Question 1

Which of the following is not a primary source of financing for entrepreneurial start-ups?

Accepted Answer

A)  investments by family and friends 
B)  public equity 
C)  private investors 
D)  personal savings 
A)  investments by family and friends 
B)  public equity 
C)  private investors 
D)  personal savings

Question 2

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 3

________ is the process of identifying, selecting, and developing new venture opportunities.

Accepted Answer

A)  Innovativeness 
B)  Bootstrapping 
C)  Opportunity recognition 
D)  Brainstorming 
A)  Innovativeness 
B)  Bootstrapping 
C)  Opportunity recognition 
D)  Brainstorming

Question 4

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 5

In designing its smartphones, Samsung copied the look, feel, and technological attributes of the Apple iPhone. By copying Apple, Samsung was able to improve its market position. Accordingto the Stalk and Lachenauer book, this is an example of strategy to

Accepted Answer

A)  plagiarize with pride. 
B)  deceive the competition. 
C)  raise competitor costs. 
D)  unleash massive and overwhelming force. 
A)  plagiarize with pride. 
B)  deceive the competition. 
C)  raise competitor costs. 
D)  unleash massive and overwhelming force.

Question 6

Forbearance is a particularly aggressive type of competitive attack.

Accepted Answer

A) True 
 B)False

Question 7

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 ________ new entry.

Accepted Answer

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

Question 8

New ventures may find it difficult to use differentiation strategies successfully because they lack ________ and ________.

Accepted Answer

A)  sufficient funding; superior innovation 
B)  competitors; superior technology 
C)  sufficient funding; qualified entrepreneurs 
D)  innovative ideas; potential customers 
A)  sufficient funding; superior innovation 
B)  competitors; superior technology 
C)  sufficient funding; qualified entrepreneurs 
D)  innovative ideas; potential customers

Question 9

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

Question 10

Adaptive new entry involves offering a radical new product or highly innovative service.

Accepted Answer

A) True 
 B)False

Question 11

Entrepreneurial firms are often in a strong position to use combination strategies, because they have the flexibility to approach situations uniquely.

Accepted Answer

A) True 
 B)False

Question 12

The new entry strategy that a firm chooses is dependent upon the ________ and the ________ of the new business concept.

Accepted Answer

A)  riskiness; cost 
B)  riskiness; potential sales 
C)  riskiness; innovativeness 
D)  idea; innovativeness 
A)  riskiness; cost 
B)  riskiness; potential sales 
C)  riskiness; innovativeness 
D)  idea; innovativeness

Question 13

When GM offers discounts and incentives, rivals Ford and Chrysler cannot afford to ignore the challenge and quickly follow suit. Which one of the following is a reason Ford and Chrysler are more likely to respond?

Accepted Answer

A)  a history of forbearance with GM 
B)  a history of co-opetition with GM 
C)  the reputation and history of GM in the market 
D)  GM's resources 
A)  a history of forbearance with GM 
B)  a history of co-opetition with GM 
C)  the reputation and history of GM in the market 
D)  GM's resources

Question 14

New entry into markets, whether by start-ups or by incumbent firms, rarely threatens existing competitors.

Accepted Answer

A) True 
 B)False

Question 15

According to the text, which of the following does not make it difficult for entrepreneurial firms to effectively pursue a strategy of differentiation?

Accepted Answer

A)  Differentiation strategies are often expensive to enact. 
B)  Incumbent firms are constantly seeking opportunities to specialize in market niches. 
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. 
A)  Differentiation strategies are often expensive to enact. 
B)  Incumbent firms are constantly seeking opportunities to specialize in market niches. 
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.

Question 16

Founded in 1995, Under Armour, Inc. sells undershirts and other athletic gear using moisture-wicking fabric for sweaty sports. By 2016, it reached the number two athletic clothing firmspot with over 4.5 billion in sales. It used which new entry strategy in 2005?

Accepted Answer

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

Question 17

The first personal computer revolutionized computing and how business is conducted. It was using a(n) ________ entry strategy.

Accepted Answer

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

Question 18

According to the text, new ventures launched by entrepreneurial teams are more likely to be successful than ventures launched by

Accepted Answer

A)  established corporations. 
B)  lone wolf entrepreneurs. 
C)  bootstraps. 
D)  individual investors. 
A)  established corporations. 
B)  lone wolf entrepreneurs. 
C)  bootstraps. 
D)  individual investors.

Question 19

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 20

Which of the following is not one of the reasons a company might launch new competitive actions?

Accepted Answer

A)  to obtain first mover advantages 
B)  to improve market position 
C)  to find new sources of raw materials 
D)  to capitalize on growing demand 
A)  to obtain first mover advantages 
B)  to improve market position 
C)  to find new sources of raw materials 
D)  to capitalize on growing demand

Which of the following is not a primary source of financing for entrepreneurial start-ups?

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

________ is the process of identifying, selecting, and developing new venture opportunities.

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

In designing its smartphones, Samsung copied the look, feel, and technological attributes of the Apple iPhone. By copying Apple, Samsung was able to improve its market position. Accordingto the Stalk and Lachenauer book, this is an example of strategy to

Forbearance is a particularly aggressive type of competitive attack.

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 ________ new entry.

New ventures may find it difficult to use differentiation strategies successfully because they lack and .

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?

Adaptive new entry involves offering a radical new product or highly innovative service.

Entrepreneurial firms are often in a strong position to use combination strategies, because they have the flexibility to approach situations uniquely.

The new entry strategy that a firm chooses is dependent upon the and the of the new business concept.

When GM offers discounts and incentives, rivals Ford and Chrysler cannot afford to ignore the challenge and quickly follow suit. Which one of the following is a reason Ford and Chrysler are more likely to respond?

New entry into markets, whether by start-ups or by incumbent firms, rarely threatens existing competitors.

According to the text, which of the following does not make it difficult for entrepreneurial firms to effectively pursue a strategy of differentiation?

Founded in 1995, Under Armour, Inc. sells undershirts and other athletic gear using moisture-wicking fabric for sweaty sports. By 2016, it reached the number two athletic clothing firmspot with over 4.5 billion in sales. It used which new entry strategy in 2005?

The first personal computer revolutionized computing and how business is conducted. It was using a(n) ________ entry strategy.

According to the text, new ventures launched by entrepreneurial teams are more likely to be successful than ventures launched by

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

Which of the following is not one of the reasons a company might launch new competitive actions?

Strategic Management Creating Competitive Advantages

Analyzing the External Environment of the Firm Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firm's Intellectual Assets Moving beyond a Firm's 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

Which of the following is not a primary source of financing for entrepreneurial start-ups?

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

________ is the process of identifying, selecting, and developing new venture opportunities.

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

In designing its smartphones, Samsung copied the look, feel, and technological attributes of the Apple iPhone. By copying Apple, Samsung was able to improve its market position. Accordingto the Stalk and Lachenauer book, this is an example of strategy to

Forbearance is a particularly aggressive type of competitive attack.

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 ________ new entry.

New ventures may find it difficult to use differentiation strategies successfully because they lack ________ and ________.

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?

Adaptive new entry involves offering a radical new product or highly innovative service.

Entrepreneurial firms are often in a strong position to use combination strategies, because they have the flexibility to approach situations uniquely.

The new entry strategy that a firm chooses is dependent upon the ________ and the ________ of the new business concept.

When GM offers discounts and incentives, rivals Ford and Chrysler cannot afford to ignore the challenge and quickly follow suit. Which one of the following is a reason Ford and Chrysler are more likely to respond?

New entry into markets, whether by start-ups or by incumbent firms, rarely threatens existing competitors.

According to the text, which of the following does not make it difficult for entrepreneurial firms to effectively pursue a strategy of differentiation?

Founded in 1995, Under Armour, Inc. sells undershirts and other athletic gear using moisture-wicking fabric for sweaty sports. By 2016, it reached the number two athletic clothing firmspot with over 4.5 billion in sales. It used which new entry strategy in 2005?

The first personal computer revolutionized computing and how business is conducted. It was using a(n) ________ entry strategy.

According to the text, new ventures launched by entrepreneurial teams are more likely to be successful than ventures launched by

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

Which of the following is not one of the reasons a company might launch new competitive actions?

Strategic Management Creating Competitive Advantages

Analyzing the External Environment of the Firm Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firm's Intellectual Assets Moving beyond a Firm's 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 .

New ventures may find it difficult to use differentiation strategies successfully because they lack and .

The new entry strategy that a firm chooses is dependent upon the and the of the new business concept.