Question 1

Identify and briefly describe the major stages of entrepreneurial strategy.

Accepted Answer

Three major stages:
Stage 1 New entry generation - The generation of a new entry is the result of a combination of knowledge and other resources into a bundle that its creators hope will be valuable,rare,and difficult for others to imitate.Depending on how in-depth the instructor wants the answer items like market and technological knowledge,window of opportunity and error of omission/commission may be required/discussed.
Stage 2 New entry exploitation - comprised of choosing an entry strategy,a risk reduction strategy.Depending on how in-depth the instruction wants the answer items like first mover advantages/disadvantages,demand and technological uncertainty,adaptation,lead time,and narrow/broad scope strategies may be discussed.
Stage 3 Feedback loop of resources - a brief description is appropriate since not much time is spent on this stage.Answer may include items from the following excerpt obtained from the textbook," we should not underestimate the importance of the feedback loop of stage 3 because an entrepreneur cannot rely on the generation and exploitation of only one new entry;rather,long-run performance is dependent upon the ability to generate and exploit numerous new entries.If the firm does rely on only one new entry,then as the life cycle for the product enters maturity and declines,so goes the life cycle of the organization."

Question 2

The longer the entrepreneur takes to research a new entry,the less accurate customer demand estimates are.

Accepted Answer

A) True 
 B)False  False

Question 3

A broad-scope market strategy:

Accepted Answer

A) focuses on producing customized products. 
B) provides substantial protection against competitors. 
C) is used to reduce market uncertainty. 
D) is based primarily on product quality. 
A) focuses on producing customized products. 
B) provides substantial protection against competitors. 
C) is used to reduce market uncertainty. 
D) is based primarily on product quality. C

Question 4

List the 5 main first-mover advantages discussed in the text.

Accepted Answer

Cost advantages
Less competiti

Question 5

Offering a small product range to a small number of customer groups is:

Accepted Answer

A) a narrow-scope strategy. 
B) an imitation strategy. 
C) a broad-scope strategy. 
D) a way of reducing market uncertainties. 
A) a narrow-scope strategy. 
B) an imitation strategy. 
C) a broad-scope strategy. 
D) a way of reducing market uncertainties.

Question 6

Franchising:

Accepted Answer

A) is the only imitation strategy discussed in the text. 
B) reduces risk of downside loss. 
C) is the same as the me-too strategy. 
D) reduces the amount of competition an entrepreneur will face. 
A) is the only imitation strategy discussed in the text. 
B) reduces risk of downside loss. 
C) is the same as the me-too strategy. 
D) reduces the amount of competition an entrepreneur will face.

Question 7

An error of omission occurs from the decision not to act of a new entry opportunity when in hindsight they should have.

Accepted Answer

A) True 
 B)False

Question 8

Identify and describe the three major risk reduction strategies.
A.Narrow scope - A narrow-scope strategy offers a small product range to a small number of customer groups to satisfy a particular need.The narrow scope can reduce the risk that the firm will face competition with larger,more established firms in a number of ways.A narrow-scope strategy focuses the firm on producing customized products,localized business operations,and high levels of product quality.By focusing on a specific group of customers,the entrepreneur can build up specialized expertise and knowledge that provide an advantage over companies that are competing more broadly.The high end of the market typically represents a highly profitable niche.
B.Broad scope - broad-scope strategy can be thought of as taking a "portfolio" approach to dealing with uncertainties about the attractiveness of different market segments.By offering a range of products across many different market segments,the entrepreneur can gain an understanding of the whole market by determining which products are the most profitable.Unsuccessful products (and market segments)can then be dropped and resources concentrated on those product markets that show the greatest promise.In essence,the entrepreneur can cope with market uncertainty by using a broad-scope strategy to learn about the market through a process of trial and error.
C.Imitation strategies - Imitation is another strategy for minimizing the risk of downside loss associated with new entry.Imitation involves copying the practices of other firms,whether those other firms are in the industry being entered or from related industries.Entrepreneurs may simply find it easier to imitate the practices of a successful firm than to go through the process of a systematic and expensive search that still requires a decision based on imperfect information.In essence,imitation represents a substitute for individual learning.Imitating some of the practices of established successful firms can help the entrepreneur develop the skills necessary to be successful in the industry,rather than attempting to work out which skills are required and develop these skills from scratch.Imitation also provides organizational legitimacy.If the entrepreneur acts like a well established firm,it is likely to be perceived by customers as well established.Imitation is a means of gaining status and prestige.Customers feel more comfortable doing business with firms that they perceive to be established and prestigious.

Accepted Answer

The three major risk reduction strategie

Question 9

Knowledge is the basis of the entrepreneurial resource.

Accepted Answer

A) True 
 B)False

Question 10

First movers face:

Accepted Answer

A) market rigidities. 
B) high entry barriers. 
C) cost disadvantages. 
D) demand uncertainty. 
A) market rigidities. 
B) high entry barriers. 
C) cost disadvantages. 
D) demand uncertainty.

Question 11

Regarding entry into a new market,which of the following is(are)true?

Accepted Answer

A) First movers gain expertise through participation. 
B) First movers are not able to detect changes in the market. 
C) First movers suffer a cost disadvantage. 
D) First movers face more competitive rivalry. 
A) First movers gain expertise through participation. 
B) First movers are not able to detect changes in the market. 
C) First movers suffer a cost disadvantage. 
D) First movers face more competitive rivalry.

Question 12

An entrepreneurial strategy is the set of decisions,actions,and reactions that protect the firm from new entrants.

Accepted Answer

A) True 
 B)False

Question 13

Experience is idiosyncratic-unique to the life of the individual.

Accepted Answer

A) True 
 B)False

Question 14

By overestimating demand,the entrepreneur will suffer the costs of under capacity.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a reason that first movers are better positioned to satisfy their customers?

Accepted Answer

A) They have a chance to select and secure the most attractive segments of the market 
B) They have the chance to position themselves at the center of the market 
C) They have less uncertainty over the nature of the market 
D) They have a chance to establish their product as the industry standard 
A) They have a chance to select and secure the most attractive segments of the market 
B) They have the chance to position themselves at the center of the market 
C) They have less uncertainty over the nature of the market 
D) They have a chance to establish their product as the industry standard

Question 16

To be the basis of a firm's superior performance over competitors for an extended period of time,valuable and rare resources need to be:

Accepted Answer

A) inimitable. 
B) fully utilized. 
C) patented. 
D) shareD. 
A) inimitable. 
B) fully utilized. 
C) patented. 
D) shareD.

Question 17

Technological uncertainty:

Accepted Answer

A) is a result of uncertainty about customer demand. 
B) occurs because an alternative technology could be introduced by competitors. 
C) only occurs in emerging markets. 
D) can be avoided by early entrants with superior technology. 
A) is a result of uncertainty about customer demand. 
B) occurs because an alternative technology could be introduced by competitors. 
C) only occurs in emerging markets. 
D) can be avoided by early entrants with superior technology.

Question 18

By entering a market later,

Accepted Answer

A) customer uncertainties have already been substantially reduced. 
B) the venture can build a reputation as a "founder." 
C) the company can erect barriers to entry and imitation. 
D) the player gets to operate only for a grace perioD. 
A) customer uncertainties have already been substantially reduced. 
B) the venture can build a reputation as a "founder." 
C) the company can erect barriers to entry and imitation. 
D) the player gets to operate only for a grace perioD.

Question 19

The basic building blocks to a firm,or the inputs into the production process,are:

Accepted Answer

A) competition. 
B) strategy. 
C) liabilities. 
D) resources. 
A) competition. 
B) strategy. 
C) liabilities. 
D) resources.

Question 20

Which item is not part of the new entry generation stage in the entrepreneurial strategy process?

Accepted Answer

A) Technical knowledge 
B) Risk reduction strategies 
C) Rare resources 
D) Market Knowledge 
A) Technical knowledge 
B) Risk reduction strategies 
C) Rare resources 
D) Market Knowledge

Identify and briefly describe the major stages of entrepreneurial strategy.

The longer the entrepreneur takes to research a new entry,the less accurate customer demand estimates are.

A broad-scope market strategy:

List the 5 main first-mover advantages discussed in the text.

Offering a small product range to a small number of customer groups is:

Franchising:

An error of omission occurs from the decision not to act of a new entry opportunity when in hindsight they should have.

Knowledge is the basis of the entrepreneurial resource.

First movers face:

Regarding entry into a new market,which of the following is(are)true?

An entrepreneurial strategy is the set of decisions,actions,and reactions that protect the firm from new entrants.

Experience is idiosyncratic-unique to the life of the individual.

By overestimating demand,the entrepreneur will suffer the costs of under capacity.

Which of the following is not a reason that first movers are better positioned to satisfy their customers?

To be the basis of a firm's superior performance over competitors for an extended period of time,valuable and rare resources need to be:

Technological uncertainty:

By entering a market later,

The basic building blocks to a firm,or the inputs into the production process,are:

Which item is not part of the new entry generation stage in the entrepreneurial strategy process?

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

The Financial Plan

Sources of Capital

Informal Risk Capital, Venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Accessing Resources for Growth From External Sources

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters

Exam 3: Entrepreneurial Strategy: Generating and Exploiting New Entries

Identify and briefly describe the major stages of entrepreneurial strategy.

The longer the entrepreneur takes to research a new entry,the less accurate customer demand estimates are.

A broad-scope market strategy:

List the 5 main first-mover advantages discussed in the text.

Offering a small product range to a small number of customer groups is:

Franchising:

An error of omission occurs from the decision not to act of a new entry opportunity when in hindsight they should have.

Knowledge is the basis of the entrepreneurial resource.

First movers face:

Regarding entry into a new market,which of the following is(are)true?

An entrepreneurial strategy is the set of decisions,actions,and reactions that protect the firm from new entrants.

Experience is idiosyncratic-unique to the life of the individual.

By overestimating demand,the entrepreneur will suffer the costs of under capacity.

Which of the following is not a reason that first movers are better positioned to satisfy their customers?

To be the basis of a firm's superior performance over competitors for an extended period of time,valuable and rare resources need to be:

Technological uncertainty:

By entering a market later,

The basic building blocks to a firm,or the inputs into the production process,are:

Which item is not part of the new entry generation stage in the entrepreneurial strategy process?

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

The Financial Plan

Sources of Capital

Informal Risk Capital, Venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Accessing Resources for Growth From External Sources

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters