8,9,10

matching new products to the requirements of the customers served.

A firm choosing to decentralize its R&D by divisions rather than centralizing it will have a greater possibility of:

locally leveraged

A strategy in which each division or subsidiary of a firm conducts its own R&D activities, but the firm attempts to take advantage of resulting innovations throughout the company is known as a ________blank strategy.

He cannot receive a patent since he is merely making the sunglasses more portable.

Felix has designed a pair of sunglasses that can be folded and put into a case that easily fits into a shirt or pant pocket. Felix wants to know if he can receive a patent on this invention. Which of the following responses would be most accurate according to the U.S. patent law?

find a partner to collaborate with to sell the drug.

Greyer Corp. has developed a special drug that kills cancer cells. While the scientists at Greyer have the knowledge, they are short on equipment, money, and marketing know-how. In this situation, the most appropriate step for Greyer would be to:

licensee

Greyer Corp. manufactures surgical instruments. Systems Medico Inc. enters into a contractual arrangement with Greyer that allows it to use Greyer manufacturing methods and management structure to produce and sell surgical instruments. Systems Medico must pay a yearly fee to Greyer for the use of its manufacturing processes. In this scenario, Systems Medico is the _____.

Icarus Paradox

In the 1980s and 1990s, Neon Corp. was the most successful firm in the television market. The firm believed that its competitors would never be able to produce televisions that compared to their products' quality and price. As a result, it was unable to compete with the newer models of televisions that its Japanese competitors had begun to infiltrate the market with. Eventually, Neon lost its market leadership to its competitors. This scenario most clearly exemplifies the _____.

trademark violation.

Joe's Burgers Corp. is a famous fast-food chain that uses a picture of a cook in a red hat as its logo. It would not be legal for a firm to sell hamburgers with the same identification picture as that of Joe's Burgers because that would be a(n):

skunk works.

Liam, an employee of Centaurs Inc., is part of a new product development team that operates in a completely different manner from its parent organization. Within the team, there is considerable decentralization of authority and limited bureaucracy. It also has its own unique culture. Liam's team can be most accurately referred to as:

improved its efficiency in controlling the rate at which the technology is upgraded or refined.

LiteShoes Inc. has recently obtained architectural control for its shoe glider technology. By doing so, the company has:

The subsidiaries of M&P and their R&D divisions will be highly autonomous.

M&P Inc., a consumer goods manufacturing firm, has subsidiaries throughout the globe that have to respond to varying local market requirements. Therefore, the firm has planned to adopt a local-for-local approach to innovation. Which of the following statements is true in this context?

is in effect from the time the book was created and fixed in a copy.

Stevenson, a U.S. citizen, wrote a book called The Ten Commandments of Leadership. He gave away copies of the book to the people who attended his workshops on leadership. The copyright protection for this book:

cannot be readily codified or transferred in written form.

Tacit knowledge is best defined as the knowledge that:

become more responsive to technological changes.

Techworld Zone Inc. is a renowned laptop and desktop manufacturer. The firm employs thousands of employees and has always followed a rigid hierarchical structure. The management of the company recently decided that it was high time the firm disaggregate in order to:

Joint venture

The R&D team of Zelda Technozone Inc. has developed a prototype for a two-seater car that runs primarily on solar energy. Since the firm usually manufactures household appliances, the management acknowledges that it does not have the required competencies to manufacture this car on a large scale. It decides to access another firm's manufacturing competencies. Which of the following collaborative arrangements is most appropriate in this scenario?

has a high degree of appropriability.

The scientists at Brainstorm Inc., a private medical research firm, have come up with a remarkable method for curing cancer. This cancer treatment technology is well protected and cannot be easily duplicated. Based on this information, it would be most accurate to say that this technology:

It must be novel.

Under the U.S. patent law, which of the following is one of the mandatory requirements to be met by a new invention in order to be eligible for patent protection?

not formally indicated on the organizational chart.

According to Schoonhoven and Jelinek, quasiformal structures are:

It can be patented as it is useful, novel, and not obvious.

After much research, Angela has designed a new automobile tire with a unique polycarbonate exterior that cannot be punctured. In the context of the U.S. patent law, which of the following statements would be true for this invention?

joint venture

Allured Architecture Inc. collaborated with Maze & Matiz Corp. to form a new architecture firm called AllureAmaze Inc. Both the firms had a significant equity stake in the new entity. This collaboration would most accurately be termed a(n) _____.

licensing

Allured Cosmetics Corp. enters into a contractual agreement with Pure Cosmetics Inc., a manufacturing firm in the West Coast. According to the contract, Pure Cosmetics can use the manufacturing processes of Allured Cosmetics to produce cosmetics in return for a specific fee. Pure Cosmetics is bound to use the manufacturing process only to make complementary products for the cosmetics manufactured by Allured Cosmetics. This collaborative arrangement is classified as _____.

outsourcing

Alumplus Aluminum Company has come up with a new type of metal. However, producing it would take up 75 percent of its manufacturing capacity and would hinder its ability to continue producing its other products. Alumplus Aluminum hires LM Group of Manufacturers to manufacture the new type of metal. This collaborative arrangement is most likely to be classified as _____.

2.5 years

Angelo has designed a license plate holder for automobiles that makes theft of the license plate practically impossible. He has filed an application for a patent through the Patent Cooperation Treaty (PCT) office, and it has been approved. How long is this application going to protect his right to file for patent protection in the member countries of the PCT?

less efficient in R&D because of loss of managerial control.

As a firm grows bigger, it becomes:

equity ownership

Carl owns a software firm, and Mike owns a computer hardware manufacturing firm. They decide to create an alliance in order to manufacture laptops and desktops using the shared competencies of their respective firms. When creating the alliance, they make sure that each of them invests 50% capital and that they would each own a specified right to a percentage of the profits from the alliance. The collaborative relationship in this scenario is known as _____.

capability complementation

Combining the capabilities and other resources of partner firms but not necessarily transferring those resources between the partners is referred to as _____.

trademark.

David and Sons Corp., a firm that manufactures home appliances, uses a symbol resembling a lightning strike to distinguish its products from other similar products in the market. This symbol is an example of a(n):

It should become a licensor of the new Web design software.

Easymake Corp. developed a new Web design software to build Web pages for its clients. However, Easymake soon realized it could make more money by selling this software to those who wish to quickly build Web pages to sell their products. Which of the following would be the most appropriate strategy for Easymake?

its customers have heterogeneous demands that need to be met in a cost-effective way.

ErgoWorld Inc. manufactures office furniture. The company is considering adopting a modular production system. A modular system would offer greater value to ErgoWorld if:

a division of a firm is reluctant to adopt other divisions' innovations.

Not-invented-here syndrome occurs when:

globally linked

Oxygenic Inc. is a company with major decentralized divisions in Germany, Russia, and the United States. The scientists in Russia develop cancer treatment methods. Treatment clinics are organized in Germany. The U.S. division gathers finance and markets the treatment methods. The activities of the different divisions are coordinated by the central office of the firm to meet company-wide objectives. This is most clearly an example of a _____ strategy.

face morale and motivation problems.

Pioneer Systems Inc. has a high degree of formalization. Employees in Pioneer Systems are more likely to:

Yes, her recipe can be considered a trade secret and she can legally prevent others from benefiting from her recipe without her permission.

Sally has come up with a unique recipe for cookies and is selling them through exclusive outlets all across Atlanta. As the sales skyrocket, her friends tell her to patent the recipe. However, she is so protective of her recipe that she does not even want to reveal her secret ingredients to a government agency. Is there anything she can do to keep the recipe legally protected?

relational governance

Self-enforcing norms based on goodwill, trust, and reputation of partners are known as _____.

20 years

Shirley, a U.S. citizen, has invented a solar-powered amplifier that can be used in small speakers, such as Bluetooth speakers, to increase the volume up to five times. She decides to apply for a patent for this device in the United States. If she receives approval for the patent, what would be the duration of patent protection?

be less responsive to technological changes

Since larger companies tend to have more bureaucracy, fixed costs, and commitments to large numbers of employees, customers, and suppliers than smaller firms, you can expect it to _____.

organic

Since much innovation arises from experimentation and improvisation, the _____ organization structure is typically considered better suited for innovation despite its possible detriment to efficiency.

The technology will accrue more rapid adoptions.

Singing Cards Corp. has decided to make the technology behind its musical cards open. Which of the following is most likely to be one of the advantages associated with this decision?

open source software.

Software whose code is made freely available to others for use, augmentation, and resale is referred to as:

the invention must be manufactured in the country where the patent was granted within a specified period of time.

To ensure that companies do not receive patents in countries where they do not intend to set up production of an invention, some countries have a "working requirement," according to which:

formalization

Urban Fashions Corp. has become very successful in the last few years and now employs a large number of people. Serena, the owner of the firm, had been very informal in running the company. However, because of the increase in the size of the firm, she now feels that the informal ways of management have become ineffective. In order to structure the behavior of employees, Serena wants to introduce written codes of conduct and regulations into the firm. This change being introduced in the company by Serena is referred to as _____.

use linkages with other specialized firms to access resources they do not possess.

When technology is progressing rapidly, firms are more likely to:

A novel

Which of the following can be protected by a copyright?

Greater specialization and economies of scale in R&D activities are achieved.

Which of the following is a characteristic of the center-for-global strategy?

Unlike copyrights, trademarks are indicators used to distinguish the source of a good.

Which of the following is a difference between copyrights and trademark protection?

It can result in significant redundancy in activities.

Which of the following is a disadvantage of the local-for-local strategy?

It involves a significant equity stake by the partners.

Which of the following is a feature of a joint venture that differentiates it from other forms of alliances?

It gives firms more flexibility.

Which of the following is an advantage of collaborating?

It allows a firm to share the cost and risk of basic research.

Which of the following statements is true of a collective research organization?

In the United States, an inventor can publish an invention up to a year before applying for the patent.

Which of the following statements is true of a patent?

They have a complex organizational form that is composed of multiple internally inconsistent architectures.

Which of the following statements is true of ambidextrous organizations?

It enables a firm to tap the greater economies of scale.

Which of the following statements is true of contract manufacturing?

They coordinate development and production activities through their adherence to shared objectives.

Which of the following statements is true of loosely coupled organizational structures?

It carries a risk of proprietary technology being expropriated by the contract manufacturer.

Which of the following statements is true of outsourcing?

It involves significantly low amounts of transaction costs.

Which of the following statements is true of outsourcing?

Its primary purpose in owning patents is to extort money from other firms.

Which of the following statements is true of patent trolling?

It encourages collaborations based on the combination of complementary resources to access resources a firm does not possess.

Which of the following statements is true of resource fit?

They are isolated from the mainstream organization to which they belong.

Which of the following statements is true of skunk works?

It can ensure that activities within a firm run smoothly and yield predictable outcomes.

Which of the following statements is true of standardization?

provide their developers with the opportunity to appropriate rents from the technology

Wholly proprietary systems differ from wholly open systems in that wholly proprietary systems _____.

Alliance contracts

____ are legally binding contractual arrangements to ensure that partners are fully aware of their rights and obligations in the collaboration and have legal remedies available if a partner should violate the agreement.

Licensing out a technology

_____ offers a fast way for a firm to extend the reach of its technology that is nearly free and offers the potential for royalties.

Strategic fit

_____ refers to the degree to which partners have compatible objectives and styles.