MAN 4720, Chapter 7, Exam 1

31. Innovations that target NEW markets and represent a major break from existing technologies or ways of thinking, such as the digital camera, the touch-screen smart phone, or the decoding of the human genome, are examples of a. Incremental innovations b. Radical innovations c. Architectural innovations d. Disruptive innovations

b. Radical innovations

14. A significant difference between technology enthusiasts and early adopters is that a. Early adopters dominate the decline stage of the industry life cycle b. Technology enthusiasts have much more disposable income c. Early adopters are primarily interested in technical details rather than practical applications d. Early adopters are interested in how a new technology will improve their lives, rather than in the details of the technology itself

d. Early adopters are interested in how a new technology will improve their lives, rather than in the details of the technology itself

24. At which stage of the industry life cycle does the size of the market expand rapidly? a. Maturity b. Introduction c. Shakeout d. Growth e. Decline

d. Growth

33. The innovation process is a four-step process that exists of idea, invention, innovation, and _____ a. Imagination b. Irrigation c. Inspiration d. Imitation

d. Imitation

29. The most common type of innovation is a. Technological innovation b. Disruptive innovation c. Radical innovation d. Incremental innovation

d. Incremental innovation

27. It is common for firms to start by introducing a(n) _____ innovation a. Incremental b. Disruptive c. Entrepreneurial d. Radical

d. Radical

16. An agreed-upon solution about a common set of engineering features and design choices is known as a _______ a. Strategic objective b. Dominant currency c. Link d. Standard

d. Standard

30. A significant difference between the early majority and the late majority is a. The early majority enjoys providing voluntary feedback to producers b. The late majority is comfortable purchasing from new or unknown firms c. The late majority is more adept with technology d. The late majority is not confident in using new technologies

d. The late majority is not confident in using new technologies

35. A firm's ability to integrate external technological developments into its own current products is known as _____ capacity a. Absorptive b. Production c. Intake d. Retention

a. Absorptive

9. During the shakeout stage of the industry life cycle, profits degrade for a. All but the most efficient firms b. The most efficient firms only c. A few of the weakest firms d. All firms in the industry

a. All but the most efficient firms

7. Using known components, based on existing technologies, in a new configuration to create a new market, is known as _______ a. Architectural innovation b. Planned emergence c. Strategic implication d. Disruptive creation

a. Architectural innovation

19. Applying concepts from strategic management to the innovation process is known as a. Strategic entrepreneurship b. Animated innovation c. Leverage invention d. Consolidation

a. Strategic entrepreneurship

8. An innovation that targets existing markets with new technologies, is called a. An incremental innovation b. A disruptive innovation c. An architectural innovation d. A radical innovation

b. A disruptive innovation

2. An innovation that targets a new market with existing technologies is called a. A disruptive innovation b. An architectural innovation c. An incremental innovation d. A radical innovation

b. An architectural innovation

11. According to the crossing-the-chasm framework, the largest difference in consumer expectations is between a. The late majority and laggards b. Early adopters and the early majority c. Technology enthusiasts and early adopters d. The early majority and the late majority

b. Early adopters and the early majority

34. Which type of innovation applies to existing markets and existing technologies? a. Radical b. Incremental c. Disruptive d. Architectural

b. Incremental

26. The commercialization of an invention by entrepreneurs is called: a. Invention b. Innovation c. Patenting d. Imitation

b. Innovation

6. A large incumbent firm that has established a number of formalized practices and procedures may have a difficult time producing radical innovations due to its a. High labor costs b. Organizational inertia c. Competitive complacency d. Conflicting investor interests

b. Organizational inertia

28. Innovation helps firms to achieve a competitive advantage by a. Raising prices b. Redefining the market in their favor c. Eliminating competition d. Identifying key business activities

b. Redefining the market in their favor

21. The development of most industries follows an: a. M-curve b. S-curve c. C-curve d. I-curve

b. S-curve

25. The four strategic options that managers have in the decline stage are: exit, harvest, maintain, or a. Innovate b. Revive c. Consolidate d. Restart

c. Consolidate

17. The negative effect of innovative ride-sharing services like Uber and Lyft on traditional taxi cab companies is an example of a. Corporate social responsibility b. Peer management c. Creative destruction d. An adoption process

c. Creative destruction

13. The ________ identifies how industries tend to develop and change over time a. Network effect b. AFI framework c. Industry life cycle d. VRIO strategy

c. Industry life cycle

15. Which of the following allows a firm to redefine a market in its favor? a. Implementation b. Identification c. Innovation d. Invention

c. Innovation

18. In the ________ stage of the industry life cycle, a moderate amount of large films compete for a share of a market that has reached its maximum size a. Introduction b. Growth c. Maturity d. Shakeout e. Decline

c. Maturity

Most firms consider laggards to be a. The most likely to purchase innovative products b. A valuable source of product feedback c. Not worth the effort of pursuing d. The most prized customer segment

c. Not worth the effort of pursuing

1. The shakeout stage of the industry life cycle is dominated by a. The late majority b. Early adopters c. The early majority d. Laggards

c. The early majority

5. GE's decision to let a GE team in China develop an inexpensive and portable ultrasound machine for developing markets is an example of _______ a. A top-down innovation strategy b. A failure to innovate c. A roundabout innovation strategy d. A bottom-up innovation strategy

d. A bottom-up innovation strategy

3. Which of the following is most likely to produce a radical innovation? a. An established restaurant chain with a clear organizations structure and strictly defined roles for employees b. A financial services firm that has been in business for 75 years and has longstanding customer relationships c. A leading toy manufacturer with a significant interest in maintaining the status quo d. A new sportswear company with a handful of employees that perform a number of loosely-defined roles

d. A new sportswear company with a handful of employees that perform a number of loosely-defined roles

20. Which of the following is an example of innovation? a. Walmart increasing the number of local and organic products in its stores b. McDonald's cutting items from its dollar menu c. Nike re-releasing an exact replica of a popular sneaker from the 1980's d. Apple combining smart phone and wristwatch technologies to create the Apple Watch

d. Apple combining smart phone and wristwatch technologies to create the Apple Watch

4. The invention of small desktop copiers out of the same technology used to create large, standalone copiers, is an example of a(n) a. Incremental innovation b. Disruptive innovation c. Radical innovation d. Architectural innovation

d. Architectural innovation

22. Entrepreneurs innovate by a. Limiting competition in a given market b. Increasing demand for existing products c. Acquiring promising start-up companies d. Commercializing new ideas and inventions

d. Commercializing new ideas and inventions

23. In the _____ stage of the industry life cycle, falling demand leads to a reduction in market size a. Introduction b. Growth c. Consolidation d. Decline e. Shakeout

d. Decline

32. Introducing a new technology to an existing market to better address consumer needs is known as _______ innovation a. Incremental b. Architectural c. Radical d. Disruptive

d. Disruptive

12. Successfully transitioning from one stage of the industry to the next is referred to as a. Crossing the chasm b. Stage-transitioning c. Stepping over the bridge d. Jumping the gap

a. Crossing the chasm