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5. Which of the following industries is described in the text as hypercompetitive? a. Cell phones b. Ulcer medications c. Wood processing machinery d. Heart medications e. Automobiles

a. Cell phones

16. ____ learning is more common in innovative firms that develop technology internally. a. Interpretive b. Progressive c. Group d. Committee e. Kieratsu

a. Interpretive

20. Organizations that are structured for learning are characterized by all of the following except ____. a. a hierarchical structure to allow clear flow of information b. processes that encourage boundary spanning c. internal network development d. reward systems that tied to team and system wide goals e. decision making based on shared and transferred knowledge

a. a hierarchical structure to allow clear flow of information

9. The competitive pressures in a standard cycle environment are typically focused on ____. a. competitive imitation b. radical innovation c. efficiency d. hypercompetition e. disruptive technology

a. competitive imitation

15. The creation of value at the firm level is ____. a. development of innovation capacity and exploitation of that capacity to introduce new products and services b. development of innovation capacity and exploitation of that capacity to make above par profits c. development of innovation capacity and exploitation of that capacity to overcome hypercompetition in that domain d. development of innovation capacity and the selling of that capacity to others so that the firm develops a competitive advantage e. development of the industry structure and the exploitation of the resulting industry position so that above par profitability results

a. development of innovation capacity and exploitation of that capacity to introduce new products and services

15. Getting the right information at the right time to the right person to enhance decision making as well as providing time for people to work on their ideas are known as: a. enabling factors b. communication enhancers c. innovation enablers d. time utilization strategies e. time management functions

a. enabling factors

34. To encapsulate and store knowledge the firm must: a. identify and acquire knowledge sources b. disseminate knowledge from new sources c. use knowledge in new ways d. look for uniqueness in knowledge combinations e. experiment and evaluate with new ideas

a. identify and acquire knowledge sources

32. The driving force in the appropriation value process include ____. a. imitate, reassign/acquire resources b. innovations, new venture c. barriers, market power d. competition, divestiture e. investment, new markets

a. imitate, reassign/acquire resources

25. The role of the individual in organizational learning and knowledge management can best be described as: a. individuals serve as agents in the intelligence systems of the firm b. individuals participate in their key knowledge-exchange relationship c. individuals contribute their view to protect the area of the firm they represent d. individuals provide "gut" reactions to the information they hear at meetings e. individuals must fit into the expectations of firm leaders

a. individuals serve as agents in the intelligence systems of the firm

12. The least complex implementation of external sources of technology and innovation is associated with ____. a. informal contracts b. licensing c. franchising d. joint venture e. merger/acquisition

a. informal contracts

19. The most common sources of competitive advantage would be ____. a. intangible resources b. tangible resources c. either intangible or tangible d. the equipment that advances the ability to produce quality e. the CEO

a. intangible resources

7. The firm's ability to learn: a. is a critical intangible resource for the firm's long term success b. is tied to the firm's ability to stay the strategic course it has mapped out c. is not as critical as its ability to acquire knowledge d. is based upon the firm's tacit knowledge e. none of these choices

a. is a critical intangible resource for the firm's long term success

1. The foundation which must be present before an organization can effectively conduct implementation is ____. a. knowledge b. financial resources c. structure d. equipment e. culture

a. knowledge

35. A change in a production line is an example of ____. a. low task complexity and internal information needs b. low task complexity and external information needs c. high task complexity and internal information needs d. high task complexity and internal information needs e. explicit transfer of external information

a. low task complexity and internal information needs

35. Organizational revival through turnaround is accomplished through: a. retrenchment, speed of response, leadership and type of turnaround strategies b. reorganization, layoffs, leadership change, and strategic redirection c. layoffs, downsizing, outsourcing, and change in leadership d. speed of response, decisiveness of top managers, organizational level, and layoffs e. downsizing, outsourcing, speed of response and retrenchment

a. retrenchment, speed of response, leadership and type of turnaround strategies

34. Retrenchment is associated with the ____. a. the ability to cut the operating costs of a firm b. the ability to develop a new knowledge base c. the ability reverse the innovation lead of a competitor d. the benchmarking of activities of competitors in the same industry e. the benchmarking of activities of leaders in different processes

a. the ability to cut the operating costs of a firm

14. The characteristics of the communication processes in an organization where learning is taking place include all of the following except: a. Free exchange in, across, and between levels and functions within the organization b. Acknowledgement of the importance of formal networks and the lessening of the influence of informal networks c. Encouragement of free exchange by the leadership of the firm d. Continual transformation of the organization systems for the process off communication e. Support of a culture that encourages meaningful interaction and exchange

b. Acknowledgement of the importance of formal networks and the lessening of the influence of informal networks

2. Learning in the organization ____. a. is the conversion of data into information b. is the knowledge that can be written down c. comes for experience of the individual and is internal to that individual d. is the gathering and sharing of existing knowledge from internal or external sources e. is the ability to obtain data

d. is the gathering and sharing of existing knowledge from internal or external sources

6. To increase the capabilities of the firm: a. The lessons for the future must be captured and documented b. Human skill and knowledge must be more closely linked to technological complexity c. Managers of the firm must make the decision to increase capabilities d. There must be an "ah-ha" moment of discovery e. Increasing capabilities is difficult to do and no one knows how that can be accomplished

b. Human skill and knowledge must be more closely linked to technological complexity

11. The transfer of meaning from one source to another is: a. information spreading b. communication c. knowledge acquisition d. learning e. scanning

b. communication

14. The result of a competitive advantage should focus on ____. a. obtaining excessive rewards from market b. creation of value for firm c. creation of value for consumers d. obtaining profits e. expanded job opportunities

b. creation of value for firm

16. For technology oriented firms, it is important for managers to understand that value must be: a. the result of customer expectations b. customer driven c. added to the product through any means possible d. closely tied to profitability e. maintained by the employees

b. customer driven

22. Each of the following is a key resource for intrapreneurship except ____. a. entrepreneurial mindset b. hypercompetitive environment c. external network d. human resources e. economic goals

b. hypercompetitive environment

13. The key sustainable competitive advantages for a firm using an internal innovation strategy include: a. improved process control, broader portfolio possibilities, and higher value-added products b. improved process control, higher value-added products, and better proprietary positioning c. reduced time to market, broader portfolio possibilities, faster decisions d. faster decisions, higher value-added products, larger structures e. better product understanding, faster decisions about market entry, larger firms

b. improved process control, higher value-added products, and better proprietary positioning

17. The ____ view of the firm argues that industry structure is the principal determinant of profitability. a. resource b. industrial organization c. agency d. hypercompetition e. re-engineering

b. industrial organization

26. The funds for venture capital typically come from ____. a. banks b. insurance firms and pension funds c. mutual funds d. small investors making investments e. stock brokerage firms

b. insurance firms and pension funds

1. The basis for competitive advantage of a technology focused firm ____. a. is difficult to identify b. is the capabilities of the firm c. will be changed every year d. can not be overcome due to patents held by the firm e. is a daily struggle for the firm to maintain

b. is the capabilities of the firm

3. Explicit knowledge is ____. a. the conversion of data into information b. knowledge that can be written down c. the experience of the individual that is internal to that individual d. the gathering and sharing of existing knowledge from internal or external sources e. the ability to obtain data

b. knowledge that can be written down

27. Knowledge is created through all of the following activities except ____. a. socialization b. provocation c. externalization d. combination e. internalization

b. provocation

30. For the knowledge management system to remain viable and useful: a. the knowledge acquisition process must be closely monitored b. the knowledge memory must be open to change c. organizational wisdom must develop d. individual learning must be encouraged e. timing of knowledge organization must be reviewed continuously

b. the knowledge memory must be open to change

6. The type and the amount of learning that must take place for the firm to compete successfully depends upon: a. how much the organization needs to retrench its activities b. the organizational and technical complexity of the firm's internal and external environments c. the knowledge acquisition strategy of the firm d. the ability of top management to guide employees' actions e. how far behind the industry norm the firm is

b. the organizational and technical complexity of the firm's internal and external environments

10. Chester Carlson is associated with the innovation of ____. a. the laptop computer b. the photocopy machine c. the semiconductor d. the machine for MRIs e. RFID technology

b. the photocopy machine

26. Knowledge management is defined as: a. the exchange of information within the organization b. the processes that combine data, information, and individual learning in a synergistic manner c. the structuring of communication and documentation d. the development, transmission and storage of data for the firm e. a computerized decision making process

b. the processes that combine data, information, and individual learning in a synergistic manner

30. Benchmarking is used most often in: a. value creation b. value appropriation c. value protection d. value destruction e. it depends on the industry environment

b. value appropriation

2. All of the following are strategic capabilities that a firm needs for success except ____. a. leadership b. a culture of support c. appropriate industry structure d. an organizational structure that fits with goals e. skills necessary to implement given strategy

c. appropriate industry structure

31. Today individuals charged with responsibility for R&D are typically ____. a. located in international settings b. are in flat organizations c. are spread throughout the organization d. are in separate organizations like the famous Bell Laboratories e. are trained as engineers

c. are spread throughout the organization

22. The characteristics of a firm that is structured for learning include: a. less need for boundary spanning activities b. formalized networks for creating and storing data c. decision making process that are based on shared and transferred knowledge d. reward systems that are tied to individual performance e. increased political activities to spread information

c. decision making process that are based on shared and transferred knowledge

21. Value creation in a firm is something that ____. a. is achieved only late in its life cycle b. is a goal but not a necessity c. is a mindset d. is achieved only after moving to a functional structure e. is progression throughout the firm

c. is a mindset

23. The keys to successful organizational learning include all of the following except ____. a. organizational learning is a function of a firm's competencies, culture, and comfort b. organizational learning required the communication of ideas c. organizational learning is the sum of what everyone in the organization knows d. organizational learning needs to be stored in the organizational memory e. organizational learning processes need to be intentional in the organization

c. organizational learning is the sum of what everyone in the organization knows

29. An understanding that goes beyond data and information manipulation and manifests itself in strategic decisions and organizational effectiveness is called: a. organization learning b. knowledge utilization c. organizational wisdom d. smart management e. knowledge management

c. organizational wisdom

17. The primary goal of systems learning is to: a. create new knowledge b. integrate systems in the organization c. reduce uncertainty d. identify acquisition targets e. implement Deming's quality goals

c. reduce uncertainty

4. As the firm's knowledge management capabilities shift from existing knowledge to new knowledge, the focus of the organization: a. moves toward risk minimization b. becomes more organization learning oriented c. shifts from content to process d. shifts from an external focus to an internal focus e. does not change

c. shifts from content to process

23. Which types of firms would be expected to have the fewest slack resources? a. mature firms b. large firms c. startup firms d. mezzanine firms e. buyout firms

c. startup firms

10. The key to building a competitive advantage with either a low-cost or differentiation strategy is: a. the external environment accepts the firm's choice of strategy b. the strategy chosen is the standard for the industry c. that the various strategic capabilities of the firm are consistent with the strategy d. that process innovation be applied throughout the firm to increase efficiency e. cutting-edge products become the norm

c. that the various strategic capabilities of the firm are consistent with the strategy

27. Interest carried refers to ____. a. the interest rate charged by a bank for a loan b. the rate of return provided by venture capital c. the percent which a venture capitalist will get from the venture capital fund d. the percent investment an individual makes in a new venture e. the amount of money an individual has to invest to participate in a venture capital fund

c. the percent which a venture capitalist will get from the venture capital fund

13. The type of learning an organization pursues should be based upon: a. the size of the organization b. the culture of the organization c. the strategic goals of the organization d. the background of the top management team e. the level of international diversification

c. the strategic goals of the organization

12. Information must not only be transmitted but must also be ____ for an organization to obtain its full benefits. a. written down b. available on the internet c. understood d. repeated e. supported by organizational leadership

c. understood

24. Open source software is exemplified by ____. a. DOS operating systems b. Windows operating systems c. SAP d. Linux operating system e. Apple operating system

d. Linux operating system

3. When a company is developing its capabilities, it should do all of the following except: a. Develop a clear strategic logic for processing information and sharing knowledge b. Put into place the appropriate structures and processes for technical and nontechnical activities c. Motivate employees to take advantage of capabilities d. Make sure the structure of the organization is hierarchical and well-defined e. Allow resources to be captured by the right people at the right place at the right time to make a competitive difference

d. Make sure the structure of the organization is hierarchical and well-defined

21. The systems-structure approach should result in: a. a rational approach to analyzing internal systems and structures b. a metric for identifying what firms are the strongest competitors c. understanding of the increasing uncertainty in the environment d. a rational view of potential partners in technology enhancement e. the entrenchment of the current top management team

d. a rational view of potential partners in technology enhancement

8. If the environment of a firm is described as fast cycle the key to success for a firm would be: a. adequate financing to overcome competitive pressures b. marketing capability to explain differences in the firm's product c. high levels of investment in capital assets in order to control output d. continuous improvement in the firm e. patent protection to prevent copying of their ideas by others

d. continuous improvement in the firm

24. The employment at most Fortune 500 firms is ____. a. expanding rapidly b. expanding slowly c. neutral d. declining e. not clear at this time

d. declining

18. The interpretive approach to learning can be summarized by all of the following except it: a. reduces ambiguity b. distributes information in all directions c. develops creative insights through an iterative process using multiple viewpoints d. develops a clear set guidelines to interpret issues e. looks for new ways to apply known information

d. develops a clear set guidelines to interpret issues

20. Each of the following is a step in the value creation process except ____. a. develop capabilities/investments that increase innovation b. recognize and deploy innovation by increasing product activity or the number of products introduced c. exploit innovation through sales growth d. expand the market size through creative marketing e. continue to improvement through investment in support capabilities and/or improvements in efficiency and productivity

d. expand the market size through creative marketing

5. Organizational learning ____. a. is the conversion of data into information b. is knowledge that can be written down c. comes for experience of the individual and is internal to that individual d. is the acquisition of knowledge through the application and mastery of new information, tools and methods e. is the ability to obtain data

d. is the acquisition of knowledge through the application and mastery of new information, tools and methods

31. The operating measures of value destruction include ____. a. investment, new markets b. product and geographical extensions c. market share, efficiency d. lost share, dramatic action e. imitation, reassign/acquire resources

d. lost share, dramatic action

28. The return on venture capital is typically ____. a. lower than public equities b. the same as public equities c. slightly higher than public equities d. much higher than public equities e. not comparable to public equities

d. much higher than public equities

4. For technology and innovation focused firms their competitive advantage is a function of all of the following except ____. a. technological complexity b. capabilities of the organization such as human skill c. capabilities of the organization such as knowledge d. the location of the firm in a cluster of excellence e. ability of the firm to learn from its activities

d. the location of the firm in a cluster of excellence

8. The greater organizational learning will occur when ____. a. there are fewer numbers and a smaller range of things to gather data on b. there are fewer number but a broader range of things to gather data on c. there are greater number but smaller range of things to gather data on d. there are a greater number and a broader range of things to gather data on e. the organization is small

d. there are a greater number and a broader range of things to gather data on

32. One of the keys for success for R&D focused individuals is that ____. a. they have training in chemistry b. they have training in engineering c. they have international experience d. they have strong communication skills e. they have the ability to be promoted

d. they have strong communication skills

11. A firm like General Electric with a very large number of different businesses in a corporation would be expected to have a(n) ____ organizational structure. a. simple b. functional c. divisional d. matrix e. SBU

e. SBU

33. All of the following are assets that help an organization succeed except ____. a. a vision for where the organization and team are going b. an openness to the new ideas c. a strong sense of what he organization is and is not d. a person who is passionate about the exchange of knowledge and opportunity to learn e. a strong management by objective system that ensures everyone accomplishes the goals

e. a strong management by objective system that ensures everyone accomplishes the goals

9. The purpose of the scanning process is: a. to help the firm identify critical issues b. to identify what the firm needs to monitor in its environment c. to help the firm adjust its strategies if necessary d. to gather information about the firm's competitive environment e. all of these choices are purposes for scanning

e. all of these choices are purposes for scanning

18. All of the following would be intangible resources except ____. a. brand recognition b. perception of quality c. culture d. innovation e. financing

e. financing

28. The six basic principles that an organization can employ to help ensure success in knowledge management include all of the following except ____. a. system/process for knowledge management that allow it to move toward its strategic goal b. good information c. must create information accessible in a timely fashion d. individuals in the system who understand how to use information e. knowledge rests principally at the top of the organization and the system

e. knowledge rests principally at the top of the organization and the system

29. Industry standards for technology are usually established through: a. professional groups or industry-related decisions b. the marketplace and competitive activities c. management decisions about external activities d. the inventors of the product e. professional/official industry groups or the marketplace

e. professional/official industry groups or the marketplace

7. The characteristics of hypercompetition include all of the following except: a. flexible, aggressive, innovative competitors moving into existing markets b. constant disequilibrium and change c. increased uncertainty, dynamism, and heterogeneity of players d. hostility in the competitive marketplace e. slow cycle changes in technology

e. slow cycle changes in technology

33. Turnaround means ____. a. the firm is successful in introducing a new product b. the firm moves up the industry rankings c. the firm develops a knowledge base d. the firm is now able to compete in a hypercompetive market e. the reversal of a pattern of decline

e. the reversal of a pattern of decline

25. Entrepreneurial firms that have high capital needs typically obtain those funds from ____. a. friends b. family c. banks d. savings & loan e. venture capital funds

e. venture capital funds

19. In deciding an approach to learning the organization should consider all of the following except: a. the nature of its information needs b. its primary goals c. the actions to take d. what the organization wants to learn e. which approach its competitors are using

e. which approach its competitors are using