ch 13

Which of the following factors is NOT required for turning an innovative product into a true competitive advantage?

. An attractive, below-average price point

Sherry is the HR manager at a real-estate firm. The company's sales have been in decline, and she believes the company is in need of innovation. She wants the employees to be able to continuously identify opportunities in their market, but the company does not currently focus on this. What, specifically, is the firm in need of?

. An entrepreneurial mind-set

What does a firm have if its capabilities are valuable, rare, difficult to imitate, and not able to be substituted?

. Competitive advantage

A technology company is in need of a breakthrough innovation. It has been static in its innovations and needs something that will "change the game" to provide a new revenue stream. Which team is most likely to be charged with finding this next breakthrough?

. Cross-functional development team

Which of these is believed to be the economic driver in many nations?

. Entrepreneurship

GM, a world leader in automotive manufacturing, is quickly losing market share to Toyota. Toyota's competitive advantage is that it can produce high-quality cars at a lower price than GM. This is due to Toyota's manufacturing innovation processes, resulting in quicker change and lower cost. What is the logical next step for GM to quickly get back on a competitive par with Toyota?

. Imitation of Toyota's processes

Luxottica, the leader in eyewear, has little in common with Google, the technology giant. But together, they are working on a breakthrough called Glass, which is revolutionary eyewear with technological advancements. Google needs the expertise of Luxottica to effectively market the product as a fashion accessory as well as a piece of tech. What is this story describing?

. Innovation through cooperative strategies

Lester just created a new tool that helps him while cleaning the house. What would this be classified as?

. Invention

Which of the following is NOT a trait commonly associated with young, internationally diversified firms?

. Risk averse

Theresa is interviewing for a small startup in the technology industry. This startup is looking for qualities that will aid it in its fast-paced, fast-thinking atmosphere. Theresa is very hard working, accountable, excited to take on new challenges, and not afraid to take risks. On top of this, she also holds an advanced degree. Theresa has an incredible amount of experience, but not in the technology field. Would the startup benefit from hiring Theresa?

. Yes, because she is interviewing at a company that is in need of entrepreneurs.

Some years back, a number of manufacturers of low-end, inexpensive cell phones started introducing their products into the Eastern African market. David, the owner of a medium-sized firm manufacturing mid-priced cell phones, believes the Eastern African market is now ready for slightly more expensive phones with greater functionality. If he's right, David has identified a(n):

. entrepreneurial opportunity

Maria is the CEO of a company that has been a market leader for more than 20 years. Her company is starting to lose its market share to smaller companies that are new to the market. These smaller companies have products that the company cannot easily imitate. What does Maria's company need to do?

Become more entrepreneurial and utilize its established strategic capabilities

Which of the following criteria should companies give the most weight to when deciding who should lead an international entrepreneurial venture?

Those with international experience

With the help of investors, chefs and best friends Jacques and Pieter are planning to open a chain of fast-casual restaurants in six locations across Europe. Pending the chain's performance over the first 18 months, they plan to open eight more locations in Scandinavia and beyond. Their firm is:

a. born global.

____ entrepreneurship is defined as the use or application of entrepreneurship within an established firm.

b. Corporate

When entrepreneurial opportunities are realized, existing products and production methods are replaced with new products and production methods in a process known as:

creative destruction.

In strategic entrepreneurship, _____ refers to a firm's ability to identify external opportunities to exploit through innovation, while _____ refers to the firm's ability to manage innovation efforts effectively.

d. entrepreneurship; strategic

A firm is most likely to achieve success with its efforts toward innovation by:

developing an appropriate balance between innovation through acquisition and internal development of innovations.

Larry has noticed that the Internet is unorganized, and he wants a place where people can easily find the information or news that they want. He realizes that there are a couple of websites that attempt to do this, but he sees competitive flaws and knows that there has to be a better way. What has Larry stumbled upon?

entrepreneurial opportunity

Individuals that act independently (or as part of an organization), perceive an opportunity, and then take risks to develop an innovation and exploit it can be described as:

entrepreneurs.

Alesha has a gift for thinking of new and innovative ideas. As a child, she would sell lemonade for $0.50 and use the money to buy other ingredients to expand her offerings. She has now started her own fruit juice business after graduating from college with a finance degree. What would we call Alesha?

An entrepreneur

Which of the following is an example of innovation through acquisition?

Facebook choosing to innovate its advertising platform and seeing the value of the virtual reality technology that another company, Oculus, has already developed

On a macroeconomic level, what category of countries experience tremendous growth of personal and national wealth?

Entrepreneurial countries

What is a common way that firms encourage entrepreneurial behavior and development of innovations?

Incentive programs

Which of these terms would describe an innovation by a steel manufacturing company that finds a new way to produce its steel, saving 2% in production time?

Incremental innovation

Darren works in a metals factory and has repeated the same tasks for years now. He notices that he can save time if he repurposes one tool to assist in another process. He discusses the new tool with his supervisor, and the company realizes that it offers efficiencies and wants to use it in other factories. What describes Darren's actions?

Innovation

Disney, the entertainment company, sees the success that the superhero storytelling company, Marvel, has had over the years. Disney wants to enhance its movie-making capabilities and wants to gain Marvel's innovations for other uses. What is Disney's next logical move?

Innovation through acquisition

What is a potential risk of cooperative strategies in regards to innovation?

One of the companies using the technology that is jointly developed for its own benefit

In June of 2007, Apple, the company well known for the music playing iPod, released its first phone, the iPhone. One of its taglines, "Apple Reinvents The Phone," proved to be true. Since its launch, iPhone and its imitators have taken over the mobile phone industry. Apple's key feature was its touchscreen. Other companies have tried to copy the success. What would the iPhone be described as?

Radical or breakthrough innovation

Which function of a company must have the highest level of internal innovation in order for the company to have a competitive advantage?

Research and development