Question 1

The window of opportunity is part of:

Accepted Answer

A)  assessing the attractiveness of a new entry opportunity.
B)  creating a resource bundle.
C)  choosing an entry strategy.
D)  choosing a risk reduction strategy.E) None of the above
F) A) and B)

Question 2

Market research,such as surveys,has limited effectiveness because it is often difficult for customers to articulate the underlying problems they have with a product or service.

Accepted Answer

A) True 
 B)False

Question 3

Technological knowledge:

Accepted Answer

A)  is gained through market research.
B)  can lead to a new product that is the basis for a new entry.
C)  does not help unless the market applicability is obvious.
D)  does not help if the market is limiteD.E) A) and B)
F) C) and D)

Question 4

A ______ strategy that copies products that already exist and attempts to build an advantage through minor variations.

Accepted Answer

A)  technological
B)  narrow scope
C)  me-too
D)  broad scopeE) All of the above
F) A) and D)

Question 5

Barriers to entry include all of the following except:

Accepted Answer

A)  patents
B)  switching costs
C)  environmental instability
D)  building customer loyaltiesE) B) and C)
F) A) and B)

Question 6

When the window of opportunity is open,the environment is unfavorable for entrepreneurs to exploit a new product or enter a new market with an existing product.

Accepted Answer

A) True 
 B)False

Question 7

Explain why an entrepreneur might adopt an imitation strategy.

Accepted Answer

Reduces the risk by:
-reducing research ...

Question 8

Imitation strategies:

Accepted Answer

A)  require expensive and extensive research.
B)  are rare and inimitable.
C)  does not provide organizational legitimacy.
D)  can enhance a firm's performance.E) None of the above
F) A) and D)

Question 9

Customer uncertainty can take all of the following forms except:

Accepted Answer

A)  not understanding how to use the product
B)  not knowing whether the product will perform as expected
C)  not knowing where to buy the product
D)  being uncertainty adverse in general and resistant to changeE) A) and D)
F) All of the above

Question 10

If there is a good fit between the venture's bundle of resources and the external environment:

Accepted Answer

A)  the firm will be rewarded with superior performance.
B)  the entrepreneur will be unable to compete in the market segment.
C)  environmental variables will be irrelevant.
D)  demand uncertainty will be irrelevant.E) None of the above
F) A) and D)

Question 11

The period of time when the environment is favorable for entrepreneurs to exploit a particular new entry is the:

Accepted Answer

A)  market research phase.
B)  window of opportunity.
C)  technology window.
D)  narrow-scope strategy.E) A) and C)
F) A) and B)

Question 12

Technological uncertainty is eliminated by a superior technology.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a liability of newness?

Accepted Answer

A)  Costs associated with learning new tasks are high.
B)  Lack of established routines and processes give the venture a new slate.
C)  Communication in informal systems is increased.
D)  Market for potential consumers is limiteD.E) B) and C)
F) A) and D)

Question 14

Changes needed to adapt to environmental changes:

Accepted Answer

A)  are easier in established organizations because of inertiA.
B)  can be avoided by late entry.
C)  are more difficult because of the tendency to escalate commitment.
D)  don't affect smaller organizations.E) All of the above
F) B) and D)

Question 15

The three major risk reduction strategies discussed in the text are narrow scope,broad scope and imitation.

Accepted Answer

A) True 
 B)False

Question 16

Lack of informal communication systems is one of the assets of newness.

Accepted Answer

A) True 
 B)False

Question 17

A narrow-scope market strategy:

Accepted Answer

A)  does not provide the entrepreneur an opportunity to build up specialized knowledge and expertise.
B)  provides substantial protection against competitors.
C)  is like putting all your eggs in one basket.
D)  can be thought of as taking a "portfolio" approach to dealing with uncertainties.E) B) and C)
F) B) and D)

Question 18

An error of omission occurs when an entrepreneur:

Accepted Answer

A)  enters a market but overestimates the customer demand.
B)  develops a product for a market that is too narrow.
C)  decides not to enter a market that is,in fact,desirable.
D)  fails to understand the limitations of a market.E) A) and C)
F) None of the above

Question 19

The period of time when the environment is favorable for entrepreneurs to exploit a particular new entry is called the window of opportunity.

Accepted Answer

A) True 
 B)False

Question 20

The knowledge needed to generate innovation cannot be easily learned from a textbook.

Accepted Answer

A) True 
 B)False

Exam 3: Entrepreneurial Strategy: Generating and Exploiting New Entries

The window of opportunity is part of:

Correct AnswerverifiedShow Answer

Lack of informal communication systems is one of the assets of newness.

Correct AnswerverifiedShow Answer

An error of omission occurs when an entrepreneur:

Correct AnswerverifiedShow Answer

Technological uncertainty is eliminated by a superior technology.

Correct AnswerverifiedShow Answer

Explain why an entrepreneur might adopt an imitation strategy.

Correct AnswerverifiedReduces the risk by:-reducing research ...View AnswerShow Answer

The period of time when the environment is favorable for entrepreneurs to exploit a particular new entry is the:

Correct AnswerverifiedShow Answer

Which of the following is a liability of newness?

Correct AnswerverifiedShow Answer

Imitation strategies:

Correct AnswerverifiedShow Answer

A ______ strategy that copies products that already exist and attempts to build an advantage through minor variations.

Correct AnswerverifiedShow Answer

Market research,such as surveys,has limited effectiveness because it is often difficult for customers to articulate the underlying problems they have with a product or service.

Correct AnswerverifiedShow Answer

When the window of opportunity is open,the environment is unfavorable for entrepreneurs to exploit a new product or enter a new market with an existing product.

Correct AnswerverifiedShow Answer

The three major risk reduction strategies discussed in the text are narrow scope,broad scope and imitation.

Correct AnswerverifiedShow Answer

The knowledge needed to generate innovation cannot be easily learned from a textbook.

Correct AnswerverifiedShow Answer

If there is a good fit between the venture's bundle of resources and the external environment:

Correct AnswerverifiedShow Answer

Changes needed to adapt to environmental changes:

Correct AnswerverifiedShow Answer

Technological knowledge:

Correct AnswerverifiedShow Answer

Customer uncertainty can take all of the following forms except:

Correct AnswerverifiedShow Answer

A narrow-scope market strategy:

Correct AnswerverifiedShow Answer

The period of time when the environment is favorable for entrepreneurs to exploit a particular new entry is called the window of opportunity.

Correct AnswerverifiedShow Answer

Barriers to entry include all of the following except:

Correct AnswerverifiedShow Answer

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Reduces the risk by:
-reducing research ...
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