Question 1

Vision is an important element of entrepreneurial leadership because

Accepted Answer

A)   a vision statement is part of the documentation used to obtain venture financing.
B)   the entrepreneur has to envision realities that do not yet exist.
C)   organizations cannot function without a detailed and operational vision.
D)   banking institutions require it.E) A) and D)
F) All of the above

Question 2

Opportunities can be found through a structured search process. The example of Ancient Ales with their innovative line of craft beers demonstrates which of the following types of structured search?

Accepted Answer

A)   Identify frustrations with current products or processes.
B)   Talk to people who know including suppliers, customers, frontline employees.
C)   Borrow ideas from other markets.
D)   Find historical ideas and re-purpose them.E) A) and B)
F) A) and C)

Question 3

________ is a value required when an opportunity is attractive long enough for it to be successfully developed and deployed.

Accepted Answer

A)   Value creating
B)   Durable
C)   Achievable
D)   AffordableE) B) and C)
F) A) and C)

Question 4

An entry wedge is a type of entrepreneurial strategy firms can use to enter into business.

Accepted Answer

A) True 
 B)False

Question 5

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)   imitativeE) A) and B)
F) None of the above

Question 6

The best example of a tactical action that a company might use in response to a competitive attack is to

Accepted Answer

A)   acquire the competitor.
B)   offer price discounts and rebates.
C)   expand into new geographical areas.
D)   target the markets of the rival.E) All of the above
F) A) and B)

Question 7

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.E) None of the above
F) A) and B)

Question 8

Small businesses create the majority of new jobs in the U.S. economy.

Accepted Answer

A) True 
 B)False

Question 9

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.E) None of the above
F) C) and D)

Question 10

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 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.E) B) and C)
F) A) and C)

Question 12

Competitors in a mature market typically find that a new entrant is threatening because

Accepted Answer

A)   nearly all market need is already being met.
B)   the new entrant might increase prices.
C)   the new entrant offers the same product.
D)   the new entrant is a pioneer.E) B) and C)
F) A) and B)

Question 13

BCG authors Stalk and Lachenauer published a book in which they listed competitive strategy for winning against incumbent rivals. Which of the following is not one of their suggested strategies?

Accepted Answer

A)   devastate profit sanctuaries of rivals
B)   lower competitor costs
C)   unleash massive and overwhelming force
D)   plagiarize with pride and deceive the competitionE) A) and B)
F) B) and D)

Question 14

Which of the below best describes the competitive tendencies of small firms?

Accepted Answer

A)   Small firms tend to signal their competitive actions long before they launch those actions because they lack legitimacy in the marketplace.
B)   Small firms typically have more resources available as they undertake competitive attacks than do large firms.
C)   Small firms are more nimble and can respond quickly to competitive attacks.
D)   Small firms are more nimble and cannot respond quickly to competitive attacks.E) All of the above
F) C) and D)

Question 15

When an industry is mature, a(n)  ________ strategy is considered one of the most effective approaches for a new entrant.

Accepted Answer

A)   focus
B)   differentiation
C)   overall low-cost
D)   small businessE) All of the above
F) A) and C)

Question 16

The majority of entrepreneurial start-ups are financed through monies from

Accepted Answer

A)   bank financing.
B)   SBA loans.
C)   personal savings and the contributions of family and friends.
D)   venture-capital financing.E) All of the above
F) B) and D)

Question 17

The business-to-business cleaning supply company, Ecolab, encouraged a leading competitor, Diversity, to adopt a strategy to go after low-volume, high-margin customers. What Ecolab knew that Diversity did not is that the high servicing costs involved with the segment makes it unprofitable. Ecolab bid high enough to lose the contracts to Diversity but low enough to ensure that Diversity lost money. According to the Stalk and Lachenauerbook, this is an example of the strategy to

Accepted Answer

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

Question 18

Smell-O-Vision designed an invention to pump odors into movie theatres. It flopped, in spite of its innovativeness. What kind of new entry strategy was the company using to penetrate the market?

Accepted Answer

A)   imitative
B)   adaptive
C)   pioneering
D)   differentiatedE) None of the above
F) A) and C)

Question 19

Choosing which new entry strategy is best depends on competitive financial and marketplace considerations. The greatest opportunities most likely will be in existing markets, rather than innew markets.

Accepted Answer

A) True 
 B)False

Question 20

Telecommunication equipment providers, Huawei and Nokia, have a high degree of ________ because they have patent rights to similar technologies, high-quality engineering staffs, and globalsales forces.

Accepted Answer

A)   dynamic capabilities
B)   resource similarity
C)   market commonality
D)   equity fundingE) None of the above
F) B) and C)

Exam 8: Entrepreneurial Strategy and Competitive Dynamics

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

Correct Answer
verified

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

Correct Answer
verified

Opportunities can be found through a structured search process. The example of Ancient Ales with their innovative line of craft beers demonstrates which of the following types of structured search?

Correct Answer
verified

An entry wedge is a type of entrepreneurial strategy firms can use to enter into business.

Correct Answer
verified

Which of the below best describes the competitive tendencies of small firms?

Correct Answer
verified

Correct Answer
verified

When an industry is mature, a(n) ________ strategy is considered one of the most effective approaches for a new entrant.

Correct Answer
verified

The best example of a tactical action that a company might use in response to a competitive attack is to

Correct Answer
verified

Telecommunication equipment providers, Huawei and Nokia, have a high degree of ________ because they have patent rights to similar technologies, high-quality engineering staffs, and globalsales forces.

Correct Answer
verified

The majority of entrepreneurial start-ups are financed through monies from

Correct Answer
verified

Competitors in a mature market typically find that a new entrant is threatening because

Correct Answer
verified

Smell-O-Vision designed an invention to pump odors into movie theatres. It flopped, in spite of its innovativeness. What kind of new entry strategy was the company using to penetrate the market?

Correct Answer
verified

Correct Answer
verified

Strategic competitive actions include all the following except

Correct Answer
verified

________ is a value required when an opportunity is attractive long enough for it to be successfully developed and deployed.

Correct Answer
verified

BCG authors Stalk and Lachenauer published a book in which they listed competitive strategy for winning against incumbent rivals. Which of the following is not one of their suggested strategies?

Correct Answer
verified

Choosing which new entry strategy is best depends on competitive financial and marketplace considerations. The greatest opportunities most likely will be in existing markets, rather than innew markets.

Correct Answer
verified

Small businesses create the majority of new jobs in the U.S. economy.

Correct Answer
verified

Vision is an important element of entrepreneurial leadership because

Correct Answer
verified

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?

Correct Answer
verified

Exam 8: Entrepreneurial Strategy and Competitive Dynamics

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Opportunities can be found through a structured search process. The example of Ancient Ales with their innovative line of craft beers demonstrates which of the following types of structured search?

Correct AnswerverifiedShow Answer

An entry wedge is a type of entrepreneurial strategy firms can use to enter into business.

Correct AnswerverifiedShow Answer

Which of the below best describes the competitive tendencies of small firms?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When an industry is mature, a(n) ________ strategy is considered one of the most effective approaches for a new entrant.

Correct AnswerverifiedShow Answer

The best example of a tactical action that a company might use in response to a competitive attack is to

Correct AnswerverifiedShow Answer

Telecommunication equipment providers, Huawei and Nokia, have a high degree of ________ because they have patent rights to similar technologies, high-quality engineering staffs, and globalsales forces.

Correct AnswerverifiedShow Answer

The majority of entrepreneurial start-ups are financed through monies from

Correct AnswerverifiedShow Answer

Competitors in a mature market typically find that a new entrant is threatening because

Correct AnswerverifiedShow Answer

Smell-O-Vision designed an invention to pump odors into movie theatres. It flopped, in spite of its innovativeness. What kind of new entry strategy was the company using to penetrate the market?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Strategic competitive actions include all the following except

Correct AnswerverifiedShow Answer

________ is a value required when an opportunity is attractive long enough for it to be successfully developed and deployed.

Correct AnswerverifiedShow Answer

BCG authors Stalk and Lachenauer published a book in which they listed competitive strategy for winning against incumbent rivals. Which of the following is not one of their suggested strategies?

Correct AnswerverifiedShow Answer

Choosing which new entry strategy is best depends on competitive financial and marketplace considerations. The greatest opportunities most likely will be in existing markets, rather than innew markets.

Correct AnswerverifiedShow Answer

Small businesses create the majority of new jobs in the U.S. economy.

Correct AnswerverifiedShow Answer

Vision is an important element of entrepreneurial leadership because

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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