Question 1

Which of the following is not a reason that first movers are better positioned to satisfy their customers?

Accepted Answer

A)  They have a chance to select and secure the most attractive segments of the market
B)  They have the chance to position themselves at the center of the market
C)  They have a chance to face less competitive rivalry
D)  They have a chance to establish their product as the industry standard

Question 2

Explain the difference between errors of omission and commission.

Accepted Answer

An error of commission occurs from the d...

Question 3

Technological uncertainty:

Accepted Answer

A)  is a result of uncertainty about customer demand.
B)  occurs because an alternative technology could be introduced by competitors.
C)  only occurs in emerging markets.
D)  can be avoided by early entrants with superior technology.

Question 4

Offering a small product range to a small number of customer groups is:

Accepted Answer

A)  a narrow-scope strategy.
B)  an imitation strategy.
C)  a broad-scope strategy.
D)  a way of reducing market uncertainties. A

Question 5

Which among the following is not a key stage of the entrepreneurial strategy?

Accepted Answer

A)  Market research to identify a new entry opportunity.
B)  Generation of a new entry opportunity.
C)  Exploitation of a new entry opportunity.
D)  A feedback loop from the culmination of a new entry generation and exploitation back to generation of a new opportunity.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

By overestimating demand,the entrepreneur will suffer the costs of under capacity.

Accepted Answer

A) True 
 B)False

Question 8

The long-run performance of a firm is dependent upon the ability to generate and exploit numerous new entries.

Accepted Answer

A) True 
 B)False

Question 9

The assessment of a new entry attractiveness is less about whether this opportunity "really" exists or not and more about whether the entrepreneur believes he or she can make it work.

Accepted Answer

A) True 
 B)False

Question 10

To overcome customer uncertainty,the venture should educate customer through demonstration and documentation on how to use the product.

Accepted Answer

A) True 
 B)False

Question 11

A broad-scope market strategy:

Accepted Answer

A)  focuses on producing customized products.
B)  provides substantial protection against competitors.
C)  is used to reduce market uncertainty.
D)  is based primarily on product quality. C

Question 12

Barriers to entry include all of the following except:

Accepted Answer

A)  patents
B)  switching costs
C)  environmental instability
D)  building customer loyalties

Question 13

The costs that must be borne by customers if they are to stop purchasing from the current supplier and begin purchasing from another is (are) :

Accepted Answer

A)  customer switching costs.
B)  lead time.
C)  resource costs.
D)  resource bundle errors.

Question 14

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. D

Question 15

A narrow scope strategy reduces the risks associated with competition.

Accepted Answer

A) True 
 B)False

Question 16

Technological knowledge refers to the entrepreneur's possession of information,technology,know-how,and skills that provide insight into a market and its customers.

Accepted Answer

A) True 
 B)False

Question 17

Which is the best way to gain knowledge about a potential new entry?

Accepted Answer

A)  Marketing research
B)  Internet research
C)  Entrepreneur's market experience and knowledge.
D)  Surveys

Question 18

Emerging industries are industries that have been around for years but are just starting to experience explosive growth.

Accepted Answer

A) True 
 B)False

Question 19

Knowledge is the basis of the entrepreneurial resource.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 3: Entrepreneurial Strategy: Generating and Exploiting New Entries

Which of the following is not a reason that first movers are better positioned to satisfy their customers?

Correct AnswerverifiedShow Answer

Explain the difference between errors of omission and commission.

Correct AnswerverifiedAn error of commission occurs from the d...View AnswerShow Answer

Technological uncertainty:

Correct AnswerverifiedShow Answer

Offering a small product range to a small number of customer groups is:

Correct AnswerverifiedA

Which among the following is not a key stage of the entrepreneurial strategy?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

By overestimating demand,the entrepreneur will suffer the costs of under capacity.

Correct AnswerverifiedShow Answer

The long-run performance of a firm is dependent upon the ability to generate and exploit numerous new entries.

Correct AnswerverifiedShow Answer

The assessment of a new entry attractiveness is less about whether this opportunity "really" exists or not and more about whether the entrepreneur believes he or she can make it work.

Correct AnswerverifiedShow Answer

To overcome customer uncertainty,the venture should educate customer through demonstration and documentation on how to use the product.

Correct AnswerverifiedShow Answer

A broad-scope market strategy:

Correct AnswerverifiedC

Barriers to entry include all of the following except:

Correct AnswerverifiedShow Answer

The costs that must be borne by customers if they are to stop purchasing from the current supplier and begin purchasing from another is (are) :

Correct AnswerverifiedShow Answer

Imitation strategies:

Correct AnswerverifiedD

A narrow scope strategy reduces the risks associated with competition.

Correct AnswerverifiedShow Answer

Technological knowledge refers to the entrepreneur's possession of information,technology,know-how,and skills that provide insight into a market and its customers.

Correct AnswerverifiedShow Answer

Which is the best way to gain knowledge about a potential new entry?

Correct AnswerverifiedShow Answer

Emerging industries are industries that have been around for years but are just starting to experience explosive growth.

Correct AnswerverifiedShow Answer

Knowledge is the basis of the entrepreneurial resource.

Correct AnswerverifiedShow Answer

An error of omission occurs when an entrepreneur:

Correct AnswerverifiedShow Answer

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A

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C

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D

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