6CHAPTER 3: THE ENTREPRENEURIAL MIND-SET IN ORGANIZATIONS -
CORPORATE ENTREPRENEURSHIPTRUE/FALSE1.Corporate Entrepreneurship
activity occurs outside the firm.ANS:FPTS:1 KEY:page 562.Polaroid
and 3M have had successful corporate entrepreneurship
ventures.ANS:TPTS:1 KEY:page 533.One reason that corporate
entrepreneurship has become popular is because it allows
corporations to tap the innovative talents of the
personnel.ANS:TPTS:1 KEY:page 534.As part of creating an innovative
climate, a firm should base rewards given upon results
achieved.ANS:TPTS:1 KEY:page 685.A corporation can encourage
entrepreneurship activities if top management sponsors
entrepreneurial projects.ANS:TPTS:1 KEY:page 696.Few firms today
realize the need for corporate entrepreneurship.ANS:FPTS:1 KEY:page
577.The need for entrepreneurship has risen in response to the rise
of the global economy.ANS:TPTS:1 KEY:page 538.Clever bootlegging of
ideas refers to secretly working on new ideas on company time as
well as on personal time.ANS:TPTS:1 KEY:page 559.Individuals may
avoid corporate entrepreneurial behavior due to the impact of
traditional management techniques.ANS:TPTS:1 KEY:page
5710.Skunkworks are project groups that work within the traditional
lines of authority.ANS:FPTS:1 KEY:page 5811.Very large corporations
such as 3M have really struggled with corporate entrepreneurship
ventures.ANS:FPTS:1 KEY:pages 53, 63-6412.Todays managers must
foster excitement for innovation and remove obstacles for employees
to engage in corporate entrepreneurship.ANS:TPTS:1 KEY:page
5713.Firms do not need to alter management techniques to encourage
corporate entrepreneurship since it tends to occur
naturally.ANS:FPTS:1 KEY:page 5714.Trust from the company is one
key element to successful corporate entrepreneurship.ANS:TPTS:1
KEY:pages 54 and 6215.Employees shouldnt expect feedback on their
entrepreneurial ideas.ANS:FPTS:1 KEY:pages 54 and 7316.Corporations
that promote personal growth will attract the best
people.ANS:TPTS:1 KEY:page 5517.When an entrepreneurial environment
is created, a company does not usually set aside traditions of the
company.ANS:FPTS:1 KEY:page 6118.Every business person feels
comfortable operating in an entrepreneurial environment.ANS:FPTS:1
KEY:page 6119.The first step in planning a strategy of corporate
entrepreneurship is sharing the vision of innovation that
executives wish to achieve.ANS:TPTS:1 KEY:page 6120.Systematic
evolution of a product or service into newer or larger markets is
referred to as radical innovation.ANS:FPTS:1 KEY:page
6321.Corporate entrepreneurs should be restricted to the resources
of their own divisions of the corporation.ANS:FPTS:1 KEY:page
5422.Researchers have identified specific factors that
organizations can concentrate on in helping individuals develop
more entrepreneurial behavior.ANS:TPTS:1 KEY:page 6723.Corporate
venturing flourishes when a vertical management system is in
place.ANS:FPTS:1 KEY:page 5824.A healthy environment for corporate
entrepreneurship exists when employees can feel a sense of
ownership in the company.ANS:TPTS:1 KEY:page 7025.Radical
innovations must be nurtured.ANS:TPTS:1 KEY:page 6326.A champion is
a person with a big ego and just gets in the way of corporate
entrepreneurship.ANS:FPTS:1 KEY:page 6327.A competitors move to
increase market share can be a precipitative event in corporate
entrepreneurship.ANS:TPTS:1 KEY:page 5728.Corporate entrepreneurs
are people who are action oriented and self-determined.ANS:TPTS:1
KEY:page 6929.The resources of the organization are irrelevant to
the ability of the corporate entrepreneur to implement an
idea.ANS:FPTS:1 KEY:page 7430.Understanding the entrepreneur is
only part of understanding the entrepreneurial process.ANS:TPTS:1
KEY:pages 54, 5931.Corporate entrepreneurs generally are power
oriented or power hungry.ANS:FPTS:1 KEY:page 6932.The Interactive
Process is a result of individuals and organizational
characteristics interacting with some precipitating
event.ANS:TPTS:1 KEY:page 5833.The success of corporate
entrepreneurship depends on the entrepreneurs within the
firm.ANS:TPTS:1 KEY:page 7234.Organizational boundaries allow
people to focus on new ideas.ANS:FPTS:1 KEY:page 54MULTIPLE
CHOICE1.Corporate entrepreneurial activity takes place the
firm.a.only with outside suppliers toc.both inside and
outsideb.with anyone outsided.InsideANS:DPTS:1 KEY:page 562.Which
of the following was one of the factors Drucker mentions to explain
the development of the entrepreneurial economy?a.the rapid
evolution of technology and knowledgeb.demographic
trendsc.government regulationd.a robust venture capital
marketANS:APTS:1 KEY:page 533.One reason why corporate
entrepreneurship has done so well is that it allows organizations
toa.increase salaries.c.encourage high risk taking.b.fire the dead
wood.d.tap the innovative talents of their people.ANS:DPTS:1
KEY:page 534.Intrapreneurship is also referred to as:a.inside
entrepreneurshipc.corporate entrepreneurshipb.internal
entrepreneurshipd.outside entrepreneurshipANS:CPTS:1 KEY:page
535.____people thoroughly understand the concept of corporate
entrepreneurship.a.Just about allc.Manyb.Mostd.FewANS:DPTS:1
KEY:page 536.The major thrust of corporate entrepreneurship is
toa.encourage greater risk taking.c.encourage innovation.b.raise
profitability.d.increase morale.ANS:CPTS:1 KEY:page 557.All of the
following are reasons for the growth of corporate entrepreneurship
excepta.a desire to dramatically increase profitability.b.a rapidly
growing number of new and sophisticated competitors.c.a sense of
distrust in the traditional methods of corporate management.d.an
exodus of some of the best people out of corporations.ANS:APTS:1
KEY:page 578.Which of the following helps account for the rise of
interest in corporate entrepreneurship?a.There is a decrease in the
number of sophisticated competitors.b.Government regulation of
small entrepreneurs.c.Corporations are now losing some of their
best people.d.A general increase in the number of
competitors.ANS:CPTS:1 KEY:page 579.Which of the following is an
obstacle to corporate entrepreneurship?a.orientation to the
marketb.a system of feedback and positive
reinforcementc.traditional management techniquesd.rewards based
upon resultsANS:CPTS:1 KEY:page 5710.In following the rules for
innovation, a manager should do all of the following
excepta.encourage action.c.punish failure.b.use formal meetings
whenever possible.d.reward performance.ANS:CPTS:1 KEY:page 5411.In
restructuring corporate thinking, top management shoulda.identify
potential entrepreneurs after an innovation program is in
operation.b.make the entrepreneur follow strict corporate
guidelines.c.promote entrepreneurship through
experimentation.d.create diversity and order in strategic
activities.ANS:CPTS:1 KEY:page 5512.Which of the following is not a
question in the corporate entrepreneurial planning process?a.does
the firm encourage and reward entrepreneurs?b.do employees
frequently require permission?c.Does the firm direct resources
toward entrepreneurship?d.Have you met government regulations for
innovation?ANS:DPTS:1 KEY:page 5413.Secretly working on new ideas
on company time as well as on personal time is referred to
asa.skunkworks.c.bootlegging.b.champion.d.interactive
learning.ANS:CPTS:1 KEY:page 5514.The adverse impact of can be so
destructive that individuals within the enterprise will tend to
avoid entrepreneurial behavior.a.traditional management
techniquesc.specific entrepreneurial strategiesb.innovative climate
rulesd.informal meetingsANS:APTS:1 KEY:page 5715.Innovative factors
identified by James Brian Quinn that exist in large organizations
experienced in successful innovation include all of the following
except:a.interactive learning.c.multiple approaches.b.uniform
compensation.d.skunkworks.ANS:BPTS:1 KEY:page 5816.Groups that
function outside traditional lines of authority permitting rapid
turnaround of new ideas as well as instilling a high level of group
loyalty are called:a.skunkworks.c.champions.b.multiple
approaches.d.strategic innovators.ANS:APTS:1 KEY:page 5817.Which of
the following would not be considered as encouraging to an
entrepreneurial environment?a.uniform compensationb.identifying
potential entrepreneursc.top management sponsorship of
entrepreneurshipd.promotion of entrepreneurship through
experimentationANS:APTS:1 KEY:page 5518.In an innovative climate,
failure is viewed asa.the end of the world.b.a learning
experience.c.O.K., inevitable, since the employee is probably not
capable of further innovative thought.d.a basis for
firing.ANS:BPTS:1 KEY:page 5519.One step an organization can take
to make its corporate environment more innovative is toa.gain top
management support of an entrepreneuring program.b.fire top
management and hire young executives.c.change the dress code to
casual attire.d.give across-the-board raises.ANS:APTS:1 KEY:page
5520.Which of the following will help to foster an innovative
climate?a.encourage action from employeesb.punish
mistakesc.eliminate coffee breaks to encourage employees to work
harderd.do away with dress codesANS:APTS:1 KEY:page
5521.Bureaucrats in an organization musta.standardize
proceduresc.learn to give way to intrapreneursb.engage in
horizontal managementd.avoid risky movesANS:CPTS:1 KEY:page
5522.Authoritarian management is being replaced
bya.networking.c.Japanese managers.b.independent
contractors.d.benevolent managers.ANS:APTS:1 KEY:page
6123.Corporate entrepreneurial strategy should be thought of
asa.vision directedc.restricted to one group in the
firmb.Dichotomousd.management directedANS:APTS:1 KEY:page 5624.In
attempting to create an entrepreneurial climate, the organization
should consider thata.the corporations that promote personal growth
will attract the best people.b.strict management rules work
best.c.third-party contractors of labor will not be used.d.workers
like independence.ANS:APTS:1 KEY:page 5525.All of the following are
important characteristics for establishing an intrapreneurial
climate excepta.the presence of explicit goals.c.positive
reinforcement.b.feedback.d.punishment of mistakes.ANS:DPTS:1
KEY:page 5526.Rewards should be based upon _____ to encourage the
desired behavior.a.Seniorityc.attitudeb.Resultsd.moraleANS:BPTS:1
KEY:page 7427.Key features in the success of any innovative program
include all of the following
excepta.confidence.c.accountability.b.trust.d.high
profitability.ANS:DPTS:1 KEY:page 5428.Entrepreneurship within the
corporate structure allows employees to develop their ideas
withouta.losing their jobs to more loyal subordinates.b.the risk
associated with leaving the company.c.making their spouses angry
that they quit their jobs.d.fear of being promoted.ANS:BPTS:1
KEY:page 5729.The first step in planning a strategy of
entrepreneurship for enterprise isa.identifying specific
objectives.b.sharing the vision of innovation.c.applying the exact
tools of the entrepreneur.d.developing radical
innovation.ANS:BPTS:1 KEY:page 6130.The second step in planning a
strategy of entrepreneurship for the enterprise isa.identifying
specific objectives.b.sharing the vision of innovation.c.applying
the exact tools of the entrepreneur.d.developing and encouraging
innovation.ANS:DPTS:1 KEY:page 6131.Which of the following terms
represents the systematic evolution of a product or service into
newer or larger markets?a.radical innovationc.collective
entrepreneurshipb.incremental innovationd.strategic
managementANS:BPTS:1 KEY:page 6332.Which of the following terms
represents the inaugural breakthroughs launched from
experimentation and determined vision?a.radical
innovationc.collective entrepreneurshipb.incremental
innovationd.strategic managementANS:APTS:1 KEY:page 6333.Which of
the following are specific factors identified by researchers, that
organizations can concentrate on in structuring an entrepreneurial
climate.a.radical innovation, incremental innovation, and
visionb.skunkworks, multiple approaches, and visionc.top management
support, time, resources, rewards, and organizational
boundariesd.rewards, resources, innovation, and visionANS:CPTS:1
KEY:page 5534.Internal venture capital that is set aside for
special entrepreneurial projects is
termed:a.intracapital.c.intrapreneurial seed money.b.project
capital.d.collective capital.ANS:APTS:1 KEY:page 6935.Which of the
following are innovative rules that the 3M Corporation uses to
encourage its employees to foster ideas?a.tolerate failurec.kill
projects selectivelyb.keep the focus on your main businessd.reward
performance relative to profitsANS:APTS:1 KEY:page 6436.Employee
perception of is critical for the success of corporate
entrepreneurship.a.equality.c.interactive learning.b.a good
benefits program.d.an innovative environmentANS:DPTS:1 KEY:page
6537.Which of the following is an advantage to developing an
entrepreneurial environment?a.a good benefits program.b.the firm
helps to retain and motivate the best employeesc.creation of a work
force that adheres to strict ruled.a flexible work environment
regarding time off workANS:BPTS:1 KEY:page 5538.Which of the
following is not a strategy for corporate entrepreneuring?a.promote
personal growthc.decrease the use of third-party contractsb.use
people-style managementd.allow entrepreneur to develop
ideasANS:CPTS:1 KEY:page 6139.In order to develop an
entrepreneurial environment, factors that organizations need to be
aware of include:a.management support and rewardsc.business plans
and inventionsb.autonomy and timed.a and b should be
consideredANS:DPTS:1 KEY:page 6840.Brazeals model for internally
developed corporate entrepreneurial ventures emphasizesa.growth
through acquisitionc.organizational boundariesb.institutionalized
innovationd.time availabilityANS:BPTS:1 KEY:page 6641.Developing
corporate entrepreneurial managers involves teaching them
toa.Conduct business as usualc.Give across-the-board raises.b.Break
out of the box.d.Think of new ad campaigns.ANS:BPTS:1 KEY:pgae
5542.The person who has the opportunity to lead and run with an
idea would be coined which of the following:a.Department
Managerc.Championb.Managerd.VisionaryANS:CPTS:1 KEY:page 6343.
Which is not a precipitating event that Zahra identifies as
motivating the decision to act entrepreneuriallya.market
instability.c.new demand for a firms products.b.competitive threat
from rivals.d.a big increase in earnings.ANS:DPTS:1 KEY:page
5644.Entrepreneurial characteristics includea.a strong drive to
succeed.c.high risk taking.b.superior intelligence.d.low
morals.ANS:APTS:1 KEY:page 5445.Typically, when faced with setbacks
or failure, entrepreneursa.remain optimistic and view it as a
learning experience.b.become outraged and take a short
vacation.c.blame top management.d.resign.ANS:APTS:1 KEY:page
5446.Success of the corporate entrepreneurship plan depends
ona.resources provided by the firm.c.a few individuals.b.high
morals and ethics.d.the reaction of rivals.ANS:APTS:1 KEY:page
5447.Sustaining corporate entrepreneurship requiresa.keeping up
with market trends.c.keeping the corporate vision
strong.b.maximizing profits.d.equal pay raises.ANS:CPTS:1 KEY:page
6948.One research model illustrated the process of entrepreneurship
as an interaction of which elements?a.organization, individual,
precipitating eventc.myths, realities, perceptionsb.intrapreneur,
entrepreneur, managerd.price, marketing, suppliersANS:APTS:1
KEY:page 7249.Precipitating events in the corporate
entrepreneurship process could include:a.laying off
workers.c.change in company location.b.development of new
technologies.d.higher productivity standards.ANS:BPTS:1 KEY:page
72SHORT ANSWER1.Describe the steps necessary to take an individual
from a climate that is very hierarchical in nature to an
entrepreneurial setting.ANS:As a quote from the text states, To
establish corporate entrepreneuring, companies need to provide the
freedom and encouragement that intrapreneurs require to develop
their ideas. This statement is very true, but it could be developed
further. For example, managers coming from a traditional style of
management believe in keeping ideas bottled up in their heads
because they actually believe that it will serve no purpose to
present them to upper management. Often, shop floor personnel are
overlooked in terms of being innovative. Secondly, a more
horizontal way of communication and delegation would be better.
This way no one person could stop a project completely and everyone
could work as a team providing input. Lastly, develop and practice
the basics as mentioned in the text.PTS:1 KEY:page 682.Using the
Signodes V-Teams example from the text, explain how some programs
may succeed or fail using this approach.ANS:Signode is using an
aggressive strategy to pursue new products. Success will be tough
for some products, but the stringent rules placed on the new
products will help to keep the basic use of technology that Signode
has and possibly develop new technologies, instead of branching out
into some area that the company has never pursued, i.e., the
clothing industry. The failure may come from the fact that Signode
wants to be worth $1 billion-plus by 1990. It may not be enough
time for them to accomplish this task. If the push is big enough,
the company may find itself in bad shape financially and have to
rethink the primary purpose of the company.PTS:1 KEY:page
713.Explain some of the disadvantages that may occur in firms that
are trying to incorporate entrepreneurship into their
organizations.ANS:One disadvantage may be that there is resistance
to change by some managers. Also, if a company jumps into
intrapreneuring too quickly without proper training, there may be
some managers left not knowing what to do. If the corporate climate
is not right for intrapreneuring, there is almost no chance for
success.PTS:1 KEY:page 56
