Question 1

A time frame for achieving objectives is important.

Accepted Answer

A) True 
 B)False

Question 2

A strategic plan should not:

Accepted Answer

A) be relatively small. 
B) begin with extensive objective setting. 
C) encourage participation by employees. 
D) be informal and not structured. 
A) be relatively small. 
B) begin with extensive objective setting. 
C) encourage participation by employees. 
D) be informal and not structured.

Question 3

A balanced scorecard is a set of common measures for all companies.

Accepted Answer

A) True 
 B)False

Question 4

The strategic management procedure for a small business should include the following features.

Accepted Answer

A) Use a relatively short planning horizon 
B) Encourage the participation of employees 
C) Be informal and not overly structured 
D) All of the above 
A) Use a relatively short planning horizon 
B) Encourage the participation of employees 
C) Be informal and not overly structured 
D) All of the above

Question 5

Rather than attempting to serve the total market,the small firm pursuing a ________ strategy specializes in serving a specific target segment.

Accepted Answer

A) cost leadership 
B) differentiation 
C) focus 
D) head-to-head 
A) cost leadership 
B) differentiation 
C) focus 
D) head-to-head

Question 6

Corey notices a "backlash" against health food among people who eat out.He decides to open a restaurant that stresses "good home cooking," heavy with gravies,breads,oils,etc.Corey has identified and is trying to capitalize on a(n)________ in the market environment.

Accepted Answer

A) strength 
B) weakness 
C) threat 
D) opportunity 
A) strength 
B) weakness 
C) threat 
D) opportunity

Question 7

The strategic management process:

Accepted Answer

A) is especially difficult for the small business because of its limited resources. 
B) divides mass markets into smaller,less homogeneous units. 
C) provides the small business owner with the tools for managing the uncontrollable elements in the external business environment. 
D) helps a small business develop the game plan that guides it in creating its mission,vision,goals,and objectives. 
A) is especially difficult for the small business because of its limited resources. 
B) divides mass markets into smaller,less homogeneous units. 
C) provides the small business owner with the tools for managing the uncontrollable elements in the external business environment. 
D) helps a small business develop the game plan that guides it in creating its mission,vision,goals,and objectives.

Question 8

An established customer base is an example of structural capital.

Accepted Answer

A) True 
 B)False

Question 9

A differentiation strategy works well when buyers are sensitive to price changes,when competing firms sell the same commodity products,and when companies can benefit from economies of scale.

Accepted Answer

A) True 
 B)False

Question 10

Strategic management is a process that involves:

Accepted Answer

A) developing a vendor list. 
B) developing a vision and mission statement. 
C) developing goals and objectives. 
D) Both B and C 
A) developing a vendor list. 
B) developing a vision and mission statement. 
C) developing goals and objectives. 
D) Both B and C

Question 11

The idea behind strategic planning is to give the business owner a way to match his/her company's strengths and weaknesses to the opportunities and threats in the business environment.

Accepted Answer

A) True 
 B)False

Question 12

The key to the balanced scorecard is identifying the key single measure for the specific company being evaluated.

Accepted Answer

A) True 
 B)False

Question 13

These are products of the interaction of various forces,trends,and events that are outside the control of the small business.

Accepted Answer

A) Distinctive competencies 
B) key success factors 
C) Opportunities and threats 
D) Strengths and weaknesses 
A) Distinctive competencies 
B) key success factors 
C) Opportunities and threats 
D) Strengths and weaknesses

Question 14

A differentiation strategy carries a risk with it,in that a firm may not adequately segment the market and properly target those special needs.

Accepted Answer

A) True 
 B)False

Question 15

Every business is characterized by a set of controllable variables called ________ that determines the relative success (or lack of it)of market participants.

Accepted Answer

A) distinctive competencies 
B) key success factors 
C) opportunities and threats 
D) competitive edge 
A) distinctive competencies 
B) key success factors 
C) opportunities and threats 
D) competitive edge

Question 16

Why is it important for a business owner to monitor the competition? Explain how a business owner could use a competitive profile matrix to do that.Include in the review what its value is,what information it contains,and how a small business owner would create it.

Accepted Answer

Business owners should know their compet

Question 17

"What business am I in?" This is a question the entrepreneur needs to answer when creating the mission statement.

Accepted Answer

A) True 
 B)False

Question 18

To be effective,core competencies should be ________ for competitors to duplicate,and they must provide customers with a valuable perceived benefit.

Accepted Answer

A) easy 
B) moderate 
C) difficult 
D) None of the above 
A) easy 
B) moderate 
C) difficult 
D) None of the above

Question 19

In the creation of the balanced scorecard,the entrepreneur needs to:

Accepted Answer

A) assess competitor's strengths and weaknesses and set measures against them. 
B) establish goals for each critical factor of company performance. 
C) think about the resource requirements necessary to implement the action plans. 
D) do all of these. 
A) assess competitor's strengths and weaknesses and set measures against them. 
B) establish goals for each critical factor of company performance. 
C) think about the resource requirements necessary to implement the action plans. 
D) do all of these.

Question 20

Joan is seeking to answer a series of questions such as: How do competitor's cost structures compare to ours,what new competitors are entering the industry,what do our customers say about competitors,etc.By asking these questions,Joan is:

Accepted Answer

A) conducting a SWOT analysis. 
B) identifying her company's key success factors. 
C) formulating strategic options for her company. 
D) performing a competitive analysis. 
A) conducting a SWOT analysis. 
B) identifying her company's key success factors. 
C) formulating strategic options for her company. 
D) performing a competitive analysis.

Exam 4: Strategic Management and the Entrepreneur

A time frame for achieving objectives is important.

A strategic plan should not:

A balanced scorecard is a set of common measures for all companies.

The strategic management procedure for a small business should include the following features.

Rather than attempting to serve the total market,the small firm pursuing a ________ strategy specializes in serving a specific target segment.

Corey notices a "backlash" against health food among people who eat out.He decides to open a restaurant that stresses "good home cooking," heavy with gravies,breads,oils,etc.Corey has identified and is trying to capitalize on a(n)________ in the market environment.

The strategic management process:

An established customer base is an example of structural capital.

A differentiation strategy works well when buyers are sensitive to price changes,when competing firms sell the same commodity products,and when companies can benefit from economies of scale.

Strategic management is a process that involves:

The idea behind strategic planning is to give the business owner a way to match his/her company's strengths and weaknesses to the opportunities and threats in the business environment.

The key to the balanced scorecard is identifying the key single measure for the specific company being evaluated.

These are products of the interaction of various forces,trends,and events that are outside the control of the small business.

A differentiation strategy carries a risk with it,in that a firm may not adequately segment the market and properly target those special needs.

Every business is characterized by a set of controllable variables called ________ that determines the relative success (or lack of it)of market participants.

Why is it important for a business owner to monitor the competition? Explain how a business owner could use a competitive profile matrix to do that.Include in the review what its value is,what information it contains,and how a small business owner would create it.

"What business am I in?" This is a question the entrepreneur needs to answer when creating the mission statement.

To be effective,core competencies should be ________ for competitors to duplicate,and they must provide customers with a valuable perceived benefit.

In the creation of the balanced scorecard,the entrepreneur needs to:

Joan is seeking to answer a series of questions such as: How do competitor's cost structures compare to ours,what new competitors are entering the industry,what do our customers say about competitors,etc.By asking these questions,Joan is:

Entrepreneurs: the Driving Force Behind Small Business

Ethics and Social Responsibility: Doing the Right Thing

Creativity and Innovation: Keys to Entrepreneurial Success

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

New Business Planning Process: Feasibility Analysis,business Modeling,

Building a Bootstrap Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Creating a Solid Financial Plan

Managing Cash Flow

Sources of Equity Financing

Sources of Debt Financing

Location,layout,and Physical Facilities

Supply Chain Management

Managing Inventory

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

The Legal Environment: Business Law and Government Regulation

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