Deck 2: Entrepreneurial Intentions and Corporate Entrepreneurship

Question 1

Corporate venturing consists of creating something new of value either by redefining the company's current products or services,developing new markets,or forming more formally autonomous or semiautonomous units or firms.

Answer 1

True

Question 2

The typical corporate culture has a climate and a reward system that favor activist decision making.

Answer 2

False

Question 3

An entrepreneur's recovery from grief is detrimental to society.

Answer 3

False

Question 4

Robert Mondavi Winery was the first Californian to produce and market premium wines that were expected to compete with European wines.

Question 5

The corporate entrepreneur to have the ability to encourage teamwork and use a multidisciplined approach,which violates organizational practices and structures taught in most business schools.

Question 6

An organization that wants to become more entrepreneurial must learn to be more productive with fewer resources.

Question 7

In encouraging a culture for corporate entrepreneurship,using older,proven,technology is recommended in order to increase stability in the organization.

Question 8

Most managers in a corporation are capable of being successful corporate entrepreneurs with the correct training.

Question 9

One study found that new ventures started within a corporation performed better than those started independently by entrepreneurs.

Question 10

It is important for an entrepreneur to understand all aspects of the environment.Part of this ability is reflected in the individual's level of creativity,which generally increases with age and education in most individuals.

Question 11

Entrepreneurially run firms are driven by controlled resources whereas traditionally managed firms are driven by perception of opportunity.

Question 12

Entrepreneurially managed firm structure is usually flat with multiple informal networks.

Question 13

Entrepreneurs focus on how to minimize resources needed whereas traditional firms focus on accumulating resources.

Question 14

Generally,independent,venture-capital-based start-ups by entrepreneurs tend to outperform corporate start-ups significantly.

Question 15

For an organization with a traditional environment,it is best to facilitate an external process to establish an entrepreneurial environment.

Question 16

In an encouraging climate for corporate entrepreneurship,rewards should be based on the attainment of established performance goals.

Question 17

Corporate ventures are totally independent units,hence the equity portion of the compensation is particularly difficult to handle.

Question 18

Entrepreneurial activities tend to immediately affect the bottom line,and hence are seldom overlooked and receive extensive funding and support.

Question 19

Traditionally managed firms commitment to opportunity is revolutionary with long duration.

Question 20

Robert Mondavi came up with all of the following process innovations except:

A)steel fermentation tanks
B)vacuum corking of bottles
C)labels that indicated when the wine was cold
D)aging wines in new French oak barrels

Question 21

When would an entrepreneur be pronounced to have recovered from the grief of a lost business?

A)On the availability of equally challenging entrepreneurial opportunities.
B)Upon a simultaneous engagement in an analysis of the failed business.
C)On having evaluated and absorbed the lessons learnt from the failed business.
D)Thoughts about the events surrounding,and leading up to the loss of the business,no longer generate a negative emotional response.

Question 22

Which of the following is true about corporate entrepreneurship?

A)Equity in a new venture should not be used as a reward due to its uncertain value
B)A company must be willing to invest money without a guarantee of a return in the short term
C)Teams should be segmented by department
D)Top management should not be involved in the process

Question 23

Which company,discussed in our text as an example of corporate entrepreneurship,created a high quality monitor that was used by NASA?

A)HP
B)IBM
C)APPLE
D)TOSHIBA

Question 24

A sufficient time for top management to be committed to corporate entrepreneurship is:

A)at least one year.
B)at least two years.
C)at least three years.
D)at least ten years.

Question 25

In the loss-orientation process of grief recovery,when are painful memories likely to dominate most?

A)In the early phase of grief.
B)In the medial stage of grief.
C)In the later stage of grief.
D)Each time a related negative thought comes to minD.

Question 26

In regards to the differences between the entrepreneurial and administrative focuses which of the following is correct?

A)Entrepreneurs focus on slow steady growth and managers focus on rapid growth
B)Entrepreneurs rent or sporadically use resources;managers like to own resources
C)Entrepreneurs are driven by controlled resources;managers by opportunity
D)Entrepreneurs tend to use a hierarchical management structure;managers use a more fluid,flat approach

Question 27

Which of the following is true?

A)Independent,venture-capital-based start-ups by entrepreneurs tend to outperform corporate start-ups significantly.
B)New ventures started within a corporation performed better than those started independently by entrepreneurs.
C)Independent entrepreneurs find difficulty in maintaining a long-term commitment.
D)Corporate ventures become profitable twice as fast as independent ventures.

Question 28

When establishing corporate entrepreneurship in an organization rewards should:

A)be tied to the department in which the idea originated
B)be tied to the parent company's stock performance
C)be tied to the performance of the entrepreneurial unit created from the idea
D)not be changed from whatever current system is being used so that risk is encouraged

Question 29

Corporate entrepreneurship is best described as:

A)the hiring of former Entrepreneurs.
B)entrepreneurial action within an organization.
C)the process of buying acquiring entrepreneurial firms.
D)the process of hiring consultants to teach a firm how to be more creative.

Question 30

Which company,discussed in our text as an example of corporate entrepreneurship,created the independent business unit concept?

A)HP
B)IBM
C)APPLE
D)TOSHIBA

Question 31

Having an entrepreneurial orientation towards the control of resources means:

A)that one focuses on accessing others' resources.
B)that one focuses on purchasing resources.
C)that one has a belief that resources are unlimited and therefore easy to obtain.
D)that one focuses on using a hierarchy management structure in allocating resources

Question 32

Why is loss-orientation physically and mentally exhausting?

A)Since it involves psychological counseling.
B)Since it involves confrontation.
C)Since it advocates change of lifestyle.
D)Since it takes a long time to recover from grief.

Question 33

Entrepreneurial culture and growth orientation consists of all of the following except:

A)encouraging employees to generate ideas.
B)focusing on opportunities.
C)the desire to grow at a slow and controlled pace.
D)being creative.

Question 34

New product development falls under which of the four major components of corporate entrepreneurship?

A)New business venturing
B)Self-renewal
C)Innovativeness
D)Proactiveness

Question 35

Which of the following would NOT occur in the second stage of establishing corporate entrepreneurship in an organization?

A)Ideas that top management is interested in supporting are identified.
B)Identify an evaluation system for involved employees.
C)The amount of risk money available is specified.
D)Overall program expectations and target results of each corporate venture are establisheD.

Question 36

In 1994 Robert Mondavi came up with:

A)a capsule-free,flange-top bottle design.
B)a new flavor of wine cooler that revolutionized the industry.
C)a new brand of liquor with a unique marketing campaign.
D)a way to vacuum cork bottles.

Question 37

_____ includes initiative and risk taking,as well as competitive aggressiveness and boldness.

A)New business venturing
B)Self-renewal
C)Innovativeness
D)Proactiveness

Question 38

Which is NOT a leadership characteristic of a corporate entrepreneur according to the text?

A)Flexibility and vision
B)Persistence
C)Encourages teamwork
D)Encourages colleagues to follow hierarchy

Question 39

The first step in establishing corporate entrepreneurship in an organization is:

A)finding mid level managers to champion ideas
B)developing ways to get closer to customers
C)learn to be more productive with fewer resources
D)securing commitment from top management

Question 40

All these are characteristics of an entrepreneurial environment except:

A)there are short term horizons.
B)new ideas are encouraged.
C)the organization operates on frontiers of technology.
D)it uses a multidiscipline teamwork approach.

Question 41

Explain the dual process model of coping with negative emotions.

Question 42

Identify and briefly describe the 4 major parts of corporate entrepreneurship.
1.New business venturing: These entrepreneurial activities consist of creating something new of value either by redefining the company's current products or services,developing new markets,or forming more formally autonomous or semiautonomous units or firms.
2.Organizational innovativeness refers to product and service innovation.It includes new product development,product improvements,and new production methods and procedures.
3.Self-renewal is the transformation of an organization through the renewal of the key ideas on which it is built.Includes a redefinition of the business concept,reorganization,and the introduction of system wide changes to increase innovation.
4.Proactiveness includes initiative and risk taking,as well as competitive aggressiveness and boldness,which are particularly reflected in the orientations and activities of top management.A proactive organization tends to take risks by conducting experiments;it also takes initiative and is bold and aggressive in pursuing opportunities.Organizations with this proactive spirit attempt to lead rather than follow competitors in such key business areas as the introduction of new products or services,operating technologies,and administrative techniques.

Question 43

Discuss three major ways in which managerial and entrepreneurial decision making differs.
Eight areas of difference students can choose from:
1.strategic orientation
2.commitment to opportunity
3.commitment of resources
4.control of resources
5.management structure
6.reward philosophy
7.growth orientation
8.entrepreneurial culture
Basic differences in each dimension:
Source:This table is taken from T.Brown,P.Davidsson,and J.Wiklund,"An Operationalization of Stevenson's Conceptualization of Entrepreneurship as Opportunity-Based Firm Behavior," Strategic Management Journal 22 (2001).

Question 44

Explain the benefits,or practical implications,of using the dual process model of coping with negative emotions.

Question 45

Identify 5 of the 12 characteristics of an entrepreneurial environment.

Question 46

Why does restoration-orientation have adverse effects on an individual's health?

A)Since it involves suppression by mental effort.
B)Since it prescribes physical diversions like a hobby.
C)Since it involves regular physical exertion via exercise.
D)Since it involves mental catharsis to bring out the grief.

Question 47

Which of the following is most effective in grief-recovery?

A)Restoration-orientation
B)Loss-orientation
C)Dual process
D)Grief recovery process

Question 48

Identify the seven leadership characteristics of a corporate entrepreneur.