MANA 4322: Final Exam Answered
Correctly.
Entrepreneurship - Answer the creation of new value that involves the assumption of risk.
Three attributes needed for Entrepreneurship to occur: - Answer 1. Opportunity - changes in
the business environment, new technology, and social cultural trends.
2. Resources - Money, Human Capital and Social Capital
3. Entrepreneurs - Vision, Dedication and drive, commitment to excellence
Two Phases of opportunity: - Answer 1. Discovery phase - When you first become aware of
new business concept
2. Evaluation phase - Market potential, product concept testing, focus groups, trial run with end
users.
Characteristics of opportunities: - Answer Attractive, achievable, durable, value creating.
Financing Stages: - Answer • Early stage - personal savings, family and friends.
• Later stage - angel investors, venture capital, commercial banks.
Entry Strategies: Getting a foothold in the market - Answer • Pioneering entry - creating new
ways to solve old problems
• Imitative new entry - introduce another product in another segment of the market
• Adaptive new entry - product is somewhat new and different
Market commonality - Answer whether or not the competitors are vying for the same
customers and how many markets they share in common
Resource similarity - Answer the degree to which rivals draw on the same types of resources
to compete
Strong competitors are NOT likely to attack each other - Answer because it can unleash an
intense battle where no one wins.
Strong competitors are VERY likely to - Answer respond to each other's attacks.
, Formulate Strategies - Implement Strategy - Strategic Control - Answer Relationships
between strategy formulation, implementation and control are highly interactive.
Two types of control - Answer Informational
Behavioral
Informational - Answer concerned with organization whether they are "doing the right
things"
• Continually monitoring the environments (internal and external)
• Identifying trends and events that signal the need to revise strategies, goals and objectives
• Information control is part of an ongoing process of organizational learning that updates and
challenges the assumptions underlying the firm's strategy
Behavioral - Answer concerned with the organization whether or not they are "doing things
right"
Levers of Behavioral - Answer Culture- building a strong and effective culture by shared
beliefs and shared values.
Rewards - motivate with rewards and incentives. Performance measures are clear and highly
visible. Boundaries - improve operational efficiency and effectiveness. Minimize improper and
unethical conduct.
Pitfall of Rewards - Answer may reflect differences in among functional areas, products,
services and divisions.
System of rewards and incentives coupled with a strong culture - Answer • Hire the right
people (already identify with the firm's dominant values)
• Train people in the dominant cultural values
• Have managerial role models
• Reward systems clearly aligned with organizational goals and objectives
Agency Theory - Answer relationship between principals (stockholders) and agents
(management)
Two problems (Agency Theory): - Answer The conflicting goals of principals and agents,
along with the difficulty of principals to monitor the agents
The attitudes and preferences towards risk of principals (more risk taking) and agents (more risk
averse)
Correctly.
Entrepreneurship - Answer the creation of new value that involves the assumption of risk.
Three attributes needed for Entrepreneurship to occur: - Answer 1. Opportunity - changes in
the business environment, new technology, and social cultural trends.
2. Resources - Money, Human Capital and Social Capital
3. Entrepreneurs - Vision, Dedication and drive, commitment to excellence
Two Phases of opportunity: - Answer 1. Discovery phase - When you first become aware of
new business concept
2. Evaluation phase - Market potential, product concept testing, focus groups, trial run with end
users.
Characteristics of opportunities: - Answer Attractive, achievable, durable, value creating.
Financing Stages: - Answer • Early stage - personal savings, family and friends.
• Later stage - angel investors, venture capital, commercial banks.
Entry Strategies: Getting a foothold in the market - Answer • Pioneering entry - creating new
ways to solve old problems
• Imitative new entry - introduce another product in another segment of the market
• Adaptive new entry - product is somewhat new and different
Market commonality - Answer whether or not the competitors are vying for the same
customers and how many markets they share in common
Resource similarity - Answer the degree to which rivals draw on the same types of resources
to compete
Strong competitors are NOT likely to attack each other - Answer because it can unleash an
intense battle where no one wins.
Strong competitors are VERY likely to - Answer respond to each other's attacks.
, Formulate Strategies - Implement Strategy - Strategic Control - Answer Relationships
between strategy formulation, implementation and control are highly interactive.
Two types of control - Answer Informational
Behavioral
Informational - Answer concerned with organization whether they are "doing the right
things"
• Continually monitoring the environments (internal and external)
• Identifying trends and events that signal the need to revise strategies, goals and objectives
• Information control is part of an ongoing process of organizational learning that updates and
challenges the assumptions underlying the firm's strategy
Behavioral - Answer concerned with the organization whether or not they are "doing things
right"
Levers of Behavioral - Answer Culture- building a strong and effective culture by shared
beliefs and shared values.
Rewards - motivate with rewards and incentives. Performance measures are clear and highly
visible. Boundaries - improve operational efficiency and effectiveness. Minimize improper and
unethical conduct.
Pitfall of Rewards - Answer may reflect differences in among functional areas, products,
services and divisions.
System of rewards and incentives coupled with a strong culture - Answer • Hire the right
people (already identify with the firm's dominant values)
• Train people in the dominant cultural values
• Have managerial role models
• Reward systems clearly aligned with organizational goals and objectives
Agency Theory - Answer relationship between principals (stockholders) and agents
(management)
Two problems (Agency Theory): - Answer The conflicting goals of principals and agents,
along with the difficulty of principals to monitor the agents
The attitudes and preferences towards risk of principals (more risk taking) and agents (more risk
averse)
