Question 1

A focus strategy must not include elements of differentiation and overall cost leadership in order to be successful.

Accepted Answer

A) True 
 B)False

Question 2

The Wall Street Journal and 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

Accepted Answer

A) increased dynamic capabilities. 
B) erosion of first mover advantages. 
C) increased market commonality. 
D) the choice of tactical over strategic actions. 
A) increased dynamic capabilities. 
B) erosion of first mover advantages. 
C) increased market commonality. 
D) the choice of tactical over strategic actions.

Question 3

Which of the following is not one of the characteristics of an entrepreneurial opportunity?

Accepted Answer

A) affordable 
B) attractive 
C) achievable 
D) value creating 
A) affordable 
B) attractive 
C) achievable 
D) value creating

Question 4

Which of the following is not a factor that makes it more difficult for new ventures to be successful as differentiators?

Accepted Answer

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. 
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.

Question 5

Opportunity recognition is the process of identifying and selecting entrepreneurial opportunities.It does not involve the development of those ideas.

Accepted Answer

A) True 
 B)False

Question 6

When attacked,older and larger firms tend to respond more quickly,but their responses are often more predictable.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements about venture capital is false?

Accepted Answer

A) Entrepreneurs raise venture capital by selling shares of ownership in their business. 
B) Venture capital groups can often provide helpful management advice. 
C) Venture capital is used to finance rapid growth or large capital expenditures. 
D) Venture capital is a form of public equity financing. 
A) Entrepreneurs raise venture capital by selling shares of ownership in their business. 
B) Venture capital groups can often provide helpful management advice. 
C) Venture capital is used to finance rapid growth or large capital expenditures. 
D) Venture capital is a form of public equity financing.

Question 8

New entry is among the most common reasons why a cycle of competitive actions and reactions gets started among similar competitors.

Accepted Answer

A) True 
 B)False

Question 9

TOMS Shoes generates interest in its products without a large advertising budget.It uses a Facebook page to create buzz.This is an example of a

Accepted Answer

A) strategic action. 
B) tactical action. 
C) focused advantage. 
D) differentiated focus. 
A) strategic action. 
B) tactical action. 
C) focused advantage. 
D) differentiated focus.

Question 10

When a company chooses to use guerrilla marketing,it is using a ________ competitive action.

Accepted Answer

A) strategic 
B) tactical 
C) focused advantage 
D) differentiated 
A) strategic 
B) tactical 
C) focused advantage 
D) differentiated

Question 11

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?

Accepted Answer

A) A strategic action because it includes a refinement of an existing strategy. 
B) A tactical action because it is a refinement of an existing strategy. 
C) A strategic action because it was a breakthrough innovative offer. 
D) A guerrilla offensive because it is fast and will surprise its rivals. 
A) A strategic action because it includes a refinement of an existing strategy. 
B) A tactical action because it is a refinement of an existing strategy. 
C) A strategic action because it was a breakthrough innovative offer. 
D) A guerrilla offensive because it is fast and will surprise its rivals.

Question 12

Strategic competitive actions include all the following except

Accepted Answer

A) new product introductions. 
B) mergers and alliances. 
C) product and service enhancements. 
D) changing production capacity. 
A) new product introductions. 
B) mergers and alliances. 
C) product and service enhancements. 
D) changing production capacity.

Question 13

Spanx,the footless pantyhose and other undergarments for women company was founded in 2000.It combined nylon and Lycra to create a new type of undergarment that is comfortable and eliminates panty lines.It now produces over 200 products,generating over 250 million USD in annual sales.It used which new entry strategy in 2005?

Accepted Answer

A) adaptive 
B) pioneering 
C) differentiated 
D) imitative 
A) adaptive 
B) pioneering 
C) differentiated 
D) imitative

Question 14

Generally speaking the opportunity recognition process consists of two phases of activity.They are ________ and ________.

Accepted Answer

A) global search;recycling profits 
B) value creation;affordability 
C) global search;valuation 
D) discovery;evaluation 
A) global search;recycling profits 
B) value creation;affordability 
C) global search;valuation 
D) discovery;evaluation

Question 15

A small firm may be unable to mount a serious attack due to lack of resources.As a result,it is more likely to react to ________ actions,such as incentive pricing or enhanced service offerings,because they are less costly to attack than large-scale strategic actions.

Accepted Answer

A) forbearance 
B) co-opetition 
C) tactical 
D) strategic 
A) forbearance 
B) co-opetition 
C) tactical 
D) strategic

Question 16

Discuss the phases of activity involved in the opportunity recognition process that lead to viable new venture opportunities.Explain how this is more than identifying ideas.

Accepted Answer

Opportunity recognition refers to more t

Question 17

According to the text,for an entrepreneurial start-up to be successful,three ingredients are critical.What are they?

Accepted Answer

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 
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

Question 18

What are competitive dynamics and how does this explain why strategies evolve in response to actions of close competitors?

Accepted Answer

Competitive dynamics involves the intens

Question 19

Amazon is an example of a company that used the differentiation strategy to enter the market.The differentiation features included

Accepted Answer

A) minimal customer service. 
B) traditional back office logistics. 
C) exceptional customer service. 
D) traditional delivery logistics. 
A) minimal customer service. 
B) traditional back office logistics. 
C) exceptional customer service. 
D) traditional delivery logistics.

Question 20

Running Press launched the Miniature Editions line of books in 1993.Today it has sold over 20 million copies.Which of the following most closely represents their strategy?

Accepted Answer

A) differentiation 
B) overall cost leadership 
C) focus 
D) combination 
A) differentiation 
B) overall cost leadership 
C) focus 
D) combination

A focus strategy must not include elements of differentiation and overall cost leadership in order to be successful.

Which of the following is not one of the characteristics of an entrepreneurial opportunity?

Which of the following is not a factor that makes it more difficult for new ventures to be successful as differentiators?

Opportunity recognition is the process of identifying and selecting entrepreneurial opportunities.It does not involve the development of those ideas.

When attacked,older and larger firms tend to respond more quickly,but their responses are often more predictable.

Which of the following statements about venture capital is false?

New entry is among the most common reasons why a cycle of competitive actions and reactions gets started among similar competitors.

TOMS Shoes generates interest in its products without a large advertising budget.It uses a Facebook page to create buzz.This is an example of a

When a company chooses to use guerrilla marketing,it is using a ________ competitive action.

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?

Strategic competitive actions include all the following except

Generally speaking the opportunity recognition process consists of two phases of activity.They are and .

A small firm may be unable to mount a serious attack due to lack of resources.As a result,it is more likely to react to ________ actions,such as incentive pricing or enhanced service offerings,because they are less costly to attack than large-scale strategic actions.

Discuss the phases of activity involved in the opportunity recognition process that lead to viable new venture opportunities.Explain how this is more than identifying ideas.

According to the text,for an entrepreneurial start-up to be successful,three ingredients are critical.What are they?

What are competitive dynamics and how does this explain why strategies evolve in response to actions of close competitors?

Amazon is an example of a company that used the differentiation strategy to enter the market.The differentiation features included

Running Press launched the Miniature Editions line of books in 1993.Today it has sold over 20 million copies.Which of the following most closely represents their strategy?

Strategic Management: Creating Competitive Advantages

Analyzing the External Environment of the Firm: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangible Resources

Business-Level Strategy: Creating and Sustaining Competitive Advantages

Corporate-Level Strategy: Creating Value Through Diversification

International Strategy: Creating Value in Global Markets

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

Exam 8: Entrepreneurial Strategy and Competitive Dynamics

A focus strategy must not include elements of differentiation and overall cost leadership in order to be successful.

Which of the following is not one of the characteristics of an entrepreneurial opportunity?

Which of the following is not a factor that makes it more difficult for new ventures to be successful as differentiators?

Opportunity recognition is the process of identifying and selecting entrepreneurial opportunities.It does not involve the development of those ideas.

When attacked,older and larger firms tend to respond more quickly,but their responses are often more predictable.

Which of the following statements about venture capital is false?

New entry is among the most common reasons why a cycle of competitive actions and reactions gets started among similar competitors.

TOMS Shoes generates interest in its products without a large advertising budget.It uses a Facebook page to create buzz.This is an example of a

When a company chooses to use guerrilla marketing,it is using a ________ competitive action.

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?

Strategic competitive actions include all the following except

Generally speaking the opportunity recognition process consists of two phases of activity.They are ________ and ________.

A small firm may be unable to mount a serious attack due to lack of resources.As a result,it is more likely to react to ________ actions,such as incentive pricing or enhanced service offerings,because they are less costly to attack than large-scale strategic actions.

Discuss the phases of activity involved in the opportunity recognition process that lead to viable new venture opportunities.Explain how this is more than identifying ideas.

According to the text,for an entrepreneurial start-up to be successful,three ingredients are critical.What are they?

What are competitive dynamics and how does this explain why strategies evolve in response to actions of close competitors?

Amazon is an example of a company that used the differentiation strategy to enter the market.The differentiation features included

Running Press launched the Miniature Editions line of books in 1993.Today it has sold over 20 million copies.Which of the following most closely represents their strategy?

Strategic Management: Creating Competitive Advantages

Analyzing the External Environment of the Firm: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangible Resources

Business-Level Strategy: Creating and Sustaining Competitive Advantages

Corporate-Level Strategy: Creating Value Through Diversification

International Strategy: Creating Value in Global Markets

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

Generally speaking the opportunity recognition process consists of two phases of activity.They are and .