Entrepreneurship Strategy
Midterm Exam
Course Introduction
Entrepreneurship Strategy explores the processes and principles involved in launching and growing innovative ventures. The course examines how entrepreneurs identify opportunities, evaluate market potential, and develop sustainable business models to achieve competitive advantage. Topics include resource acquisition, growth strategies, business planning, managing uncertainty, and strategic decision-making in dynamic environments. Students learn through case analysis, simulations, and real-world projects, gaining practical tools to design and implement effective entrepreneurial strategies across various industries and stages of business development.
Recommended Textbook
Strategic Management Concepts and Cases Competitiveness 12th Edition by
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13 Chapters
1670 Verified Questions
1670 Flashcards
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Page 2
Michael A. Hitt
Chapter 1: Strategic Management and Strategic Competitiveness
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133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/3850
Sample Questions
Q1) Capital market stakeholders include:
A) industry competitors.
B) shareholders.
C) employees.
D) government regulators.
Answer: B
Q2) Resources are considered rare when they have no structural equivalent.
A)True
B)False
Answer: False
Q3) According to Hitt, the final responsibility for forming the organization's mission lies with the:
A) CEO.
B) top-management team.
C) employees.
D) organization's stakeholders.
Answer: A
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Page 3
Chapter 2: The External Environment: Opportunities,
Threats, Industry Competition, and Competitor Analysis
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138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/3851
Sample Questions
Q1) Suppliers are powerful when the industry is dominated by a few large companies, no satisfactory substitutes are available, the selling industry is relatively more concentrated than the purchasing industry, or switching costs are high.
A)True
B)False
Answer: True
Q2) The U.S. Hispanic market is the third-largest "Latin American" economy behind Brazil and Mexico. This impacts the ______ aspect of demographic segment analysis.
A) age structure
B) geographic distribution
C) income distribution
D) ethnic mix
Answer: D
Q3) Strategic groups are firms in different industries following the same or similar strategies.
A)True
B)False
Answer: False
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Competencies, and Competitive
Advantages
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133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/3852
Sample Questions
Q1) Describe the four specific criteria that managers can use to decide which of their firm's capabilities have the potential to create a sustainable competitive advantage. Answer: Managers must identify whether their firm has capabilities that are valuable and nonsubstitutable from the customer's point of view, and unique and inimitable from the firm's competitors' point of view. Only capabilities with these four characteristics are core competencies that can lead to sustainable competitive advantage. A valuable capability is one that helps the firm to exploit opportunities or to neutralize threats in the external environment. Rare means that few if any competitors possess the particular capability. Costly-to-imitate means a capability cannot be easily developed by other firms. Often, this kind of capability is rooted in the organization's culture or its unique history. Capabilities may also be costly to imitate if they are causally ambiguous or involve social complexity. Finally, nonsubstitutable capabilities do not have strategic equivalents that are rare and inimitable.
Q2) The firm with the most capabilities wins.
A)True
B)False
Answer: False
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Chapter 4: Business-Level Strategy
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/3853
Sample Questions
Q1) Research shows that firms using a hybrid strategy (i.e., integrated cost leadership/differentiation) often outperform firms using pure strategies ( i.e., cost leadership or differentiation).
A)True
B)False
Q2) In the animal food products business, food-product needs of owners of companion animals pets (e.g., dogs and cats) differ from the needs for food and health-related products of those owning production animals (e.g., livestock). Which of the following aspects of managing customer relationships does this choice refer to?
A) Who: Determining the Customers to Serve
B) What: Determining Which Customer Needs to Satisfy
C) How: Determining Core Competencies Necessary to satisfy Customer Needs
D) When: Determining When to Satisfy Customer Needs
Q3) Low-cost leaders usually concentrate on the value chain activities of inbound logistics and outbound logistics as a means to reduce costs.
A)True
B)False
Q4) What are the risks of an integrated cost leadership/differentiation strategy?
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Page 6
Chapter 5: Competitive Rivalry and Competitive Dynamics
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107 Verified Questions
107 Flashcards
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Sample Questions
Q1) Multimarket competition occurs when firms:
A) sell different products to the same customer.
B) have a high level of awareness of their competitors' strategic intent.
C) simultaneously enter into an attack strategy.
D) compete against each other in several geographic or product markets.
Q2) Firms operating in the same market, offering similar products and targeting similar customers are competitors.
A)True
B)False
Q3) What is market commonality? What is resource similarity? How are these concepts combined to identify the level of competition between two firms?
Q4) Which of the following is an example of a tactical action?
A) Walmart's launch of Sam's Club stores
B) Continental Airlines exit from a hub airport in Denver
C) Netflix beginning to offer music in addition to movies
D) Dell's launch of a new line of high performance, custom-made PCs
Q5) Define awareness, motivation, and ability in reference to competitive behavior.
Q6) What are the advantages and disadvantages of being a first mover, second mover, and late mover?
Page 7
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Chapter 6: Corporate-Level Strategy
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140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/3855
Sample Questions
Q1) The _________________diversification strategy creates value in two ways. First, because the core competency has already been developed in one business, the firm does not have to allocate resources to develop it. Second, because the resource is intangible, competitors cannot easily imitate it.
A) related constrained B) unrelated C) related linked D) dominant business
Q2) A significant benefit of an internal capital market is limiting competitors' access to information about the performance of the individual businesses within the corporation. A)True
B)False
Q3) What are the managerial motives to diversify?
Q4) Backward integration occurs when a company: A) produces its own inputs.
B) owns its own source of distribution of outputs. C) is concentrated in a single industry.
D) is divesting unrelated businesses.
Q5) Describe the primary reasons a firm pursues increased diversification.
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Chapter 7: Merger and Acquisition Strategies
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/3856
Sample Questions
Q1) Magma, Inc., acquired Vulcan, Inc., 3 years ago. Effective integration of the two companies' culture was never achieved, and the two firms' assets were not complementary. It is very likely that Magma will:
A) go public through an IPO.
B) review the due diligence information collected before the acquisition.
C) restructure.
D) review its tactical-level strategies.
Q2) Which of the following statements is FALSE?
A) Synergy resulting from an acquisition generates gains in shareholder wealth beyond what they could achieve through diversification of their own portfolios.
B) Private synergy results when the combination of two firms yields competencies and capabilities that could not be achieved by combining with any other firm.
C) Private synergy is easy for competitors to understand and imitate.
D) Private synergy is more likely when the two firms in an acquisition have complementary assets.
Q3) How difficult is it for merger and acquisition strategies to create value and which firms benefit the most from M & A activity?
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Chapter 8: International Strategy
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129 Verified Questions
129 Flashcards
Source URL: https://quizplus.com/quiz/3857
Sample Questions
Q1) A transnational strategy is an international strategy in which the firm seeks to achieve both global efficiency and local responsiveness.
A)True
B)False
Q2) Internationally diversified firms:
A) earn greater returns on their innovations through larger or more numerous markets.
B) are more likely to produce below-average returns for investors in the long run. C) may need to decrease international activities when domestic profits are poor. D) are generally unable to achieve high levels of synergy because of differences in cultures.
Q3) The greenfield venture option is useful when control of proprietary technology is important in an international expansion.
A)True
B)False
Q4) Discuss the effect of international diversification on a firm's returns.
Q5) Identify and describe the modes of entering international markets. What are their advantages and disadvantages?
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Chapter 9: Cooperative Strategy
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123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/3858
Sample Questions
Q1) In the franchising strategy, the most important competitive advantage for the franchisee is the franchisor's:
A) brand name.
B) capital resources.
C) access to a consolidated market.
D) geographic locations.
Q2) In the cost minimization approach to managing competitive strategies, the relationship between the firms is based on trust of the other partner.
A)True
B)False
Q3) Which of the following statements is TRUE?
A) Most cooperative strategies are successful if the basic agreements are well written and include appropriate monitoring strategies.
B) As many as 50 percent of cooperative strategies fail.
C) Opportunistic behaviors are usually focused on gaining the use of the partner's manufacturing and financial resources.
D) Problems with international cooperative strategies usually concern financial-system differences between the partners.
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11
Chapter 10: Corporate Governance
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142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/3859
Sample Questions
Q1) Which of the following is a FALSE statement about corporate governance?
A) Governance is used to establish order between parties whose interests may be in conflict.
B) Corporate governance mechanisms sometimes fail to monitor and control top managers' decisions.
C) Corporate governance mechanisms can be in conflict with one another.
D) Corporate governance is best achieved with a Board of Directors with strong ties to management.
Q2) German executives are not dedicated to the maximization of shareholder value to the degree that is the case for executives in the UK and United States largely because: A) the roles of CEO and chairperson of the Board of Directors are usually combined.
B) large institutional investors control large blocks of stock.
C) private shareholders and large institutional investors rarely have large ownership positions in firms.
D) of the focus on stewardship-management in German firms rather than the financial performance focus of U.S. firms.
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Chapter 11: Organizational Structure and Controls
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136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/3860
Sample Questions
Q1) Strategy has an important influence on structure, once a particular structure is in place, that structure influences strategy.
A)True
B)False
Q2) Firms such as Textron Inc. that frequently acquire and divest other firms are most likely to use the ______ structure.
A) matrix
B) competitive multidivisional
C) hybrid combination
D) horizontal complementary strategic alliance
Q3) Firms using the differentiation strategy need to respond quickly to environmental opportunities and threats. The structural features that are best for these requirements are centralization, specialization, and many rules and procedures.
A)True
B)False
Q4) Organizational structures must be both stable and flexible.
A)True
B)False
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Page 13
Chapter 12: Strategic Leadership
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118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/3861
Sample Questions
Q1) The Enron employee who reported the financial manipulations at the company to her superiors can be considered to have engaged in:
A) managerial opportunism.
B) white-collar crime.
C) vindictive disloyalty.
D) an act of courage.
Q2) Transformational leadership is the most effective strategic leadership style.
A)True
B)False
Q3) Which of the following is NOT one of the five dimensions thought to characterize an employee's entrepreneurial mind-set?
A) Autonomy
B) Reactivity
C) Risk taking
D) Innovativeness
Q4) The most critical ability of a strategic leader is the ability to attract and then manage human capital.
A)True
B)False
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Chapter 13: Strategic Entrepreneurship
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/3862
Sample Questions
Q1) Value creation through internal innovation originates with:
A) an entrepreneurial mind-set.
B) cross-product development teams.
C) shared values and entrepreneurial leadership.
D) innovation.
Q2) An organization engaging in strategic entrepreneurship focuses on identifying opportunities that it can exploit through innovations.
A)True
B)False
Q3) Firms develop innovations in all the following ways EXCEPT:
A) through autonomous or induced strategic behavior.
B) by acquiring other companies.
C) through cooperative strategies.
D) via divestiture of low-performing units.
Q4) As a process, entrepreneurship results in the "creative destruction" of existing products (goods or services) or methods of producing them and replaces them with new products and production methods.
A)True
B)False
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