Question 1

Entrepreneurship is the process by which individuals or groups identify and pursue ____ without being immediately constrained by the ____ they currently control.

Accepted Answer

A)   opportunities; resources
B)   opportunities; core competencies
C)   threats; resources
D)   threats; core competencies A

Question 2

Acquisitions are a means of extending the company's product line and increasing revenues. The capital market values growth. Therefore, some firms make acquisitions to improve their standing in the capital markets.

Accepted Answer

A) True 
 B)False  True

Question 3

Case Scenario 1: Fear Not.
Wim Vijkland was trained as an engineer in the Netherlands and, after college, worked several years in the Chinese operations of Philips Electronics and then Unilever. Between employers he returned home for several years to complete an MBA from Tiburg University in the southern Netherlands. His work gave him hands-on experience with overseas production, and rich sets of contacts in Mainland China and distribution channels in Europe and the U.S. Wim has noted that many small and mid-sized European and U.S. manufacturers are interested in and would benefit from the low-cost Chinese production environment. Contrary to external stereotypes, he also believes that a Chinese factory can produce products that meet the most demanding technical and quality specifications met by manufacturers in more developed economies. At the same time, Vijkland understands that "foreigners" are generally reluctant to manufacture precision products in China for fear that the underlying proprietary technologies will be bootlegged and sold to competitors or outright copied. In an attempt to capitalize on this opportunity, Wim quit his job with Unilever and entered into a partnership with Sulin "Cathy" Liu, a local Beijing entrepreneur with whom Wim has worked extensively in the past. Cathy has a Ph.D. in physics from CalTech in California and an MBA from Hong Kong University of Science and Technology. They have dubbed their partnership FearNot, and organized it as a limited liability corporation (LLC). Their plan is to set up duty-free manufacturing zones in which they develop mini-factories that operate under their ownership and production guidance, while at the same time creating a firewall between the clients' proprietary production processes and the open Chinese market. It is the partners' hope that this combination of intellectual property protection and low-cost overseas production will provide U.S. and European firms an incentive to enlist FearNot's services.
-(Refer to Case Scenario 1) The likelihood of success of FearNot is increased because both Wim Vijkland and Cathy Liu to have international backgrounds.

Accepted Answer

A) True 
 B)False  True

Question 4

The use or application of entrepreneurship within an established firm is called

Accepted Answer

A)   corporate emergence.
B)   transformational leadership.
C)   exceptional R&D.
D)   corporate entrepreneurship.

Question 5

Given the rapid rate of technological change, patents are not a useful gauge of a firm's entrepreneurial prowess.

Accepted Answer

A) True 
 B)False

Question 6

Since it replaces existing products and methods of production, entrepreneurship is a process of

Accepted Answer

A)   harnessing the human potential.
B)   creative destruction.
C)   creation of opportunity.
D)   exploitation of innovation.

Question 7

The dimensions on which functional departments can vary include all the following EXCEPT ____ orientation.

Accepted Answer

A)   time
B)   customer
C)   technological
D)   interpersonal.

Question 8

The development of the original personal computer (PC) was a(n) ____ innovation at the time, whereas adding a different kind of whitening agent to a soap detergent in an example of a(n) ____ innovation.

Accepted Answer

A)   incremental; radical
B)   radical; incremental
C)   concentric; radical
D)   radical; concentric

Question 9

Panera Bread develops and produces its own dough-based products, but it works with manufacturing partners to create new soups. Panera Bread is therefore

Accepted Answer

A)   increasing its costs and reducing its potential to succeed.
B)   engaged in internal corporate venturing.
C)   pursuing innovation through both internal and cooperative strategies.
D)   not an innovative company.

Question 10

The level of entrepreneurial activity in a nation is ____ the nation's level of economic development.

Accepted Answer

A)   negatively related to
B)   independent of
C)   positively related to
D)   weakly related to

Question 11

The network of strategic alliances built by an organization is a form of intellectual capital from which the organization can draw to develop innovations.

Accepted Answer

A) True 
 B)False

Question 12

One of the distinguishing differences between the two sources of internal corporate venturing (autonomous strategic behavior and induced strategic behavior) is whether the innovation process

Accepted Answer

A)   is encouraged through a bottom-up or top-down process.
B)   is encouraged by a product champion or an entrepreneur external to the organization.
C)   relies on internal structure or existing strategy to encourage innovation.
D)   is in a large or small organization.

Question 13

In the Chapter 13 Strategic Focus, 3M uses ____________ to identify new technologies and products that can better serve its customers.

Accepted Answer

A)   autonomous strategic behavior
B)   induced strategic behavior
C)   imitation of competitors' products
D)   horizontal acquisitions

Question 14

Discuss the methods an organization can use to facilitate cross-functional integration.

Accepted Answer

The answer of Discuss the methods an organization can use...

Question 15

Research suggests that _________ is needed to encourage entrepreneurial behavior.

Accepted Answer

A)   individualism rather than collectivism
B)   a balance between individualism and cooperative behavior
C)   collectivism rather than individualism
D)   limited autonomy and incentives

Question 16

Discuss the potential benefits and disadvantages of innovation through cooperative strategies.

Accepted Answer

The answer of Discuss the potential benefits and disadvantages of...

Question 17

A successful ____ innovation will be less risky but less profitable than a successful ____ innovation.

Accepted Answer

A)   incremental, radical
B)   radical, incremental
C)   alliance-generated, acquisition-generated
D)   acquisition-generated, alliance-generated

Question 18

Induced strategic behavior is a process that fosters product innovations that

Accepted Answer

A)   are likely to change a firm's strategic intent and mission.
B)   will lead to greater financial returns.
C)   are aligned closely with current strategy and structure.
D)   will come to market in a short period of time.

Question 19

Entrepreneurial ventures often produce more radical innovations than do their larger, more established counterparts.

Accepted Answer

A) True 
 B)False

Question 20

Discuss the benefits and risks of acquiring another firm to gain access to innovations.

Accepted Answer

The answer of Discuss the benefits and risks of acquiring...

Exam 13: Entrepreneurial Implications for Strategy

Entrepreneurship is the process by which individuals or groups identify and pursue without being immediately constrained by the they currently control.

Acquisitions are a means of extending the company's product line and increasing revenues. The capital market values growth. Therefore, some firms make acquisitions to improve their standing in the capital markets.

The use or application of entrepreneurship within an established firm is called

Given the rapid rate of technological change, patents are not a useful gauge of a firm's entrepreneurial prowess.

Since it replaces existing products and methods of production, entrepreneurship is a process of

The dimensions on which functional departments can vary include all the following EXCEPT ____ orientation.

The development of the original personal computer (PC) was a(n) innovation at the time, whereas adding a different kind of whitening agent to a soap detergent in an example of a(n) innovation.

Panera Bread develops and produces its own dough-based products, but it works with manufacturing partners to create new soups. Panera Bread is therefore

The level of entrepreneurial activity in a nation is ____ the nation's level of economic development.

The network of strategic alliances built by an organization is a form of intellectual capital from which the organization can draw to develop innovations.

One of the distinguishing differences between the two sources of internal corporate venturing (autonomous strategic behavior and induced strategic behavior) is whether the innovation process

In the Chapter 13 Strategic Focus, 3M uses ____________ to identify new technologies and products that can better serve its customers.

Discuss the methods an organization can use to facilitate cross-functional integration.

Research suggests that _________ is needed to encourage entrepreneurial behavior.

Discuss the potential benefits and disadvantages of innovation through cooperative strategies.

A successful innovation will be less risky but less profitable than a successful innovation.

Induced strategic behavior is a process that fosters product innovations that

Entrepreneurial ventures often produce more radical innovations than do their larger, more established counterparts.

Discuss the benefits and risks of acquiring another firm to gain access to innovations.