Question 1

Running Press launched the Miniature Editions line of books in 1993. Today it has sold over 20 million copies. Which of the following most closely represents their strategy?

Accepted Answer

A)   differentiation
B)   overall cost leadership
C)   focus
D)   combinationE) All of the above
F) B) and C)

Question 2

Which of the following is not a primary source of financing for entrepreneurial start-ups?

Accepted Answer

A)   investments by family and friends
B)   public equity
C)   private investors
D)   personal savingsE) None of the above
F) All of the above

Question 3

Which of the following is not one of the reasons a company might launch new competitive actions?

Accepted Answer

A)   to obtain first mover advantages
B)   to improve market position
C)   to find new sources of raw materials
D)   to capitalize on growing demandE) A) and D)
F) B) and D)

Question 4

________ is the process of identifying, selecting, and developing new venture opportunities.

Accepted Answer

A)   Innovativeness
B)   Bootstrapping
C)   Opportunity recognition
D)   BrainstormingE) B) and D)
F) A) and B)

Question 5

Adaptive new entry involves offering a radical new product or highly innovative service.

Accepted Answer

A) True 
 B)False

Question 6

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 ________ new entry.

Accepted Answer

A)   adaptive
B)   imitative
C)   proactive
D)   pioneeringE) None of the above
F) B) and D)

Question 7

New ventures may find it difficult to use differentiation strategies successfully because they lack ________ and ________.

Accepted Answer

A)   sufficient funding; superior innovation
B)   competitors; superior technology
C)   sufficient funding; qualified entrepreneurs
D)   innovative ideas; potential customersE) None of the above
F) C) and D)

Question 8

New entry into markets, whether by start-ups or by incumbent firms, rarely threatens existing competitors.

Accepted Answer

A) True 
 B)False

Question 9

Entrepreneurial firms are often in a strong position to use combination strategies, because they have the flexibility to approach situations uniquely.

Accepted Answer

A) True 
 B)False

Question 10

Founded in 1995, Under Armour, Inc. sells undershirts and other athletic gear using moisture-wicking fabric for sweaty sports. By 2016, it reached the number two athletic clothing firmspot with over 4.5 billion in sales. It used which new entry strategy in 2005?

Accepted Answer

A)   imitative
B)   pioneering
C)   adaptive
D)   differentiatedE) All of the above
F) A) and B)

Question 11

Which of the following is not a factor that makes it more difficult for new ventures to be successful as differentiators?

Accepted Answer

A)   The strategy is thought to be expensive to put into action.
B)   Establishing a brand, important to a differentiation strategy, is thought to be expensive.
C)   Superior innovation is often very costly.
D)   Customer service is often costly, but it does not affect a differentiation strategy.E) All of the above
F) B) and C)

Question 12

According to the text, new ventures launched by entrepreneurial teams are more likely to be successful than ventures launched by

Accepted Answer

A)   established corporations.
B)   lone wolf entrepreneurs.
C)   bootstraps.
D)   individual investors.E) All of the above
F) None of the above

Question 13

The new entry strategy that a firm chooses is dependent upon the ________ and the ________ of the new business concept.

Accepted Answer

A)   riskiness; cost
B)   riskiness; potential sales
C)   riskiness; innovativeness
D)   idea; innovativenessE) B) and C)
F) C) and D)

Question 14

According to the text, which of the following does not make it difficult for entrepreneurial firms to effectively pursue a strategy of differentiation?

Accepted Answer

A)   Differentiation strategies are often expensive to enact.
B)   Incumbent firms are constantly seeking opportunities to specialize in market niches.
C)   It may be difficult for a young firm to establish a strong brand identity.
D)   Implementing superior new technologies may be challenging for entrepreneurial firms.E) B) and C)
F) A) and D)

Question 15

Forbearance is a particularly aggressive type of competitive attack.

Accepted Answer

A) True 
 B)False

Question 16

When a company chooses to use guerrilla marketing, it is using a ________ competitive action.

Accepted Answer

A)   strategic
B)   tactical
C)   focused advantage
D)   differentiatedE) B) and D)
F) A) and B)

Question 17

When GM offers discounts and incentives, rivals Ford and Chrysler cannot afford to ignore the challenge and quickly follow suit. Which one of the following is a reason Ford and Chrysler are more likely to respond?

Accepted Answer

A)   a history of forbearance with GM
B)   a history of co-opetition with GM
C)   the reputation and history of GM in the market
D)   GM's resourcesE) C) and D)
F) B) and C)

Question 18

In designing its smartphones, Samsung copied the look, feel, and technological attributes of the Apple iPhone. By copying Apple, Samsung was able to improve its market position. Accordingto the Stalk and Lachenauer book, this is an example of strategy to

Accepted Answer

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

Question 19

The first personal computer revolutionized computing and how business is conducted. It was using a(n)  ________ entry strategy.

Accepted Answer

A)   imitative
B)   pioneering
C)   adaptive
D)   creativeE) A) and C)
F) B) and C)

Question 20

Generally speaking the opportunity recognition process consists of two phases of activity. They are ________ and ________.

Accepted Answer

A)   global search; recycling profits
B)   value creation; affordability
C)   global search; valuation
D)   discovery; evaluationE) A) and B)
F) A) and C)

Exam 8: Entrepreneurial Strategy and Competitive Dynamics

Adaptive new entry involves offering a radical new product or highly innovative service.

Correct AnswerverifiedShow Answer

New ventures may find it difficult to use differentiation strategies successfully because they lack ________ and ________.

Correct AnswerverifiedShow Answer

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 ________ new entry.

Correct AnswerverifiedShow Answer

Which of the following is not a primary source of financing for entrepreneurial start-ups?

Correct AnswerverifiedShow Answer

The first personal computer revolutionized computing and how business is conducted. It was using a(n) ________ entry strategy.

Correct AnswerverifiedShow Answer

In designing its smartphones, Samsung copied the look, feel, and technological attributes of the Apple iPhone. By copying Apple, Samsung was able to improve its market position. Accordingto the Stalk and Lachenauer book, this is an example of strategy to

Correct AnswerverifiedShow Answer

According to the text, which of the following does not make it difficult for entrepreneurial firms to effectively pursue a strategy of differentiation?

Correct AnswerverifiedShow Answer

Running Press launched the Miniature Editions line of books in 1993. Today it has sold over 20 million copies. Which of the following most closely represents their strategy?

Correct AnswerverifiedShow Answer

________ is the process of identifying, selecting, and developing new venture opportunities.

Correct AnswerverifiedShow Answer

The new entry strategy that a firm chooses is dependent upon the ________ and the ________ of the new business concept.

Correct AnswerverifiedShow Answer

Which of the following is not one of the reasons a company might launch new competitive actions?

Correct AnswerverifiedShow Answer

Entrepreneurial firms are often in a strong position to use combination strategies, because they have the flexibility to approach situations uniquely.

Correct AnswerverifiedShow Answer

Which of the following is not a factor that makes it more difficult for new ventures to be successful as differentiators?

Correct AnswerverifiedShow Answer

Forbearance is a particularly aggressive type of competitive attack.

Correct AnswerverifiedShow Answer

Founded in 1995, Under Armour, Inc. sells undershirts and other athletic gear using moisture-wicking fabric for sweaty sports. By 2016, it reached the number two athletic clothing firmspot with over 4.5 billion in sales. It used which new entry strategy in 2005?

Correct AnswerverifiedShow Answer

Generally speaking the opportunity recognition process consists of two phases of activity. They are ________ and ________.

Correct AnswerverifiedShow Answer

New entry into markets, whether by start-ups or by incumbent firms, rarely threatens existing competitors.

Correct AnswerverifiedShow Answer

When GM offers discounts and incentives, rivals Ford and Chrysler cannot afford to ignore the challenge and quickly follow suit. Which one of the following is a reason Ford and Chrysler are more likely to respond?

Correct AnswerverifiedShow Answer

According to the text, new ventures launched by entrepreneurial teams are more likely to be successful than ventures launched by

Correct AnswerverifiedShow Answer

When a company chooses to use guerrilla marketing, it is using a ________ competitive action.

Correct AnswerverifiedShow Answer

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New ventures may find it difficult to use differentiation strategies successfully because they lack and .

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The new entry strategy that a firm chooses is dependent upon the and the of the new business concept.

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Generally speaking the opportunity recognition process consists of two phases of activity. They are and .

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