Strategic Management CH 9
35. "Creative Abrasion" can facilitate a product development through: a. Creating a work environment of aggressive individualism b. Providing strong financial i9ncnetives for individual creativity c. Establishing a professional setting in which development teams abandoned social conventions of respect and mutual support in order to critique their current efforts. d. Subjecting technologist and engineers to criticism from rank-and-file employees
a.
4. During recent years, the cycle of innovation (from initial knowledge generation to final diffusion) has: a. Got faster b. Got slower c. Become more global d. Become more uncertain
a.
31. Network externalities and smart phones arise primarily from: a. Direct user-to-user externalities b. The availability of complementary products c. The popularity of the Apple iPhone d. Google's decision to make it's android operating system open source
b.
12. Lead-time refers to: a. The period of time during which a firm is the leader of an industry b. The period of time during which a firm has discovered the largest number of innovations c. The time it takes followers to catch up d. None of the above
c.
7. The personal computer created a huge amount of value for users. The companies that profited most from the personal computer were: a. The innovators b. The followers c. The suppliers d. None of the above
c.
10. The main factor that determines the relative effectiveness of the different instruments used to protect property rights depends on: a. The legal system of the country in which the firm resides b. The effectiveness of the firm's lawyers c. How much competition the firm faces d. The characteristics of the innovation that is being protected.
d.
17. Which of the following factors does not contribute to the attractiveness of licensing provides as a means of exploiting an innovation: a. The innovating firm possesses most of the complementary resources needed to exploit the innovation b. Patent are strong c. The potential for the innovation to enhance the performance of existing products has been clearly demonstrated d. The innovation has potential applications is several different industries
a.
1. The 1949 quotation that "computers in the future may...weigh only 1.5 tons" indicates: a. Engineers are generally very poor at forecasting b. It is difficult to forecast the development of technology more than a few years ahead. c. The lack of communication among technologists—the transistor had been invented in 1947 d. The acceleration of technological change during the second half of the 20th century.
b
15. If technological breakthroughs increase the feasibility and attractiveness of fuel cells as a means of propulsion for vehicles, the profits that can be earned from the developers of the fuel cell technology will be limited by: a. The greater environmental attractiveness of battery-powered electric vehicles b. The dependence of fuel cell technology on specialized investments by auto makers in designing new cars and fuel suppliers in supplying hydrogen refueling facilities. c. The likely ineffectiveness of patents relating to fuel cells. d. Lack of interest in vehicle owners in fuel cell technology.
b.
33. In video cassette recorders (VCRs), Matsushita's VHS format won against Sony's Betamax format because: a. VHS was technically superior to Betamax b. VHS VCRs were cheaper than Betamax VCRs c. Matsushita's licensing of its VHS format to other manufacturers of VCFRs led to its gaining a lead in market share d. Sony opened its standard to all players too early
c.
34. The market share leadership and smartphone operating systems possessed by Google's Android operating system reveals: a. It's generally better to be a follower than a first mover. b. In digital markets where network externalities are present, Google's huge user base typically gives it a huge advantage over rivals. c. Where network externalities are present, and open source strategy can often be effective in undermining a competitive market share lead. d. Strength in complementary resources and capabilities can allow a strong company to overcome the initial lead of an early innovator.
c.
11. The distinction between codifiable and tacit knowledge is important in relation to property rights protection because: a. Both types of knowledge are present in innovations b. Patents must be written clearly and in an accurate way, so that they only contain codifiable knowledge c. If an innovation is not described and embedded in a written form, it cannot be effectively protected d. In the absence of legal protection, the extent to which an innovation can be imitated depends on the ease with which the technology can be comprehended and communicated
d.
13. A company may seek to patent an invention even if it has no intentions of commercializing it. Which of the following is not an important reason for such strategic patenting? a. To block competitors' opportunities for innovation b. To generate licensing revenue c. To increase the company's bargaining power when negotiating cross-licensing deals with other companies. d. To increase the reputation of company's R&D department
d.
23. When reliable forecasting is not available, managing risk can be implemented through: a. Alertness b. Responsiveness c. Avoiding large scale commitment d. All of the above
d.
27. Cooperation with lead users and flexibility are two illustrations of: a. Business level strategies b. Corporate level strategies associated with innovation and technological management c. Tactics to limit the exposure to financial risk in the context of a depressed economy d. Strategies to limit the technological risk associated with emerging industries
d.
9. The intellectual property of a firm comprises: a. Copyrights, patents, and trade secrets b. Patents, trademarks, copyrights, trade secrets, and goodwill c. The total of its intangible assets d. Patents, trademarks, copyrights, and trade secrets
d.
14. An innovation's complexity impacts: a. The ease with which it can be copied b. The resources needed to formalize it and to establish a patent to protect it c. The rate of diffusion of the innovation, and its acceptance by customers d. The probability for a firm to innovate
a.
26. Standards are important in an industry because: a. They allow interoperability and industry growth, and are linked with network externalities b. They are established by the dominant player in the industry c. They are imposed by the government and have the force of law behind them d. High-tech industries are the only industries that cannot effectively function without standards
a.
3. Which of the following statements about the relationship between innovation and invention are correct? a. Invention is often the result of an individual's efforts; innovation typically involves business organizations b. Intellectual property law offers greater protection to innovation than it does to invention c. Complementary resources are more important in supporting invention than in supporting innovation d. Invention requires genius, innovation requires practical insight.
a.
32. When network externalities are available in a market, the typical outcome is: a. A winner-take-all market b. Monopolistic abuse requiring antitrust intervention c. More rapid technology innovation d. Lack of consumer choice
a.
5.An innovator's ability to derive profit from an innovation depends primarily upon: a. Factors that prevent would-be competitors from imitating the innovation b. The strength of the patents that protect the innovation c. Thru innovator's ability to produce and distribute the innovation d. The innovator's financial resources.
a.
16. Patents protect innovation better than any mechanism. a. A century of evidence shows this is true b. No one can confirm or disprove this statement c. The evidence is mixed d. Evidence shows that in most industries this is not true
d.
19. Mosanto's NutraSweet artificial sweetener, Pfizer Viagra, and Pilkington's float glass prices are innovations that are examples of: a. Weak regimes of appropriability because the innovations cannot be patented b. Strong regimes of appropriability because the effectiveness of patent protection c. Strong regimes of appropriability because the innovators possess strong complementary resources d. Network externalities leading to a winner-take-all market
b.
20. A firm has an innovation that has weak patent protection but its exploitation requires a number of complementary resources that it does not possess. Is it best mode of excluding the innovation is likely to be: a. Licensing. b. Joint venture. c. Internal commercialization. d. Acquiring a company that does possess the required complementary resources.
b.
29. It may be preferable for government to intervene to impose a public standard rather than let a private, de facto standard be determined through competition because: a. Governments are superior to markets in selecting the best technology b. A private, de facto standard can take a long time to become established, thereby delaying the adoption of a new technology c. Competition is always wasteful d. De facto standards tend to be set by US companies
b.
30. "Network externalities" refer to: a. The benefits that the firms derive from using social networks) such as Facebook and Google +) in their marketing b. The value that the user of a product derives from the number of other users of the same product c. The cost and benefits that are borne by a received by society as a result of the actions of a business enterprise d. The consequences of platform-base competition
b.
36. Cross functional product development teams, product champions, and incubators are organizational devices used: a. By top managers to control the technological development of their firms b. To reconcile the conflicting requirements of operations and innovation c. To build new organizational structures, inspired by innovation in high-tech industries d. To reconcile coordination and specialization needs
b.
24. Cooperation with lead users is a useful tool of innovation management because: a. Lead users set the trend for the mass market b. Due to their price and insensitivity, let users tend to be the most profitable customers c. Lead users provide both information feedback and revenues that can assist ongoing product development d. Because lead users are so discerning, they have a key role in providing both discipline and incentives
c
18. Comparing the development of xerographing and the jet engines to satellite-based global positioning (GPS) and MP3 music player illustrates that: a. Invention always precedes innovation b. Financial resources are critical to introduce successful innovations c. The innovation cycle has beat it up over time d. Digital technology has fundamentally changed the nature of innovation
c.
2. The difference between invention and innovation is: a. Invention requires an inventor, innovation requires no individual person b. You must innovate before you invent c. Invention is the creation of a new device or process, innovation is its commercialization d. An invention can be patented and hence earn royalties.
c.
21. The choice of being a leader or a follower in innovation should depend on: a. The extent of protection of the innovation, the nature of the knowledge involved, and the potential to establish a standard b. The development cost of the innovation, the importance of complementary resources, and the shape of the economy c. The extent of protection of the innovation, the potential to establish a standard, and the importance of complementary resources d. The potential to establish a standard, the relative powers of the other players in the industry, and the development cost of the innovation
c.
22. When entering a new product marketing with an innovative product, and established company should select the optimal time of entry based upon: a. What the principal that early-mover advantage is the key to success and new markets b. Recognition that risk is reduced by waiting to see how technology and customer requirements will shape the emerging industry c. Trading off early mover advantages against the benefits of waiting to the point when an established firm's resources and capabilities can maximize their effectiveness d. The potential to exploit network externalities in order to establish a dominant in standard.
c.
25. In digital markets, once a company is losing a standards war, it's a best strategy maybe: a. Exit before it loses even more money b. Apply additional resources to courting supporters c. Go open source d. Seek alliances
c.
28. The principal difference between public and private standards is: a. Standards set by public firms vs. standards established by privately-owned companies b. Standards established by governments vs standards set by companies c. Standards available for all organizations and industry players vs standards on by firms or individuals d. Free standers vs. standard users have to pay for
c.
8. The following industry offers a strong regime of appropriability for innovators: a. Financial services b. Processed food products c. Pharmaceuticals d. Handheld mobile devices.
c.
An innovator may fail to earn any significant returns from an innovation if: a. The innovation fails to create value for users b. The innovator is unable to appropriate the value the innovation creates c. Both (a) and (b) are present d. If either (a) or (c) is present.
d.
