Podcast
Questions and Answers
What is a key implication for business planning activities in the initial years?
What is a key implication for business planning activities in the initial years?
- Extensive market planning is essential.
- Focus should be on establishing long-term goals.
- Immediate execution without preparation is preferable.
- Basic business planning activities are sufficient. (correct)
Hofstede’s cultural dimensions comprehensively address all aspects of cultural diversity.
Hofstede’s cultural dimensions comprehensively address all aspects of cultural diversity.
False (B)
Define the difference between causation and effectuation in entrepreneurial contexts.
Define the difference between causation and effectuation in entrepreneurial contexts.
Causation focuses on selecting means to achieve a given goal, while effectuation starts with given means to create possible effects.
The principle of 'Bird in hand' emphasizes that entrepreneurs should start with their given _______.
The principle of 'Bird in hand' emphasizes that entrepreneurs should start with their given _______.
Match the concepts with their corresponding definitions:
Match the concepts with their corresponding definitions:
Which of the following is a financial driver?
Which of the following is a financial driver?
Spatially linked services focus on deepening relationships with customers.
Spatially linked services focus on deepening relationships with customers.
What is a primary motivation for temporal reconfiguration?
What is a primary motivation for temporal reconfiguration?
Nike sport camps are an example of leveraging a ______.
Nike sport camps are an example of leveraging a ______.
Match the following drivers with their descriptions:
Match the following drivers with their descriptions:
What is the focus of Lecture 1 in the series?
What is the focus of Lecture 1 in the series?
Causation strategies are primarily focused on entrepreneurial contingency.
Causation strategies are primarily focused on entrepreneurial contingency.
What perspective does the paper by Sapienza et al. (2006) provide on firm survival?
What perspective does the paper by Sapienza et al. (2006) provide on firm survival?
The _____ hypothesis pertains to international diversification and firm performance as discussed by Lu & Beamish (2004).
The _____ hypothesis pertains to international diversification and firm performance as discussed by Lu & Beamish (2004).
Match the following authors with their key contributions:
Match the following authors with their key contributions:
Which of the following best describes non-organic growth strategies?
Which of the following best describes non-organic growth strategies?
The concept of effectuation is unrelated to entrepreneurial decision-making.
The concept of effectuation is unrelated to entrepreneurial decision-making.
Identify one challenge organizations face in implementing growth strategies.
Identify one challenge organizations face in implementing growth strategies.
Which of the following papers focuses on the relationship between stakeholders and firm performance?
Which of the following papers focuses on the relationship between stakeholders and firm performance?
Structural integration is always necessary for organizational success.
Structural integration is always necessary for organizational success.
What mechanism is used by firms to capture value from their innovations?
What mechanism is used by firms to capture value from their innovations?
The relationship between resources and type of diversification is discussed in the paper titled ______.
The relationship between resources and type of diversification is discussed in the paper titled ______.
Match the following lectures with their main topics:
Match the following lectures with their main topics:
Which paper discusses customer preferences in self-service failure recovery?
Which paper discusses customer preferences in self-service failure recovery?
Related and unrelated diversification strategies are discussed in the same lecture.
Related and unrelated diversification strategies are discussed in the same lecture.
Which authors discuss the value of self-service technology in maintaining customer retention?
Which authors discuss the value of self-service technology in maintaining customer retention?
Which establishment mode of choice is associated with knowledge-based resources?
Which establishment mode of choice is associated with knowledge-based resources?
Experience-based resources are confirmed to lead to more greenfield establishment modes.
Experience-based resources are confirmed to lead to more greenfield establishment modes.
What does the VRIN framework stand for?
What does the VRIN framework stand for?
The establishment mode choice can vary based on ________ differences.
The establishment mode choice can vary based on ________ differences.
Match the following resource types with their corresponding establishment mode choice:
Match the following resource types with their corresponding establishment mode choice:
What aspect does H3b focus on in the research context?
What aspect does H3b focus on in the research context?
The research conducted a meta-analysis based on 31 eligible studies.
The research conducted a meta-analysis based on 31 eligible studies.
What are the implications of the research for managers?
What are the implications of the research for managers?
Firms aim to either exploit existing resources or ________ new resources.
Firms aim to either exploit existing resources or ________ new resources.
Which of the following statements is correct regarding the research gaps identified?
Which of the following statements is correct regarding the research gaps identified?
Which firm size is most likely associated with resource constraints in business planning?
Which firm size is most likely associated with resource constraints in business planning?
International diversification always improves firm performance.
International diversification always improves firm performance.
What are two primary factors affecting how economic rents from innovation are divided?
What are two primary factors affecting how economic rents from innovation are divided?
Firms must overcome certain liabilities when entering _______ markets.
Firms must overcome certain liabilities when entering _______ markets.
Match the following factors with their corresponding roles in international diversification:
Match the following factors with their corresponding roles in international diversification:
What is a common liability firms face when entering foreign markets?
What is a common liability firms face when entering foreign markets?
Name three different factors that may determine decision makers' preference for Intellectual Property Rights.
Name three different factors that may determine decision makers' preference for Intellectual Property Rights.
The relationship between stakeholders and firm performance is unimportant in Instrumental Stakeholder Theories.
The relationship between stakeholders and firm performance is unimportant in Instrumental Stakeholder Theories.
What is the main argument of Brinckmann et al. regarding entrepreneurs and business planning?
What is the main argument of Brinckmann et al. regarding entrepreneurs and business planning?
Brinckmann et al. found statistical evidence for specific planning contexts that enhance firm performance.
Brinckmann et al. found statistical evidence for specific planning contexts that enhance firm performance.
What does the 'storming the castle' metaphor imply regarding entrepreneurial behavior?
What does the 'storming the castle' metaphor imply regarding entrepreneurial behavior?
According to Brinckmann et al., statistical evidence was found in two planning contexts, one of which is ________.
According to Brinckmann et al., statistical evidence was found in two planning contexts, one of which is ________.
Which of the following is NOT a context hypothesis found in their study?
Which of the following is NOT a context hypothesis found in their study?
Match the types of planning contexts with their descriptions:
Match the types of planning contexts with their descriptions:
What is the significance of the meta-analysis conducted by Brinckmann et al.?
What is the significance of the meta-analysis conducted by Brinckmann et al.?
Entrepreneurs are advised to rely on a rigid business plan without considering market dynamics.
Entrepreneurs are advised to rely on a rigid business plan without considering market dynamics.
What does VRIN stand for in the context of resources?
What does VRIN stand for in the context of resources?
Firms always treat their stakeholders respectfully according to Instrumental Stakeholder Theory.
Firms always treat their stakeholders respectfully according to Instrumental Stakeholder Theory.
Name one reason why stakeholder relationships can be difficult to imitate.
Name one reason why stakeholder relationships can be difficult to imitate.
In Scherer et al. (2015), the dependent variable of the conceptual model is customer __________.
In Scherer et al. (2015), the dependent variable of the conceptual model is customer __________.
Match the following stakeholders with their corresponding characteristics:
Match the following stakeholders with their corresponding characteristics:
Which type of diversification do firms with significant Intellectual Property typically prefer?
Which type of diversification do firms with significant Intellectual Property typically prefer?
Scherer et al. (2015) found that self-service technologies have no impact on customer retention.
Scherer et al. (2015) found that self-service technologies have no impact on customer retention.
What is one moderator of the relationship between service proposition type and customer retention as discussed by Scherer et al. (2015)?
What is one moderator of the relationship between service proposition type and customer retention as discussed by Scherer et al. (2015)?
Which argument is NOT used to explain a positive linear relationship between a firm's product and service portfolio and its overall financial performance?
Which argument is NOT used to explain a positive linear relationship between a firm's product and service portfolio and its overall financial performance?
Amazon's expansion into logistics services is anticipated to be less profitable than its previous ventures in cloud computing.
Amazon's expansion into logistics services is anticipated to be less profitable than its previous ventures in cloud computing.
What term would Sawhney et al. (2004) use to describe Amazon's exploitation of its logistics services as a growth opportunity?
What term would Sawhney et al. (2004) use to describe Amazon's exploitation of its logistics services as a growth opportunity?
Amazon may turn its logistics network into a __________ offering for off-Amazon merchants.
Amazon may turn its logistics network into a __________ offering for off-Amazon merchants.
Match the following categories of risk with their relevant mitigation strategies:
Match the following categories of risk with their relevant mitigation strategies:
What is a likely outcome of Amazon's logistics service expansion?
What is a likely outcome of Amazon's logistics service expansion?
Companies do not face any risks when introducing new service offerings.
Companies do not face any risks when introducing new service offerings.
Name one way companies mitigate financial risks associated with new service offerings.
Name one way companies mitigate financial risks associated with new service offerings.
Study Notes
Business Planning vs. Effectuation Strategies
- Business planning in small firms emphasizes resource allocation for information gathering and reducing uncertainty.
- Long-term planning without market feedback can hinder performance.
- Adjustability in business plans is vital; entrepreneurs should prioritize affordable losses over risks.
Causation vs. Effectuation
- Causation involves setting a specific goal and selecting means to achieve that effect.
- Effectuation focuses on what means are available and derives possible outcomes from those means.
- Effectuation principles include:
- Starting with "what do I know?" to explore potential opportunities through available means.
Establishment Mode Choice
- The choice between acquisitions and greenfield investments is influenced by resource allocation.
- Current research lacks comprehensive analyses across multiple types of resources, often focusing on single resource aspects.
Resource-Based View (RBV)
- Unique resources confer sustainable competitive advantage and enhance long-term performance.
- The VRIN framework categorizes valuable, rare, inimitable, and non-substitutable resources.
- Cultural differences can shape the significance of specific resources in new environments.
Meta-Analysis Insights
- Study included 31 studies analyzing over 13,000 establishment mode choices.
- Confirmed findings:
- Knowledge-based resources tend to favor greenfield investments.
- Experience-based resources are more likely to result in acquisitions.
- Cultural distance negatively impacts the effectiveness of knowledge-based resources on establishment modes.
Strategic Drivers
- Strategic drivers for business growth include:
- Differentiated manufacturing offerings to achieve competitive advantage.
- Greater profit margins through less sensitivity to price competition.
Service Opportunity Matrix
- Connection between spatial and temporal services can enhance customer relationships.
- Temporal reconfiguration in service delivery can improve efficiency and customer satisfaction.
- Companies can leverage existing customer relationships by optimizing the service delivery process.
Motivations for Reconfiguration
- Companies excel at managing processes related to their core competencies and achieving economies of scale for the benefit of customers.
- Knowledge sharing and application from industry best practices contribute to service efficiency.
Limitations of Current Research
- Limited number of studies in some resource categories may skew results.
- The differentiation between full versus partial acquisitions in existing research is insufficient.
- Focus on only two resource types without broader contextual considerations.
Exam Overview
- Course: Growth Strategies & Organizational Challenges at Vrije Universiteit Amsterdam
- Exam Date: October 26, 2023
- Duration: 2 hours and 45 minutes
- Type of Questions: Open and multiple-choice, totaling 7 questions
- Credit Score: 90 credits equivalent to a grade of 10
- Grades Release: November 9, 2023
Business Planning Impact
- Entrepreneurship planning analyzed by Brinckmann et al. (2010).
- "Storming the castle" refers to a spontaneous, unplanned approach by entrepreneurs.
- Meta-analysis identifies two planning contexts with statistical evidence for better performance: specific industries and startup phases.
- Acknowledges that business planning generates value despite resource constraints of small firms.
International Diversification
- The relationship between international diversification and firm performance is non-linear.
- Firms face liabilities such as cultural differences and regulatory barriers when entering foreign markets.
- Key moderator factors: volume of intangible assets influences performance.
Innovation vs. Imitation
- Key challenge: Innovators must capture potential from innovations effectively.
- Economic rents are divided based on appropriability regimes:
- Strong regimes favor innovators; weak regimes favor asset owners.
- Freely available assets lead to more divided rents compared to tightly held assets.
- Factors determining preference for Intellectual Property Rights:
- Value of exclusivity
- Cost effectiveness of protection measures
- Need for market control
Stakeholder vs. Shareholder Growth
- VRIN resources (Valuable, Rare, Inimitable, Non-substitutable) defined by the Resource-Based View.
- Close stakeholder relationships are valuable resources that contribute to sustainable competitive advantage.
- Challenges in imitating stakeholder relationships stem from:
- Unique relationship histories
- Deep-rooted trust and reputational factors
- Organizational culture specificities
- Distrust in stakeholders can arise from short-term profit focus and lack of stakeholder engagement.
Technology-Enabled Growth
- Self-service technologies present viable growth strategies amidst labor market challenges.
- The conceptual model emphasizes customer retention as a dependent variable influenced by service delivery mechanisms.
- Proposed service theory posits that value emerges from customer self-efficacy in service experiences.
- Moderating factors in service propositions include:
- Service customization
- Customer engagement strategies
- Conclusions drawn from Scherer et al. (2015): Well-implemented self-service improves retention, analyzed through statistical inquiry.
Related vs. Unrelated Diversification
- Relationship between resource flexibility and investment into diversification types discussed: primarily an inverted U-shape.
- Firms with significant Intellectual Property tend to invest in related diversification due to leverage of existing patents and trademarks.
- Misused arguments against positive relationships include coordination costs, often overlooked in favorable conditions.
Growth through New Services
- Amazon's expansion into logistics reflects strategy outlined in the Service Opportunity Matrix by Sawhney et al. (2004).
- Sawhney identifies this as exploitation of service opportunity, transforming costs into profit centers.
- Risk mitigation strategies for market risks include:
- Incremental service deployment
- Strategic partnerships
- Companies address various risks through Design Strategies by introducing phased service rollouts that allow for feedback and adjustments.
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Description
This quiz covers the key concepts from the first four lectures on Growth Strategies and Organizational Challenges at Vrije Universiteit Amsterdam. Test your understanding of growth strategies and the various challenges organizations face today. Ideal for students looking to reinforce their knowledge in this field.
