Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Management
Q:
Sales quotas, operating budgets, and production schedules are examples of traditional controls.
Q:
For firms competing in highly unstable and turbulent industries, traditional strategic controls are most appropriate.
Q:
The traditional approach to strategic control relies on feedback from performance measurement to formulate strategy.
Q:
The traditional approach to strategic control is interactive, while the contemporary approach to strategic control is sequential.
Q:
Informational controls involve the balance and alignment of the culture, rewards, and boundaries of a firm.
Q:
Behavioral controls involve the ability to respond effectively to environmental change.
Q:
Strategic control systems, both informational and behavioral, are used to correct the performance and ultimate strategy of a firm.
Q:
Explain how the overall cost leadership strategy is used by new ventures to achieve competitive advantage. Provide an example.
Q:
Explain the pitfalls that are associated with a pioneering new entry and the implications these have for new entrants with high technology offers.
Q:
Compare and contrast the three most common new venture entry strategies: pioneering, imitative, and adaptive.
Q:
In what ways are human capital and social capital valuable to an entrepreneurial start-up? Provide examples of each.
Q:
What are the advantages and disadvantages of using venture capital to finance new ventures?
Q:
Discuss the role of informal investments versus venture-capital financing as it is used by entrepreneurial ventures. What are the advantages and disadvantages of each type?
Q:
Discuss the four characteristics of an entrepreneurial opportunity. Explain why each is important for the opportunity to be viable.
Q:
What is the role of opportunity recognition in the new venture development process?
Q:
A firm is considering a large price cut on its leading product as a way to gain market share. One executive strongly disagrees with the price cut. He observes that they are in the same marketplace as their rivals and do not have any competitive advantages in their cost structure. If they cut prices, their competitors will likely do the same. The end result is that everyone will make less money. These arguments are an example of ________________.
A. a strategy of forbearance
B. a strategy of co-opetition
C. a hardball strategy whereby competitive actions are not undertaken without a clear advantage
D. a weakness strategy that leads a company into constant decline
Q:
Which of the following refers to a situation where a company has a high concentration of its business in a particular industry market?
A. competitor resources
B. market dependence
C. resource similarity
D. actor's reputation
Q:
Which of the following is not a factor that affects how a competitor will respond to a competitive attack?
A. how dependent the competitor is on that industry or particular market segment
B. the degree of market power and reputation of the company that initiated the attack
C. the resources which are available for a firm to respond
D. the stock market reaction to the initial competitive attack
Q:
The best example of a tactical action that a company might use in response to a competitive attack is to _____________.
A. acquire the competitor
B. target the markets of the rival
C. expand into new geographical areas
D. offer price discounts and rebates
Q:
All of the following are examples of strategic actions a firm might take EXCEPT _____________.
A. partner with competitors to reduce competition
B. expand into neglected markets
C. change product packaging
D. tie up raw materials sources
Q:
Southwest Airlines began its no frills, no meals strategy in the late 1960s as a direct assault on the major carriers of the day. What type of competitive action does this represent?
A. A tactical action because it is a refinement of an existing strategy.
B. A strategic action because is includes a refinement of an existing strategy.
C. A strategic action because it was a breakthrough innovative offer.
D. A guerilla offensive because it is fast and will surprise its rivals.
Q:
Which of the below best describes the competitive tendencies of small firms?
A. Small firms tend to signal their competitive actions long before they launch those actions, because they lack legitimacy in the marketplace
B. Small firms typically have more resources available as they undertake competitive attacks than do large firms.
C. Small firms are more nimble and can respond quickly to competitive attacks.
D. Small firms are more nimble and cannot respond quickly to competitive attacks.
Q:
When any two firms have both a high degree of market commonality and highly similar resources, a ______________ threat is present.
A. weaker competitive
B. stronger competitive
C. successful marketing
D. stronger marketing
Q:
The Wall Street Journal and the New York Times have seen the intensity of their rivalry increase. One factor driving this is that the Wall Street Journal has moved from financial news reporting to general national and global news reporting and finally, to adding local New York news. The rivalry of these two news providers has increased due to _____________.
A. increased dynamic capabilities
B. increased market commonality
C. erosion of first mover advantages
D. the choice of tactical over strategic actions
Q:
Aircraft makers Boeing and Airbus have a high degree of ______________ because they make very similar products and have many buyers in common.
A. dynamic capabilities
B. market commonality
C. first mover advantages
D. equity funding
Q:
BCG authors Stalk and Lachenauer published a book in which they listed competitive strategy for winning against incumbent rivals. Which of the following is not one of their suggested strategies?
A. devastate profit sanctuaries of rivals
B. plagiarize with pride and deceive the competition
C. unleash massive and overwhelming force
D. lower competitor costs
Q:
Which of the following is not one of the reasons a company might launch new competitive actions?
A. to obtain first mover advantages
B. to improve market position
C. to capitalize on growing demand
D. to find new sources of raw materials
Q:
Intense rivalry involving actions and responses among similar competitors vying for the same customers in a marketplace is known as _____________.
A. competitive dynamics
B. resource similarity
C. threat of substitutes
D. pioneering new entry
Q:
According to the text, which of the following might does not make it difficult for entrepreneurial firms to effectively pursue a strategy of differentiation?
A. Incumbent firms are constantly seeking opportunities to specialize in market niches.
B. Differentiation strategies are often expensive to enact.
C. It may be difficult for a young firm to establish a strong brand identity.
D. Implementing superior new technologies may be challenging for entrepreneurial firms.
Q:
When an industry is mature, a ______________ strategy is considered to be one of the most effective approaches for a new entrant.
A. focus
B. differentiation
C. overall low-cost
D. small business
Q:
Entrepreneurial firms that pursue a low-cost leadership strategy use all of the following to achieve lower costs except _____________.
A. cost-saving technology such as the Internet
B. simple organizational structures
C. rapid decision making
D. extensive investment in order to achieve economies of scale
Q:
One of the ways entrepreneurs achieve success is by using resources more efficiently. This is an example of how entrepreneurs use ______________ strategy.
A. an imitative
B. a low-cost leader
C. a differentiation
D. a combination
Q:
Amazon is an example of a company that used the differentiation strategy to enter the market. The differentiation features included _____________.
A. minimal customer service
B. traditional back office logistics
C. exceptional customer service
D. traditional delivery logistics
Q:
Which of the following is not a factor that makes it more difficult for new ventures to be successful as differentiators?
A. The strategy is thought to be expensive to put into action.
B. Establishing a brand, important to a differentiation strategy, is thought to be expensive.
C. Superior innovation is often very costly.
D. Customer service is often costly, but it does not affect a differentiation strategy.
Q:
In 2005, Plum Organics entered the market with organic baby food and snack foods for children. It now has over 20 products and is listed at number 63 on the Inc 500 list of fastest growing private companies. It used which new entry strategy in 2005?
A. imitative
B. pioneering
C. adaptive
D. differentiated
Q:
Tom Monahan, a business creativity coach, says that every new idea is merely a spin of an old idea. A company that enters the market by offering a product or service that is somewhat new and sufficiently different in order to create value for customers by capitalizing on current trends is using which new entry strategy?
A. imitative
B. pioneering
C. adaptive
D. differentiated
Q:
Square provides a means for small businesses to process credit and debit card sales without signing up for a traditional credit card arrangement of monthly fees and minimum charges. It used which new entry strategy to enter the market initially?
A. imitative
B. pioneering
C. adaptive
D. differentiated
Q:
Smell-O-Vision designed an invention to pump odors into movie theatres. It flopped, in spite of its innovativeness. What kind of new entry strategy was the company using to penetrate the market?
A. imitative
B. pioneering
C. adaptive
D. differentiated
Q:
The new entry strategy that a firm choses is dependent upon the ______________ and the ______________ of the new business concept.
A. riskiness; cost
B. riskiness; potential sales
C. idea; innovativeness
D. riskiness; innovativeness
Q:
Pandora entered the radio business in 2000 using the Music Genome Project system that analyzes music for its underlying traits as a means to distinguish itself. It was using ______________ entry strategy.
A. a pioneering
B. an imitative
C. an adaptive
D. a creative
Q:
When launching a new venture, finding a way to begin doing business must ______________ generate cash flow, build credibility, attract good employees, and overcome the liability of newness.
A. slowly
B. quickly
C. steadily
D. painlessly
Q:
Seeking products or services that have been successful in one market and introducing the same basic product or service in another segment of the market is referred to as _____________.
A. imitative new entry
B. adaptive new entry
C. proactive new entry
D. pioneering new entry
Q:
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
Q:
Vision is an important element of entrepreneurial leadership because _____________.
A. the entrepreneur has to envision realities that do not yet exist
B. a vision statement must be part of the documentation used to obtain venture financing
C. organizations cannot function without a detailed and operational vision
D. banking institutions require it
Q:
Which of the following is NOT one of the three characteristics of entrepreneurial leadership mentioned by the text?
A. vision
B. dedication and drive
C. commitment to excellence
D. clarifying job responsibilities
Q:
The U.S. Small Business Administration supports small business through all of the following EXCEPT
A. government contracting.
B. underwriting loans.
C. investing venture capital.
D. training and counseling.
Q:
______________ 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
Q:
Which of the following is the most important resource for a start-up activity?
A. social recognition
B. land
C. personnel
D. money
Q:
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
Q:
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.
Q:
Which of the following statements about venture capital is not true?
A. Entrepreneurs raise venture capital by selling shares of ownership in their business.
B. Venture capital is a form of public equity financing.
C. Venture capital is used to finance rapid growth or large capital expenditures.
D. Venture capital groups can often provide helpful management advice.
Q:
Private individuals who provide seed capital to young ventures are known as _____________.
A. angels
B. gazelles
C. cash cows
D. rising stars
Q:
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
Q:
According to a study by the Kaufmann Foundation, which of the following is the largest source of funding for businesses that have been operating at least five years?
A. loans
B. venture capital
C. public financing
D. angel financing
Q:
Which of the following is not a primary source of financing for entrepreneurial start-ups?
A. investments by family and friends
B. personal savings
C. private investors
D. public equity
Q:
Which of the following terms is used to refer to opportunities that are practical and physically possible?
A. durable
B. valuable
C. achievable
D. sustainable
Q:
When an opportunity is attractive long enough for it to be successfully developed and deployed, it is said to be _____________.
A. value creating
B. affordable
C. achievable
D. durable
Q:
Which of the following is NOT one of the characteristics of an entrepreneurial opportunity?
A. attractive
B. affordable
C. achievable
D. value creating
Q:
Generally speaking, the opportunity recognition process consists of two phases of activity. They are ______________ and _____________.
A. global search; recycling profits
B. value creation; affordability
C. discovery; evaluation
D. global search; valuation
Q:
The process of identifying, selecting, and developing new venture opportunities is known as _____________.
A. innovativeness
B. bootstrapping
C. opportunity recognition
D. brainstorming
Q:
Which of the following is not a common source of new business opportunities?
A. current or past work experiences
B. suggestions by family or friends
C. chance event
D. future work
Q:
According to the text, for an entrepreneurial start-up to be successful, three ingredients are critical. What are they?
A. good ideas, a team of investors, and a business plan
B. a viable opportunity, available resources, and a qualified and motivated founding team
C. an opportunity, a marketing plan, and office space
D. management, marketing, and money
Q:
Co-opetition, where competitors work together behind the scenes, is a form of illegal tacit collusion.
Q:
Forbearance is a particularly aggressive type of competitive attack.
Q:
Refinements or extensions of existing strategies are often referred to as tactical actions.
Q:
In the context of competitive dynamics, tactical actions involve major commitments of distinctive and specific resources to strategic initiatives.
Q:
Cutting prices or increasing marketing efforts are examples of tactical competitive actions.
Q:
When attacked, older and larger firms tend to respond more quickly, but their responses are often more predictable.
Q:
Market commonality refers to the extent to which competitors are vying for the same customers in the same markets.
Q:
Market commonality is the extent to which rivals draw from the same types of resources.
Q:
Entrepreneurial new entry is often perceived as a competitive threat because most market needs are being met, either directly or indirectly, by an existing firm.
TRUE
Q:
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.
Q:
A focus strategy must not include elements of differentiation and overall cost leadership in order to be successful.
Q:
Warby Parker makes eyeglasses. It keeps costs low through several means and has a social mission. This is an example of a firm that uses a combination strategy.
Q:
Entrepreneurial competitive dynamics refers to a cycle of actions and responses between firms competing for the same customers.
Q:
Entrepreneurial firms are often in a strong position to use combination strategies, because they have the flexibility to approach situations uniquely.
Q:
Because new ventures typically are small, they usually do not have high economies of scale relative to competitors.
Q:
Once an adaptive entrant has achieved initial success, the company is safe from copycat competition.
Q:
The success of an adaptive new entrant can be limited, if the value proposition is perceived as being unique.
Q:
Pandora, launched in 2000, radically changes the radio business with its Music Genome Project system that analyzes music for its underlying traits. This is an example of a pioneering new entry strategy.