Exam 5 MGMT

work to get the change embedded in the organization

refreezing

Organizational change is defined as ______.

significant transformations that organizations undergo to remain or become competitive

Which of the following statements accurately describes Kotter's model of organizational change?

An eight-step model that highlights the steps leaders must take to foster successful organizational change

______ have a large amount of power over firms when they are sensitive to prices.

Buyers

Which of our resources can we use to create new offerings and meet customers' needs?

Choice, Determine which of the firm's resources and capabilities are valuable. Determine which of the firm's resources and capabilities are valuable.

What are the things we do exceptionally well that competitors can't figure out?

Choice, Gauge the inimitability of the firm's resources and capabilities. Gauge the inimitability of the firm's resources and capabilities.

What are we capable of doing that is unique to our firm? matches

Choice, Use benchmarking to identify the firm's rare resources and capabilities. Use benchmarking to identify the firm's rare resources and capabilities.

Which of the following are some of the barriers to organizational change? Multiple select question.

Co-innovation risks Organizational rigidity Adoption chain risks

How does individual resistance present a barrier to organizational change?

Employees and managers prevent changes for fear they may be negatively affected.

How can firms prevent adoption chain risks from becoming a barrier to organizational change?

Ensure that other firms in the ecosystem are also willing and able to change.

How does organizational rigidity present a barrier to organizational change?

Firms are stuck managing by exploitation

What does it mean that adoption chain risks can be a barrier to organizational change?

Firms can't change, because other organizations in their ecosystems are unable to change too.

What does it mean that organizational rigidity can be a barrier to organizational change? Multiple choice question.

Firms can't change, because they are overly focused on short-term performance.

What does it mean that individual resistance can be a barrier to organizational change?

Firms don't change, because employees and managers don't want change.

What does it mean that uncertainty can be a barrier to organizational change?

Firms don't change, because they are paralyzed by the choices.

Answer Mode Multiple Choice QuestionYour Answer incorrect How do adoption chain risks present a barrier to organizational change?

Firms fail to consider how an innovation will affect other firms using the product or service.

Firms need to determine which resources and capabilities are valuable because these ______.

Firms need to determine which resources and capabilities are valuable because these ______.

How can firms prevent co-innovation risks from becoming a barrier to organizational change?

Focus on innovations that do not force the firm to depend on other firms' innovations.

What are the phases in the process of innovation?

Ideas, invention, innovation, imitation

Put the phases of the industry life cycle in order, beginning with the first phase at the top and proceeding to the last phase at the bottom. Position 1 of 5 Introduction correct toggle button unavailable Introduction

Introduction, Growth, Shakeout, Maturity, Decline

______ demand is characterized by focusing on satisfying new customers' demand.

Primary

What are the objectives of industry standards?

Reduce market complexity, establish minimum levels of quality, set commonly used measures, enable compatibility of different products.

Select all of the stages of change in Lewin's model of organizational change. Multiple select question.

Refreezing Unfreezing Changing

______ demand is characterized by focusing on obtaining growth by stealing customers from rivals to increase market share.

Secondary

In which circumstances would the threat of substitutes be less likely? (Select all that apply.)

Switching costs are high. Customers must put a lot of time into learning how to use substitutes.

Which of these are the external aspects of a SWOT analysis? Multiple select question.

Threats Opportunities

Which of the following are some of the barriers to organizational change?

Uncertainty Lack of awareness Individual resistance to change

How can firms prevent lack of awareness from becoming a barrier to organizational change?

Use technology scouts to monitor the environment to detect new developments in technology before it's too late.

Which of these are the internal aspects of a SWOT analysis?

Weaknesses Strengths

When do co-innovation risks present a barrier to organizational change?

When firms are held up by interdependencies with other innovators

When can lack of awareness be a barrier to organizational change?

When firms don't change, because they don't realize that they need to change

When does uncertainty present a barrier to organizational change?

When how to change and how much to change is not clear to decision makers

Business process re-engineering is defined as ______.

a process of analyzing business processes to identify inefficiencies that have developed over time

Lean manufacturing is defined as ______.

a set of methods to reduce defects, inventories, and other waste in the manufacturing process

Industry concentration is defined as ______.

a situation in which one firm, or a few firms, in an industry have substantial market share

Industry fragmentation is defined as ______.

a situation in which there are many companies competing in an industry with no dominant competitors

Incremental innovations are defined as ______.

a small series of improvements to an organization's existing products, services, or processes

Focus strategy is defined as ______.

an emphasis on particular customers, products, or geographic location

Complete the following sentence with all of the true statements about strategic decisions. Strategic decisions need to ______.

be consistent with one another support the firm's mission

Firms are likely to face higher threat of substitutes when substitutes are ______. (Select all that apply.)

becoming increasingly affordable advantageous to consumers

The term ______ describes how a firm's decisions and policies integrate to increase profits.

business model

A process of analyzing business processes to identify inefficiencies that have developed over time is known as ______.

business process re-engineering

Lack of clarity on the root causes of success is the definition of ______.

causal ambiguity

Someone who knows how to overcome obstacles within organization and understands the right time to push an idea through the organization is known as a ______ in the context of innovation and organizational change.

champion

foster early, short term successes

changing

Related diversification is defined as expansion into businesses with ______

common products, technologies, or processes

How a firm can gain and sustain a competitive advantage characterizes ______.

competitive strategy

In a ______ industry, one firm, or a few firms, have substantial market share.

concentrated

Non-disclosure agreements are defined as ______.

contracts between two parties, prohibiting the sharing of confidential information acquired during their relationship with others

The management of a multi-business firm and decisions that change a company's boundaries is the definition of ______

corporate strategy

The ability to incur lower expenses than competitors can is known as a ______ advantage.

cost

Bargaining power of buyers increases when ______. (Select all that apply.)

costs related to switching suppliers are low there are relatively few buyers

Obtaining increased revenue across business units by selling products to each other's customers is known as ______.

cross-selling

The planned effort by top management to improve organizational effectiveness and health through surveys, interviews, and interventions in the organization is known as organizational ______.

development

Product innovation is defined as ______.

development and market introduction of a brand-new or significantly improved good or service

Strategy formulation is defined as the ______.

development of strategies in an organization

Value creation is defined as the ______

difference between a customer's buyer value, or willingness to pay, and the firm's cost in offering a product or service

When you can use a product with other customers and collaborate directly, you are experiencing a (n) ______.

direct network effect

Creative destruction is defined as ______

displacement of established companies by new ones through product and process innovations

Emphasis on particular customers, products, or geographic locations characterizes ______.

focus strategy

The development of strategies in an organization characterizes strategy ______.

formulation

The threat of buyers will be reduced when buyers ______. (Select all that apply.)

have high switching costs feel very loyal

Scale economies are defined as the fall in unit costs with ______

higher levels of output due to spreading fixed costs over greater amounts of output

Competitive strategy is defined as ______.

how a firm can gain and sustain a competitive advantage

Indirect network effect exists when ______.

increased sales to more customers lead to the development of other complementary products you might enjoy

A small series of improvements to an organization's existing products, services, or processes represents ______.

incremental innovations

When increased sales to more customers lead to the development of other complementary products you might enjoy, you are experiencing a (n) ______.

indirect network effect

A situation in which there are many companies competing in an industry with no dominant competitors is known as ______.

industry fragmentation

Time compression diseconomies are defined as ______.

inefficiencies associated with moving fast to build a brand or develop a supplier network

A trade secret is defined as ______.

information used in business to obtain an opportunity for an economic advantage over competitors who do not know or use it

Causal ambiguity is defined as ______.

lack of clarity on the root causes of success

Unrelated diversification is defined as expansion into businesses with ______.

little or no common products, technologies, or processes

The threat of substitutes is best described as how ______.

much firms should worry about similar products or services

Contracts between two parties, prohibiting the sharing of confidential information acquired during their relationship with others, are called ______. Multiple choice question.

non-disclosure agreements

Significant transformations that organizations undergo to remain or become competitive are known as ______.

organizational change

When the firms' potential output exceeds the industry's needs, ______ has occurred.

overcapacity

In the unfreezing stage of organizational change in Lewin's model, ______

people need to recognize that the status quo is no longer working

Beating a competitor to a market and locking up the best locations, customers, or suppliers is known as ______.

preemption

Development and market introduction of a brand-new or significantly improved good or service is the definition of ______.

product innovation

The threat of suppliers is likely to be lower when ______. (Select all that apply.)

production inputs are easy to obtain and readily available firms have a multitude of possible sources for supplies

Product differentiation is defined as ______.

products with unique attributes that customers value

The resource that is most likely to create a sustained competitive advantage is one that is ______.

rare and difficult for competitors to copy

Expansion into businesses with common products, technologies, or processes is the definition of ______ diversification.

related

The fall in unit costs with higher levels of output due to spreading fixed costs over greater amounts of output is the definition of ______ economies.

scale

Industry standards aim to ______. (Select all that apply.)

set common measures establish minimum quality levels enable compatibility of different products reduce complexity in markets

The bargaining power of suppliers in an industry increases when ______. (Select all that apply.)

suppliers are large in relation to the size of the firms in the industry there is a limited number of supply chain vendors

Overcapacity occurs when ______.

the firms' potential output exceeds the industry's needs

Product commoditization is defined as ______.

the loss of product differentiation that occurs when multiple firms have similar offerings

Corporate strategy is defined as ______.

the management of a multi-business firm and decisions that change a company's boundaries

Inefficiencies associated with moving fast to build a brand or develop a supplier network represent ______.

time compression diseconomies

Make clear how the change aligns with the firm's vision. matches

unfreezing

Expansion into businesses with little or no common products, technologies, or processes is the definition of ______ diversification.

unrelated

When a firm's resources and capabilities provide something customers want to have, they are said to be ______.

valuable

The difference between a customer's buyer value, or willingness to pay, and the firm's cost in offering a product or service, is known as ______.

value creation