Strategic Management Chapter 12 (ss16)

According to the text, firms that want to enhance their entrepreneurial position by being competitively aggressive should A. enter markets with drastically lower prices. B. foster creativity and experimentation. C. continuously seek out new products or services. D. research risk factors to minimize uncertainty.

A

All of the following are characteristics of a disruptive innovation EXCEPT A. It is usually more sophisticated technologically. B. It appeals to less demanding customers. C. It is typically a less expensive solution for meeting a need. D. It usually takes root in a new market or the low-end of an existing market.

A

All of the following are questions that should be answered when evaluating the performance of corporate venturing efforts EXCEPT which of these? A. Is the venture attracting external venture funding? B. Is the venture considered to be a market success? C. Does the venture add to the worth of the firm internally? D. Does the value proposition offered by the venture insulate it from competitive attack?

A

All of the following statements about innovativeness are true EXCEPT which of these? A. It refers to making decisions and taking risks without certain knowledge of probable outcomes. B. It refers to a firm's efforts to find new opportunities and novel solutions. C. It involves creativity and experimentation. D. It is aimed at developing new products, services, and processes.

A

Common features of a dispersed approach to corporate entrepreneurship include all of the following EXCEPT A. semi-autonomous new venture groups. B. use of product champions. C. a top-down approach to supporting entrepreneurial behavior. D. an entrepreneurial culture.

A

Individuals with highly innovative DNA traits have the ability to connect seemingly unrelated questions, problems, and ideas from different fields, allowing them the opportunity to creatively see opportunities others miss. In the text, this is referred to as A. associating. B. integrating. C. visioning. D. allocating.

A

The W. L. Gore organization, a highly innovative company, uses several approaches and "rules of thumb" to encourage innovation. Which of the following is NOT one of them? A. It requests that all risk-taking activities have a financial pay-off within one year. B. It celebrates failure rather than condemning it. C. It promotes person-to-person communications rather than e-mails. D. It uses small teams to promote creativity and autonomy.

A

The innovation dilemma known as building capabilities versus collaborating refers to A. developing innovation skills internally versus partnering with qualified outsiders. B. building innovative products in-house versus outsourcing. C. building credibility by launching products ahead of potential collaboration partners. D. all of these.

A

Whereas __________ are often associated with a low cost leader strategy, __________ are frequently an important aspect of a differentiation strategy. A. process innovations; product innovations B. product innovations; service innovations C. radical innovations; instrumental innovations D. marketing innovations; management innovations

A

Which of the following dimensions of entrepreneurial orientation is described as "a forward-looking perspective characteristic of a marketplace leader that has the foresight to seize opportunities"? A. proactiveness B. risk taking C. autonomy D. competitive aggressiveness

A

A manager whose role is to question the viability of corporate venture projects is known as a(n) A. product champion. B. exit champion. C. rising star. D. mentor.

B

According to the text, __________, which support fledgling startups are often used to pursue specific entrepreneurial ventures developed by __________. A. collaboration partners; strategic partners B. business incubators; new venture groups C. product champions; corporate venture capitalists D. lower-level managers; upper-level managers

B

All of the following are dilemmas faced by corporations trying to manage the innovation process EXCEPT A. launching incremental rather than "preemptive" innovations. B. emphasizing marketing over management innovations. C. preferring experience over initiative. D. choosing internal rather than external staffing.

B

Financial reasons for undertaking internal corporate venturing include A. strengthening competitive position. B. obtaining above average returns. C. adding to the corporation's resource base. D. all of these.

B

In corporations with a strong entrepreneurial culture, the willingness and ability to change A. is imposed from the top-down. B. is considered a core capability. C. often leads to instability. D. often worries stakeholders such as suppliers and creditors.

B

In the 1990s, DuPont used its knowledge of plastics to develop biodegradable plastic products. This is an example of A. focusing on process rather than product innovation. B. defining its innovation efforts within the context of its "strategic envelope." C. radical innovation. D. public relations, since plastics are not biodegradable.

B

Options exist when the owner of the option has A. the obligation, but not the right to engage in a transaction. B. the right, but not the obligation to engage in a transaction. C. the right and obligation to engage in a transaction. D. neither the right, nor the obligation to engage in a transaction.

B

Project __________ involves justifying whether an opportunity is attractive in the marketplace; project __________ involves evaluating the strategic and economic impact of a new venture. A. impetus; definition B. definition; impetus C. reward; development D. development; focus

B

Radical innovations A. often result in quick profits. B. often represent technological breakthroughs. C. usually apply to products and processes simultaneously. D. usually cannot be patented.

B

Sony Corporation's mission statement says, "We should always be the pioneers with our products, out front leading the market." This is an example of A. innovativeness. B. proactiveness. C. competitive aggressiveness. D. autonomy.

B

Which kind of risk taking requires that a company borrow heavily or commit a large portion of its resources in order to grow? A. business risk taking B. financial risk taking C. personal risk taking D. technological risk taking

B

According to the text, which of the following is NOT one of the methods companies can use to enhance their competitive position via innovativeness? A. fostering creativity and experimentation B. investing in new technology, R&D, and continuous improvement C. copying the business practices or techniques of successful competitors D. departing from existing technologies to develop products and practices that go beyond the current state of the art

C

Creative intelligence involves the ability to see patterns in data, integrating data, and making insights. The four patterns of actions that help build creative intelligence are A. observing, experimenting, cataloging, and networking. B. questioning, observing, integrating, and networking. C. questioning, observing, experimenting, and networking. D. observing, experimenting, cataloging, and integrating.

C

Incremental innovations A. are usually highly disruptive. B. usually represent technological breakthroughs. C. are usually small improvements in products and processes. D. nearly always can be patented.

C

On average, approximately what percentage of corporate ventures reaches profitability within six years? A. 80 percent. B. 65 percent. C. 50 percent. D. 35 percent.

C

Product champions A. are typically senior executives. B. are usually inventors of some sort. C. scavenge for resources and encourage others to back promising new ideas. D. are strong supporters of the status quo.

C

Real options analysis is most appropriate when A. the total investment required is small, but the environment is uncertain. B. the investment required can be justified by Discounted Cash Flow (DCF) techniques. C. a small investment up front can be followed by a series of subsequent investments. D. there is no prospect of obtaining additional knowledge before making subsequent investments.

C

The benefits gained by firms that are the first to enter new markets, establish brand identity, and/or adopt new technologies are known as A. competitive aggressiveness. B. technological capabilities. C. first mover advantages. D. breakthrough innovations.

C

Two common forms of a focused approach to corporate entrepreneurship include A. internal collaboration and internal venturing. B. social capital and collaboration capital. C. business incubators and new venture groups. D. focus groups and business incubators.

C

Which of the following statements about skunkworks is FALSE? A. They are independent work units. B. They are used to encourage creative thinking and brainstorming. C. They refer to a specialized type of outside contractor that corporations use to develop entrepreneurial ideas. D. They help managers set aside their usual routines and practices.

C

__________ refers to efforts to create designs and applications of technology to develop new products, while __________ refers to efforts to improve the efficiency of organizational systems such as manufacturing and operations. A. Radical innovation; incremental innovation B. Breakthrough innovation; instrumental innovation C. Product innovation; process innovation D. Product innovation; service innovation

C

A culture of entrepreneurship is one in which A. the search for venture opportunities permeates every part of the organization. B. every value chain activity is viewed as a source of entrepreneurial value creation. C. employees at every level are attuned to opportunities to help create new businesses. D. all of these occur.

D

After 15 teams created 128 different phones, Chris Galvin, former CEO of Motorola, recently eliminated the autonomous teams being used to develop new wireless phones. This was necessary because such teams A. often lack coordination. B. sometimes waste resources on projects with questionable feasibility. C. sometimes create inefficiencies through duplication of effort. D. all of these.

D

All of the following are types of risks that executives must address EXCEPT A. business risk taking. B. financial risk taking. C. personal risk taking. D. product-market risk taking.

D

Corporate business incubators typically provide some or all of the following functions EXCEPT A. physical space. B. mentoring. C. funding. D. student interns.

D

In a typical corporation, which of the following impact how the people within the corporation recognize entrepreneurial opportunities? A. structural features that guide and constrain action B. corporate culture C. organizational systems that foster learning and manage rewards D. all of these

D

Innovations that extend sales in an existing market, usually by enabling new products or services to be sold at higher margins are known as A. radical innovations. B. disruptive innovations. C. technology innovations. D. sustaining innovations.

D

One of the pitfalls of real options analysis is that managers may have an incentive and know-how to "game the system" and "back-solve" a formula to get a proposal approved. This can give rise to A. managerial conceit. B. the illusion of control. C. escalation of commitment. D. agency problems.

D

Strategic reasons for undertaking a corporate venture include which of the following? A. entering into new markets B. expanding capabilities by acquiring new knowledge C. building the corporation's base of resources D. all of these

D

The advantages of collaborating with strategic partners in order to innovate include A. obtaining skills and new knowledge from outside sources. B. making firms identify their own strengths and weaknesses. C. managers clarifying what an innovation project requires to be successful and who will accomplish it. D. all of these.

D

The innovation dilemma known as seeds versus weeds refers to A. choosing to pursue radical rather than incremental innovations. B. choosing to pursue product rather than process innovations. C. promoting organizational stars onto innovation teams rather than involving all employees in innovation efforts. D. none of these.

D

Whereas __________ are willing to violate procedures and operate outside normal channels, __________ gather hard data and develop a strong case for why a project should be killed. A. senior managers; entrepreneurial leaders B. strategic managers; financial managers C. exit champions; product champions D. product champions; exit champions

D

Which of the following is NOT one of the dimensions of entrepreneurial orientation? A. proactiveness B. risk taking C. autonomy D. opportunism

D

__________ produce fundamental changes that can transform a company or even revolutionize an industry, while __________ enhance existing practices and often represent evolutionary applications of fundamental breakthroughs. A. Technological breakthroughs; product-market breakthroughs B. New technologies; new paradigms C. Incremental innovations; radical innovations D. Radical innovations; incremental innovations

D