Question 1

A focus strategy recognizes that all markets are homogeneous.

Accepted Answer

A) True 
 B)False

Question 2

Create three goals and objectives for the following small company:
An Internet database for small business exporters that offers to match domestic entrepreneurs to foreign distributors,venture capitalists,and/or joint venture candidates.The company takes a percentage fee for its service.

Accepted Answer

Goals are the broad,long-range attribute

Question 3

A competitive profile matrix:

Accepted Answer

A) identifies a firm's core competencies. 
B) permits the small business owner to divide a mass market into smaller,more manageable segments. 
C) compares the firm's and its competitors' key success factors. 
D) creates a road map of action for the entrepreneur in order to fulfill his/her company's mission,goals,and objectives. 
A) identifies a firm's core competencies. 
B) permits the small business owner to divide a mass market into smaller,more manageable segments. 
C) compares the firm's and its competitors' key success factors. 
D) creates a road map of action for the entrepreneur in order to fulfill his/her company's mission,goals,and objectives.

Question 4

Small businesses have some competitive advantages over larger companies-being able to respond quickly,having greater flexibility,being able to build and defend niches,etc.

Accepted Answer

A) True 
 B)False

Question 5

A small firm's ability to identify and manipulate the ________ in its business determines its ability to compete effectively.

Accepted Answer

A) key success factors 
B) corporate vision and mission 
C) opportunities and threats 
D) market environment 
A) key success factors 
B) corporate vision and mission 
C) opportunities and threats 
D) market environment

Question 6

Early involvement of the total work force in the strategic management process is a luxury that larger businesses cannot achieve.

Accepted Answer

A) True 
 B)False

Question 7

The strategic planning process for small businesses is:

Accepted Answer

A) market-focused. 
B) the same as it is for a large company. 
C) generally done by top management with little or no participation by employees. 
D) product-focused and similar to that for large companies. 
A) market-focused. 
B) the same as it is for a large company. 
C) generally done by top management with little or no participation by employees. 
D) product-focused and similar to that for large companies.

Question 8

Competitive advantage is:

Accepted Answer

A) to be easily duplicated by competitors. 
B) to have a super idea. 
C) the aggregation of factors that sets the small business apart from its competitors and gives it a unique position in the market. 
D) None of the above 
A) to be easily duplicated by competitors. 
B) to have a super idea. 
C) the aggregation of factors that sets the small business apart from its competitors and gives it a unique position in the market. 
D) None of the above

Question 9

The key to a successful differentiation strategy is to build it on a distinctive competence-something the small company is uniquely good at doing in comparison to its competitors.

Accepted Answer

A) True 
 B)False

Question 10

What is the importance of positioning for the small business?

Accepted Answer

When a small business knows its position

Question 11

________ are the broad,long-range attributes the small business seeks to accomplish;________ are the specific,measurable milestones the company wants to achieve.

Accepted Answer

A) Goals;objectives 
B) Goals;strategies 
C) Objectives;goals 
D) Strategies;goals 
A) Goals;objectives 
B) Goals;strategies 
C) Objectives;goals 
D) Strategies;goals

Question 12

One of the goals of competitive analysis is to improve a firm's reaction time to competitor's actions.

Accepted Answer

A) True 
 B)False

Question 13

________ are positive internal factors that contribute towards accomplishing the company's objectives.

Accepted Answer

A) Strengths 
B) Weaknesses 
C) Opportunities 
D) Threats 
A) Strengths 
B) Weaknesses 
C) Opportunities 
D) Threats

Question 14

The strategic planning process for small companies should begin with setting goals and objectives.

Accepted Answer

A) True 
 B)False

Question 15

Small firms pursuing a cost leadership strategy have an advantage in reaching customers whose primary purchase criterion is:

Accepted Answer

A) quality. 
B) constant innovation. 
C) price. 
D) customer service. 
A) quality. 
B) constant innovation. 
C) price. 
D) customer service.

Question 16

A small business's "aggregation of factors that sets it apart from its competitors" is its:

Accepted Answer

A) strategic plan. 
B) competitive advantage. 
C) vision. 
D) competitive strategy. 
A) strategic plan. 
B) competitive advantage. 
C) vision. 
D) competitive strategy.

Question 17

How is the strategic planning process for small companies different from that for large companies?

Accepted Answer

A) The planning horizon should cover at least five years into the future. 
B) The process should begin with setting objectives and conclude with competitive analysis. 
C) The process should be informal and not overly structured-"a shirtsleeve approach." 
D) It should be conducted by top management and provided to lower management. 
A) The planning horizon should cover at least five years into the future. 
B) The process should begin with setting objectives and conclude with competitive analysis. 
C) The process should be informal and not overly structured-"a shirtsleeve approach." 
D) It should be conducted by top management and provided to lower management.

Question 18

The primary output of the strategic management process should be:

Accepted Answer

A) a matching of its strengths and weaknesses to the opportunities and threats in the environment. 
B) an enticement to outside investors and lenders to put money into the business. 
C) a complete explanation of the company's product or service. 
D) a description of the company's competitive situation. 
A) a matching of its strengths and weaknesses to the opportunities and threats in the environment. 
B) an enticement to outside investors and lenders to put money into the business. 
C) a complete explanation of the company's product or service. 
D) a description of the company's competitive situation.

Question 19

Most small business owners believe it is relatively unimportant to monitor their competitors' activities.

Accepted Answer

A) True 
 B)False

Question 20

Setting seemingly impossibly high objectives,those outside the likely reach of employees,helps managers to create and maintain a high motivation level.

Accepted Answer

A) True 
 B)False

Exam 4: Strategic Management and the Entrepreneur

A focus strategy recognizes that all markets are homogeneous.

Create three goals and objectives for the following small company: An Internet database for small business exporters that offers to match domestic entrepreneurs to foreign distributors,venture capitalists,and/or joint venture candidates.The company takes a percentage fee for its service.

A competitive profile matrix:

Small businesses have some competitive advantages over larger companies-being able to respond quickly,having greater flexibility,being able to build and defend niches,etc.

A small firm's ability to identify and manipulate the ________ in its business determines its ability to compete effectively.

Early involvement of the total work force in the strategic management process is a luxury that larger businesses cannot achieve.

The strategic planning process for small businesses is:

Competitive advantage is:

The key to a successful differentiation strategy is to build it on a distinctive competence-something the small company is uniquely good at doing in comparison to its competitors.

What is the importance of positioning for the small business?

________ are the broad,long-range attributes the small business seeks to accomplish;________ are the specific,measurable milestones the company wants to achieve.

One of the goals of competitive analysis is to improve a firm's reaction time to competitor's actions.

________ are positive internal factors that contribute towards accomplishing the company's objectives.

The strategic planning process for small companies should begin with setting goals and objectives.

Small firms pursuing a cost leadership strategy have an advantage in reaching customers whose primary purchase criterion is:

A small business's "aggregation of factors that sets it apart from its competitors" is its:

How is the strategic planning process for small companies different from that for large companies?

The primary output of the strategic management process should be:

Most small business owners believe it is relatively unimportant to monitor their competitors' activities.

Setting seemingly impossibly high objectives,those outside the likely reach of employees,helps managers to create and maintain a high motivation level.

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

Filters

are the broad,long-range attributes the small business seeks to accomplish; are the specific,measurable milestones the company wants to achieve.