Question 1

Continuous innovation,rapid technological changes,and intense competition create:

Accepted Answer

A)   Consistency in an industry.
B)   Product repetition.
C)   Hypercompetition.
D)   Sustained competitive advantages.E) All of the above
F) A) and B)

Question 2

When a firm steadily improves its offerings by building on its knowledge base,it is engaging in:

Accepted Answer

A)   Architectural entrepreneurship.
B)   Incremental innovation.
C)   Disruptive entrepreneurship.
D)   Radical innovation.E) B) and C)
F) A) and C)

Question 3

A(n) ____________ is the dominant design established during the growth stage of an industry life cycle once the market comes to agreement about the prevailing set of engineering features and design choices.

Accepted Answer

A)   Compliment
B)   Trial design
C)   Prototype
D)   StandardE) All of the above
F) C) and D)

Question 4

IBM still offers typewriters even though it does not invest much in future innovations of its typewriter line.Instead,it has chosen a _________ strategy to maximize cash flow from the remaining demand for typewriters.

Accepted Answer

A)   Harvest
B)   Divest
C)   Exit
D)   ConsolidateE) B) and C)
F) A) and C)

Question 5

Innovation used as a sustained competitive weapon must be:

Accepted Answer

A)   Radical and low cost.
B)   Architectural and high cost.
C)   Short-term and efficient.
D)   Continuous and commercialized.E) C) and D)
F) B) and C)

Question 6

Discontinuities are periods of time when all of the following occur EXCEPT:

Accepted Answer

A)   Many firms experience upheaval.
B)   Traditional technology is challenged by updated technology.
C)   Incumbent firms are protected.
D)   New opportunities exist.E) B) and C)
F) A) and D)

Question 7

Entrepreneurial opportunities exist because of all of the following EXCEPT:

Accepted Answer

A)   At a certain point, technology and processes reach their limit.
B)   The market has unmet needs.
C)   The firm does not believe in risk-taking.
D)   A new invention can be commercialized.E) B) and C)
F) A) and C)

Question 8

After the Internet was introduced,its value increased exponentially as the number of users increased.This is the positive effect of a(n) :

Accepted Answer

A)   Adopter force.
B)   Network effect.
C)   User effect.
D)   Internet force.E) C) and D)
F) A) and D)

Question 9

After Jeff Bezos read about how the Internet was growing by 2,000 percent a month,he set out to use the Internet as a new distribution channel and created Amazon,which is now the world's largest online retailer.This is clearly an example of:

Accepted Answer

A)   A firm with a strong core competency in R&D.
B)   An entrepreneur who transformed invention into an innovation.
C)   An entrepreneur who tried to harvest the remaining demand on the Internet.
D)   Someone who focused on the "short head" of the Internet.E) All of the above
F) None of the above

Question 10

Wikipedia's "open source" approach to competitive advantage will be sustainable as long as:

Accepted Answer

A)   The market isn't saturated with book-based encyclopedias.
B)   Another firm doesn't introduce a CD-based encyclopedia.
C)   People are willing to volunteer to contribute content.
D)   All of these.E) C) and D)
F) A) and B)

Question 11

GE disrupted itself by:

Accepted Answer

A)   Replacing the top levels of the executive hierarchy.
B)   Using the needs of developing countries to replace older and more expensive products with newer and more adaptive ones.
C)   Saturating the global market by having too many products in each market.
D)   Losing strategic focus and not protecting its market share in health care technology.E) B) and C)
F) All of the above

Question 12

Each of the following are a distinct phase in an industry life cycle EXCEPT:

Accepted Answer

A)   Growth
B)   Introduction
C)   Plateau
D)   MaturityE) None of the above
F) B) and D)

Question 13

Strategy Highlight 7.1 discusses network effects.How does this impact the sale of smartphones?

Accepted Answer

The software programs developed for smar...

Question 14

The vast majority of innovations come from radical breakthroughs.

Accepted Answer

A) True 
 B)False

Question 15

The vast majority of innovations in an industry are ____________ because they build on a firm's existing knowledge base and reinforce the existing organizational structure and network relationships.

Accepted Answer

A)   Incremental
B)   Radical
C)   Relational
D)   ModerateE) None of the above
F) B) and C)

Question 16

According to Strategy Highlight 7.4,GE's success with portable ultrasound devices is attributed to which type of innovation?

Accepted Answer

A)   Reverse
B)   Backward
C)   Internal
D)   DiversifiedE) B) and C)
F) A) and B)

Question 17

Radical innovation can occur when an existing firm recombines its existing knowledge base with a new stream of knowledge for new markets.

Accepted Answer

A) True 
 B)False

Question 18

The disruptive innovation of the Internet and the "long tail" phenomenon in the retail industry would be in which category for a SWOT matrix for Barnes & Noble?

Accepted Answer

A)   Risks
B)   Weaknesses
C)   Threats
D)   OpportunitiesE) A) and B)
F) A) and C)

Question 19

In general,product innovation is more strategically important than process innovation while a firm is in the growth stage of the industry life cycle.

Accepted Answer

A) True 
 B)False

Question 20

When Japanese carmakers attacked the existing U.S.automobile market by offering low-cost,fuel-efficient cars based on new technology,they were engaging in ___________ innovation.

Accepted Answer

A)   Distinctive
B)   Radical
C)   Disruptive
D)   StealthE) B) and C)
F) A) and D)

Exam 7: Business Strategy: Innovation and Strategic Entrepreneurship

Continuous innovation,rapid technological changes,and intense competition create:

Correct AnswerverifiedShow Answer

The vast majority of innovations in an industry are ____________ because they build on a firm's existing knowledge base and reinforce the existing organizational structure and network relationships.

Correct AnswerverifiedShow Answer

Innovation used as a sustained competitive weapon must be:

Correct AnswerverifiedShow Answer

GE disrupted itself by:

Correct AnswerverifiedShow Answer

Radical innovation can occur when an existing firm recombines its existing knowledge base with a new stream of knowledge for new markets.

Correct AnswerverifiedShow Answer

Entrepreneurial opportunities exist because of all of the following EXCEPT:

Correct AnswerverifiedShow Answer

Discontinuities are periods of time when all of the following occur EXCEPT:

Correct AnswerverifiedShow Answer

After Jeff Bezos read about how the Internet was growing by 2,000 percent a month,he set out to use the Internet as a new distribution channel and created Amazon,which is now the world's largest online retailer.This is clearly an example of:

Correct AnswerverifiedShow Answer

After the Internet was introduced,its value increased exponentially as the number of users increased.This is the positive effect of a(n) :

Correct AnswerverifiedShow Answer

Each of the following are a distinct phase in an industry life cycle EXCEPT:

Correct AnswerverifiedShow Answer

A(n) ____________ is the dominant design established during the growth stage of an industry life cycle once the market comes to agreement about the prevailing set of engineering features and design choices.

Correct AnswerverifiedShow Answer

When a firm steadily improves its offerings by building on its knowledge base,it is engaging in:

Correct AnswerverifiedShow Answer

The vast majority of innovations come from radical breakthroughs.

Correct AnswerverifiedShow Answer

When Japanese carmakers attacked the existing U.S.automobile market by offering low-cost,fuel-efficient cars based on new technology,they were engaging in ___________ innovation.

Correct AnswerverifiedShow Answer

The disruptive innovation of the Internet and the "long tail" phenomenon in the retail industry would be in which category for a SWOT matrix for Barnes & Noble?

Correct AnswerverifiedShow Answer

In general,product innovation is more strategically important than process innovation while a firm is in the growth stage of the industry life cycle.

Correct AnswerverifiedShow Answer

IBM still offers typewriters even though it does not invest much in future innovations of its typewriter line.Instead,it has chosen a _________ strategy to maximize cash flow from the remaining demand for typewriters.

Correct AnswerverifiedShow Answer

Wikipedia's "open source" approach to competitive advantage will be sustainable as long as:

Correct AnswerverifiedShow Answer

According to Strategy Highlight 7.4,GE's success with portable ultrasound devices is attributed to which type of innovation?

Correct AnswerverifiedShow Answer

Strategy Highlight 7.1 discusses network effects.How does this impact the sale of smartphones?

Correct AnswerverifiedThe software programs developed for smar...View AnswerShow Answer

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The software programs developed for smar...
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