Strategic Management Chapter 13

Chapter 13—Strategic Entrepreneurship


TRUE/FALSE

1. According to the chapter Opening Case, Amazon’s success with the Kindle was largely attributed to its
invention of the digital book.

ANS: F PTS: 1 DIF: Easy REF: 379
OBJ: 13-01 TYPE: application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Strategic & systems skills

2. According to the chapter Opening Case, Amazon’s 24% increase in earnings for the first quarter 2009
(over the first quarter 2008) was largely attributable to the Kindle.

ANS: T PTS: 1 DIF: Medium REF: 379
OBJ: 13-01 TYPE: application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Strategic & systems skills

3. According to the chapter Opening Case, Amazon should expect a sustainable competitive advantage
with the Kindle as its technology is not easily imitated.

ANS: F PTS: 1 DIF: Medium REF: 379
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Rubin: Strategic & systems skills

4. An organization engaging in strategic entrepreneurship focuses on identifying opportunities that it can
exploit through innovations.

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& Rubin: Strategic & systems skills

5. Most large, complex firms innovate through cooperative strategies or strategic alliances, but not
through internal activities.

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& Rubin: Managing strategy & innovation

6. Entrepreneurial opportunities exist because of competitive imperfections in the markets and among the
factors of production.

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, 7. Regarding competition and markets, entrepreneurship’s primary focus is to capture most of the
existing markets from less aggressive and innovative competitors.

ANS: F PTS: 1 DIF: Hard REF: 381
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Dierdorff & Rubin: Managing the task environment

8. Entrepreneurship is the economic engine driving national economic growth in many nations.

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Dierdorff & Rubin: Managing strategy & innovation

9. The ultimate goal of entrepreneurial innovation is to create wealth.

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10. Entrepreneurial opportunities are conditions in which new goods or services can satisfy a need in the
market.

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11. As a process, entrepreneurship results in the “creative destruction” of existing products (goods or
services) or methods of producing them and replaces them with new products and production methods.

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12. Invention is defined as the adoption of a similar innovation by different firms.

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13. Corporate entrepreneurship describes the opportunity seeking and exploitation of innovations in new
start-up enterprises.

ANS: F PTS: 1 DIF: Easy REF: 380
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NOT: AACSB: Business Knowledge & Analytical Skills | Management: Creation of Value | Dierdorff
& Rubin: Strategic & systems skills