Entrepreneurship and Strategy
Question Bank
Course Introduction
Entrepreneurship and Strategy explores the fundamental concepts, frameworks, and tools necessary for launching and nurturing new ventures while developing sustainable competitive advantage. The course examines the entrepreneurial process from opportunity recognition and business model development to resource acquisition and growth strategies. Students analyze how founders make strategic choices in dynamic markets, evaluate risks, and navigate challenges such as innovation, funding, competition, and scaling. Through case studies, real-world examples, and hands-on projects, this course equips aspiring entrepreneurs and business leaders with the strategic mindset and practical skills needed to succeed in todays rapidly evolving business environment.
Recommended Textbook
Crafting and Executing Strategy Concepts and Cases 18th Edition by Arthur Thompson
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1133 Verified Questions
1133 Flashcards
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Page 2
Chapter 1: What Is Strategy and Why Is It Important
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) A winning strategy is one that
A) results in a company becoming the dominant market leader.
B) produces exceptionally high levels of customer satisfaction and is both ethical and highly profitable.
C) fits the company's internal and external situations, builds sustainable competitive advantage, and improves company performance.
D) is ethical, socially responsible, and profitable.
E) builds shareholder value, passes the completeness test, and passes the customer satisfaction test.
Answer: C
Q2) Why is it appropriate to argue that good strategy-making combined with good strategy execution are valid signs of good management?
Answer: Answer will vary
Q3) Why is a company's strategy partly proactive and partly reactive?
Answer: Answer will vary
Q4) Powerful execution of a powerful strategy is a proven recipe for winning in the marketplace.True or false? Explain your answer.
Answer: Answer will vary
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3
Chapter 2: Charting a Companys Direction: Vision and Mission, Objectives, and Strategy
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100 Flashcards
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Sample Questions
Q1) Operating strategies concern
A) what the firm's operating departments are doing and plan to do to unify the company's functional and business strategies.
B) the specific plans for building competitive advantage in each major department and operating unit.
C) the relatively narrow strategic initiatives for managing key operating units within a business (plants, distribution centers, geographic units) and for performing strategically significant operating tasks (maintenance, shipping, inventory control, purchasing, advertising) in ways that support functional strategies and the overall business strategy.
D) how best to carry out the company's corporate strategy.
E) how best to implement and execute the company's different business-level strategies.
Answer: C
Q2) Explain why a company's strategy is really a collection of strategies.
Answer: Answer will vary
Q3) What is meant by the term "stretch objectives?" Is it important that companies establish stretch objectives? Why or why not?
Answer: Answer will vary
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Page 4
Chapter 3: Evaluating a Companys External Environment
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128 Flashcards
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Sample Questions
Q1) The nature and strength of the competitive forces that prevail in an industry is generally a joint product of
A) the pressures induced by the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry.
B) the threat that firms outside the industry will decide to enter the market.
C) the attempts of companies in other industries to win buyers over to their own substitute products.
D) competitive pressures stemming from the bargaining power of both suppliers and buyers.
E) All of these.
Answer: E
Q2) Identify and briefly explain any three factors that weaken the competitive pressures stemming from the threat that new firms will enter the industry. Answer: Answer will vary
Q3) Competitive markets are economic battlefields.True or false? Explain. Answer: Answer will vary
Q4) Identify at least three benefits of constructing a strategic group map. Answer: Answer will vary
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5
Chapter 4: Evaluating a Companys Resources, Capabilities, and Competitiveness
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131 Flashcards
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Sample Questions
Q1) Benchmarking involves
A) comparing how different companies perform various value chain activities and then making cross-company comparisons of the costs of these activities.
B) checking whether a company has achieved more of its financial and strategic objectives over the past five years relative to the other firms it is in direct competition with.
C) studying whether a company's resource strengths are more/less powerful than the resource strengths of rival companies.
D) studying how a company's competitive capabilities stack up against the competitive capabilities of selected companies known to have world class competitive capabilities. E) comparing the best practices in one industry against the best practices in another industry.
Q2) A company lacking stand-alone resource strength should focus on bundling several resource strengths into a core competence.True or false? Explain and support your answer.
Q3) A distinctive competence represents competitively superior resource strength.True or false? Explain your answer.
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Page 6
Chapter 5: The Five Generic Competitive Strategies: Which
One to Employ
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Sample Questions
Q1) The big danger or risk of a best-cost provider strategy is
A) that buyers will be highly skeptical about paying a relatively low price for upscale attributes/features.
B) not establishing strong alliances and partnerships with key suppliers.
C) that low-cost leaders will be able to steal away some customers on the basis of a lower price and high-end differentiators will be able to steal away customers with the appeal of better product attributes.
D) that it will be unable to achieve top-notch quality at a rock-bottom cost.
E) becoming too highly integrated and not relying enough on outsourcing.
Q2) The major avenues for achieving a cost advantage over rivals include
A) revamping the firm's value chain to eliminate or bypass some cost-producing activities and/or out-managing rivals in the efficiency with which value chain activities are performed.
B) having a management team that is highly skilled in cutting costs.
C) being a first-mover in adopting the latest state-of-the-art technologies, especially those relating to low-cost manufacture.
D) outsourcing high-cost activities to cost-efficient vendors.
E) paying lower wages and salaries than rivals.
Q3) What are the keys to sustaining a focused low-cost strategy?
Page 7
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Chapter 6: Strengthening a Companys Competitive
Position: Strategic Moves, timing, and Scope of Operation
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79 Flashcards
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Sample Questions
Q1) Which of the following is not a strategic disadvantage of vertical integration?
A) Vertical integration boosts a firm's capital investment in the industry, thus increasing business risk if the industry becomes unattractive later.
B) Vertical integration backward into parts and components manufacture can impair a company's operating flexibility when it comes to changing out the use of certain parts and components.
C) Vertical integration reduces the opportunity for achieving greater product differentiation.
D) Forward or backward integration often calls for radically different skills and business capabilities than the firm possesses.
E) Vertical integration poses all kinds of capacity-matching problems.
Q2) A company that has greater success in managing their strategic alliance can credit
A) establishing strong interpersonal relationships to facilitate communication.
B) incorporating contractual safeguards.
C) making opportunities for learning a routine management process.
D) creating a system to manage alliances in a systematic fashion.
E) All of these.
Q3) Identify and explain at least two drawbacks to forming a strategic alliance.
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Chapter 7: Strategies for Competing in International Markets
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103 Flashcards
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Sample Questions
Q1) Which one of the following is not one of the ways a company can strive to gain competitive advantage (or offset domestic disadvantages)by expanding into foreign markets?
A) By competing in both developed and emerging country markets and/or by selling direct to foreign buyers via the company's Web site
B) By dispersing its activities among various countries in a manner that lowers costs.
C) By transferring competitively valuable competencies and capabilities from its domestic operations to its operations in foreign markets
D) By dispersing its activities among various countries in a manner that helps achieve greater product differentiation and, and/or working to deepen/broaden its resource strengths and capabilities
E) By using cross-border coordination of its strategic moves in ways that a domestic-only competitor cannot
Q2) Explain how exchange rate fluctuations pose a risk to manufacturing companies who rely upon an export strategy to compete in foreign markets.
Q3) Briefly identify the special features of competing in foreign markets.
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Page 9
Chapter 8: Corporate Strategy: Diversification and the Multibusiness Company
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129 Flashcards
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Sample Questions
Q1) Which of the following is an important appeal of a related diversification strategy?
A) Related diversification is an effective way of capturing valuable financial fit benefits.
B) Related diversification offers more competitive advantage potential than does unrelated diversification.
C) Related diversification offers significant opportunities to strongly differentiate a company's product offerings from those of rivals.
D) Related diversification is more likely to pass the cost-of-entry test and the capital gains test than unrelated diversification.
E) Related diversification is typically more profitable than unrelated diversification, which is a major factor in helping related diversification pass the attractiveness test.
Q2) Explain the difference between a cash cow business and a cash hog business.
Q3) Carefully explain the difference between a strategy of related diversification and a strategy of unrelated diversification.
Q4) Under what circumstances might a diversified firm choose to divest one of its businesses?
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Chapter 9: Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy
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Sample Questions
Q1) Which of the following is not something a company should consider in crafting an environmental sustainability strategy?
A) Actions to protect the environment that will guard against the ultimate endangerment of the planet
B) Actions to maintain ecological support systems for future generations
C) Actions to provide for the longevity of natural resources
D) Making contributions to the Global Environmental Council which are distributed based on a competitive basis
E) All of these
Q2) Short-termism is defined as
A) making assessments of the moral character of the company managers.
B) the tendency for managers to focus excessive attention on short-term performance objectives.
C) assessing the costs and damage to the companies reputation as a result of ethical violations.
D) weighing the short-term costs of regulatory compliance with the long-term costs of non-compliance.
E) assessing the short-term costs of complying with government regulations.
Q3) What is the difference between ethics and business ethics?
Page 11
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Chapter 10: Building an Organization Capable of Good
Strategy Execution: People, Capabilities, and Structure
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80 Verified Questions
80 Flashcards
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Sample Questions
Q1) Outsourcing value chain activities has such strategy-executing advantages as
A) less internal bureaucracy, speedier decision-making, quicker responses to changing market conditions, and heightened focus on performing a select few value chain activities (which can improve performance of those activities).
B) facilitating the empowerment of employees (because there are less things to do internally).
C) promoting a total quality management culture.
D) reducing the need to establish a strongly implanted corporate culture.
E) reducing the strategic importance of building valuable core competencies.
Q2) Which of the following is unlikely to be a primary building block in a company's organizational structure?
A) Traditional functional departments
B) Process departments
C) Empowered employee departments
D) Divisional units performing one or more major processing steps along the value chain (components manufacture, assembly, distribution)
E) Geographic organizational units
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12
Chapter 11: Managing Internal Operations: Actions That Promote
Good Strategy Execution
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Sample Questions
Q1) Which one of the following is not likely to be effective in trying to gain employees' wholehearted commitment to good strategy execution and operating excellence?
A) Aggressive management efforts to eliminate stress, anxiety, and job insecurity from the work environment
B) Extensive use of such nonmonetary carrot-and-stick incentives as frequent words of praise (or constructive criticism), special recognition at company gatherings, and being given stimulating assignments
C) More (or less) job security, and opportunities for high-performing employees to transfer to attractive locations
D) Opportunities for rapid promotion (or the risk of being sidelined in a routine job)
E) Performance bonuses
Q2) What is the value of total quality management from a strategy-executing standpoint? How does TQM differ from business process reengineering?
Q3) What is the role of budgets and resource allocation in successfully implementing and executing strategy? Why does a company's budget need to be closely linked to the needs of good strategy execution?
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Chapter 12: Corporate Culture and Leadership: Keys to Good Strategy Execution
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Sample Questions
Q1) Explain the role of leadership in changing a problem corporate culture.
Q2) The hallmarks of a high performance corporate culture include
A) frequently revised and updated values and ethics statements, a deep commitment to employee training, and unusually attractive fringe benefit packages for company personnel.
B) a "can-do" spirit, pride in doing things right, no-excuses accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives.
C) a balanced scorecard approach to measuring performance, strong emphasis on teamwork, strict enforcement of company policies and procedures, and incentive compensation for all employees.
D) a deep commitment to pioneering new best practices, a preference for being a fast-follower as opposed to a first-mover or late-mover, and across-the-board bonuses for all personnel when the company meets or beats stretch objectives.
E) a deep commitment to top-notch quality and superior customer service, dedicated use of TQM and/or Six Sigma quality control programs, and the payment of big performance bonuses and stock options.
Q3) What are the distinctive features of high-performance corporate cultures?
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