Econ 125

Design thinking

1. Empathize 2. Define 3. Ideate 4. Prototype 5. Test 6. Implement

The major advantage of the Lean Start-Up approach is: A. It will allow you to fail quickly and inexpensively, maximizing your chances of success. B. It will ensure you will not underestimate your costs. C. It will allow you to cover all the bases from the outset. D. It will keep you from getting distracted with input from outside the office.

A. It will allow you to fail quickly and inexpensively, maximizing your chances of success.

Which of the following BEST describes how IKEA creates a barrier to entry for competitors? A. Product differentiation B. Iterating fast and pivoting C. Economies of scale D. Exclusive distribution channel

A. Product differentiation

According to Porter, a good strategy will provide: A. Sustainable competitive advantage B. Deep understanding of the customer C. A superior management team D. A clear product road map

A. Sustainable competitive advantage

More consumers said they were going to spend more on wellness than those who said they would spend less. A. True B. False

A. True

Team members should maintain a level of ambiguity and avoid presenting solutions when asking How Might We questions. A. True B. False

A. True

You should develop a strategy because you will not be able to continually out-execute the competition A. True B. False

A. True

The interactive system for descriptive analytics of student results in the form of a dashboard introduced by Nottingham Trent University is an example of: A. Using big data to improve learning experiences B. Online simulations for sharpening practical skills C. Making the learning process fun D. Achieving lifelong education

A. Using big data to improve learning experiences

When Bowman saw an early smartphone and became convinced there was a huge opportunity available to him he was looking at the relationship between which two elements of the BMC? A. Value Proposition and Customer Segments B. Value Proposition and Key Activities C. Key Partners and Cost Structure D. Revenue Streams and Customer Relationships

A. Value Proposition and Customer Segments

From the article "Creativity is a process" great ideas come from A. coming up with many ideas in a group B. stopping after the first idea C. thinking alone D. none of the above

A. coming up with many ideas in a group

The purpose of creating a Minimum Viable Product is to: A. learn more about and validate a prototype with few resources B. focus on having a final product to present to customers C. create a scalable company D. release to a large customer base a reduced version of your final product

A. learn more about and validate a prototype with few resources

What is an empathy map?

An empathy map is a collaborative tool teams can use to gain a deeper insight into their customers.

Which is NOT cited in the presentation as evidence conscious capitalism is on the rise? A. There is a new generation of businesses trying to solve environmental and social problems B. 80% of corporations want to prioritize employees and stakeholders C. 85% of students want to work for socially responsible and ethical corporations D. 75% of young adults believe companies should address the needs of society

B. 80% of corporations want to prioritize employees and stakeholders

Which of the following is NOT an example of an unfair advantage for a venture? A. Exclusive data access B. A new market trend C. Exclusive access to a community D. Brand reputation

B. A new market trend

The empathy map is useful to an entrepreneur in documenting: A. The financial situation B. A profile of customer sentiment C. The big idea D. The production planning process

B. A profile of customer sentiment

According to the HBR Article: What is Strategy? Michael Porter explains that in order to outperform rivals, companies must: A. Have a competitive pricing strategy B. Establish a difference that it can preserve C. Be more innovative than all competitors D. Have been in the industry for at least 5 years

B. Establish a difference that it can preserve

According to the Entrepreneur article, the more time you spend telling your pitch, the better. A. True B. False

B. False

According to the Fortune article, many of the zero carbon and clean energy ideas are appropriate for venture funding. A. True B. False

B. False

According to the article "How to Build a Great Pitch that Hooks Investors", if you can't show passion point in Problem, Product, and People, you will lose investor interests. A. True B. False

B. False

According to the article you read in the Virtual Session, entrepreneurs are all risk-takers with a certain personality. A. True B. False

B. False

You should test your one-minute hook on family members and friends A. True B. False

B. False

In the article Prototyping: the Design Process to Pressure Test Ideas, which of the following was included as part of the description about Step #2: "Make It Real"? A. It isn't possible to prototype complex products and services B. Keep prototypes rough and simple to start C. Your prototype should seek to replicate all or most aspects of the experience D. All of the above

B. Keep prototypes rough and simple to start

Which of the following is NOT a travel trend in 2021 based on the article "8 Travel Industry Trends For 2021 (And Beyond)"? A. Sustainable traveling B. Longer trips C. Increased safety precautions D. Local tourism

B. Longer trips

What is a sign that you have designed the right thing and can start developing a high fidelity prototype? A. You have spent a long time perfecting your prototype B. People are happy with the general idea and start giving you feedback on smaller details C. You have pitched and explained your prototype to many people D. All of the above

B. People are happy with the general idea and start giving you feedback on smaller details

What comprises the triple bottom line? A. Revenue, expenses and profit B. People, profit and planet C. People, process and technology D. Channels, suppliers and customers

B. People, profit and planet

You talked to 5 customers and got a mixed response to your idea. You should: A. Come up with a new idea. B. Process the customer feedback you have received and then talk to more customers. C. Contact your coach for the right answer. D. Complete every box on the business model canvas and the correct approach to the customer will emerge

B. Process the customer feedback you have received and then talk to more customers.

What was the first electronic product that Steve Jobs and Steve Wozniak created and sold? A. The Cream Soda Computer B. The Blue Box C. The Apple I D. The Macintosh

B. The Blue Box

One of your managers characterized the environment for healthcare in the United States as chaotic and unpredictable and asked if the project should be delayed until the new Affordable Care Act had more time to play out. Your BEST response is: A. The company has already invested in the project and to stop now will result in a million dollar loss. B. Times of rapid change are ideal for innovation though the company may best accomplish this by spinning off a separate business. C. Unless the company moves quickly it will surely lose the opportunity to provide smart phone access. D. Without a cellphone application the company will look bad to its shareholders.

B. Times of rapid change are ideal for innovation though the company may best accomplish this by spinning off a separate business.

What is NOT cited as a benefit of a conversation partner? A. They are objective and can see your blind spots B. View them a key source of future funding C. They can give you a completely different viewpoint D. They want the best for you, but have no financial stake

B. View them a key source of future funding

When empathy interviewing, should you interview people with extreme opinions on a product or service? Why or why not? A. Yes, because they will most likely agree with your idea B. Yes, because they often have very interesting insights C. No, because they are outliers D. No, because they probably won't be your customer

B. Yes, because they often have very interesting insights

In the video discussing the Chilean mining crisis, what does Amy Edmunson NOT mention when she is discussing the teamwork that led to saving the trapped miners? A. humble in the challenge ahead B. all of the above were mentioned C. curiosity about what others bring D. willingness to take risks to learn quickly

B. all of the above were mentioned

According to the article "Lean Canvas - a Tool Your Startup Needs Instead of a Business Plan" Stanislav explains that the business model canvas is more suitable for ____ while the lean canvas is more suitable for _____ A. small businesses; large businesses B. existing businesses; startups C. large businesses; small businesses D. startups; existing businesses

B. existing businesses; startups

According to Porter, strategy is about being different. It means deliberately choosing a different set of _______ to deliver a unique mix of value. A. Investors B. Customers C. Activities D. Efficiencies

C. Activities

While Steve Jobs was in exile from Apple his assessment of the success of Microsoft software was: A. The cream always rises to the top B. Superior technology is more important than the business model C. An inferior product has won D. Simplicity beats complexity every time

C. An inferior product has won

Jud Bowman's ultimate success in raising capital for his company illustrates: A. Being young is often an advantage. B. It is not what you know but who you know. C. Do not be discouraged in the face of repeated rejection. D. Build a great team and capital will follow.

C. Do not be discouraged in the face of repeated rejection.

Which of the following is NOT true about fixed costs? A. Fixed costs are predetermined expenses that remain the same throughout a specific period B. Fixed costs should always be considered when viewing the full financial model C. Fixed costs will vary based on how much you produce D. An example of a fixed cost is paying rent for office space

C. Fixed costs will vary based on how much you produce

Another manager asked you to describe your strategy for the app. The BEST answer is: A. Gain first mover advantage by launching as soon as possible even though similar apps will inevitably appear soon after. B. Focus on execution by working harder than the competition. C. Incorporate a set of interlocking features including some from the legacy EHR business that will result in sustainable competitive advantage. D. Adopt a viral strategy relying on cool design and word of mouth to create a defensible competitive position.

C. Incorporate a set of interlocking features including some from the legacy EHR business that will result in sustainable competitive advantage.

According to Donna M. De Carolis, to be an entrepreneur means to: A. Start a business B. Innovate C. Invest in a startup D. Having a product idea

C. Innovate

Which of the following is NOT one of the new rules for thriving businesses described in John Replogle's presentation? A. Values instead of value B. Stakeholders instead of shareholders C. Planning instead of reacting D. Collaborate instead of compete

C. Planning instead of reacting

According to the article on bootstrapping, which of the following is FALSE about bootstrapping? A. Bootstrapping may cause companies to miss out on high-profile talent, by choosing those who truly believe in themselves B. It fosters an environment of forcing individuals to learn to improvise C. Prevents you from being able to work with investors D. Allows VC funding to be used to scale the growth of the company rapidly

C. Prevents you from being able to work with investors

What is the first step for an entrepreneurial idea: A. Build the most excellent product in the world B. Develop a plan to grow your business C. Prove/Disprove the fundamental assumptions D. Hire the most talented employees

C. Prove/Disprove the fundamental assumptions

Based on Drucker. which is a defining characteristic of an entrepreneur? A. The ability to accumulate wealth B. The ability to clearly predict the future C. The ability to take action D. The ability to eliminate risk

C. The ability to take action

Which of the following is a key reason to ask neutral questions when conducting an empathy interview? A. To control the flow of the interview B. To avoid confusion with the question you are asking C. To avoid implying that there is a "correct" answer D. To make your customer give you the answers you want

C. To avoid implying that there is a "correct" answer

Another manager asked your opinion on the most cost effective way to roll out the new app. Your BEST answer is: A. Release the app in the Apple Store and downloads will immediately follow. B. Advertise the app on the Super Bowl and in other high profile media. C. Work with your large hospital customers to get their patients to download the app and expand your marketing to other large groups of patients once hospitals adopt the app. D. None of the above is a good way to roll out the app.

C. Work with your large hospital customers to get their patients to download the app and expand your marketing to other large groups of patients once hospitals adopt the app.

When building an empathy map, team members should: A. silently input their pieces of information B. defend and sell their own findings when there are conflicting views based on other team members' findings C. discuss and compare their findings with other team members D. never investigate the cause of customer pain points

C. discuss and compare their findings with other team members

Fill in the blanks with the correct options below. "Always prototype as if you know you're ____, but test as if you know you're _____." A. wrong, wrong B. right, right C. right, wrong D. wrong, right

C. right, wrong

In the pediatric MRI example, what did Doug and his team not consider as fully as they should have in their initial design? A. whether the product they designed could make money B. what the latest technology was C. the perspective of the user D. how to make a prototype

C. the perspective of the user

Which of the following is NOT something the organization Bill Gates founded called Breakthrough Energy hopes to accomplish: A. Directly commercialize some of its carbon-zero products B. Provide a road map for creating some type of "artificial market structure that may have a public-private mechanism to spur demand C. Fund pilots that are designed to help lower the costs of these large-scale clean-energy technologies D. Fund lots of smaller, early stage environmentally focused companies in the hopes that a few will be successful and result in a large valuation and IPO (Initial Public Offering)

D. Fund lots of smaller, early stage environmentally focused companies in the hopes that a few will be successful and result in a large valuation and IPO (Initial Public Offering)

According to Business Model Generation which of the following is NOT a building block of the business model? A. Revenue Streams B. Cost Structure C. Customer Segments D. Infrastructure

D. Infrastructure

Which of the following descriptions is wrong about brainstorming: A. We use it in the ideation phase. B. We produce a set of potential solutions with it. C. Although it seems to be without constraints, we still need house rules to keep on the right track. D. It allows introverts stay quiet while extroverts dominate.

D. It allows introverts stay quiet while extroverts dominate.

Your group determines that your idea has the potential to revolutionize an industry based upon new knowledge being developed in the lab of a preeminent scientist who is convinced his discoveries will result in a multi-billion dollar business. You should: A. Develop a relationship with the scientist and start putting in place a structure to commercialize his work as soon as it is developed. B. Raise capital and attempt to buy a license to the new knowledge when such a license becomes available. C. Create a new company with the preeminent scientist as CEO D. Pivot and come up with an approach that does not rely on new knowledge still under development

D. Pivot and come up with an approach that does not rely on new knowledge still under development

In the example, Chilean mining crisis, which of the following created the psychological safety? A. Leadership B. Curiosity C. Situational humility D. The combination of situational humility and curiosity.

D. The combination of situational humility and curiosity.

Should you test your prototype on 'extreme' users? A. No, they will skew your results B. No, because they aren't always honest C. Yes, because extreme users almost always give better input than a regular user D. Yes, because extreme users can often be more vocal about their like/dislike for the prototype

D. Yes, because extreme users can often be more vocal about their like/dislike for the prototype

To estimate the revenue you do NOT need to forecast A. What you will charge for your product/service B. How many customers will pay C. How many times they will pay D. You need all of the above

D. You need all of the above

According to the article, "Tell It Like It Is: Radical Candor Is the Feedback Method Your Startup Needs", it is important that feedback is A. specific B. objective C. actionable D. both a and c

D. both a and c

What should you do right after developing your first back of the envelope financial model calculation? A. begin hiring employees B. start selling immediately C. stop if your model is not profitable D. go out and test the assumptions used in your model

D. go out and test the assumptions used in your model

Stages of teams

1. Forming 3. Storming 2. Norming 4. Performing

What does a prototype look like?

1. Model 2. Role-play 3. Story 4. Mock-up 5. Diagram 6. Advertisement

What is a prototype?

A prototype is anything that a user can interact with - be it a wall of post-it notes, a gadget you put together, a role-playing activity, or even a storyboard. Ideally, you bias toward something a user can experience.

Keith Sawyer quoted Drucker as saying the gravest mistakes are made as a result of: A. Asking the wrong questions B. Evaluating data incorrectly C. Rushing to judgment D. Failing to consider all of the facts

A. Asking the wrong questions

All systems are go. Your potential customers like your product and you have a great strategy. You still half the semester remaining. You should concentrate your efforts for the next few weeks on: A. Continuing to ask the question who are our customers and users and what additional information can we learn from them that might be useful. B. Looking for investors. C. Developing and polishing the final presentation. D. Taking all possible steps to keep the idea a secret so it can't be copied.

A. Continuing to ask the question who are our customers and users and what additional information can we learn from them that might be useful.B. Looking for investors.

You have identified a serious customer pain point in the food service industry that can be addressed with existing new technology. You have run the idea by a group of industryveterans who dismiss the idea as impractical and unlikely to be adopted. Your response should be: A. Don't be discouraged. Industry insiders are often the last to respond to customer pain. B. Establish an industry advisory board and let that committee design your product. C. Focus on a product that industry veterans will accept. D. Go back to the industry veterans and convince them your solution makes sense.

A. Don't be discouraged. Industry insiders are often the last to respond to customer pain.

Which of the following is NOT a focus of the lean canvas tool? A. Emphasizing customer interrelation and channels B. Considering various customer segments to cover a wider range of potential product users C. Foreseeing a quicker idea-to-product transition D. Focusing on the viable metrics instead of the useless ones

A. Emphasizing customer interrelation and channels

Which of the following is NOT a rule of effective brainstorming? A. Float off topic B. Go for quantity C. Be visual D. Encourage wild Ideas

A. Float off topic

Based on the article "Startups Need Relationships Before They Ask For Money," which of the following is NOT key to building trust before asking for money? A. Focusing on your product in a conversation B. Show that you know what you don't know C. Being conversationally humble D. Establishing common relationships

A. Focusing on your product in a conversation

In Jud Bowman's search for initial capital he began with friends and family. One of his initial sources was: A. His grandmother B. His doctor C. His elementary school teacher D. His professor at Stanford

A. His grandmother

Which of the following was NOT provided as a reason for why to create a Team Charter: A. Identify who should, and should not, be included in the team B. Make decisions on how and when the team will meet C. Build agreements around things like how a team will operate D. Get to alignment on the goal and purpose of the work a team will be doing

A. Identify who should, and should not, be included in the team

According to Drucker, innovation based on new knowledge is: A. Innately unpredictable B. Almost always highly profitable C. Rapidly achieved D. All of the above

A. Innately unpredictable

Keith Sawyer charts the creative process as: A. A clearly defined series of peaks and valleys B. A straight line up and to the right C. A relatively flat line with occasional deviations D. A zig-zag line

D. A zig-zag line

According to the article "Startups Need Relationships Before They Ask for Money", which of the following is an approach to building a relationship with an investor besides a formal meeting? A. Offering help to your investor when he reaches out to help B. Going to events and introduce yourself C. Emailing your investor with your own comments on his blog D. All of the above

D. All of the above

The customer feedback has been excellent and a prototype of your idea has attracted over a thousand users but the parent of one of the team members says you should slow down until you can prove that your customers will pay for your product. Your response should be: A. Seek more than one opinion B. Explore alternative revenue streams C. Keep building your user count D. All of the above

D. All of the above

Ultimately your company decided not to proceed, but the CEO agreed to allow you and your team to spin out the app and develop it on your own. Which of the following questions are essential to answer before deciding whether or not to spin out? A. Whether you will be given unlimited access to the company's existing customers and the large number of patients they care for. B. How much more in development and marketing costs will be required before reaching break even. C. Whether large customers will buy from an unproven start up. D. All of the above.

D. All of the above.

What are the 7 sources of innovation?

Inside : 1. The unexpected 2. Incongruities 3. Process needs 4. Industry market structure Outside : 5. Demographics 6. Changes in perception 7. New knowledge

Define primary data and secondary data

Primary data : Information gathered directly from respondents/customers Secondary data : Information that has already been collected for a previous purpose