QUIZ 7---CAPSTONE---BGEN 499.

Musk describes his early days in his first startup, Zip2, as very tight with cash. For example, he and the two other founders began the firm on a very small budget by sleeping on futons in the office. This matches which part of the text's description of entrepreneurship?  to find venture capital funding  to create new processes  to develop an elevator pitch  to undertake economic risk  to be in the growth stage Musk is a serial entrepreneur. The case compares Zip2 (his first startup) to PayPal (his second startup). He finds several similar characteristics for the firms, such as building with a small group of people, a non-hierarchical organization, and  a focus on patenting.  an involved board of directors.  an innovative ecosystem.  a focus on the customer experience.  a strong sales team. Elon Musk's approach to social entrepreneurship is quite different than that of Jimmy Wales as discussed in the text. However, both men looked beyond the financials to a greater social good for their organizations. What is the major difference in the organization Jimmy Wales founded from those started by Elon Musk?  Musk is concerned about customer experience and usage of his products and services.  Musk inspires hundreds of people to want to work in his inspirational businesses.  Wales started his firm in California while Musk started Tesla in Detroit.  Wales did not use software or the Internet for his startup.  Wales founded a non-profit organization though it could have generated many millions in ad revenue. Elon Musk has shown an ability to combine strategically important actions and innovative entrepreneurial actions in his several startup firms. The text also discusses this combination of actions leading to competitive advantage in large established organizations. What firm does the text discuss that has used the AFI principles to continuously innovate and enter new markets such as wearables?  Apple  Microsoft  General Electric  Blackberry  Netflix Apple's first-generation iPad was priced at over $800 when it launched in 2010. Three years later the same model was priced at under $300. This change is supported by all of the statements below except  Apple has improved supply-chain capabilities.  Apple has access to large-scale manufacturing.  Competencies are shifting to manufacturing efficiency.  The industry moved from introduction to growth stage.  Apple is using a harvest strategy for cash flow focus. The use of complementary software applications (apps) for smartphones has not only created a new "apps" industry but has also spurred market demand for smartphones themselves. Thus, apps for smartphones have largely  created a virtuous cycle reinforcing smartphones globally.  decreased network effects of smartphones.  precipitated cost increases for smartphones.  moved the smartphone industry into the mature stage.  created hurdles for new software developers. During the growth stage of an industry life cycle, the focus is on product innovation until an industry standard or dominant design is established. Once this standard has been set, a firm should do which of the following during the growth stage in order to maintain its competitive advantage(s)?  Consolidate with rivals.  Cater to late majority customers.  Shift to process innovation focus.  Reinforce position as a differentiator.  Continue focus on product innovation. In the shakeout stage of the industry, competitive characteristics in the industry change. Which of the following is not a change expected during this stage?  New firms enter with features that shakeup the incumbents.  Demand moves to repeat purchases.  Growth rate slows for the industry.  Competitive intensity increases.  Smaller, weaker firms exit or are acquired. Which of the following is not a recommended strategic option for firms competing during the decline stage of an industry life cycle?  Exit the market if barriers are low.  Invest in a large marketing campaign.  Reduce investments in product supports.  Maximize cash flow from current products.  Buy rivals to strengthen market positio