MANA 4322: Exam 2 Questions with
Correct Answers (UTA)Updated.
Entrepreneurship - Answer the creation of new value by an existing organization or new
venture that involves the assumption of risk
New Value created by entrepreneurship - Answer Start-up ventures, major corporations,
family-owned business, nonprofit organizations, established institutions
Opportunity recognition - Answer Two phases of activity; Discovery and evaluation
Discovery phase - Answer becoming aware of a new business concept
Evaluation phase - Answer analyzing the opportunity to determine whether it is viable or
feasible to develop further
Entry strategies - Answer pioneering, imitative, adaptive
Pioneering new entry - Answer a firm's entry into an industry with a radical new product or
highly innovative service that changes the way business is conducted
imitative new entry - Answer a firm's entry into an industry with products or services that
capitalize on proven market successes and that usually has a strong marketing orientation
Adaptive new entry - Answer offering a product or service that is somewhat new and
sufficiently different to create value for customers by capitalizing on current market trends.
Threat Analysis - Answer a firm's awareness of its closest competitors and the kinds of
competitive actions they might be planning
Strategic Actions - Answer major commitments of distinctive and specific resources to
strategic initiatives
Strategic Actions Examples - Answer entering new markets, creating new product
introductions, changing production capacity, pursuing mergers or alliances
Tactical Actions - Answer refinements or extensions of strategies usually involving minor
resource commitments. See Exhibit 8.6 for some examples.
, Tactical Actions examples - Answer Doing price cuting, making product/service
enhancements, increasing marketing efforts, developing new distribution channels
Forebearance - Answer a firm's choice of not reacting to a rival's new competitive action
Traditional approach to strategic control - Answer sequential, single loop learning. No
feedback vehicle
Traditional approach steps - Answer 1. Formulate Strategies
2. Implement Strategies
3. Strategic Control
Rewards Systems/ incentive programs (behavioral control) - Answer a powerful means of
influencing an organization's culture, focusing efforts on high-priority tasks, and motivating
individual and collective task performance
Reward Systems - Answer policies that specify who gets rewarded and why
Boundaries and Constraints (Behavioral control) - Answer rules that specify behaviors that
are acceptable and unacceptable
Boundaries - Answer useful in focusing individual efforts on strategic priorities, provide ST
objectives and action plans (SMART goals)
Constraints - Answer improve efficiency and effectiveness, minimize improper and unethical
conduct
Rule-based controls are most appropriate: - Answer appropriate in organizations when the
environment is stable, predictable; employees are unskilled, interchangeable; product and
service consistency is critical; the risk of malfeasance is extremely high
Agency Theory - Answer a theory of the relationship between principals and their agents,
with emphasis on two problems
Two problems in Agency Theory - Answer (1) the conflicting goals of principals and agents,
along with the difficulty of principals to monitor the agents, and (2) the different attitudes and
preferences toward risk of principals and agents.
Correct Answers (UTA)Updated.
Entrepreneurship - Answer the creation of new value by an existing organization or new
venture that involves the assumption of risk
New Value created by entrepreneurship - Answer Start-up ventures, major corporations,
family-owned business, nonprofit organizations, established institutions
Opportunity recognition - Answer Two phases of activity; Discovery and evaluation
Discovery phase - Answer becoming aware of a new business concept
Evaluation phase - Answer analyzing the opportunity to determine whether it is viable or
feasible to develop further
Entry strategies - Answer pioneering, imitative, adaptive
Pioneering new entry - Answer a firm's entry into an industry with a radical new product or
highly innovative service that changes the way business is conducted
imitative new entry - Answer a firm's entry into an industry with products or services that
capitalize on proven market successes and that usually has a strong marketing orientation
Adaptive new entry - Answer offering a product or service that is somewhat new and
sufficiently different to create value for customers by capitalizing on current market trends.
Threat Analysis - Answer a firm's awareness of its closest competitors and the kinds of
competitive actions they might be planning
Strategic Actions - Answer major commitments of distinctive and specific resources to
strategic initiatives
Strategic Actions Examples - Answer entering new markets, creating new product
introductions, changing production capacity, pursuing mergers or alliances
Tactical Actions - Answer refinements or extensions of strategies usually involving minor
resource commitments. See Exhibit 8.6 for some examples.
, Tactical Actions examples - Answer Doing price cuting, making product/service
enhancements, increasing marketing efforts, developing new distribution channels
Forebearance - Answer a firm's choice of not reacting to a rival's new competitive action
Traditional approach to strategic control - Answer sequential, single loop learning. No
feedback vehicle
Traditional approach steps - Answer 1. Formulate Strategies
2. Implement Strategies
3. Strategic Control
Rewards Systems/ incentive programs (behavioral control) - Answer a powerful means of
influencing an organization's culture, focusing efforts on high-priority tasks, and motivating
individual and collective task performance
Reward Systems - Answer policies that specify who gets rewarded and why
Boundaries and Constraints (Behavioral control) - Answer rules that specify behaviors that
are acceptable and unacceptable
Boundaries - Answer useful in focusing individual efforts on strategic priorities, provide ST
objectives and action plans (SMART goals)
Constraints - Answer improve efficiency and effectiveness, minimize improper and unethical
conduct
Rule-based controls are most appropriate: - Answer appropriate in organizations when the
environment is stable, predictable; employees are unskilled, interchangeable; product and
service consistency is critical; the risk of malfeasance is extremely high
Agency Theory - Answer a theory of the relationship between principals and their agents,
with emphasis on two problems
Two problems in Agency Theory - Answer (1) the conflicting goals of principals and agents,
along with the difficulty of principals to monitor the agents, and (2) the different attitudes and
preferences toward risk of principals and agents.
