Exam 3: Entrepreneurial Strategy: Generating and Exploiting New Entries

The basic building blocks to a firm,or the inputs into the production process,are:

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

Experience is idiosyncratic-unique to the life of the individual.

Which of the following statements is(are)true?

_____ refers to the probability,and magnitude,of downside loss.

A narrow scope strategy offers a small product range to a small number of customer groups.

If there is a poor fit between its resources and the external environment,then the firm will not enjoy superior performance.

Lead time is:

A "me-too" strategy consists of copying products that already exist and attempting to build an advantage through minor variations.

Entrepreneurs that delay entry have the advantage of more information about market demand.

The window of opportunity is part of:

A new entry can be either offering a new product to a new market or creating a new organization.

Identify and briefly describe the major stages of entrepreneurial strategy. Three major stages: Stage 1 New entry generation - The generation of a new entry is the result of a combination of knowledge and other resources into a bundle that its creators hope will be valuable,rare,and difficult for others to imitate.Depending on how in-depth the instructor wants the answer items like market and technological knowledge,window of opportunity and error of omission/commission may be required/discussed. Stage 2 New entry exploitation - comprised of choosing an entry strategy,a risk reduction strategy.Depending on how in-depth the instruction wants the answer items like first mover advantages/disadvantages,demand and technological uncertainty,adaptation,lead time,and narrow/broad scope strategies may be discussed. Stage 3 Feedback loop of resources - a brief description is appropriate since not much time is spent on this stage.Answer may include items from the following excerpt obtained from the textbook," we should not underestimate the importance of the feedback loop of stage 3 because an entrepreneur cannot rely on the generation and exploitation of only one new entry;rather,long-run performance is dependent upon the ability to generate and exploit numerous new entries.If the firm does rely on only one new entry,then as the life cycle for the product enters maturity and declines,so goes the life cycle of the organization."

Using a broad scope strategy helps to reduce the risk of market uncertainty.

Competition within an industry always has a negative effect on industry growth.

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

When an entrepreneur pursues a new entry opportunity only to find out later that he or she had overestimated his or her ability to create customer demand it is a(n):

In emerging industries:

By delaying entry,late movers:

List the 5 main first-mover advantages discussed in the text.