Corporate Entrepreneurship Quiz

The Entrepreneurial Health Audit is a tool used to measure entrepreneurial performance at the organizational level. It consists of three steps: assessing the firm's Entrepreneurial Intensity, creating an organization-wide understanding of the CE/Innovation process, and setting innovation objectives. However, the step of setting innovation objectives is not included in the Entrepreneurial Health Audit. This step focuses on defining specific goals and targets related to innovation within the organization, which is not a part of this particular assessment tool.

During the Strategic forcing phase, if a product is commercialized without being fully finished, the worst problem that might occur is that the company might lose a lot of money while fixing the not properly working products. This is because the product's flaws and issues will likely surface once it is in the market, and the company will have to invest significant resources in fixing and improving it. This can lead to financial losses for the company.

The correct answer is d. Setting up guidelines. This is not a tip for entrepreneurship in the government because setting up guidelines is typically seen as a bureaucratic and restrictive process, which can hinder entrepreneurship and innovation. Instead, entrepreneurs in the government should focus on seeing opportunities instead of challenges, being proactive, and encouraging innovation to foster a more entrepreneurial environment.

Sustained regeneration is the form of strategic entrepreneurship that has the highest frequency of the entrepreneurial event in general. This means that sustained regeneration, compared to the other forms listed, is more commonly associated with entrepreneurial activities. It suggests that businesses or organizations that focus on sustained regeneration are more likely to engage in entrepreneurial endeavors, such as continuous innovation, adaptation, and growth, in order to stay competitive and thrive in the market.

According to Burgelman, the main and most important motor for corporate entrepreneurship is at the operational managers - group leader level. This means that it is the managers who are directly involved in the day-to-day operations and decision-making within the organization who have the greatest impact on fostering and driving corporate entrepreneurship. This makes sense as they are the ones who are closest to the front lines and have the most knowledge and understanding of the organization's resources and capabilities.

The concept of entrepreneurship as the foundation for the organization's conceptualization and resource allocation suggests a dynamic dominant logic. This means that the organization is focused on adapting and evolving in response to changing circumstances and market conditions. It emphasizes flexibility, innovation, and a willingness to take risks in order to stay competitive and achieve success.

The question asks for the principle that is not included in the foundation for designing a personal model as a corporate entrepreneur. Option (b) "Tend to be overconfident" is the correct answer because being overconfident is not a recommended principle for a corporate entrepreneur. The other options, (a) "Solidify a relationship with a sponsor" and (c) "Become a guerrilla" are both principles that are included in the foundation for designing a personal model.

The HRM practices of performance appraisal and training/development are more associated with entrepreneurial orientation. This means that in an entrepreneurial organization, there is a focus on evaluating and providing feedback on employee performance, as well as investing in their training and development to enhance their skills and capabilities. This aligns with the entrepreneurial mindset of continuously improving and adapting to the changing business environment.

The Entrepreneurial Project Development Framework includes three different internal channels or structural mechanisms: "Mainstream development" projects, "Emerging potential" projects, and "Ray of light" projects. However, "Major expansion" projects are not listed as one of the channels or mechanisms in the framework.

Entrepreneurial orientation refers to the strategy-making practices that businesses use to identify and launch corporate ventures. It involves being proactive, innovative, and risk-taking in order to exploit opportunities and create value. This orientation emphasizes a focus on entrepreneurial activities and a willingness to take calculated risks in pursuit of growth and innovation.

The correct answer is B. People are empowered to make decisions in their job. This is not part of the Principles of Open Book Management according to Morris et. al. (2011). Open Book Management focuses on principles such as employees having access to company financials, teaching the basics of business to everyone, and employees developing core capabilities of the company. However, it does not specifically mention empowering employees to make decisions in their job.

The main indicators that a project has achieved venture status, according to Burgelman (1983), are the presence of a general manager dedicated to the project and the allocation of a separate budget for the project. These indicators suggest that the project has gained sufficient importance and resources within the organization to be considered a venture. The other options, such as technical and marketing development or full commercialization of the product, may be important milestones in the project's progress but do not necessarily indicate venture status.

The 'empowerment as entitlement' refers to a belief or mindset that individuals have a right to be empowered and have control over their work and decisions. This belief is associated with the values dimension, as it reflects the underlying beliefs and principles that guide an organization's culture and behavior. In this dimension, organizations prioritize empowering their employees and promoting a sense of ownership and accountability.

The correct answer is a) Simple structure. According to Miller (1986, 1996), a simple structure is characterized by a high level of informality, coordination of tasks accomplished by direct supervision, and all strategies determined at the top. This type of structure is typically found in small organizations where the owner or top management has direct control and makes all the decisions. It is a flexible and informal structure that allows for quick decision-making and adaptability to changing circumstances.

A dynamically continuous innovation is referred to as a "dramatic improvement over the existing state-of-the-art solution." This type of innovation builds upon existing technologies or solutions but introduces significant improvements or advancements. It may involve the introduction of new features, functionalities, or capabilities that enhance the user experience or provide better performance. This innovation is not a complete departure from the existing solution but rather represents an evolution or enhancement of it.

The correct answer is a. Specialization, shape, distribution of power, and departmentalization. According to Galbraith, these are the four major policy areas when talking about the components of structure. Specialization refers to the division of labor and the assignment of specific tasks to individuals or departments. Shape refers to the overall structure and design of the organization. Distribution of power refers to how authority and decision-making are allocated within the organization. Departmentalization refers to the grouping of individuals and tasks into departments or units based on their similarities or related functions.

The correct answer is a) A combination of measures, tools and information that act together to maintain actual performance close to desired performance. This answer accurately defines a control system as a collection of various components that work together to ensure that the actual performance of a system or process remains as close as possible to the desired performance. It implies that control systems involve the use of measures, tools, and information to monitor and regulate performance, making adjustments when necessary to achieve the desired outcome. The other options (b) and (c) do not accurately describe the concept of a control system.

The correct answer is c) Reverse cash flow statement. In discovery-driven planning, the four documents used are the key assumptions check list, pro forma operation specs, reverse income statement, and reverse balance sheet. The reverse cash flow statement is not included in this planning process.

The concept of balance in a company's control system refers to the ability to maintain equilibrium and harmony within the organization. Characteristics that are not included within the company's control system are those that do not directly contribute to achieving this balance. Management flexibility/inflexibility, administrative formality/informality, and budgeting tightness/looseness are all factors that can impact the balance within a company's control system. However, profit tightness/looseness is not directly related to maintaining balance and therefore is not included within the company's control system.

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Entrepreneurs often face various negative effects that can influence their personality and behavior. One of these effects is the confrontation with risk, which can cause anxiety and uncertainty. Another negative effect is entrepreneurial stress, which can result from the pressure and demands of running a business. Additionally, the entrepreneurial ego can dominate the behavior of entrepreneurs, leading to arrogance and a lack of receptiveness to feedback. Therefore, all of the options listed (A, B, and C) can permeate the personality of entrepreneurs and influence their behavior.

The question asks for the option that is not one of the major challenges tied to the need for political skills. Options a, b, and d all represent challenges that require political skills, such as building credibility, overcoming resistance, and obtaining resources. Option c, however, does not directly relate to political skills. Keeping up with innovations may be a challenge for entrepreneurs, but it does not necessarily require political skills to address.

The specific reasons for leveraging motives are to exploit underutilized resources, to extract further value from existing resources, and to divest noncore activities. Developing new competencies is not a reason for leveraging motives.

The examples of public entrepreneurship in this case are the Australian Red Cross and Madonna looking to adopt a child from a 3rd world country. The Australian Red Cross is a well-known organization that provides various services to the public, such as disaster relief, blood donation, and community support. Madonna's intention to adopt a child from a 3rd world country can be seen as a form of public entrepreneurship as it involves using her resources and influence to make a positive impact on the lives of others.

The new landscape is described as having change, complexity, chaos, and contradiction. These four forces indicate that the environment is constantly evolving and becoming more intricate, leading to confusion and disorder. Additionally, the presence of contradiction suggests that there are conflicting elements or opposing forces at play. Overall, this answer accurately captures the key characteristics of the new landscape.

Strategic flexibility and adaptation is not concerned with how the firm wants to be perceived in the market. Instead, it refers to the ability of a firm to adjust its strategies, action plans, and resource allocations in response to changes in the external environment. This allows the firm to remain competitive and effectively respond to market dynamics.

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The false statement regarding the Entrepreneurial imperatives of strategic leadership discussed in Covin & Slevin (2002) is B. Conform the dominant logic. This contradicts the notion of entrepreneurial imperatives, which emphasize the need to challenge and disrupt the existing dominant logic in order to foster innovation and entrepreneurial growth. Conforming to the dominant logic would hinder the ability to explore new ideas and opportunities, which is essential for entrepreneurial success.

The correct answer is a) Country club, high performance, burnout, and low performance contexts. This answer provides a list of the four main types of organizational context. The country club context refers to a work environment that emphasizes employee satisfaction and comfort over productivity. The high performance context focuses on achieving exceptional results and setting high standards. The burnout context is characterized by excessive workload and stress, leading to employee exhaustion and decreased performance. The low performance context indicates a lack of motivation and poor performance within the organization.

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Companies should establish a corporate venture plan in order to convey the essential components of a project or venture. This plan helps to outline the key elements and objectives of the project, including the goals, strategies, and resources required for its success. It also helps to communicate these components to stakeholders, employees, and potential investors, ensuring everyone is on the same page and working towards a common goal. By establishing a corporate venture plan, companies can effectively convey the necessary information and ensure the project or venture is properly understood and executed.

The third stage in the process for innovation projects is the production stage. This stage involves actually manufacturing or creating the product or service that has been developed during the previous stages. It is the stage where all the plans and designs are put into action and the product is brought to life. This stage is crucial for ensuring that the innovation project is successfully executed and the final product is ready for market.

HRM entrepreneurial practice of job planning/design typically involves a less structured approach and more decision-making direction. It also emphasizes a long-term orientation in planning and job design. However, detailed and overlapping policies and procedures are not relevant to this practice as it focuses on flexibility and adaptability rather than strict adherence to specific guidelines.

The correct answer is a. The assumption that customers know their needs. The market-pull approach relies on the idea that customer needs and preferences should drive product development. However, this assumption may not always be accurate as customers may not always be aware of their needs or may have difficulty articulating them. Therefore, relying solely on customer input may lead to products that do not fully meet their needs or fail to address emerging trends and opportunities.

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Driving investment refers to the corporate venture capital investment that extends the corporation's presence in product market or technological arenas that are considered strategic to the corporation. This means that the investment is actively pursued and aimed at driving the corporation's growth and competitiveness in specific areas that are important to its overall strategy. It involves proactive decision-making and investment in areas that align with the corporation's long-term goals and objectives.

The structure described in the question is characterized by limited hierarchy, flexibility, and innovation. It emphasizes extensive personal interaction and decentralizes power while linking authority to expertise. This aligns with the characteristics of an organic/adhocracy structure, which promotes a more flexible and adaptive approach to organization and decision-making. In this structure, individuals have more autonomy and are encouraged to collaborate and innovate, leading to a more dynamic and innovative environment.

Absorptive capacity refers to a firm's ability to recognize the value of new, external information, assimilate it, and apply it to achieve commercial success. This concept highlights the importance of a firm's ability to learn from and adapt to new information and knowledge from the external environment. It emphasizes the role of knowledge acquisition and utilization in driving innovation and competitive advantage for the firm. Path dependency refers to the idea that past decisions and actions constrain future choices, while discovery-driven planning is a method that focuses on learning and adapting through experimentation and discovery.

The "extent to which events are innovative, risky and proactive" can be referred to as the degree of entrepreneurship. This term encompasses the level of innovation, risk-taking, and proactive behavior exhibited in entrepreneurial activities. It reflects the overall intensity and depth of entrepreneurial characteristics and actions.

The model of Motivation for Entrepreneurial Behavior suggests that individual motivation to be entrepreneurial on the job is a function of three elements: effort spent on entrepreneurial activities, successful performance evaluation, and reward. Change is not part of this model.

The Entrepreneurial Health Audit can be applied at both the individual level and the organizational level. At the individual level, the audit can assess the entrepreneurial mindset, skills, and behaviors of individuals within the organization. At the organizational level, the audit can evaluate the overall entrepreneurial culture, practices, and strategies of the organization. By applying the audit at both levels, a comprehensive assessment of the entrepreneurial health of both individuals and the organization can be obtained.

Open Book Management is a model that attempts to change the link between the employee and the company. It involves sharing financial and operational information with employees, allowing them to have a clear understanding of the company's goals, performance, and financial status. This transparency and involvement in decision-making processes can help to foster a sense of ownership and accountability among employees, leading to increased motivation, engagement, and ultimately, improved performance.

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Dell Inc. is adapting the form of strategic entrepreneurship known as business model reconstruction. This is evident from the fact that the company is shifting away from its traditional direct sales model and embracing a new approach of selling PCs through solution providers, channel partners, and retail partners. This change in the business model reflects Dell's strategic decision to explore new avenues and adapt to the evolving market dynamics. By reconstructing its business model, Dell aims to enhance its competitiveness and expand its customer reach.

In a benign or controllable external environment, a conservative and mechanistic management style and organizational structure are appropriate and effective. This means that a more traditional and structured approach is suitable, with a focus on stability, control, and adherence to established processes. This style helps to minimize risks and ensure efficiency in a predictable environment.

In a purely collective corporate culture, individuals are treated as equals. This means that there is no hierarchy or favoritism within the organization. This creates a positive aspect as it promotes a sense of fairness and equality among employees. It encourages teamwork, collaboration, and mutual respect among colleagues. This can lead to a more inclusive and harmonious work environment where everyone's contributions are valued and recognized.

The concept of "slack" refers to the degree of looseness in resource availability and budgeting balance. This means that there is some flexibility in the amount of resources available and the budget allocation, allowing for adjustments and contingencies. This flexibility can be beneficial in managing unexpected changes or uncertainties in a project or organization.

According to McGrath and MacMillan, the first responsibility to maintain the "entrepreneurial mindset" involves framing the challenge. This means that the manager must define and understand the problem or opportunity they are facing in order to effectively address it. By framing the challenge, the manager can identify the key issues, set clear goals, and develop a strategic plan to overcome obstacles and achieve success.

Strategic entrepreneurship refers to the combination of entrepreneurial actions and strategic management in order to create and sustain competitive advantage. This involves a high degree of entrepreneurial intensity, where individuals are willing to take risks and innovate in order to gain a competitive edge. It also emphasizes the importance of behavior and mindset, as strategic entrepreneurs need to think and act in an entrepreneurial manner to identify and exploit opportunities. This approach is more focused on individual behavior and mindset rather than following strict guidelines or rules.

According to Leifer et al. (200), the top managerial concerns in large, established organizations are innovation. This suggests that these organizations prioritize the development and implementation of new ideas, products, and processes to stay competitive and adapt to changing market conditions. Innovation is seen as crucial for growth, sustainability, and maintaining a competitive advantage in the market.

The correct answer is c. Risk-taking and innovativeness. The article by Dess & Lumpkin (2005) mentions that Sony's successful Corporate Entrepreneurship strategy involved taking risks and being innovative. This suggests that Sony was willing to explore new ideas and technologies, even if it involved some level of uncertainty or potential failure. By taking risks and being innovative, Sony was able to stay competitive and maintain its position in the market.

The correct answer is c. Competition. According to Hitt and Reed (2000) and Bettis and Hitt (1995), the powerful forces shaping the new landscape include change, complexity, chaos, and contradiction. Competition, however, is not mentioned as one of these forces.

Not clear which answer is correct.

According to Kuratko (2009a), building an adaptive firm involves factors such as sharing the entrepreneurial vision, increasing the perception of opportunity, and institutionalizing change as the organization's goal. Building a flexible team structure, on the other hand, is not mentioned as one of the ways to build an adaptive firm. Therefore, option C does not belong to the ways of building an adaptive firm according to Kuratko (2009a).

The Blue Ocean Strategy aims to create uncontested market space by offering unique value to customers while minimizing costs. This strategy involves breaking the traditional trade-off between value and cost, allowing companies to offer high value at a lower cost. Additionally, the strategy focuses on making the competition irrelevant by creating a new demand and attracting new customers. Therefore, the correct answer is a. Create uncontested market space, break the value/cost trade-off, make the competition irrelevant.

The correct answer is c. Moral, uncontrollable and personal failure. This answer distinguishes three types of entrepreneurial activity failures based on their nature. Moral failure refers to ethical or moral lapses in business practices. Uncontrollable failure refers to external factors beyond the entrepreneur's control, such as economic downturns or natural disasters. Personal failure refers to the shortcomings or mistakes made by the entrepreneur themselves. This categorization helps to understand the different causes and factors contributing to entrepreneurial failures.

The answer is d. The Bureaucratic Culture. This is because the question asks for the option that is NOT one of the four general cultural prototypes. The Tough Guy/Macho Culture, the Bet-the-Company Culture, and the Process Culture are all examples of general cultural prototypes, while the Bureaucratic Culture is not.

Top-level managers creating an entrepreneurial organization need to focus on various criteria. Right personnel is essential as they need individuals with the necessary skills and mindset. A compelling vision is crucial to inspire and motivate employees towards entrepreneurial goals. Pro-entrepreneurial architecture refers to the organizational structure and processes that support innovation and risk-taking. However, re-examination of the company's strategy is not critical as top-level managers primarily focus on creating an entrepreneurial culture and environment rather than revisiting the overall strategy.

Dess and Lumpkin (2005) identified competitive aggressiveness and autonomy as the critical dimensions of the Entrepreneurial Orientation concept. Competitive aggressiveness refers to the willingness of an entrepreneur to take risks and compete aggressively in the market. Autonomy, on the other hand, refers to the degree of independence and freedom an entrepreneur has in making decisions and taking actions. These two dimensions are important for entrepreneurs as they enable them to be proactive, innovative, and take calculated risks in order to achieve competitive advantage and drive business growth.

The concept of cycling does not involve being conservative and hesitant. Cycling typically involves being adventurous, taking risks, and being open to new opportunities. Being conservative and hesitant would go against the nature of cycling, which is all about pushing boundaries and trying new things.

In ambidextrous organizations, individuals are expected to exhibit initiative. This means that they should take the lead in identifying opportunities for innovation and proactively act upon them. Initiative involves being proactive, taking risks, and being self-motivated to drive change and improvement within the organization. This behavior is crucial in ambidextrous organizations as they strive to balance exploration and exploitation, and individuals with initiative can contribute significantly to the organization's success in both areas.

Level 1 of learning effort in organizations is when the project champion writes a report about the experience, including a statement of the most important things learned and recommendations for the future designed to help the firm’s overall entrepreneurial effort. This level focuses on documenting the key learnings and insights from the project and using them to improve the organization's overall entrepreneurial efforts. It involves reflecting on the experience and sharing the knowledge gained with others in the organization. This level does not involve extensive meetings or external participation like in level 2 (b), but rather emphasizes on internal reflection and knowledge sharing.

The correct answer is D. "all". According to Morris et al. (2011), a useful framework for capturing the constraints on entrepreneurial performance includes all of the mentioned factors: culture, strategy, employees, structure, strategic direction, people, systems, policies, organization strategy, control system, and strategic leadership.

Tom Peter suggests promoting rabble rousers to prominent positions. This means that he believes in giving influential roles to individuals who are disruptive or rebellious in order to bring about positive change and innovation within the organization. By promoting these individuals, Peter believes that the company can benefit from their unique perspectives and ideas, ultimately leading to growth and success.

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The disciplines of Discovery Driven Planning include framing, benchmarking, and strategic translation. Developing a business plan is not included in these disciplines as it is a separate process that involves creating a detailed document outlining the goals, strategies, and financial projections for a business. Discovery Driven Planning focuses more on identifying and testing assumptions, managing uncertainty, and adapting strategies as new information is discovered.

Senior managers have the responsibility of placing "pro-entrepreneurship" organizational architectures. This means that they are accountable for creating a work environment and structure that supports and encourages entrepreneurial behavior within the organization. This includes implementing systems and processes that foster innovation, risk-taking, and creativity, as well as providing resources and support for entrepreneurial initiatives. By placing such organizational architectures, senior managers can help drive innovation and create a culture of entrepreneurship within the company.

Kim and Mauborgne (2004) state that a 'blue ocean' is created when a company takes actions that positively impact its cost structure and value proposition to buyers. These actions include reducing costs, raising value, eliminating unnecessary elements, and creating innovative solutions. By reducing costs, the company can offer competitive prices to customers. By raising value, the company can provide unique and superior benefits to buyers. By eliminating unnecessary elements, the company can streamline its operations and focus on what truly matters. And by creating innovative solutions, the company can differentiate itself from competitors and attract more customers.

The major problematic issues of control initiatives include trust, slowness, means-end, and efficiency-effectiveness. Trust is important in control initiatives as it ensures that employees believe in the system and are willing to comply with it. Slowness refers to the potential delay or inefficiency that control initiatives may introduce in decision-making processes. Means-end refers to the potential focus on the means rather than the end goal, which can hinder progress. Lastly, efficiency-effectiveness refers to the challenge of balancing efficiency (doing things quickly) with effectiveness (doing things well). These issues can pose challenges and hinder the success of control initiatives.

The correct answer is Price, Cost, and Utility. In order to achieve a blue ocean strategy, a company's activities need to be properly aligned in terms of price, cost, and utility. This means that the company needs to offer a unique value proposition to customers at an attractive price, while also managing costs effectively to maintain profitability. Additionally, the company's products or services should provide utility or value to customers that sets them apart from competitors. By aligning these factors, a company can create a blue ocean strategy and differentiate itself in the market.

According to Cohen (2002), one of the required factors for successful practices of corporate entrepreneurship is setting an exploitation strategy. This means that in order for a company to be successful in corporate entrepreneurship, they need to have a clear plan and strategy in place for how they will exploit opportunities that arise. This strategy will help guide the company in making decisions and taking action to capitalize on these opportunities, ultimately leading to success in corporate entrepreneurship.