Chap007 - Chapter 07 Small Business Strategies Imitation...

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Chapter 07 - Small Business Strategies: Imitation with a Twist Chapter 07 Small Business Strategies: Imitation with a Twist True / False Questions 1. (p. 172) Objective is the idea and actions that explain how a firm will make its profits. FALSE Difficulty: Medium 2. (p. 172) Strategy in small business is special because most small businesses are more innovative than imitative. FALSE Difficulty: Hard 3. (p. 172) The tool used in the first step of strategic planning is the SWOT analysis. FALSE Difficulty: Easy 4. (p. 174) There are two major classification systems that code industries: NAICS and SIC. TRUE Difficulty: Medium 5. (p. 175) In much the same way that families and societies are living things, industries can be considered living too. TRUE Difficulty: Medium 7-1
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Chapter 07 - Small Business Strategies: Imitation with a Twist 6. (p. 175) Market scale refers to the geography of your target market. FALSE Difficulty: Medium 7. (p. 176) Imitation minus one degree of similarity would be the business equivalent of incremental innovation. FALSE Difficulty: Hard 8. (p. 178) Most entrepreneurs initially do an industry analysis to find out what the profits are in an industry in order to better estimate possible financial returns. TRUE Difficulty: Medium 9. (p. 179) Funds left over after deducting the cost of goods sold is called net profit. FALSE Difficulty: Easy 10. (p. 180) Benefits can focus on value added to the products or services or on the cost of the products or services. TRUE Difficulty: Easy 7-2
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Chapter 07 - Small Business Strategies: Imitation with a Twist 11. (p. 181) Demand shortage and second sourcing are two of the seven entry wedges suggested by Karl Vesper for small businesses pursuing an imitation strategy. FALSE Difficulty: Medium 12. (p. 182) "S" in SWOT stands for strategy. FALSE Difficulty: Easy 13. (p. 185) In SWOT analysis, where strengths match the opportunities, you have the winning combination and you should fight it. FALSE Difficulty: Hard 14. (p. 185) There are three classic strategies for businesses of all types: differentiation, imitation and focus. FALSE Difficulty: Medium 15. (p. 186) Customization, super-support and single-mindedness are three cost-driven strategies offered by Porter for small businesses. FALSE Difficulty: Medium 7-3
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Chapter 07 - Small Business Strategies: Imitation with a Twist 16. (p. 190) Bargaining powers of suppliers and buyers are two threats of competition for any business, according to Porter. TRUE Difficulty: Medium 17. (p. 190) There are two types of resources: tangible and intangible. TRUE Difficulty: Easy 18. (p. 191) Transformational competencies come from combining tangible and intangible resources in ways superior to the competitions. FALSE
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This note was uploaded on 11/21/2009 for the course MNGT 422X taught by Professor Godsey during the Spring '09 term at UNL.

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Chap007 - Chapter 07 Small Business Strategies Imitation...

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