BA 206 Management Fundamentals, Ch. 15 Innovating and Changing
A performance gap can occur when performance is good but someone realizes that it could be better. Select one: a. True b. False
a
An entrepreneur wanted to sell washing machines with dryers in a tropical country. To his disappointment, he found that nobody wanted to buy his machines. He realized that the dry climate of the country contributed to his failure. People usually hung their washing out in the sun to dry. The lack of _____ was responsible for the failure of his product. Select one: a. market receptiveness b. technological feasibility c. organizational suitability d. economic viability e. capability development
a
Continuous learning is a vital route to renewable competitive advantage. Select one: a. True b. False
a
Development projects are focused on creating a new product or process. Select one: a. True b. False
a
Early adopters of new technologies tend to be more profitable. Select one: a. True b. False
a
Environmental scanning focuses on what can be done and what is being developed. Select one: a. True b. False
a
In most situations, the simplest, easiest, and most cost-effective way to acquire new technology is to: Select one: a. buy it. b. develop it internally. c. license it from others. d. develop a joint venture. e. purchase the owner of the technology.
a
Patents and copyrights can help organizations recoup the costs of their investments in technological innovations. Select one: a. True b. False
a
Technology that is commonplace in the industry and provides little competitive advantage is referred to as: Select one: a. base technology. b. emerging technology. c. key technology. d. environmental technology. e. pacing technology.
a
Bureaucracy facilitates innovation. Select one: a. True b. False
b
Companies that excel at solving problems, seeking and finding new approaches, and sharing new knowledge with all members of an organization are known as: Select one: a. defender firms. b. learning organizations. c. analyzer firms. d. strategic organizations. e. organic firms.
b
Reactive change means anticipating and preparing for an uncertain future. Select one: a. True b. False
b
The essential characteristic of great companies, according to Collins and Porras, was their relentless focus on beating the competition. Select one: a. True b. False
b
Who developed force-field analysis? Select one: a. Lawrence Ellison b. Kurt Lewin c. Frederick Taylor d. Peter Drucker e. Adam Smith
b
Strengthening the new behaviors that support the change is known as: Select one: a. moving. b. unfreezing. c. freezing. d. refreezing. e. enforcing.
d
Ethel has developed and patented a new process for recycling plastic. A number of companies have expressed an interest in buying her company in order to gain access to the technology. If she sells her company, the buyer will employed the method of: Select one: a. acquisition of a technology owner. b. research partnerships and joint ventures. c. technology trading. d. contracted development. e. internal development.
a
Failing to create a guiding coalition can endanger a change effort. Select one: a. True b. False
a
Failure to correctly assess the organization's technology can fundamentally impair the organization's effectiveness. Select one: a. True b. False
a
Firms that are not technology oriented must develop new competencies in order to survive. Select one: a. True b. False
a
Scenario A. Use the information given below to answer the questions that follow. Your organization is at a critical growth stage with regard to its technology. A team of three people have been assigned specific jobs by the chief technology officer. The assignments are: • Study the key technologies on which an organization depends and their competitive value. • Look at other companies that are successful and identify ways in which your organization can emulate the practices of the other companies. • Find out what is new in the industry. Be an "industry detective"—everything from reading up on industry reports to attending meetings and listening closely to what people are talking about. Based on the scenario, the second assignment is an example of: Select one: a. benchmarking. b. organizational culture audit. c. SWOT analysis. d. technology audit. e. environmental scanning.
a
Scenario B. Use the information given below to answer the questions that follow. You work for a large software design firm, in a small department that is charged with initiating new ideas for software products for the children's market. You believe that children want fantasy-based computer programs. Although this is not the current trend in your industry, you develop a software package that appeals to children, fosters creativity, and enables the child to use his or her imagination to create a make believe future career. For instance, they get to be a professional baseball player or a CEO. Your manager is surprised by the idea when you show her the developed product. However, she feels that it is a good idea, but it will be hard to sell to upper management. At your presentation to senior management, the product is not accepted. Not losing hope, you and your manager make an appointment with the vice president who was not present at the meeting and discuss the idea with him. Fortunately, he agrees to take the matter up with the rest of the members of upper management for a detailed discussion. In this scenario, your manager's role would be described as the: Select one: a. product champion. b. executive champion. c. advising inventor. d. technical innovator. e. technical advisor.
a
Scenario C. Use the information given below to answer the questions that follow. A large bureaucratic organization is about to undertake a massive change in the way they do business. These changes will include redesigning processes, reward systems, and managerial selection and training. It is believed that these changes will ultimately create a more efficient, effective, and profitable company. The organizational culture is also expected to eventually shift. The senior leaders in the organization have studied the general model for managing resistance to change and believe that they are prepared for the situation. Which of the following statements is true regarding refreezing, the third step in the general model for managing resistance? Select one: a. It involves strengthening new behaviors that support the change. b. The changes must start with upper management. c. It may involve implementing new technologies that support the change. d. If it creates new behaviors that are similar to the old ones, it a good step to take. e. It involves reprimanding those that do not implement the change.
a
Scenario D. Use the information given below to answer the questions that follow. Power Nutrition Inc. sells performance enhancing foods and beverages for athletes and active people. In a recent product development meeting, Bob suggested that the company should acquire the newly developed technology, created by Pharma Corp., for infusing vitamin and mineral blends into food. Bob believed it would be easier to acquire the technology directly from Pharma Corp. Gary felt that the method of infusing blends in the new energy bars should be developed within the company. He knows it may take longer but feels that the competitive advantage it would provide was worth the wait. Joyce suggested that the company should work jointly with Pharma Corp. to develop an entirely new product. She felt that Power Nutrition Inc. did not possess sufficient financial resources to purchase the technology from Pharma Corp. Based on the scenario, which method of acquiring technology does Gary favor? Select one: a. Internal development b. Licensing c. Contracted development d. Purchase e. Research partnership
a
Technology trading is becoming increasingly common because of the high cost of developing advanced technologies independently. Select one: a. True b. False
a
The _____ approach redesigns tasks in a way that jointly optimizes the social and technical efficiency of work. Select one: a. sociotechnical systems b. structural systems c. technology-oriented systems d. remodeling systems e. ergonomic
a
The companies that lead change most effectively establish a sense of urgency. Select one: a. True b. False
a
Total organization change involves introducing and sustaining multiple policies, practices, and procedures across multiple units and levels. Select one: a. True b. False
a
Which of the following describes an executive champion? Select one: a. Possesses the status, authority, and resources to support an innovation b. Promotes an idea throughout the organization c. Develops a new technology d. Coordinates the technological efforts of various business units e. Assesses technological implications
a
Which of the following is an advantage of technology trading? Select one: a. It reduces costly trial-and-error approaches to using new technologies. b. It enables a firm to gain control and ownership over desired technology. c. It is simple to implement and cost-effective. d. It allows a firm without internal development capabilities to acquire technology. e. The acquired technology is proprietary and provides competitive advantage.
a
Without the demand for technology, there is no reason for technological innovation to occur. Select one: a. True b. False
a
_____ interventions, an organization development technique relate to organization structure and design, employee involvement, and work design. Select one: a. Technostructural b. Strategic c. Tactical d. Human process e. Human resources management
a
_____ is a systemwide application of behavioral science knowledge to develop, improve, and reinforce the strategies, structures, and processes that lead to organization effectiveness. Select one: a. Organization development b. Management myopia c. Outplacement d. Groupthink e. Performance
a
_____ refers to special temporary project structures established by a company that are isolated from the rest of the organization and allowed to operate under different rules. Select one: a. Skunkworks b. Technology trading c. Development project d. Research partnerships e. Joint ventures
a
_____, an organization development technique, include helping organizations conduct mergers and acquisitions, change their strategies, and develop alliances. Select one: a. Strategic interventions b. Tactical interventions c. Human resources management interventions d. Technostructural interventions e. Human process interventions
a
A promising technological advancement will be successful in any organization. Select one: a. True b. False
b
Adapters try to change the structure of their industries, creating a future competitive landscape of their own design. Select one: a. True b. False
b
Anti-lock brake systems are a well-established feature for automobiles but are not yet used uniformly by every automobile company. This technology should be grouped under: Select one: a. base technology. b. key technology. c. emerging technology. d. market technology. e. active technology.
b
Becoming world-class means merely striving to improve. Select one: a. True b. False
b
Benchmarking and scanning are enough to stay ahead of the innovation curve. Select one: a. True b. False
b
Benchmarking is the process of comparing the organization's use of technology over time. Select one: a. True b. False
b
Executives in _____ firms give priority to developing and exploiting technological expertise, and decision makers have bold, intuitive visions of the future. Select one: a. defender b. prospector c. analyzer d. adopter e. shaper
b
Flexible manufacturing practices such as just-in-time, mass customization, and simultaneous engineering are examples of _____. Select one: a. differentiation b. process innovations c. technology audit d. entrepreneurship e. licensing
b
Jane, a secretary at a law firm, had a comfortable job with fixed working hours. Suddenly, her boss informed her that she would have to start working extra hours from the next week. He said that the firm had received many new clients and so the workload had increased. However, he reassured her that she would be paid more for the extra work. Taken aback, Jane refused to comply with his wishes. Which of the following is a reason why she resisted the change? Select one: a. Jane had formed a different assessment of the proposed change. b. The change was unexpected and took Jane by surprise. c. Jane did not understand why the change was being implemented. d. Jane felt that it was a management tactic. e. Jane felt that the change was not in her best interest.
b
Samuel, project manager of a manufacturing company, observed that the quality of customer service was not too good. Employees were not motivated enough to solve the problems of clients. Samuel felt that the employees needed a pep talk to help them deliver better service. Based on this scenario, Samuel has identified a: Select one: a. service initiative. b. performance gap. c. management problem. d. proactive need for change. e. need for technological innovation.
b
Scenario B. Use the information given below to answer the questions that follow. You work for a large software design firm, in a small department that is charged with initiating new ideas for software products for the children's market. You believe that children want fantasy-based computer programs. Although this is not the current trend in your industry, you develop a software package that appeals to children, fosters creativity, and enables the child to use his or her imagination to create a make believe future career. For instance, they get to be a professional baseball player or a CEO. Your manager is surprised by the idea when you show her the developed product. However, she feels that it is a good idea, but it will be hard to sell to upper management. At your presentation to senior management, the product is not accepted. Not losing hope, you and your manager make an appointment with the vice president who was not present at the meeting and discuss the idea with him. Fortunately, he agrees to take the matter up with the rest of the members of upper management for a detailed discussion. In this scenario, the vice president's role would be described as the: Select one: a. product champion. b. executive champion. c. advising inventor. d. technical innovator. e. technical advisor.
b
Scenario C. Use the information given below to answer the questions that follow. A large bureaucratic organization is about to undertake a massive change in the way they do business. These changes will include redesigning processes, reward systems, and managerial selection and training. It is believed that these changes will ultimately create a more efficient, effective, and profitable company. The organizational culture is also expected to eventually shift. The senior leaders in the organization have studied the general model for managing resistance to change and believe that they are prepared for the situation. Which of the following is a direct way to help employees recognize that their old ways are obsolete? Select one: a. Tell them that they will be fired if they do not switch to the new ways b. Discuss the negative consequences by comparing the organization's performance to that of its competitors c. Discuss the positive consequences for them personally if they adopt the changes d. Show them the new way to perform their job e. Explain the new resources that will available after the change is implemented
b
Scenario D. Use the information given below to answer the questions that follow. Power Nutrition Inc. sells performance enhancing foods and beverages for athletes and active people. In a recent product development meeting, Bob suggested that the company should acquire the newly developed technology, created by Pharma Corp., for infusing vitamin and mineral blends into food. Bob believed it would be easier to acquire the technology directly from Pharma Corp. Gary felt that the method of infusing blends in the new energy bars should be developed within the company. He knows it may take longer but feels that the competitive advantage it would provide was worth the wait. Joyce suggested that the company should work jointly with Pharma Corp. to develop an entirely new product. She felt that Power Nutrition Inc. did not possess sufficient financial resources to purchase the technology from Pharma Corp. Based on the scenario, which method of acquiring technology does Joyce favor? Select one: a. Internal development b. Licensing c. Contracted development d. Purchase e. Research partnership
b
There need not be a financial incentive for adopting new technology if a firm can "pull it off." Select one: a. True b. False
b
When managers apply punishment or the threat of punishment to those who resist change, this method of managing change is known as: Select one: a. negotiation and rewards. b. explicit or implicit coercion. c. manipulation and cooptation. d. education and communication. e. facilitation and support.
b
Which of the following describes a product champion? Select one: a. Has the status, authority, and resources to support an innovation b. Promotes a new technology throughout the organization c. Develops a new technology d. Coordinates the technological efforts of various business units e. Assesses technological implications
b
Which of the following is a reason for a firm to choose technology trading to acquire new technology? Select one: a. For proprietary ownership b. Cost effectiveness c. To build barriers to entry d. For competitive advantage e. To enhance product differentiation
b
Which of the following is true of a world-class organization? Select one: a. It merely strives for improvement. b. It applies the best and latest knowledge and ideas. c. It has a lofty, impossible, unnecessary goal. d. It focuses on competition instead of profits. e. It enforces rigid rules and regulations for employees.
b
Which of the following technologies are still under development and thus are unproved? Select one: a. Base technologies b. Emerging technologies c. Key technologies d. Ordinary technologies e. Pacing technologies
b
_____ is/are arrangements for jointly pursuing specific new technology development. Select one: a. Purchase b. Research partnerships c. Acquisition of a technology owner d. Internal development e. Licensing
b
In return for cooperating with the management in the implementation of a major organizational change, Leopold Textiles granted extra leave to its employees. Which of the following methods for managing resistance to change does this scenario exemplify? Select one: a. Education and communication b. Facilitation and support c. Negotiation and rewards d. Manipulation and cooptation e. Explicit and implicit coercion
c
Jonathan, a scientist, invented a method of using solar energy to power electrical devices. However, the cost of using the method on a large scale was prohibitive. Hence, his invention was not adopted by industry. The lack of _____ was the reason for the failure of his invention. Select one: a. organizational suitability b. technological feasibility c. economic viability d. anticipated capability development e. market potential
c
Pierce, an entrepreneur and inventor, developed new software to help retail stores manage their inventory. He was able to successfully sell his software to the retail industry. However, certain unscrupulous organizations began producing cheaper versions of the software. This lowered the popularity of the original version. Which of the following factors is affected by the knock-offs? Select one: a. Organizational suitability b. Technological feasibility c. Economic viability d. Capability development e. Market potential
c
_____ emphasizes identifying and monitoring the sources of new technologies for an industry. Select one: a. Licensing b. Differentiation c. Environmental scanning d. Just-in-time e. Mass customization
c
_____ means anticipating and preparing for an uncertain future. Select one: a. Technology audit b. Product innovation c. Proactive change d. Disruptive innovation e. Differentiation
c
_____ take the current industry structure and its future evolution as givens and choose where to compete. Select one: a. Shapers b. Defenders c. Adapters d. Analyzers e. Devil's advocates
c
______ technologies have proven effective but offer a strategic advantage because not everyone uses them. Select one: a. Base b. Emerging c. Key d. Elevated e. Pacing
c
Scenario A. Use the information given below to answer the questions that follow. Your organization is at a critical growth stage with regard to its technology. A team of three people have been assigned specific jobs by the chief technology officer. The assignments are: • Study the key technologies on which an organization depends and their competitive value. • Look at other companies that are successful and identify ways in which your organization can emulate the practices of the other companies. • Find out what is new in the industry. Be an "industry detective"—everything from reading up on industry reports to attending meetings and listening closely to what people are talking about. Based on the scenario, the first assignment is an example of: Select one: a. benchmarking. b. organizational culture audit. c. SWOT analysis. d. technology audit. e. environmental scanning.
d
Scenario C. Use the information given below to answer the questions that follow. A large bureaucratic organization is about to undertake a massive change in the way they do business. These changes will include redesigning processes, reward systems, and managerial selection and training. It is believed that these changes will ultimately create a more efficient, effective, and profitable company. The organizational culture is also expected to eventually shift. The senior leaders in the organization have studied the general model for managing resistance to change and believe that they are prepared for the situation. Which of the following techniques is used to identify what prevents people from changing? Select one: a. Performance gapping b. Make-or-buy decision c. Groupthink d. Force-field analysis e. Brainstorming
d
Scenario D. Use the information given below to answer the questions that follow. Power Nutrition Inc. sells performance enhancing foods and beverages for athletes and active people. In a recent product development meeting, Bob suggested that the company should acquire the newly developed technology, created by Pharma Corp., for infusing vitamin and mineral blends into food. Bob believed it would be easier to acquire the technology directly from Pharma Corp. Gary felt that the method of infusing blends in the new energy bars should be developed within the company. He knows it may take longer but feels that the competitive advantage it would provide was worth the wait. Joyce suggested that the company should work jointly with Pharma Corp. to develop an entirely new product. She felt that Power Nutrition Inc. did not possess sufficient financial resources to purchase the technology from Pharma Corp. Based on the scenario, which method of acquiring technology does Bob favor? Select one: a. Internal development b. Licensing c. Contracted development d. Purchase e. Research partnership
d
The _____, in an effort to exploit untried technologies, invents new products or finds new ways to produce old products. Select one: a. franchisee b. angel investor c. stockholder d. entrepreneur e. executive champion
d
Which of the following is a characteristic of enduringly great companies? Select one: a. They are driven by incremental goals. b. They focus on beating the competition. c. They have a strong strategy that they believe in deeply. d. They undergo continuous change. e. They focus only on profits.
d
Which of the following is a responsibility of the chief information officer? Select one: a. Developing new technology b. Finding new ways to produce old products c. Searching for support and acceptance for a new idea d. Identifying ways that technology can support the company's strategy e. Developing skills needed to install and operate new technology
d
_____ firms adopt an early-follower strategy to grab a dominant position more from their strengths in marketing and manufacturing than from technological innovation. Select one: a. Shaper b. Adopter c. Prospector d. Analyzer e. Defender
d
_____ refers improving the organization's ability to respond to customers, stockholders, governments, employees, and other stakeholders, which results in better-quality products, higher financial returns, and high quality of work life. Select one: a. Product champion b. Management myopia c. Skunkworks d. Organizational effectiveness e. Technical innovation
d
_____ refers to a process by which a product, service, or business model takes root initially in simple applications at the bottom of a market and then moves "up market," eventually displacing established competitors. Select one: a. Greenfield venturing b. Diversification c. Differentiation d. Disruptive innovation e. Licensing
d
_____, a way of acquiring new technology, keeps the technology proprietary—exclusive to the organization. Select one: a. Joint ventures b. Contracted development c. Purchase d. Internal development e. Licensing
d
A disadvantage of _____, a way of acquiring new technology, is that it usually requires additional staff and funding for long periods. Select one: a. licensing b. contracted development c. purchase d. joint venture e. internal development
e
An independent research laboratory entered into an agreement with a multinational agricultural company for the development of a new hybrid seed for cold climates, in return for funding from the company. This method of acquiring technology is known as: Select one: a. state funding. b. internal development. c. technology trading. d. licensing. e. contracted development.
e
Scenario A. Use the information given below to answer the questions that follow. Your organization is at a critical growth stage with regard to its technology. A team of three people have been assigned specific jobs by the chief technology officer. The assignments are: • Study the key technologies on which an organization depends and their competitive value. • Look at other companies that are successful and identify ways in which your organization can emulate the practices of the other companies. • Find out what is new in the industry. Be an "industry detective"—everything from reading up on industry reports to attending meetings and listening closely to what people are talking about. Based on the scenario, the third assignment is an example of: Select one: a. benchmarking. b. organizational culture audit. c. SWOT analysis. d. technology audit. e. environmental scanning.
e
The _____ refers to the belief that things must be either A or B and cannot be both. Select one: a. devil's advocate b. innovator's dilemma c. just-in-time manufacturing d. make-or-buy decision e. "tyranny of the or"
e
The tendency of managers to miss the significance of disruptive changes because they are more focused on investing in and making incremental improvements to their core profitable businesses is known as _____. Select one: a. a make-or-buy decision b. just-in-time c. a devil's advocate d. management myopia e. the innovator's dilemma
e
Which of the following is a disadvantage of acquisition of a technology owner? Select one: a. It can be time consuming to develop. b. There can be high monitoring costs and risk that the technology eventually appears in the marketplace. c. Coordination costs can be high and organizational cultures can clash, limiting the outcomes. d. Firm does not own or control the unique technology; it depends on another firm. e. Purchase of the company can be expensive.
e
Which of the following is true of development projects? Select one: a. They promote an idea throughout the organization, searching for support. b. They develop the skills needed to install and operate new technology. c. They assess the technological implications of major strategic initiatives. d. They adopt an early-follower strategy to grab a dominant position in the market. e. They feature a cross-functional team that works together on an overall concept.
e
_____ means responding to pressure after a problem has arisen. Select one: a. Performance gap b. Make-or-buy c. Refreezing d. Management myopia e. Reactive change
e
_______ technologies have yet to prove their full value but have the potential to alter the rules of competition by providing significant advantage. Select one: a. Base b. Emerging c. Key d. Elevated e. Pacing
e