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Test 2 Study Guide

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Exam Study Guide:
Chapter 2 Strategic Management and the Entrepreneur

1) The strategic management process:
Topic: Introduction

2) A small business's "aggregation of factors that sets it apart from its competitors" is its:
Topic: Building a Competitive Advantage

3) How is the strategic planning process for small companies different from that for large
Page Ref: 41
Topic: Building a Competitive Advantage

4) ________ focuses everyone's attention and efforts on the same target market. It is an expression of what the owner believes in.
Topic: The Strategic Management Process

5) Answering the question "What business am I in?" defines the company's:
Topic: The Strategic Management Process — Develop a Clear Meaningful Mission

6) Once the vision and mission are established, the entrepreneur needs to:
Topic: The Strategic Management Process

7) ________ are positive internal factors that contribute towards accomplishing the company's objectives.
Topic: The Strategic Management Process

8) When the small business owner assesses her company's strengths and weaknesses, she is dealing with the ________ business environment.
Topic: The Strategic Management Process

9) Corey notices a "backlash" against health food among people who eat out. He decides to open a restaurant that stresses "good home cooking," heavy with gravies, breads, oils, etc. Corey has identified and is trying to capitalize on a(n) ________ in the market environment.
Topic: The Strategic Management Process — Scan the Business

10) Every business is characterized by a set of controllable variables called ________ that determines the relative success (or lack of it) of market participants:
Topic: The Strategic Management Process — Identify the Business

11) A small firm's ability to identify and manipulate the ________ in its business determines its ability to

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