(M) Chapter 3: Entrepreneurial Mindset in Organizations (Lecture-based)

Question 1

,What comprises/make up an Enterprise, Organization, and Business Company?

Answer 1

1. group of people/manpower
2. agreed purpose/vision
3. utilizing different resources (financial, physical, suppliers, etc.)
4. to produce
5. sell or provide wither a service or product

Question 2

Type of Businesses

Answer 2

1. Service Business
2. Merchandising Business (not merchandise
3. Manufacturing business (not manufacture)

Question 3

A business that provides intangible products, i.e. talent, skills, (expert) knowledge of the service provider.

Answer 3

Service business

Question 4

Type of Business: Companies that produce food, personal care products, gadgets, automobiles, housekeeping products, etc.

Answer 4

Manufacturing Business

Question 5

Type of Business: Retailers, supermarkets, groceries | Car Dealers, resellers, distributors

Answer 5

Merchandising Business

Question 6

A business that buys (at cost) and sells (at a markup) physical products.

Answer 6

Merchandising Business

Question 7

A business that buys raw materials to manufacture a physical product (finished goods) and sells it.

Answer 7

Manufacturing Business

Question 8

A supply chain describes the ___ and ___ from its source to the end-users; and involve the processes that transform raw materials into final products and services

Answer 8

flow of goods (or commodities and services

Question 9

affects different aspects of a business and determines the requirements that will successfully sustain the motion

Answer 9

supply chain

Question 10

T or F. The specific supply chain will depend on the type of business

Answer 10

TRUE (its an example of flow of commodities)

Question 11

What comprises the supply chain (any order)

Answer 11

• suppliers
• your business
• distributors
• retailers/sellers
• customers/consumers

Question 12

Enumerate the Business Ownership Forms

Answer 12

Sole Proprietorship
Partnership
Corporations

Question 13

T or F. Limited liability is under partnership.

Answer 13

F (corporation)

Question 14

A business owned by an individual who also manages its operations.

Answer 14

Sole Proprietorship

Question 15

T or F. Partnership is a business owned by two or more individuals who share both liabilities for and the management of the company.

Answer 15

T

Question 16

In this business, the true or original owners of the company share ownership of the entire enterprise with various stockholders and may or may not be involved in the management of the company.

Answer 16

Corporations

Question 17

Management is the art and science of performing __ and ___

Answer 17

effectively and efficiently

Question 18

Factors to Consider in Management

Answer 18

• Planning
• Organizing
• Leading
• Controlling

Question 19

Fundamental of Management: Creating the vision, defining the mission, setting goals

Answer 19

Planning

Question 20

Fundamental of Management: Developing the specific actions or action plans to meet defined goals

Answer 20

Organizing

Question 21

Fundamental of Management:

> Determining needed resources
- Creating the functional structure of the firm
- Creating teams, departments, business units
- Designing the most effective processes and procedures.
- Designing the most effective specific work functions.

Answer 21

Leading

Question 22

Fundamental of Management:

> Motivating the people of the organisation to work towards the vision, mission and specific departmental goals of the company.
- Monitoring activities and personnel.
- Auditing whether processes, activities and personnel are performing according to set standards.
- Correcting mistakes…

Answer 22

Controlling

Question 23

Level of Management

Answer 23

Upper, Middle and Lower Level

Question 24

Core Functional Areas of Management

Answer 24

1. Human Resources Management
2. Marketing Management
3. Financial Management
4. Operations Management

Question 25

The effective synthesis of all functional areas that sustains the stability and growth of an enterprise.

Answer 25

Strategic Management

Question 26

This management is responsible for: ➢ Recruitment ➢ Hiring and keeping the best talent o Ex. Manpower ➢ Credentials management o inventory of required and available skills and knowledge ➢ Compensation, benefits and rewards ➢ Performance measurement ➢ Rewards & Promotions ➢ Career development ➢ Providing needed training ➢ Continuous education and development

Answer 26

HR Management

Question 27

This management is responsible for: ➢ Capital Sourcing and Funding ➢ Revenue and Profit Generation ➢ Managing Operating Costs ➢ Investments, IPOs, Leveraging (i.e. loans) ➢ Employee compensation and benefits ➢ Financial Statements o Assets o Cash o Liabilities o ROE – return on equity o ROI – return on investment

Answer 27

Financial Management

Question 28

This management is responsible for: ➢ Production ➢ Specific work activities and tasks for every position ➢ Working hours ➢ Organizational Structure

Answer 28

Operations Management

Question 29

T or F. The aim of production is to minimize production at maximize costs

Answer 29

F (reverse)

Question 30

Processes and procedures that produce outputs which bring revenue to the company

Answer 30

production

Question 31

rank and file to different levels of management

Answer 31

positions

Question 32

portion of a population (local or global) that buys a firm's products and/or services

Answer 32

market

Question 33

This management is responsible for: ➢ Finding and attracting customers ➢ Market Penetration - Market Development - Market Share & Domination ➢ Customer Relations Management ➢ Sales Management and Strategies ➢ Advertising and Promotions ➢ Public Relations

Answer 33

Marketing Management

Question 34

T or F. The top management are: * Manager * Supervisor * Coordinator * Team Leader

Answer 34

F (Lower level)

Question 35

T or F. The top management are: * Board of Trustees or Directors * President, General Manager * CEO, COO, CFO, EVP, SVP, VP * Managing, Executive Director

Answer 35

T

Question 36

T or F. The lower level management are: * VP,AVP * Assoc. Director * Sr. Manager

Answer 36

F (middle)

Question 37

T or F. Top management comprises of SBU.

Answer 37

F (middle)

Question 38

T or F. Intraprenurship is an nfusion of entrepreneurial thinking into large bureaucratic structures (i.e., corporations, organizations).

Answer 38

T (AKA corporate innovation/entrepreneurship)

Question 39

___is achieved by tapping and supporting the innovative talents of an organization’s own workers and managers.

Answer 39

Infusion

Question 40

___ is profoundly changing compelling large established enterprises to reexamine their purpose.

Answer 40

global economy

Question 41

____come from people. ___ is the capability of many. That ___ is utilized when people give commitment to the missions and life of the enterprise and are given the ___ to do something about their capabilities. A. Innovation B. Knowledge C. Ideas D. Power E. Capability

Answer 41

C, A, E, D

Question 42

In contrast to previous decades, changes and innovations, and improvements are now very common in the marketplace. Thus, corporations must either ____ or become ___. A. Create B. Form C. Innovate D. Extinct E. Obsolete

Answer 42

C & E

Question 43

What are the following developments that led to lose the brightest people to independent entrepreneurship? (4)

Answer 43

1. Status 2. Image 3. Venture capital 4. Large industry

Question 44

appealing to both young and seasoned employees.

Answer 44

status and image

Question 45

This has grown into a large industry, along with healthy capital funding markets, enabling more new entrepreneurs to launch their ideas.

Answer 45

Venture Capital

Question 46

T or F. Fostering corporate innovation philosophy within an Organization creates a workforce that helps the enterprise maintain its competitive posture.

Answer 46

T

Question 47

Fostering corporate innovation philosophy within an Organization leads to the development of _____that will help the organization to expand and grow. A. new products and services B. a competitive posture C. climate conducive to high achievers

Answer 47

A

Question 48

Fostering corporate innovation philosophy within an Organization promotes a __ which helps the enterprise motivate and keep its best people. A. new products and services B. a competitive posture C. climate conducive to high achievers

Answer 48

C

Question 49

____ will lead to chaos, loss of cultural glue, fatigue, and organizational breakdown.

Answer 49

Too much change

Question 50

T or F. Organizations that are systematic may survive in the short term but will collapse in the long term.

Answer 50

F (chaotic, not systematic)

Question 51

At one end of the innovation continuum is___, or the absence of innovation; at the other end is___. A. change B. stability C. chaos D. innovation E. destruction

Answer 51

B & C

Question 52

5 Critical Steps of a Corporate Entrepreneurship Strategy

Answer 52

- Developing the Vision - Encouraging Innovation - Structuring for an Entrepreneurial Climate - Preparing Managers for Corporate Innovation - Developing Innovation Teams

Question 53

a critical element for a strategy that seeks high achievement

Answer 53

shared vision

Question 54

the vision must be articulated by ___ to all employees.

Answer 54

top management

Question 55

T or F. The Mission requires identification of specific objectives for corporate entrepreneuring strategies and of the programs needed to achieve those objectives

Answer 55

F (vision)

Question 56

Identify which managers and employees define specific objectives consistent with the articulated vision: o Operational Goals by __ o Strategic Goals by __ o Tactical Goals by ___

Answer 56

- First Level Management - Top Management - Middle Management

Question 57

the specific tool of the entrepreneur

Answer 57

innovation

Question 58

Corporations must understand and develop THIS as the key element in their strategy; described as chaotic and unplanned by some; Others insist it as a systematic discipline

Answer 58

innovation

Question 59

This type of innovation disrupts the market industry by launching of inaugural breakthroughs; AKA Chaotic innovation

Answer 59

Radical Innovation

Question 60

T or F. Incremental innovation has a high degree of risk, lot of trial and error, and takes longer to develop.

Answer 60

F (radical)

Question 61

This type of innovation has the systematic evolution of a product or service into newer or larger markets.

Answer 61

incremental innovation

Question 62

Identify which type of innovation: 1. Social networking 2. Frozen yogurt 3. Online dating 4. Microwave Popcorn 5. Popcorn 6. Green technologies

Answer 62

1. Radical 2. Incremental 3. Radical 4. Incremental 5. Radical 6. Radical

Question 63

T or F. Incremental innovation is rewarded with freedom and capital for new projects and interests

Answer 63

F (radical)

Question 64

rad or incre Encourage technical education and exposure to customers

Answer 64

incre

Question 65

rad or incre Remove budgetary and deadline constraints when possible

Answer 65

radical

Question 66

rad or incre Encourage technical education and exposure to customers

Answer 66

rad

Question 67

rad or incre Stimulate through competitive pressures

Answer 67

incre

Question 68

rad or incre Set clear financial rewards for meeting goals and deadlines

Answer 68

incre

Question 69

Five important practices for establishing innovation-driven organizations

Answer 69

1. Set explicit innovation goals 2. Create a system feedback and positive reinforcement 3. Emphasize individual responsibility. 4. Provide rewards for innovative ideas 5. Do not punish

Question 70

T or F. Real learning takes place when failed projects are examined closely for what can be learned by individuals

Answer 70

T

Question 71

___ should be mutually agreed on by the employees and the management.

Answer 71

goals

Question 72

Rules for Innovation Environment Encourage ___. Use ____ whenever possible. Tolerate _____, and use it as a learning experience. ____ in getting an idea to market. ____ innovation for innovation’s sake. A. informal meetings B. Persist C. Reward D. action E. failure

Answer 72

D, A, E, B, C

Question 73

Rules for Innovation Environment Plan the physical layout of the enterprise to encourage ____. Expect ____ of ideas – secretly working on ideas on company time as well as on personal time. Put people on ___ for future-oriented projects. Identify and replace rigid procedures and bureaucratic ___. Reward and promote ______. A. clever bootlegging B. small teams C. innovative personnel D. red tape E. informal communication

Answer 73

E, A, B, D, C

Question 74

T or F. Example programs that support innovation and venture development are: Use internal “venture capital” and special project budgets (“intracapital”). Allow discretionary time for projects.

Answer 74

T

Question 75

Structuring the Work Environment (5)

Answer 75

- Management support - Autonomy & Work Discretion - Rewards & Reinforcement - Time Availability - Organizational Boundaries

Question 76

Corporate Innovation Training Program includes? (6)

Answer 76

- The Entrepreneurial Experience - Innovative Thinking - Idea Acceleration Process - Barriers and facilitators to innovative thinking - Sustaining Innovation Teams - The Innovation Action Plan

Question 77

participants are introduced to the entrepreneurial revolution that has taken place throughout the world over the last three decades

Answer 77

entrepreneurial exp.

Question 78

Managers generate a set of specific ideas on which they would like to work; like joining a seminar

Answer 78

Idea Acceleration Process

Question 79

Critical Characteristics of iTeams

Answer 79

ComprehendE! - They are self-directing, self-managing and high performing. - They focus is on design issues (i.e. structure and process) for innovative activities. - Composed of two or more people, led by an Innovation Champion or Corporate Entrepreneur. - They learn about and help each other perform better. The collective capacity of the team helps the company grow. Collective Entrepreneurship - The team is like a small business operating within a larger business, with its own budget - The team is separate from other parts of the firm in the sense that it does not engage in procedures that may stifle innovative activities. - If the innovation proves successful, it is integrated into the larger organization.