MGT 5893 - Business Strategy & Policy - Quiz 8

A dominant design is best described as: [See p.208] Group of answer choices A technical standard The product design chosen by the leading firm in an industry A common product architecture The culmination of the process of commodification that accompanies industry evolution

A common product architecture

According to Charles Darwin it is the strongest of a species that survive. [See p.205] Group of answer choices True False

False

For aircraft manufacturers, the jet engine was a threat since it was a "competence destroying" innovation. [See p.220] Group of answer choices True False

False

IBM's decision in the late 1970s to establish its new personal computer division in Florida, rather than close to its headquarters in New York is an example of "contextual ambidexterity." [See pp.222-223] Group of answer choices True False

False

The emergence of a dominant product design tends to coincide with a shift from process innovation to product innovation [See p.209] Group of answer choices True False

False

The transition from the introduction to growth phase of the industry life cycle features: [See p.209] Group of answer choices Increasing product differentiation Declining innovation Offshoring of production Product innovation giving way to process innovation

Product innovation giving way to process innovation

When an industry coalesces around a common product design, innovation typically shifts from radical to incremental. [See p.209] Group of answer choices True False

True

An organizational routine is: [See p.216] Group of answer choices A stable, repeatable, pattern of coordinated activity among organizational members A lower-level, operational capability, as opposed to a dynamic capability which tends not to be routinized The resource needed to create a new capability A new capability after it has been institutionalized within an organization

A stable, repeatable, pattern of coordinated activity among organizational members

Firm entry rates tend to be highest during the growth stage of an industry life cycle because: [See pp.212-214] Group of answer choices Shortage of production capacity keeps margins attractive. The propensity for entrepreneurs and venture capitalists to imitate one another. Growing legitimacy of the industry attracts resources to the industry. Both (a) and (c).

Both (a) and (c).

The main reason why a firm's distinctive capabilities reflect the conditions that the firm faced during the early years of its development is because: [See pp.225-226] Group of answer choices Most managers adhere to the old adage: "If it ain't broke, don't fix it" Capabilities that develop early become embedded in a firm's organizational culture Exploitation tends to dominate exploration Managers' bounded rationality

Capabilities that develop early become embedded in a firm's organizational culture

The field of "organizational ecology" studies: [See p.218] Group of answer choices Companies' contributions to environmental sustainability. Changes in the evolution of the population of firms in an industry. The process of competition between different types of firm. Management practices that promote the evolutionary adaptation of firms.

Changes in the evolution of the population of firms in an industry.

Organizational structure needs to take account of the capabilities that a company possesses (or wishes to develop) because: [See p.228] Group of answer choices The managers who are responsible for a capability need to be the heads of organizational units Coordination among the people engaged in performing the capability is facilitated if they are located within the same organizational unit The lack of a separate organizational unit will make it more difficult for organizational learning to be retained The managers which head different organizational capabilities need to have clear lines of reporting

Coordination among the people engaged in performing the capability is facilitated if they are located within the same organizational unit

When a company places its new businesses or new products into separate organizational units from its established business activities, this is an example of: [See pp.222-223] Group of answer choices Contextual ambidexterity Structural ambidexterity Both contextual and structural ambidexterity Effective change management

Structural ambidexterity

Industries change mainly as a result of: [See p.207] Group of answer choices Government policies. The death of existing firms and the birth of new firms. Continuous adaptation by a constant population of firms. Changing customer preferences.

The death of existing firms and the birth of new firms.

Which statement best described the extent to which different industries conform to the same life cycle pattern? [See p.211] Group of answer choices The duration of the life cycle varies from industry to industry The same stages exist whatever the industry All industries have experienced a shortening of the stages of their life cycle Different go through a renewal of their life cycle at different stages of their development

The duration of the life cycle varies from industry to industry

Which of the following developments is not a typical feature of the transition from the "introductory" to the "growth" phase of the industry life cycle? [See pp.207-208] Group of answer choices The emergence of a dominant design The shift from product to process innovation The shift of production from mature to emerging countries Rapid market penetration

The shift of production from mature to emerging countries

When an industry is subject to technological change, the ability of new entrants to displace incumbent firms will be increased if: [See pp.220-221] Group of answer choices The technological change represents an architectural innovation rather than component innovation. The technological change is competence enhancing rather than competence destroying. Incumbent firms are insufficiently attentive to the industry's largest customers. Incumbent firms are geographically dispersed.

The technological change represents an architectural innovation rather than component innovation.

The capabilities of "craft enterprises" are based upon the tacit knowledge of skilled employees. The capabilities of "industrial enterprises" are based upon systematized knowledge located within processes. The key advantage of industrial enterprises over craft enterprises is that: Group of answer choices They can replicate their capabilities at low cost in multiple locations. They are less vulnerable to shortages of skilled workers. They can standardize their offerings. They can automate their production.

They can replicate their capabilities at low cost in multiple locations.

Over time, industry life cycles have become increasingly compressed. [See p.211] Group of answer choices True False

True

The establishment of a dominant design marks an industry's transition from the growth phase to the maturity phase. [See p.209] Group of answer choices True False

True