seeds versus weeds refers to _____________.
A. choosing to pursue radical rather than incremental innovations
B. choosing to pursue product rather than process innovations
C. promoting organizational stars onto innovation teams rather than involving all employees in innovation efforts
D. choosing to pursue investment in one innovative idea over another
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Which of the following is NOT a common new entry strategy according to the text?
A. imitative new entry
B. adaptive new entry
C. proactive new entry
D. pioneering new entry
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______________ provide(s) a key avenue for growth for many young and small firms through partnering to obtain resources and/or expand into new markets.
A. Strategic alliances
B. Bootstrappers
C. Lone wolf entrepreneurs
D. Research & development
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According to the text, new ventures launched by entrepreneurial teams are more likely to be successful than ventures launched by _____________.
A. established corporations
B. bootstrappers
C. lone wolf entrepreneurs
D. individual investors
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Based on statistics reported in the text, which of the following statements is not true?
A. Firms that obtain venture-capital funding receive an average of over $1 million each.
B. Total investment in start-up firms averages about $80,000 in the first year of the activity of the firm.
C. Among the 100 fastest-growing new businesses identified by Entrepreneur magazine, 61 percent obtained start-up funding from personal savings.
D. Ninety percent of the companies financed with venture capital funds fail.
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The majority of entrepreneurial start-ups are financed through monies from _____________.
A. bank financing
B. SBA loans
C. venture-capital financing
D. personal savings and the contributions of family and friends
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Which of the following is not a primary source of financing for entrepreneurial start-ups?
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B. personal savings
C. private investors
D. public equity
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Co-opetition, where competitors work together behind the scenes, is a form of illegal tacit collusion.
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Running Press created a line of palm-sized mini books that were sold as point-of-sale impulse items. The company grew rapidly, even though it had a small fraction of the sales in the publishing industry. They used a pure overall cost leadership strategy to capture market share.
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Entrepreneurial firms are often in a strong position to use combination strategies, because they have the flexibility to approach situations uniquely.
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Arbitrage opportunities in global financial markets are more attractive to local companies than global corporations, because they enable them to buy in huge volume and therefore increase their bargaining power with suppliers.
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Many international firms are increasing their efforts to market their products and services to countries such as India and China as the ranks of their middle class continue to increase.
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With regard to factor conditions, the pool of resources that a firm (or nation) has is much more important than the speed and efficiency with which these resources are deployed.
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The trend towards worldwide markets makes it easier to predict where competitors will spring up.
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Restructuring requires the corporate office to find either poorly performing firms with unrealized potential or firms in industries on the threshold of significant, positive change.
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According to the transaction cost perspective in analyzing vertical integration, every market transaction involves some transaction cost.
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The main reason that automobile manufacturers have increased the amount of outsourced inputs is because of the importance of boom and bust cycles in the industry.
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If a corporation is to achieve synergy by sharing activities across its business units, it is not important to compromise on the design or performance of an activity that is to be shared.