In the opening case, iSold It, a firm that helped others sell products on eBay, went from one of the fastest growing franchise businesses to a firm that saw a number of its franchises close and declining sales in a matter of months. What was a major challenge iSold It faced that led to these problems? Its concept was rapidly imitated by others. According to the text, for an entrepreneurial start-up to be successful, three ingredients are critical. What are they? a viable opportunity, available resources, and a qualified and motivated founding team Which of the following is a common source of new business opportunities? The process of identifying,
selecting, and developing new venture opportunities is known as Generally speaking, the opportunity recognition process consists of two phases of activity. They are Discovery and Evaluation. Which of the following is NOT one of the characteristics of an entrepreneurial opportunity? When an opportunity is attractive long enough for it to be
successfully developed and deployed, it is said to be Which of the following terms is used to refer to opportunities that are practical and physically possible? Financing for entrepreneurial start-ups
includes which of the following? Which of the following sources of entrepreneurial financing are available to ventures that have already started to conduct business and generate sales? The majority of entrepreneurial start-ups are financed with D. personal savings and the contributions of family and friends. Private individuals who provide seed capital to young ventures are known as All of the following statements about venture capital are true EXCEPT B. venture capital is a form of public equity financing. Based on statistics reported in the text, which of the following
statements is FALSE? D. Ninety percent of the companies financed with venture capital funds fail. According to the text, new ventures launched by entrepreneurial teams are more likely to be successful than ventures launched by C. "lone wolf" entrepreneurs. Which of the following types of resources contribute to the success of entrepreneurial firms? D. All of these contribute to the success of entrepreneurial firms. __________ provide(s) a key avenue for growth for many young and small firms through partnering to obtain resources and/or expand into new markets. The U.S. Small Business Administration supports small business through all of the following EXCEPT C. investing venture capital. Which of the following is NOT one of the three characteristics of entrepreneurial leadership mentioned by the text? D. clarifying job responsibilities Why is vision such an important element of entrepreneurial leadership? A. Because the entrepreneur has to envision realities that do not yet exist. Which of the following is NOT a common new entry strategy according to the text? Seeking products or services that have been
successful in one market and introducing the same basic product or service in another segment of the market is referred to as Which of the following is NOT a key element of a blue ocean strategy? C. Highlight incremental improvements to capture market share Cirque du Soleil is an example of a firm that successfully enacted a "blue ocean" strategy. Which of the following is a feature of
the strategy it enacted? "Doing more with less", by holding down costs or making more efficient use of resources is one of the ways entrepreneurs achieve success. This is an
example of how entrepreneurs use B. a low-cost leader strategy. Entrepreneurial firms that pursue a low-cost leadership strategy use which of the following to achieve lower
costs? When an industry is mature, a __________ strategy is considered to be one of the most effective approaches for a new entrant.
According to the text, all of the following might make it difficult for entrepreneurial firms to effectively pursue a strategy of differentiation EXCEPT A. incumbent firms are constantly seeking opportunities to specialize in market niches. Intense rivalry involving actions and responses among similar competitors vying for the same customers in a marketplace is known as Which of the following is NOT one of the reasons a company might launch new competitive actions? D. to find new sources of raw materials Netflix CEO Reed Hastings made this important observation about dealing with rivals: C. "There are tens and maybe hundreds of start-ups who think that they are going to eat Netflix's lunch. The challenge for a management team is to figure out which are real threats and which aren't." Aircraft makers Boeing and Airbus have a high degree of __________ because they make very similar products and have many buyers in common. The Wall Street Journal and the New York Times have seen the
intensity of their rivalry increase. One factor driving this is that the Wall Street Journal has moved from financial news reporting to general national and global news reporting and finally, to adding local New York news. The rivalry of these two news providers has increased due to B. increased market commonality. Which of the following questions should a firm ask itself before responding to a competitive attack? Which of the below best describes the competitive tendencies of small firms? C. Small firms are more nimble and can respond quickly to competitive attacks. Cirrus Aircraft, a leading manufacturer of small airplanes, sees a market opportunity and has decided to double its plant capacity over the next two years.
What type of competitive action does this represent? B. A strategic action because such a large plant expansion will require a major commitment of resources. All of the following are examples of strategic actions a firm might take EXCEPT C. change product packaging. The best example of a tactical action that a company might use in response to a competitive attack is to D. offer price discounts and rebates All of the below are factors that affect how a competitor will respond to a competitive attack EXCEPT D. the stock market reaction to the initial competitive attack. Which of the following refers to a situation where a company has a high concentration
of its business in a particular industry's market? A firm is considering a large price cut on its leading product as a way to gain market share. One executive strongly disagrees with the price cut and states, "We are in the same marketplace as our rivals, and we do not have any competitive advantages in our cost
structure. If we cut prices, our competitors will likely do the same. The end result is that we will all make less money." These arguments are an example of A. a strategy of forbearance. |