Strat

4. Which is not one of the four critical elements to implementing innovation as a strategy in the organization? a. Opportunity b. Leadership c. Extension d. Alignment e. Engagement

a. Opportunity

Which of the following is not a primary way innovative organizations encourage creative thinking and perpetual challenging within the organization? a. Referring b. Confronting c. Portfolioing of skills d. Adventuring e. Opportunity identifying

a. Referring

8. Seymour Cray is known for creating: a. high performance computers b. silicone chips c. GSM technology d. a wheelchair that can climb stairs e. RFID technology

a. high performance computers

28. One of the primary reasons firms have difficulty being innovative is: a. the firm's structure b. competitors' actions c. industry structure d. communication technology failures e. skills of people in the organization

a. the firm's structure

3. In order to encourage innovation, 3M allows its employees to spend how much of their time on projects of their choice? a. 5% b. 15% c. 20% d. 25% e. 40%

b. 15%

10. The R&D method that is the most incremental in nature is: a. Basic research b. Systems integration c. Applied research d. Product research e. Industry research

b. Systems integration

11. The lowest risk type of R&D is ____. a. Basic research b. Systems integration c. Applied research d. Product research e. Industry research

b. Systems integration

16. Sticky notes are a good example of ____. a. Small innovations that make too much money b. The role of teamwork in innovation c. The central role of a single person in the innovation process d. How to rescue a failed product e. How a single product can rescue a troubled firm

b. The role of teamwork in innovation

22. Extension occurs when ____ and ____ competencies are understood sufficiently so that ideas lead to action. a. innovation, market b. market, strategy c. product, market d. strategy, product e. innovation, strategy

c. product, market

31. It is better to have supportive systems and policies in the firm that: a. Have very loose systems and policies b. Have strict systems and policies that measure all things c. Leave the development of such systems and policies to midlevel managers d. Are consistent with the effort to encourage innovation e. Avoid any specification of the systems and policies until problems arise so that you can then design those systems and policies as needed

d. Are consistent with the effort to encourage innovation

23. Key actions that help to generate extensions of innovation include all of the following except: a. Shared lessons within the organization b. Monitor competencies c. Look for new opportunities d. Cut costs in current processes e. All of these are key actions

d. Cut costs in current processes

18. Mentoring can be ____ to be successful. a. Formal but not informal b. Informal but not formal c. Unobserved d. Informal or formal e. Structured

d. Informal or formal

12. ____ is pivotal in determining engagement by employees in the innovation implementation process. a. Employee compensation b. Status of leaders c. Rank of leaders d. Organizational culture e. Goals of organization

d. Organizational culture

34. Strategic group maps a firm's attention on those firms that: a. compose the total industry b. substitute for the industry c. are the same size d. are most relevant as competitors e. are in the same region

d. are most relevant as competitors

33. The structure of any organization has two basic purposes which are: a. coordination and leadership b. communication and flexibility c. openness and flexibility d. communication and coordination e. being flat and open

d. communication and coordination

19. When Louis Gerstner took over IBM he determined that planning should have all of the following activities except: a. ensuring external opportunities and threats were the focus of the planning not internal organizational issues b. ensuring that the plan focused on key implementation issues c. structuring on going processes to reexamine fundamental strategic challenges d. ensuring allocation decisions were not impacted by short term shifts in strategy e. promoting widespread support and involvement in process

d. ensuring allocation decisions were not impacted by short term shifts in strategy

19. ____ is a direct one-on-one activity between employees in the organization or system. a. extension b. shared lessons c. monitor competencies d. mentoring e. training & development

d. mentoring

. The creation of new knowledge involves ____. a. Basic research b. Systems integration c. Applied research d. Product research e. Industry research

a. Basic research

26. During the "Growth" stage of the technology life cycle, what kind of information does the firm need? a. Competitors' actions b. Science trends c. Other uses of technology d. Market sustainability e. Developments

a. Competitors' actions

4. The first question that should take place as the firm conducts it innovation strategy planning is ____. a. Do we innovate internally or not? b. Are we making a profit? c. What is happening in economy? d. What is attitude of leadership to innovation? e. Will shareholders tolerate innovative strategy?

a. Do we innovate internally or not?

34. The pitfalls for innovation to avoid include all of the following except: a. applying the process too narrowly b. overlooking people processes c. being too confident of your ability to lead the process d. relying on technology to fix all systems problems e. avoiding the elimination of processes and people

a. applying the process too narrowly

28. How should you describe the innovation process? a. irregular and unpredictable b. straight and narrow c. defined and renowned d. nice and easy e. slow and steady

a. irregular and unpredictable

3. Synergy relies on: a. the ability to use the same firm resources in different domains b. having large enough firms that equipment can overlap c. being in the same industry classification d. having management teams that work well together e. having simple enough processes that overlaps can be found

a. the ability to use the same firm resources in different domains

23. Confronting as a means to encourage creative thinking involves: a. Exploring an area outside of your comfort zone b. Deliberate debates c. Building a portfolio of skills d. Creative employees developing new projects e. A camping trip by employees to build teamwork

b. Deliberate debates

11. A leader should ask all of the following questions in the implementation process except: a. Is there an open, questioning attitude among employees? b. Does the organization have a clear hierarchy that ensures all opinions are processed to prevent information overload? c. Is the organization avoiding the ruts? d. Are there strategic gaps? e. Is there a vision of where the firm needs to go?

b. Does the organization have a clear hierarchy that ensures all opinions are processed to prevent information overload?

27. What stage of the life cycle would the focus be on monitoring potential competitors? a. Startup b. Growth c. Maturity d. Decline e. Death

b. Growth

1. Which one of these is NOT one of the three key implementation questions to be asked in the innovation implementation process? a. What should we be doing now/later? b. What is the cost to benefit ratio? c. What activities require most time/skills? d. What should be delegated and to whom? e. None of these are key implementation questions

b. What is the cost to benefit ratio?

30. A useful analogy for a portfolio of innovative projects is: a. the "bench" of a football team − how deep does the potentially successful innovations go b. an ecosystem c. a family and its ability to function and support each other d. the stock market − the best survive and the market determines what is best e. a couple and its children are its innovations

b. an ecosystem

15. Richard D'Aveni is associated with: a. re-engineering b. hypercompetition c. five forces model d. diamond of national competitiveness e. resource theory

b. hypercompetition

24. Diffusion is concerned with: a. market penetration by a new product. b. information sharing in an organization c. common culture development in a multi-national firm d. joint ventures and the blending of cultures e. joint ventures and the level of support for a new product

b. information sharing in an organization

35. The guidelines for a new product in an existing market include all of the following except: a. determine the relative advantage of the product in the market b. make it very complex so selling it to the market becomes easier c. build awareness through samples d. build awareness through demonstrations e. make the product visible

b. make it very complex so selling it to the market becomes easier

35. Downsizing refers to: a. firms selling machinery that is no longer useful b. seeking to operate the same business in a smaller building c. building smaller telephone units for customers d. compressing more data in a smaller space e. selling units or laying off employees of the firm

e. selling units or laying off employees of the firm

25. A mission statement usually has: a. more than 150 words b. more than 75 words c. less than 75 words d. less than 60 words e. less than 25 words

d. less than 60 words

33. Tweaking is associated with which type of research: a. basic b. process c. applied d. systems integration e. product

d. systems integration

6. Innovative organizations typically are founded and lead by: a. a strong leader that utilizes a hierarchical organization b. leaders that are willing to "break a few eggs" to get things done c. individuals driven by financial rewards d. teams of individuals e. individuals who had the "ah-ha" moment that led to the founding of the firm

d. teams of individuals

31. It took how long to develop large flat screen panels for market? a. 6 months b. 1 year c. 3 years d. 5 years e. 20 years

e. 20 years

20. Successful skills development programs are characterized by all of the following except: a. A state of informed optimism b. Dynamic process that changes as there is a need for employees to change c. Directed empowerment d. Turning prism e. A consistent view of firm so that the firm is not distracted from mission

e. A consistent view of firm so that the firm is not distracted from mission

17. The innovation process within a firm is ____ process. a. A logical and consistent b. A free flowing c. A predictable d. Not a central e. A political

e. A political

18. To create an environment for innovation a manager must understand all of the following except: a. The reality of innovation b. The needed characteristics of innovation for their business climate c. What each level of the organization should be doing to create a climate of innovation within the organization d. What the organization needs to do to maintain this innovation climate e. How to seek a new vision for the organization

e. How to seek a new vision for the organization

20. There are four ways that innovative organization encouraged creative thinking and perpetual challenging within the organization. They include all of the following except: a. Adventuring b. Confronting c. Portfolioing of skill d. Opportunity identifying e. Rewarding

e. Rewarding

. The type of research universities are mostly involved in is: a. quantitative b. applied c. systems integration d. qualitative e. basic

e. basic

29. Evidence shows that the best structure for an innovative firm is: a. simple b. hierarchical c. functional d. SBU e. one that matches the organization's goals.

e. one that matches the organization's goals.

27. All of the following are what firm needs to consider as it seeks to build fit except: a. focus building the group within the department or division b. seek to reduce barriers between departments c. ensure that the information on competitors is current and central to the implementation effort since they shape a firm's success d. gather information from customers and consumers e. recognize that the importance of external concerns will depend on the nature of the firm's industry

e. recognize that the importance of external concerns will depend on the nature of the firm's industry

16. Hypercompetition focuses on the belief that: a. organizations build up over time excess processes that no longer provide value to the customer b. rapid change and intense competition exist in certain industries c. a firm's profitability is determined by its industry d. a nation's competitiveness is based on more than factors of production e. a firm's competitive advantage comes from internal resources that the firm develops over time

b. rapid change and intense competition exist in certain industries

. For successful innovation implementation leaders need to ensure: a. a clear identification of those financial goals that will drive the firm b. that there are strong accounting and financial sectors of the firm to ensure that funding is strictly accounted for c. that there is a culture of collaboration and cross functional initiatives d. that perform measures are strictly used e. those members of the leadership team that do not support the goals are replaced

c. that there is a culture of collaboration and cross functional initiatives

15. Reengineering's goals include all of the following except: a. increasing productivity b. optimizing value to shareholders c. achieving quantum results d. expanding functions e. eliminating unnecessary levels and work

d. expanding functions

21. Adventuring as a means to encourage creative thinking involves: a. Exploring an area outside of your comfort zone b. Deliberate debates c. Building a portfolio of skills d. Creative employees developing new projects e. A camping trip by employees to build teamwork

a. Exploring an area outside of your comfort zone

26. Alignment within the organization is concerned with: a. Fit between the systems in the firm b. Fit between the firm and the industry c. Fit between the leadership and the firm's workers d. Fit between top management and middle management e. Fit between the environment and the leadership of the firm

a. Fit between the systems in the firm

1. Benefits of innovation include all of the following except: a. Greater control over process and outcomes b. Greater profit potential as first mover c. Greater ability to evaluate competitors d. Greater understanding of the technology e. Greater ability to potentially develop the next generation of technology

b. Greater profit potential as first mover

14. Process innovation focuses on ____. a. The development of new products b. Increasing effectiveness and effectiveness of the organization c. Increasing profits d. Decreasing the number of employees in the firm e. Basic R&D

b. Increasing effectiveness and effectiveness of the organization

29. Which one of the following is not a common myth about innovation? a. A good process is 90% of the battle b. Leadership, culture and process form a three legged stool c. Have a good methodology for evaluating ideas d. We want to be entrepreneurial e. We need the next big idea

b. Leadership, culture and process form a three legged stool

. When a firm develops technology that leapfrogs the firm: a. Obtains venture capital financing b. Skips over an existing generation of products c. Leaps in market value significantly d. Is guaranteed a profitable market entry e. Has a smooth but fast path towards full market penetration

b. Skips over an existing generation of products

13. Engagement focuses on: a. creating a questioning attitude in employees b. team building c. fostering inertia d. delegating authority e. funding critical needs

b. team building

25. Diffusion is associated with the following characteristics except: a. a new idea or innovation b. the new idea or innovation is at prototype stage so it can be visualized c. the idea or innovation is communicated through certain channels d. the communication occurs over time in a timely manner e. the communication occurs members of a social system

b. the new idea or innovation is at prototype stage so it can be visualized

7. Informal power comes from: a. the title of the individual b. the official position of the individual c. the expertise and knowledge of the individual d. age of the person e. strength of the person

b. the official position of the individual

9. Intel labs are now seeking to develop a new type of computer chip that is more compact. This is an example of ____. a. Basic research b. Systems integration c. Applied research d. Product research e. Industry research

c. Applied research

Which type of research and development (R&D) is done to answer specific questions? a. Basic research b. Systems integration c. Applied research d. Product research e. Industry research

c. Applied research

32. In tying rewards and incentives to the achievement of goals the relevant questions include all of the following except? a. What happens to creative mavericks? b. Is there guidance to new paths from the analysis of when things go wrong? c. Are you still able to make your numbers? d. What happens to someone that fails? e. Do you encourage risk taking?

c. Are you still able to make your numbers?

5. What is the name given to a firm that is the first to the market for a given product? a. Innovator b. Leader c. First mover d. Producer e. Follower

c. First mover

2. Drawbacks of innovation include all of the following except: a. Keeping a pipeline of new products is difficult b. Greater risk of failure to develop the right products at the right time c. Greater liability for failed products d. Usually internal development is slower e. There is always the danger of someone beating you to the market

c. Greater liability for failed products

30. Which one of these statements is a myth about innovation? a. Seek a balance of behaviors b. Leadership, culture and process form a three-legged stool c. Ideas are the key to innovation d. Your organization has lots of brilliant ideas that you've never heard of e. Do not blind yourself to the human dimension

c. Ideas are the key to innovation

22. Which one of these methods to encourage creativity involves stretching your skills? a. Adventuring b. Confronting c. Portfolioing of skill d. Opportunity identifying e. Rewarding

c. Portfolioing of skill

21. Benchmarking involves the: a. building a bench or portfolio of new products that can be introduced to market b. building a bench or portfolio of innovations that the firm pursues consecutively c. comparing the "best" firms in any domain to a given firm's performance and processes in that domain d. comparing your firm's performance and processes in a given domain to the industry average in that domain e. determining how the firms with the largest sales in a given domain conduct their activities in a given domain

c. comparing the "best" firms in any domain to a given firm's performance and processes in that domain

32. Which of the following does 3M do to encourage innovation? a. employees are required to spend 35 percent of their time on innovative projects b. seed money is provided to promising ideas c. compensation system rewards employees for innovations d. compensation system is strictly focused on employees innovation so slacking employees do not slow them down e. 25 percent of revenue is spent on advertising each year

c. compensation system rewards employees for innovations

14. What emerges when there is a satisfaction with the status quo? a. poor job performance b. loss of technological advantage c. complacency d. engagement e. inertia

c. complacency

12. Systems integration: a. is R&D that largely takes place outside of the firm b. is high risk/high return c. involves adjusting the ways a firm organizes it systems, structures, and knowledge to increase leverage d. adds to basic understanding of a new field e. is the most difficult type of innovation to accomplish

c. involves adjusting the ways a firm organizes it systems, structures, and knowledge to increase leverage

17. The three methods that can help to establish the view by employees that they are part of the organization or system are all of the following except: a. mentor b. train and develop c. sympathize d. build a knowledge-based culture e. none of these choices

c. sympathize

6. It is beneficial to be a follower when ____. a. an industry is growing too fast b. an industry has high customer loyalty c. there are high customer educational costs d. the industry leader is the first mover e. there are few penalties for industry mistakes

c. there are high customer educational costs

10. The benefits of leaders delegating authority include all of the following except: a. employees learn to lead b. employees gain new skills c. the organization will develop leadership talent d. the leader spends time on other things e. the leader ensures that they do not overwork themselves

e. the leader ensures that they do not overwork themselves

. The law of diminishing returns is discussed in Chapter 4 in terms of: a. the level of investment necessary to bring an investment to market b. the ability of an industry to shape returns of a firm c. how complementary products shape the returns of a firm d. the power of a firm to shape competition in that industry e. the need to avoid analysis by paralysis

e. the need to avoid analysis by paralysis