Exam 13: Strategies for Growth and Managing the Implication of Growth

When compared to the costs of carrying excess inventory,the cost of lost sales is insignificant and should be ignored.

A computer company buys a hard-drive manufacturer.This is an example of:

To implement participative management the entrepreneur should have open communication with employees.

Define and explain the principles of desire,effectiveness and analysis as they relate to time management. A.Desire - requires that the entrepreneur recognize that he or she is a time waster,that time is an important resource,and that there is a need to change personal attitudes and habits regarding the allocation of time.Therefore,effective time management depends on the entrepreneur's willpower,self-discipline,and motivation to optimize his or her time. B.Effectiveness - requires the entrepreneur to focus on the most important issues,even when under pressure.Whenever possible,an entrepreneur should try to complete each task in a single session,which requires that enough time be set aside to accomplish that task.This eliminates time wasted in catching up to where one left off.Although quality is of course important,perfectionism is not and often leads only to procrastination.The entrepreneur must not spend excessive time on trying to make a small improvement in one area when time would be better spent in another area. C.Analysis - provides information to the entrepreneur about how time is currently being allocated,which will also highlight inefficient or inappropriate investments of time.The entrepreneur should track his or her time over a two week period,using a time sheet with 15-minute intervals,and then analyze how time has been spent,where time has been wasted,and how these "time traps" can be avoided in the future (using the other principles).For example,the entrepreneur should not "reinvent the wheel" in solving similar problems;rather,standardized forms and procedures should be developed for all recurring events and operations.

Market development strategies involve selling the firm's existing products to a new group of customers,such as a new geographic market.

The principle of reanalysis requires the entrepreneur to focus on the most important issues,even when under pressure.

Entrepreneurs in the _____________ quadrant of firm growth possess the abilities to grow but do not aspire to grow their businesses.

Horizontal integration occurs at the same level of the value-added chain but simply involves a different,but complementary,value-added chain.

As a firm grows,higher volume increases production efficiency and increases its bargaining power with suppliers.

The most often used method of transporting goods is:

One advantage of leasing equipment is that lease payments represent an expense and can be used as a tax deduction.

Which principle requires the entrepreneur to focus on the most important issues,even when under pressure?

Employee turnover for part-time workers is lower than that for full-time workers.

Entrepreneurs who possess both the necessary abilities to make the transition to a more professional management approach and the aspiration to grow their businesses are the most likely to achieve firm growth.

Involving employees in the decision-making process is:

Entrepreneurs in the _____________ quadrant of firm growth aspire to grow their businesses and possess the ability to do so.

The strategy for growth in which the entrepreneur encourages existing customers to buy more of the firm's current product is a:

To prevent pressures on the financial resources created by growth,the venture should avoid resource slack.

Which principle states that the most important issues should be attended to during the time of day that an entrepreneur is most efficient?

Which of the following is not a benefit of time management?