Entrepreneurship and Strategy
Exam Review
Course Introduction
This course explores the fundamentals of entrepreneurship, emphasizing the development and execution of effective business strategies in dynamic market environments. Students will learn to identify and evaluate new business opportunities, craft compelling business models, and develop strategic plans that foster sustainable growth and competitive advantage. Through case studies, interactive discussions, and real-world projects, participants will gain practical insights into leadership, innovation, resource acquisition, and risk management, equipping them with the skills necessary to launch and grow successful ventures.
Recommended Textbook
Strategic Management 4th Edition by Frank Rothaermel
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12 Chapters
1217 Verified Questions
1217 Flashcards
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Chapter 1: What Is Strategy
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/2745
Sample Questions
Q1) As the strategic manager of CutRite Scissors, you are tasked with producing a strategy for introducing a new line of premium scissors. Your competitor produces a line of similar scissors at a cost of $1 and sells them for $12. Because your company has inferior production capabilities, your scissors will cost $3 each to produce. However, your handle is proven to be more comfortable than your competitors'. Assuming you are guaranteed to sell the same number of units as your competitor, which of the following strategies is most likely to achieve a competitive advantage?
A) Reduce the quality of materials used in CutRite scissors to bring unit costs down to $1, then sell the scissors for $12.
B) Continue to produce CutRite scissors for $3 but set the price at $10.
C) Offer a buy-one-get-one-free sale on CutRite scissors.
D) Market CutRite scissors as a higher-quality alternative and sell them for $15.
Answer: D
Q2) Managers should create two sets of core values, one for employees and one for themselves.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Strategic Leadership: Managing the Strategy Process
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101 Verified Questions
101 Flashcards
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Sample Questions
Q1) Who are a firm's stakeholders?
Answer: Stakeholders are organizations, groups, and individuals who can affect or be affected by a firm's actions. Stakeholders have a vested claim or interest in the performance and continued survival of the firm. Stakeholders can be grouped by whether they are internal or external to a firm. All stakeholders make specific contributions to a firm, which in turn provides different types of benefits to different stakeholders.
Q2) Briefly describe the level-5 leadership pyramid.
Answer: According to the Level-5 leadership pyramid, effective strategic leaders go through a natural progression of five different levels. Each level builds upon the previous one; the manager can move on to the next level of leadership only when the current level has been mastered. The five levels are: highly capable individual, contributing team member, competent manager, effective leader, and executive.
Q3) The autocratic strategic management process exhibited by the former head of Apple, Steve Jobs, is best described as an emergent strategy.
A)True
B)False
Answer: False
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Chapter 3: External Analysis: Industry Structure,
Competitive Forces, and Strategic Groups
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101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/2747
Sample Questions
Q1) How do low interest rates affect a business?
A) Firms tend to defer investments until rates rise.
B) Firms can easily borrow money to finance future growth.
C) Consumer demand slows down.
D) Business credit is harder to obtain.
Answer: B
Q2) A local manufacturer that wants to be a global manufacturer faces few mobility barriers because it has not yet invested in supply chains, which can become outdated and expensive.
A)True
B)False
Answer: False
Q3) When fashion magazines face competition from fashion blogs on the web, which of the following forces in Michael Porter's five forces model primarily gets stronger?
A) the emergence of entry barriers
B) the bargaining power of suppliers
C) the availability of complements
D) the threat of substitutes
Answer: D
Page 5
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Chapter 4: Internal Analysis: Resources, Capabilities, and Core Competencies
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105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/2748
Sample Questions
Q1) Organizational and managerial skills that find their expression in a company's structure, routines, and culture are referred to as
A) tangible resources.
B) reserves.
C) capital gains.
D) capabilities.
Q2) Provide an example of how dynamic capabilities can benefit firms.
Q3) Merton's Toothpaste has been the leader of dental care products for about 40 years. However, this company relied too long on its competency of reducing cavities without refining or upgrading other aspects of its product. As a result, other personal hygiene companies that began to offer toothpastes with natural whitening agents gained a competitive advantage over Merton's. This case is an example of A) resource flow.
B) dynamic capabilities.
C) core rigidity.
D) value chain.
Q4) Compare and contrast tangible and intangible resources.
Q5) Elaborate on the resource-based view of competitive advantage.
Q6) Define the value chain.
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Chapter 5: Competitive Advantage, Firm Performance, and Business Models
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Which of the following statements is true of accounting data?
A) Accounting data focus mainly on intangible assets, rather than tangible assets.
B) Accounting data are historical data and thus backward-looking.
C) Accounting data do not have to be adjusted in any manner to compare companies with different capital structures.
D) Accounting data consider off-balance sheet items, such as pension obligations of a firm.
Q2) In an economic context, strategy for producers is primarily about
A) distributing the economic value created equally between consumers and themselves.
B) reducing the difference between consumer's willingness to pay for a product and the cost to produce it.
C) capturing the economic value created as much as possible.
D) lowering producer surplus and increasing consumer surplus.
Q3) How does the triple-bottom line approach help managers? Explain with the help of an example.
Q4) What are the drawbacks of using total return to shareholders and firm market capitalization to measure firm performance?
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Chapter 6: Business Strategy: Differentiation, Cost
Leadership, and Blue Oceans
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) When pursuing a Blue Ocean strategy, a firm in a crowded marketplace attempts to out-compete rivals on both cost and product features with the goal of gaining market share at the expense of other competitors in the same industry.
A)True
B)False
Q2) Petra's Programming competes on cost with WonderWeb in the web design industry. Both firms operate on a 90 percent learning curve, and neither firm is capable of increasing its cumulative output any further. How might Petra's Programming achieve a cost leadership position while maintaining customer satisfaction?
A) by increasing the amount of time the company spends on each website by 25 percent without raising prices
B) by eliminating costly service features like 24/7 customer support
C) by reducing its client base and lowering output
D) by incorporating new programming techniques to take advantage of experience curve effects
Q3) Why are differentiation and cost-leadership strategies called generic strategies?
Q4) What does a firm that pursues a cost-leadership strategy primarily focus on?
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Chapter 7: Business Strategy: Innovation, Entrepreneurship, and Platforms
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) As a research scholar, Denise had built a helicam as part of her project. The helicam could capture aerial images. Realizing the potential use of this product in movie production and military and rescue operations, she started a new venture where she could customize these helicams to fit the specific needs of the buyers and sell them. Denise can be best described as a(n)
A) entrepreneur.
B) category captain.
C) franchisor.
D) early adopter.
Q2) To be successful and to survive the shakeout stage of the industry life cycle, a firm should
A) charge higher prices than its competitors.
B) focus on product innovation rather than process innovation.
C) gain economies of scale.
D) shift from price to non-price competition.
Q3) Explain some of the features of the introduction stage of the industry life cycle.
Q4) Why do incumbent firms favor incremental innovation over radical innovation?
Q5) What are the competitive benefits that first movers in an industry experience?
Q6) What happens during the shakeout stage of the industry life cycle?
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Chapter 8: Corporate Strategy: Vertical Integration and Diversification
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) A firm that decides to stop purchasing components from suppliers and start producing them in-house is pursuing backward vertical integration.
A)True
B)False
Q2) Which of the following motivations for business growth involves principal-agent problems?
A) increasing profits
B) increasing market power
C) reducing risk
D) motivating managers
Q3) A primary advantage of organizing economic activity within firms is the A) ability to coordinate highly complex tasks to allow for specialized division of labor.
B) low administrative costs because of reduced bureaucracy.
C) eradication of the principal-agent problem.
D) high-powered incentive to work as salaried employees for an existing firm.
Q4) Discuss the application of the core competence-market matrix.
Q5) How are information asymmetries created? What are the implications?
Q6) Discuss the benefits of taper integration.
Q7) Why are generic industry value chains called vertical value chains?
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Chapter 9: Corporate Strategy: Strategic Alliances, Mergers, and Acquisitions
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/2753
Sample Questions
Q1) Elegance Inc. is a large cosmetics company that made an initial small investment in a start-up company, Peace Planet, which was developing an organic face lotion. This gave Elegance controlling interests in the start-up company. However, Peace Planet soon began to have financial difficulties because of principal-agent problems. As a result, Elegance did not invest in the next stage of development and pulled out of the company. This approach to strategic alliance is referred to as a
A) break-even analysis.
B) partial joint venture.
C) credible commitment.
D) real-options perspective.
Q2) Elaborate on the real-options perspective.
Q3) Google, the leader in online search and advertisement, engaged in a number of smaller acquisitions of tech ventures. It did this in order to A) imitate the actions of its competitors like Apple and Facebook.
B) solve its principal-agent problems.
C) fill gaps in its competency lineup.
D) expand through unrelated diversification.
Q4) Explain how firms use strategic alliances to change the industry structure in their favor.
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Chapter 10: Global Strategy: Competing Around the World
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) What are the implications of continued economic development across the globe for multinational enterprises (MNEs)? Explain using China as an example.
Q2) Makes Scents Inc., a company that manufactures and sells premium perfumes, is pursuing an international strategy. PriceSmasher Inc., a supermarket chain, follows a multidomestic strategy. Which of the following statements is most likely true of this scenario?
A) Makes Scents Inc. will sell the same products in both domestic and foreign markets, whereas PriceSmasher Inc. will customize its product offerings to suit local requirements.
B) Makes Scents Inc. will pursue a differentiation strategy at the business level, whereas PriceSmasher Inc. will pursue a cost-leadership strategy at the business level.
C) Makes Scents Inc. will be better protected from exchange rate fluctuations when compared to PriceSmasher Inc.
D) Makes Scents Inc. will not be able to use its home-based core competencies in foreign markets as much as PriceSmasher Inc. will.
Q3) Discuss how demand conditions within Porter's diamond framework affect national competitive advantage.
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Page 12
Chapter 11: Organizational Design: Structure, Culture, and Control
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/2755
Sample Questions
Q1) How does a strong organizational culture build competitive advantage?
Q2) ________ refers to the degree to which decision making is concentrated at the top of the organization.
A) Specialization
B) Formalization
C) Naturalization
D) Centralization
Q3) Which of the following best exemplifies the use of input controls?
A) McDonald's use of standard operating procedures
B) GM's use of the multidivisional strategy
C) Zappos' use of monitoring-free customer service calls
D) Southwest Airline's use of employee friendliness
Q4) What is organizational culture? What are the key elements of organizational culture?
Q5) Employees learn about an organization's culture through the process of
A) socialization.
B) exploitation.
C) co-opetition.
D) acculturation.
Q6) What are the key elements of organizational structure? Define each element.
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Chapter 12: Corporate Governance and Business Ethics
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) It is up to shareholders to make certain that the financial statements that their firms release are correct and not misleading.
A)True
B)False
Q2) Delores recently became a board member of a firm that has a history of reckless actions by senior employees. Which task would be appropriate for Delores to undertake to help safeguard the company's financial health?
A) Request and review a copy of the firm's risk assessment plan, if such a plan exists.
B) Take part in the annual reviews of employees in the financial department.
C) Draft and circulate a statement that the firm's board members serve at the pleasure of the CEO.
D) Determine how to postpone or evade the firm's compliance with local, regional, and national regulations.
Q3) Ethics is
A) not synonymous with law.
B) impossible to codify into law.
C) universal and cannot differ between cultures.
D) the minimum acceptable standard in business practice.
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