Question 1

Market scope is important because:

Accepted Answer

A)  it helps business owners in determining the size of the target market. 
B)  it helps business owners to decide where to focus their sales and advertising efforts. 
C)  it helps business owners in designing a product. 
D)  it helps business owners in calculating their magic number.

Question 2

The first step of the strategic planning process for small businesses is considering your customers and the benefits you want to offer them.

Accepted Answer

A) True 
 B)False

Question 3

A research process that provides the entrepreneur with key information about other firms in the same line of business as his or her,the current situation and trends is known as:

Accepted Answer

A)  SWOT analysis. 
B)  VRIO analysis. 
C)  value chain analysis. 
D)  industry analysis.

Question 4

Which of the following is true of the introduction stage of a product?

Accepted Answer

A)  Sales are almost always high. 
B)  Most customers are unaware of the offerings. 
C)  Firms begin to compete on features and prices. 
D)  Some products turn out to be extremely popular.

Question 5

Changes in competitors,sales and profits in an industry over time are referred to as:

Accepted Answer

A)  industry dynamics. 
B)  retrenchment. 
C)  shake-out. 
D)  transformational competency.

Question 6

Imitation minus one degree of similarity is the business equivalent of an innovative strategy.

Accepted Answer

A) True 
 B)False

Question 7

In the context of entry wedges,market relinquishment occurs when:

Accepted Answer

A)  the government changes the laws. 
B)  business firms leave a market. 
C)  customers are willing to sign a contract with small businesses to ensure the supply of a product. 
D)  new products are in demand.

Question 8

Retrenchment is:

Accepted Answer

A)  the third life cycle stage. 
B)  a stage marked by a stabilization of demand. 
C)  a type of life cycle stage following a boom in which there is a rapid decrease in the number of firms. 
D)  an organizational life cycle stage in which established firms must find new approaches to improve the business.

Question 9

In the context of entry wedges,_____ occurs because government agencies,government-sponsored commercial contracts,and many big businesses have policies that provide for quotas for buying from small businesses.

Accepted Answer

A)  second sourcing 
B)  favored purchasing 
C)  market relinquishment 
D)  customer contracting

Question 10

What are the different types of generic strategies?

Accepted Answer

The answer of What are the different types of generic...

Question 11

Which of the following is an advantage of using an imitative strategy?

Accepted Answer

A)  It allows entrepreneurs to do something that is very different from what others are doing. 
B)  It allows business owners to buy existing technologies. 
C)  It allows entrepreneurs to fit their businesses to their own ideas and preferences. 
D)  It allows business owners to create unique settings.

Question 12

_____ is the general name for the line of product or service being sold,or the firms in that line of business.

Accepted Answer

A)  Industry 
B)  Market 
C)  Scope 
D)  Niche group

Question 13

A _____ displays characteristics related to the nature of a product or service itself.

Accepted Answer

A)  value benefit 
B)  cost benefit 
C)  scale saving 
D)  cause and effect diagram

Question 14

Market scale refers to the geography of the target market.

Accepted Answer

A) True 
 B)False

Question 15

Patents and trademarks are popular strategic actions for protecting a firm from competition.

Accepted Answer

A) True 
 B)False

Question 16

As a new entrepreneur,Anthony's magic number for 2013 is $42,000.If the current tax rate for his business is 30 percent,calculate the amount that Anthony's firm would need to sell for him to get his magic number.

Accepted Answer

A)  $50,000 
B)  $50,495 
C)  $60,000 
D)  $60,854

Question 17

An overall strategic approach in which a firm patterns itself on other firms,with the exception of one or two key areas is referred to as _____.

Accepted Answer

A)  pure innovation 
B)  niche strategy 
C)  incremental innovation 
D)  blue ocean strategy

Question 18

In the context of entry wedges,which of the following is the key benefit of rule changes by the government?

Accepted Answer

A)  Place 
B)  Delivery 
C)  Quality 
D)  Technology

Question 19

Second sourcing provides customers with greater certainty of supplies or services.

Accepted Answer

A) True 
 B)False

Question 20

What are the four key decisions that entrepreneurs need to make to build the strategy for their firms?

Accepted Answer

The answer of What are the four key decisions that...

Exam 7: Small Business Strategies: Imitation With a Twist

Market scope is important because:

The first step of the strategic planning process for small businesses is considering your customers and the benefits you want to offer them.

A research process that provides the entrepreneur with key information about other firms in the same line of business as his or her,the current situation and trends is known as:

Which of the following is true of the introduction stage of a product?

Changes in competitors,sales and profits in an industry over time are referred to as:

Imitation minus one degree of similarity is the business equivalent of an innovative strategy.

In the context of entry wedges,market relinquishment occurs when:

Retrenchment is:

In the context of entry wedges,_____ occurs because government agencies,government-sponsored commercial contracts,and many big businesses have policies that provide for quotas for buying from small businesses.

What are the different types of generic strategies?

Which of the following is an advantage of using an imitative strategy?

_____ is the general name for the line of product or service being sold,or the firms in that line of business.

A _____ displays characteristics related to the nature of a product or service itself.

Market scale refers to the geography of the target market.

Patents and trademarks are popular strategic actions for protecting a firm from competition.

As a new entrepreneur,Anthony's magic number for 2013 is $42,000.If the current tax rate for his business is 30 percent,calculate the amount that Anthony's firm would need to sell for him to get his magic number.

An overall strategic approach in which a firm patterns itself on other firms,with the exception of one or two key areas is referred to as _____.

In the context of entry wedges,which of the following is the key benefit of rule changes by the government?

Second sourcing provides customers with greater certainty of supplies or services.

What are the four key decisions that entrepreneurs need to make to build the strategy for their firms?