MGT 320 Final Prep

Angelo has designed a license plate holder for automobiles that makes theft of the license plate practically impossible. He has filed an application for a patent through the Patent Cooperation Treaty (PCT) office, and it has been approved. How long is this application going to protect his right to file for patent protection in the member countries of the PCT? 3 days 6 months 1 year 2.5 years

2.5 years

Shirley, a U.S. citizen, has invented a solar-powered amplifier that can be used in small speakers, such as Bluetooth speakers, to increase the volume up to five times. She decides to apply for a patent for this device in the United States. If she receives approval for the patent, what would be the duration of patent protection? 35 years 20 years 2.5 years Lifelong

20 yearsCorrect

Which of the following statements is true of a component innovation?

A component innovation does not significantly affect the overall configuration of a system. A component innovation is also called an architectural innovation. For a firm to initiate a component innovation, knowledge about the whole system is necessary. A component innovation has more far-reaching and complex influences on industry competitors and technology users than an architectural innovation. A component innovation does not significantly affect the overall configuration of a system.

Which of the following statements is true of core competencies?

A firm's core competency refers to a single ability. A firm's core competency is more than just a core technology. An individual business unit has only one core competency. A firm's core competency is usually easy to imitate. A firm's core competency is more than just a core technology.Correct

Which of the following statements is true of a monopoly cost curve?

A monopoly cost to market share curve is more s-shaped than a network externality returns to market share curve. The steepness of a monopoly cost curve is largely a function of a firm's discretionary behavior.Correct It is not possible for a network externality returns curve to cross a monopoly cost curve. A firm choosing to exploit its monopoly power is flattening its monopoly cost curve.

What is the net present value (NPV) of a project if the present value of cash inflow is $10,000 and the present value of cash outflows is $5,000?

$2,000 $5,000Correct $10,000 $15,000 $5,000Correct

Which of the following is a defining characteristic of autonomous teams? Autonomous teams are not held accountable for the success of a project. Autonomous teams do not have a project manager, which leads to constant problems with coordination of activities. The degree of cross-functional integration is low in autonomous teams. Autonomous teams often do not conform to the operating procedures of the rest of the organization.

Autonomous teams often do not conform to the operating procedures of the rest of the organization.

Computer hardware has developed over the years with recent devices providing better and higher storage capacities. From the use of floppy disks, in the early days, for storing information, to the current use of CDs, portable hard disks, and pen drives, information storage capacities have improved with the invention of each new device. These days, floppy disks are seldom used and most of the latest computers do not include floppy drives. Which of the following types of technology is being described in the scenario?

Complementary Component Discontinuous Incremental Discontinuous

Which of the following statements is true of first movers in comparison with early followers and late entrants?

Cost of developing necessary production processes and complementary goods is lower for first movers. First movers are in a better position to exploit buyer switching costs and also to reap increasing returns advantages. First movers, being incumbents, have greater ability than later entrants to respond to changes in the industry environment and adopt newer production processes. First movers fail to capture scarce resources such as key locations, government permits, access to distribution channels, and relationships with suppliers. First movers are in a better position to exploit buyer switching costs and also to reap increasing returns advantages.Correct

Sigma Cleaning Inc. wants to use the house of quality matrix in designing and developing a new vacuum cleaner. What is the last step that Sigma Cleaning should take? Determination of the relative value or weight of customer requirements Creation of a new design based on the design targets Identification of the engineering attributes that determine the performance of the vacuum cleaner Evaluation of the competing products to determine how well they meet customer needs

Creation of a new design based on the design targetsCorrect

Which of the following is an advantage of cross-functional teams? A cross-functional interface ensures that cross-fertilization of ideas is reduced. Cross-functional teams allow a project to draw on a wider mix of information sources in the environment. Cross-functional teams usually reduce coordination and communication costs. Cross-functional teams are most efficient in eradicating homophily.

Cross-functional teams allow a project to draw on a wider mix of information sources in the environment.

A derivative project is designed to serve a core group of consumers, whereas platform projects represent modifications of the basic platform design to appeal to different niches within that core group. (T/F)

False

For a firm to adopt a component innovation, it requires architectural knowledge about the way components link and integrate to form a whole system. (T/F)

False

Weekly News Inc. bought the paper mill that supplied paper for printing its magazine. This is an example of horizontal integration. (T/F)

False BECAUSE THAT IS VERTICAL INTEGRATION!!!

Felix has designed a pair of sunglasses that can be folded and put into a case that easily fits into a shirt or pant pocket. Felix wants to know if he can receive a patent on this invention. Which of the following responses would be most accurate according to the U.S. patent law?

He cannot receive a patent as the invention is only eligible for a copyright protection. He cannot receive a patent since he is merely making the sunglasses more portable. He cannot receive a patent as the invention is not useful. He can receive a patent as the invention is a tangible product. He cannot receive a patent since he is merely making the sunglasses more portable.Correct

Mark is a wealthy private financier who funds projects without utilizing a venture capital limited partnership structure. He typically provides funds for start-up projects that are $1 million or less. There have been instances in the past where Mark lost a huge share of money in some projects, but he also received high returns on some other projects. He is aware of the risks, but that does not stop him from funding start-ups. Which of the following would best describe Mark?

He is a market leader. He is a laggard. He is an angel investor He is a broker. He is an angel investor.Correct

In the 1980s and 1990s, Neon Corp. was the most successful firm in the television market. The firm believed that its competitors would never be able to produce televisions that compared to their products' quality and price. As a result, it was unable to compete with the newer models of televisions that its Japanese competitors had begun to infiltrate the market with. Eventually, Neon lost its market leadership to its competitors. This scenario most clearly exemplifies the _____. Giffen effect Hawthorne effect Idiosyncrasy Credit Icarus Paradox

Icarus Paradox

Theta Cleaning Corp. wants to use the house of quality matrix in designing and developing a new vacuum cleaner. What is the first step that Theta Cleaning should take? Identification of customer requirements Determination of the relative value or weight of customer requirements Identification of the engineering attributes that determine the performance of the vacuum cleaner Evaluation of the competing products to determine how well they meet customer needs

Identification of customer requirementsCorrect

Which of the following statements is true of heavyweight teams? Project managers of heavyweight teams lack the authority to command resources. Heavyweight teams are always temporary. In heavyweight teams, members are collocated with the project manager. Heavyweight teams are considered inappropriate for platform projects.

In heavyweight teams, members are collocated with the project manager

The value of an electronic reader is related to the availability of books, journals, magazines, etc. in a format that can be read by the electronic reader. For an electronic reader, these are _____ goods.

complementary substitute Giffen intermediate complementary

Ample Espresso Corp. is a coffeehouse located across from Tian's Kitchen, a restaurant. According to Porter's five-force model, the services and products provided by both are most accurately classified as:

complements. competitors. substitutes. intermediates. substitutes.Correct

When Fun Bun Inc., an international fast-food chain, set up operations in China, it had to teach farmers how to grow a particular variety of potatoes, and bakers had to be taught how to make hamburger buns. This is an example of:

corporate social responsibility. an undeveloped supply channel. incumbent inertia. monopoly rents. an undeveloped supply channel. Correct

NewDigger Inc. makes backhoes for digging ditches and trenches. It has developed an environmental-friendly liquid that, when poured on the ground, reduces the time and labor required to dig trenches of various depths, depending on how much is applied. The firm has recently started using this product commercially. This would most probably be considered a(n) _____ project for NewDigger.

derivative platform breakthrough additive breakthroughCorrect

Carl owns a software firm, and Mike owns a computer hardware manufacturing firm. They decide to create an alliance in order to manufacture laptops and desktops using the shared competencies of their respective firms. When creating the alliance, they make sure that each of them invests 50% capital and that they would each own a specified right to a percentage of the profits from the alliance. The collaborative relationship in this scenario is known as _____.

equity ownership relational governance alliance contracts solo internal development equity ownershipCorrect

If a firm has the option of investing in R&D, the cost of commercializing a new technology that is developed can be considered the:

exercise price. price of a call option. benefit of exercising the option. the value of the option. exercise price.Correct

Urban Fashions Corp. has become very successful in the last few years and now employs a large number of people. Serena, the owner of the firm, had been very informal in running the company. However, because of the increase in the size of the firm, she now feels that the informal ways of management have become ineffective. In order to structure the behavior of employees, Serena wants to introduce written codes of conduct and regulations into the firm. This change being introduced in the company by Serena is referred to as _____. disintermediation formalization nationalization decentralization

formalization

Perfecto Espresso Corp. is a chain of coffee shops in the United States. Earlier it used to source its coffee from several coffee suppliers. However, recently it started its own coffee plantation to supply its coffee shops. This is an example of:

forward vertical integration. backward vertical integration. horizontal integration. substitution. backward vertical integration.Correct

Greyer Corp. has developed a special drug that kills cancer cells. While the scientists at Greyer have the knowledge, they are short on equipment, money, and marketing know-how. In this situation, the most appropriate step for Greyer would be to:

give up the idea of selling the drug altogether. find a partner to collaborate with to sell the drug. forge forward and develop the drug on its own. come up with a completely new drug. find a partner to collaborate with to sell the drug.Correct

Oxygenic Inc. is a company with major decentralized divisions in Germany, Russia, and the United States. The scientists in Russia develop cancer treatment methods. Treatment clinics are organized in Germany. The U.S. division gathers finance and markets the treatment methods. The activities of the different divisions are coordinated by the central office of the firm to meet company-wide objectives. This is most clearly an example of a _____ strategy. center-for-global local-for-local locally leveraged globally linked

globally linked

Karen's supervisor, while discussing her participation in a new product development team, tells her that she has been engaging in social loafing. This means that Karen: has been involved in whistle-blowing activities. has been discriminating against colleagues belonging to minority groups. has not been putting much effort into the team's work. has stolen office property.

has not been putting much effort into the team's work.

Ruth works in the advertising department of her company. It was observed that she interacted more frequently and more intensely with team members who shared her interests and social background but ignored others. This phenomenon exhibited by Ruth is referred to as: free riding. social loafing. homophily. groupthink.

homophily.

In the context of qualitative methods for choosing projects, screening questions are used mainly to:

increase the rate of employee attrition. structure the discussion about project details like potential costs and benefits. increase employee turnover rates. choose the best consulting firm to analyze a potential project. structure the discussion about project details like potential costs and benefits.Correct

A resource can be extremely difficult to imitate if:

it can be readily codified in written form. it is not path dependent. it arises through the complex interaction of multiple people. it is clear how the resource gives rise to value. it arises through the complex interaction of multiple people.Correct

ErgoWorld Inc. manufactures office furniture. The company is considering adopting a modular production system. A modular system would offer greater value to ErgoWorld if: most customers are likely to agree on a single product configuration. its customers prefer to upgrade their products by replacing their entire system. its customers are willing to pay a premium price for extreme customization and personalization. its customers have heterogeneous demands that need to be met in a cost-effective way.

its customers have heterogeneous demands that need to be met in a cost-effective way.Correct

Allured Cosmetics Corp. enters into a contractual agreement with Pure Cosmetics Inc., a manufacturing firm in the West Coast. According to the contract, Pure Cosmetics can use the manufacturing processes of Allured Cosmetics to produce cosmetics in return for a specific fee. Pure Cosmetics is bound to use the manufacturing process only to make complementary products for the cosmetics manufactured by Allured Cosmetics. This collaborative arrangement is classified as _____.

licensing outsourcing a joint venture capability complementation licensingCorrect

Allured Architecture Inc. collaborated with Maze & Matiz Corp. to form a new architecture firm called AllureAmaze Inc. Both the firms had a significant equity stake in the new entity. This collaboration would most accurately be termed a(n) _____.

licensing project joint venture outsourcing maneuver contract alliance joint ventureCorrect

A firm that develops new technologies ahead of others often tries a number of unsuccessful techniques before finding a solution that works well. This experimentation:

lowers the firm's ability to recognize the value of new information. lowers the firm's ability to develop and enhance technologies. makes it difficult for the firm to develop related technologies. enables the firm to find related solutions and alternatives that work well. enables the firm to find related solutions and alternatives that work well.Correct

Virtual teams are best defined as teams in which members: may be situated at a great distance from each other and collaborate intensively via advanced information technologies. are drawn from multiple functional areas in the firm such as R&D, marketing, manufacturing, and distribution, and they work at the company headquarters. have the tendency to cooperate only with people whom they perceive as being similar to themselves. have the tendency of shirking their responsibilities and blaming one another for their poor performance.

may be situated at a great distance from each other and collaborate intensively via advanced information technologies.

Pioneer Athletics Inc. wants to provide better landing mats for gymnasts. It therefore asks its foam suppliers to use a new innovative process to manufacture higher quality, durable foam in its mats. This new process used to develop the foam represents a(n) _____ for Pioneer Athletics.

network externality preemption rent enabling technology incumbent rent enabling technology

According to Schoonhoven and Jelinek, quasiformal structures are: slow to respond to the need for changes. most useful in fostering interactions based on hierarchy. less problem-focused than other structures of companies. not formally indicated on the organizational chart.

not formally indicated on the organizational chart.

Alumplus Aluminum Company has come up with a new type of metal. However, producing it would take up 75 percent of its manufacturing capacity and would hinder its ability to continue producing its other products. Alumplus Aluminum hires LM Group of Manufacturers to manufacture the new type of metal. This collaborative arrangement is most likely to be classified as

outsourcing disintermediation capability complementation solo internal development outsourcingCorrect

Magnitude Inc. was the first company to introduce a video gaming console in the market. However, consumers were uncertain about the product, and its high costs discouraged consumers from purchasing it. Eventually, Magnitude withdrew the product from the market. A few years later, Mantel Corp. and Adventura Inc. came up with their respective gaming consoles and successfully established their products. In this scenario, Mantel and Adventura would be considered:

pioneers. early followers laggards. late movers. early followers

Josh is the executive vice president of a bank. The president of the bank has recently asked Josh to use his influence to ensure that the bank's online banking project is developed and implemented. Josh has been asked to be a(n): devil's advocate. project champion. entrepreneur. mentor.

project champion.Correct

Omega Cleaning Corp. wants to use the house of quality matrix in designing and developing a new vacuum cleaner. The use of house of quality is most likely to: provide a common language and framework for members of a project team to use. blur the relationship between product attributes and customer requirements. conceal the competitive shortcomings of the company's existing products. hide design trade-offs.

provide a common language and framework for members of a project team to use.Correct

Socially complex resources are:

resources or activities that emerge through the interaction of multiple individuals. resources that cannot be defined in terms of a numerical value. resources that require public sanction in order to be utilized for profit-making purposes. resources that are shared by different parties, thereby making them easily imitable. resources or activities that emerge through the interaction of multiple individuals. Correct

If aspects that customers have come to expect in a technology are difficult for competitors to imitate, being the technology leader will:

result in an inability to preemptively capture scarce assets. yield sustained monopoly rents. result in lower bargaining power over suppliers. mean negligible research and development costs. yield sustained monopoly rents.Correct

In the context of s-curves in technological improvement, plotting performance against time will result in the same characteristic curve as plotting performance against effort only if:

speed, a function of performance, is relatively constant over time. effort is relatively constant over time. power, a function of performance, is relatively inconsistent over time. effort varies over time. effort is relatively constant over time.

Arica Software Inc. is trying to estimate the installed base for its software. It is trying to assess the number of:

substitutes available for its software. developers working on its software. areas in which its software can be applied. users of its software users of its software

TechSense, an electronics manufacturing firm, allows its customers to resell old TechSense products at its retail outlets. The firm reuses the metal, wires, and plastic—extracted from the old products—in its new products. This way the company has been able to take waste management to a whole new level. According to the Buyer Utility Map, the firm is applying environmental friendliness utility lever in the _____ stage of the buyer experience cycle.

supplements purchase use disposal (correct)

June is a member of a new product development team. Her supervisor asks her about her experience in the team, and she replies, "Our team seems to be suffering from homophily." This statement means that: team members are not exerting the expected amount of effort. team members spend all their time chatting about their personal issues. team members are only interested in talking to people who are senior to them. team members only like other people whom they perceive as being similar to themselves.

team members only like other people whom they perceive as being similar to themselves.

The more a technology is adopted, _____.

the less valuable it becomes on account of market saturation the more susceptible it becomes to decreasing returns of adoption the greater are the opportunities for development of complementary assets the less possibilities for improvements are there in the technology and its applications the greater are the opportunities for development of complementary assets

Once a new product design becomes a dominant design, _____.

the product is no longer profitable it becomes difficult for competitors to imitate the architecture on which the industry can focus its efforts is destabilized it is adopted by the majority of producers it is adopted by the majority of producers

Ceramic Customs Corp. required a specific type of ceramic to make its tiles. Since there was only one supplier for that particular ceramic, the firm was forced to source all of its supplies from it. The firm tried negotiating the price of the material but failed to get any reduction on the cost. This was because:

the supplier had more bargaining power than the firm. the supply was unlimited. the supply exceeded the demand. the industry had barriers to entry. the supplier had more bargaining power than the firm.Correct

Joe's Burgers Corp. is a famous fast-food chain that uses a picture of a cook in a red hat as its logo. It would not be legal for a firm to sell hamburgers with the same identification picture as that of Joe's Burgers because that would be a(n): patent violation. trademark violation. embargo violation. trade secret violation.

trademark violation.

Mr. Crunchy Inc. is a firm experiencing severe losses. However, with large initial investment in manufacturing equipment and infrastructure, the firm is finding it difficult to abandon the industry. According to Porter's five-force model, the company is facing a(n):

vertical integration. exit barrier horizontal integration. substitute threat. exit barrier.Correct

When Faslow Medical Center in Exeter County changed its name to Faslow Hospital, it also unveiled a plan to build a medical tower that would double its physical facilities by 100 percent within the next 10 years. It also announced that its goal was to not only serve Exeter County but also serve the entire region including the five contiguous counties. This is most accurately an expression of:

vertical integration. strategic intent. monopoly rent. supplier bargaining power. strategic intent.Correct

A bicycle manufacturing company adopted a new type of inventory management system. This inventory system improved the productivity of its manufacturing unit and the quality of its bicycles. This is an example of _____ innovation.

virtual regressive archaic process process

After much research, Angela has designed a new automobile tire with a unique polycarbonate exterior that cannot be punctured. In the context of the U.S. patent law, which of the following statements would be true for this invention? It can be patented as it is useful, novel, and not obvious It can only receive a plant patent. It cannot be patented because tires are intangible products. It cannot be patented as it is only eligible for a copyright protection.

It can be patented as it is useful, novel, and not obvious.Correct

Which of the following statements is true of standardization? It can ensure that activities within a firm run smoothly and yield predictable outcomes. It is defined as the degree to which a firm utilizes rules, procedures, and written documentation to structure the behavior of employees. It involves the use of organic structures instead of mechanistic ones. It encourages the creativity and experimentation that lead to innovative ideas.

It can ensure that activities within a firm run smoothly and yield predictable outcomes.Correct

Which of the following statements is true of a collective research organization?

It does not help firms to leverage their competencies. It is a short-term commitment. It is an effort to rapidly access capabilities or technology. It allows a firm to share the cost and risk of basic research. It allows a firm to share the cost and risk of basic research.

Which of the following is a disadvantage of using internal rate of return for assessing a project?

It fails to take into account the time value of money and risk. It cannot be calculated by trial and error. It discriminates heavily against long-term and risky projects. It fails to provide concrete financial estimates. It discriminates heavily against long-term and risky projects.Correct

Which of the following is an advantage of collaborating?

It increases the in-house development time for projects. It increases a product's cycle time. It gives firms more flexibility. It causes firms to commit to assets that will rapidly become obsolete. It gives firms more flexibility.Correct

Which of the following statements is true of conjoint analysis?

It is a simple method for ranking objects or ideas on a number of different dimensions. It is used by managers to compare their desired balance of projects with their actual balance of projects. It requires the creation of a hypothetical efficiency frontier. It is most commonly used to assess the relative importance to customers of different product attributes. It is most commonly used to assess the relative importance to customers of different product attributes.

Which of the following statements is true of a firm with a long development cycle time? It can quickly revise or upgrade its product offering. It is more likely to have a high cost of capital. It can take advantage of both first-mover and second-mover advantages. It is more likely to be able to fully amortize the fixed costs of development before that generation becomes obsolete.

It is more likely to have a high cost of capital.Correct

Easymake Corp. developed a new Web design software to build Web pages for its clients. However, Easymake soon realized it could make more money by selling this software to those who wish to quickly build Web pages to sell their products. Which of the following would be the most appropriate strategy for Easymake?

It should not sell the Web design software as it will give rise to competition on the Internet. It should become a licensor of the new Web design software. It should become a licensee of the new Web design software. It should make the Web design software available to users as open source software. It should become a licensor of the new Web design software.Correct

Which of the following is an advantage of being a late entrant into a market?

Late entrants are the first to capture scarce resources. Late entrants often do not have to invest in exploratory research. Late entrants often are most likely to capitalize on monopoly rents. Late entrants are unaffected by switching costs. Late entrants often do not have to invest in exploratory research.Correct

The R&D team of Zelda Technozone Inc. has developed a prototype for a two-seater car that runs primarily on solar energy. Since the firm usually manufactures household appliances, the management acknowledges that it does not have the required competencies to manufacture this car on a large scale. It decides to access another firm's manufacturing competencies. Which of the following collaborative arrangements is most appropriate in this scenario?

Licensing in Joint venture Licensing out Franchising Joint ventureCorrect

Which of the following is a reason attributed to the failure of start-up firms?

New innovations typically tend to be adopted very slowly at first. Decisions such as producing inimitable goods pressurize start-up firms to enter the market early in order to avoid competition. All innovations by start-up firms require new complementary goods. All start-up firms will have to wait a considerable amount of time for the enabling technologies to develop. New innovations typically tend to be adopted very slowly at first.Correct

Which of the following statements is true of the different types of innovations?

Process innovations are more visible than product innovations. An innovation that was once considered radical may eventually be considered incremental as the knowledge base underlying the innovation becomes more common. An innovation is considered a component innovation if it significantly affects the overall configuration of the system of which it is a component. An architectural innovation is also called a modular innovation. An innovation that was once considered radical may eventually be considered incremental as the knowledge base underlying the innovation becomes more common.

Noah owns a firm that sells furniture at an affordable cost. As most of the products he sells need to be assembled by the customer, he is able to sell them at prices lower than most competitors. His marketing strategy focuses on providing lower prices for good-quality products. He has also marketed the fact that assembling the products is very easy if the customer follows the instructions and demos given on the firm's website. Considering that most of the customers used to buy furniture from out of town at higher prices, Noah's self-assembled furniture business has become quite successful in his town and he has managed to create and capture this demand in an uncontested market space. Which of the following strategies was used by Noah in his business?

Red ocean strategy Blue ocean strategy SWOT analysis PEST analysis Blue ocean strategyCorrect

Earth Love Electronics Inc. has developed a lawn mower that runs on solar power. The lawn mowers are available in all local supermarkets and home appliances stores. Customers can also check out videos and product details and then order a lawn mower on the company's home page. According to the Buyer Utility Map, which of the following primary new value propositions is being offered by the company?

Risk utility in the supplements stage Convenience utility in the purchase stage Convenience utility in the disposal stage Risk utility in the maintenance stage Convenience utility in the purchase stageCorrect

Which of the following statements is true of technology diffusion?

S-curves in technology diffusion are obtained by plotting performance against time. Technology diffusion is much faster than information diffusion. A drop in the price of a new technology can accelerate technology diffusion. Adoption is initially fast when a new technology is introduced to the market. A drop in the price of a new technology can accelerate technology diffusion.

Howard, an engineer, has plans to introduce additive manufacturing in his firm. He has heard that this method can create a model in a couple of hours. His team is not aware of this method of product development and hence Howard decides to give a presentation and explain the technique of generating a model using this method. Which of the following statements would he most likely mention during his presentation? The design is printed by laying down thin horizontal cross sections of material. The new design is printed manually, which then converges with an old design by adding details. The model is constructed by injection molding. The model is constructed by machining a mold.

The design is printed by laying down thin horizontal cross sections of material.Correct

Which of the following statements is true of customer preferences?

The importance of technological features to customers stays constant over time. Customers can differ from producers in their understanding of a new technology. All pioneers of new-to-the-world technologies face customer uncertainty. Other things being equal, more customer uncertainty favors earlier timing of entry. Customers can differ from producers in their understanding of a new technology.Correct

Zach has invented a device, which when plugged to household appliances, such as televisions, vacuum cleaners, sound systems, and mixer grinders, will operate them using solar power. The device also works as a battery and converts solar power into energy that can be used during the night. This device needs to be plugged into a port in the household appliances. Since not all appliances have this feature, Zach is of the opinion that he should delay his entry into the market. Which of the following statements supports Zach's decision?

The product works without the need for complementary goods. Hence, the more he delays his entry into the market, the better the competition is for his product. The entry barriers are low for this product in the market and hence it makes sense for Zach to delay his entry. Less mature enabling technologies may favor waiting for enabling technologies to be further developed. Since all pioneers face customer uncertainty, it is wise for Zach to delay his entry into the market as much as possible. Less mature enabling technologies may favor waiting for enabling technologies to be further developed.Correct

M&P Inc., a consumer goods manufacturing firm, has subsidiaries throughout the globe that have to respond to varying local market requirements. Therefore, the firm has planned to adopt a local-for-local approach to innovation. Which of the following statements is true in this context? The subsidiaries of M&P and their R&D divisions will be highly autonomous. The subsidiaries will achieve abundance of scale in R&D activities. This approach will make diffusion of valuable innovations across the company simple. This approach will eliminate redundancy in activities.

The subsidiaries of M&P and their R&D divisions will be highly autonomous.Correct

Albert has put together a new product development team based on the functional team structure. Which of the following statements is most likely to be true about this team? Team members will spend up to 50 percent of their time on team-related activities. The team will typically require dedicated liaison personnel. The team will have a high degree of cross-functional integration. The team structure will be straightforward to implement.

The team structure will be straightforward to implement.Correct

Singing Cards Corp. has decided to make the technology behind its musical cards open. Which of the following is most likely to be one of the advantages associated with this decision? The technology will accrue more rapid adoptions. The price of the technology will rise exponentially. The production of complementary goods will cease. The technology's installed base will accumulate much more slowly.

The technology will accrue more rapid adoptions.Correct

Which of the following statements is true of learning effects?

There are substantial differences in the rates at which organizations learn.Correct The learning rate is impervious to organizational factors such as firm strategy. As a technology is adopted, further development and refinement of the technology reduce. The cost of producing a unit rises as the number of units produced increases. There are substantial differences in the rates at which organizations learn.Correct

Which of the following statements is true of loosely coupled organizational structures? They coordinate development and production activities through their adherence to shared objectives. They ensure high synergies are achieved. They are most useful in organizations characterized by activities that require the frequent exchange of complex or tacit knowledge. They provide mechanisms for resolving conflict that are more effective or less expensive than those available in the market.

They coordinate development and production activities through their adherence to shared objectives.Correct

Which of the following statements is true of project charters? They estimate the resources required, the development time schedule, and the results that will be achieved. They provide a tool for evaluating a team's performance in meeting objectives by providing a set of performance benchmarks to which the team's performance can be compared. They are important mechanisms for establishing team commitment to a project and a sense of ownership over the project. They encapsulate a project's mission and articulate exact and measurable goals for the project.

They encapsulate a project's mission and articulate exact and measurable goals for the project.

Which of the following statements is true of design for manufacturing (DFM) methods? They lengthen the development cycle time of products. They introduce design rules that increase the complexity of the product designs, thus making them harder to manufacture, which ultimately increases the unit costs. They facilitate integration between engineering and manufacturing and bring issues of manufacturability into the design process as early as possible. They help firms identify potential failures in a system and classify them according to their severity

They facilitate integration between engineering and manufacturing and bring issues of manufacturability into the design process as early as possible.Correct

Which of the following statements is true of ambidextrous organizations? They have uniform incentive plans for all employees within the organization. They achieve long-term innovation but not short-term efficiency. They fail to tolerate varying cultures and different sets of behavior from employees. They have a complex organizational form that is composed of multiple internally inconsistent architectures.

They have a complex organizational form that is composed of multiple internally inconsistent architectures.

Which of the following statements is true of lightweight teams? They are permanent. They seldom have dedicated liaison personnel and typically work independent of managers. They are most appropriate for projects in which high levels of coordination are required. They offer a small improvement in team coordination and likelihood of success over functional teams.

They offer a small improvement in team coordination and likelihood of success over functional teams.

Which of the following statements is true of partly parallel development processes? They enhance the probability that R&D will design products that are difficult to manufacture. They require costly iterations between design stages. They shorten overall cycle time. They initiate product design after concept development is complete.

They shorten overall cycle time.Correct

An innovation can be competence enhancing for one firm, while competence destroying for another. (T/F)

True

It is possible for a firm that follows an s-curve model too closely to end up switching technologies later than it should. (T/F)

True

Which of the following is a difference between copyrights and trademark protection? Unlike copyrights, trademarks are indicators used to distinguish the source of a good. Unlike copyrights, trademarks are a form of protection granted to works of authorship. Unlike trademarks, copyrights are established by the legitimate use of a product. Unlike trademarks, copyrights can last as long as a copyright is in use.

Unlike copyrights, trademarks are indicators used to distinguish the source of a good.Correct

Beta Cleaning Equipment Corp. has started the actual design and development of a new floor buffing machine. It has the details of manufacturing, marketing, and operations of the new product as well. According to the stage-gate process, what is the next stage of this project? Launch of the product by producing it commercially and selling it Verification and validation of the new product and its marketing and production Formation of a focus group to make sure the product meets user expectations Development of a business case to justify the project

Verification and validation of the new product and its marketing and productionCorrect

In which of the following instances do platforms become more desirable than a tightly integrated product in a market?

When customers are similar and want the standard choices that a single firm can provide When third-party options are uniform and low quality When compatibility with third-party products can be made seamless without integration When the platform sponsor decides to share control over quality and the overall product architecture with all the third-party vendors When compatibility with third-party products can be made seamless without integrationCorrect

In which of the following circumstances can a firm confidently enter the market at any time?

When the enabling technologies are less mature When the product requires new complementary goods When there is high customer uncertainty When the product to be manufactured and sold is inimitable When the product to be manufactured and sold is inimitable

Sally has come up with a unique recipe for cookies and is selling them through exclusive outlets all across Atlanta. As the sales skyrocket, her friends tell her to patent the recipe. However, she is so protective of her recipe that she does not even want to reveal her secret ingredients to a government agency. Is there anything she can do to keep the recipe legally protected? No, she cannot protect her recipe unless she is willing to get her recipe patented. Yes, her recipe can be considered a trade secret and she can legally prevent others from benefiting from her recipe without her permission Yes, she can declare her recipe to be a trade secret and register it with the U.S. Trade Secret Agency. No, the recipe is not a tangible product and therefore cannot be protected.

Yes, her recipe can be considered a trade secret and she can legally prevent others from benefiting from her recipe without her permission

TechToTeach Co. has developed and sold a product that can be used by students to take faster notes in a classroom as the teacher speaks. The device automatically records the teacher's voice and converts it into a text format. This new technology has been widely accepted by various universities and has been appreciated by students, thus increasing the company's inflow. This technology can be most accurately described as a(n) _____ project by TechToTeach.

advanced R&D platform breakthrough derivative breakthroughCorrect

Since larger companies tend to have more bureaucracy, fixed costs, and commitments to large numbers of employees, customers, and suppliers than smaller firms, you can expect it to _____. gamble more on big changes be less responsive to technological changes find it much simpler to monitor employees and reward them for their effort or success at innovation experience higher rates of new product success

be less responsive to technological changesCorrect

As firms develop complementary technologies to improve the productivity or ease of utilization of a core technology, the core technology:

becomes more attractive to other firms. loses its credibility in the market. loses its dominant design position in the industry. experiences a decrease in its installed base. becomes more attractive to other firms.

Astech Inc. has been developing a new graphic design software. The firm has released a functional version of the software and has sent it to several lead users for testing. Based on the feedback from the lead users, the firm is going to improve the design of the product and begin commercial production. This initial version of the product is referred to as the _____. spiral model substitute product beta version theta model

beta versionCorrect

The scientists at Brainstorm Inc., a private medical research firm, have come up with a remarkable method for curing cancer. This cancer treatment technology is well protected and cannot be easily duplicated. Based on this information, it would be most accurate to say that this technology:

cannot be patented. is easily imitable. is not socially complex. has a high degree of appropriability. has a high degree of appropriability

Tacit knowledge is best defined as the knowledge that: cannot be readily codified or transferred in written form. cannot be patented. has a very low degree of appropriability. is not eligible for copyright protection.

cannot be readily codified or transferred in written form.Correct

Jack took part in a survey in which he was asked to rank the importance of certain features of the smart television he had recently purchased. The result was then used by the surveying firm to assess the different attributes of the ranking. This survey would most accurately be termed a _____.

cognitive analysis transactional analysis program analysis conjoint analysis conjoint analysis

When technology is progressing rapidly, firms are more likely to:

commit themselves to fixed assets that will rapidly become obsolete. avoid forming alliances for projects that are risky and complex. use linkages with other specialized firms to access resources they do not possess. avoid becoming more narrowly specialized. use linkages with other specialized firms to access resources they do not possess.Correct