Question 1

Which of the following lists the stages of the industry life cycle in the correct order?

Accepted Answer

A)   introduction, growth, shakeout, maturity, and decline
B)   introduction, shakeout, growth, maturity, and decline
C)   introduction, growth, maturity, shakeout, and decline
D)   introduction, shakeout, maturity, growth, and declineE) None of the above
F) B) and C)

Question 2

What is strategic entrepreneurship?

Accepted Answer

A)   the pursuit of an innovation that uses concepts from the triple-bottom-line approach
B)   the pursuit of an innovation that uses concepts from strategic management
C)   the pursuit of an innovation that benefits the ecosystem
D)   the pursuit of an innovation that benefits societyE) All of the above
F) A) and D)

Question 3

In developed economies,the electric car industry is in the introduction stage,and the industry for MP3 players is in the shakeout phase.What does this imply?

Accepted Answer

A)   The mode of competition in the electric car industry will be based on price, whereas in the MP3 player industry, the mode of competition will be non-price based.
B)   The industry for electric cars will focus more on product innovation, whereas in the MP3 player industry, the focus will be on process innovation.
C)   The electric car industry will move to the maturity stage, whereas the industry for MP3 players will enter the growth stage next.
D)   The industry for electric cars will primarily pursue an integration strategy, whereas in the MP3 players industry, the focus will be on differentiation.E) B) and D)
F) B) and C)

Question 4

The typical four-step innovation process begins with

Accepted Answer

A)   the modification and recombination of an existing product or process.
B)   the presentation of an idea as findings derived from basic research.
C)   the commercialization of an invention by entrepreneurs.
D)   a competitor's attempt to imitate an innovation.E) All of the above
F) B) and C)

Question 5

Futura Inc.introduced an automobile that could run completely on electricity for longer periods of time than any other electronic or hybrid automobile.Also,this vehicle was less expensive than the vehicles of competitors.On the downside,it required more repairs than the competition's automobiles.However,the technology of the Futura vehicle improved rapidly,thereby improving its repair record.This example describes

Accepted Answer

A)   architectural innovation.
B)   incremental innovation.
C)   radical innovation.
D)   disruptive innovation.E) All of the above
F) None of the above

Question 6

While the domestic airline industry is in the maturity stage of the industry life cycle,the pet clothing industry is in its growth stage.Which of the following can be inferred from the given data?

Accepted Answer

A)   Competitive intensity will be higher in the domestic airline industry than the pet clothing industry.
B)   The pet clothing industry is ahead of the domestic airline industry in the industry life cycle.
C)   While the domestic airline industry is free from excess capacity, the pet clothing industry will have new entrants.
D)   The mode of competition will be price-based in the pet clothing industry and will be non-price-based in the domestic airline industry.E) C) and D)
F) B) and C)

Question 7

Which of the following statements accurately brings out the difference between technology enthusiasts and early adopters?

Accepted Answer

A)   While the customer segment in the introduction stage consists of early adopters, the customers entering the market in the growth stage are technology enthusiasts.
B)   Unlike technology enthusiasts, early adopters' demand is fueled more by intuition and vision rather than technology concerns.
C)   While early adopters make up the smallest market segment, technology enthusiasts make up the mass market.
D)   Firms need to communicate products' potential applications in a more direct way when attracting technology enthusiasts rather than early adopters.E) B) and D)
F) B) and C)

Question 8

Large companies,such as AT&T,IBM,and GE,have been shifting their knowledge landscape from closed innovation to open innovation because of the

Accepted Answer

A)   decreasing capability of external suppliers and vendors.
B)   lack of reliability on venture capital.
C)   increasing need to internally control research and development.
D)   increasing supply and mobility of skilled workers.E) A) and D)
F) B) and C)

Question 9

Which of the following statements accurately describes social entrepreneurs?

Accepted Answer

A)   Social entrepreneurs are individuals who invest in start-up businesses in order to earn huge returns.
B)   Social entrepreneurs are individuals who rely primarily on social networking sites to generate revenues.
C)   Social entrepreneurs are employees within organizations who are responsible for carrying out lean production.
D)   Social entrepreneurs are those who consider financial, ecological, and social metrics to evaluate their firm's performance.E) C) and D)
F) None of the above

Question 10

The four-step innovation process ends with

Accepted Answer

A)   idea generation.
B)   invention.
C)   idea testing.
D)   imitation.E) None of the above
F) A) and B)

Question 11

Which of the following statements is true of the early majority section of consumers?

Accepted Answer

A)   They come into the market during the introduction stage.
B)   They are unaware that many hyped new product introductions will fade away.
C)   They weigh the benefits and costs carefully when adopting a new product.
D)   They make up the smallest market segment.E) All of the above
F) A) and C)

Question 12

When TrueHeal Pharma Inc.released a new drug to treat insomnia,its chemical composition was disclosed at the back of the drug's cover.However,any attempts by competitors to copy the chemical composition would result in infringement of TrueHeal Pharma's intellectual property rights.Thus,the drug is protected by a

Accepted Answer

A)   promissory bill.
B)   patent.
C)   franchise.
D)   royalty.E) A) and B)
F) A) and C)

Question 13

Which of the following statements is strongly influenced by the not-invented-here syndrome?

Accepted Answer

A)   If a product was created and developed at our company, it probably is good enough.
B)   If a product was not created and developed at our company, it probably is good enough.
C)   If a product was not created and developed at our company, it could not be good enough.
D)   If a product was created and developed at our company, it could not be good enough.E) A) and B)
F) None of the above

Question 14

A firm's ability to understand external technology developments,evaluate them,and integrate them into current products or create new ones is called

Accepted Answer

A)   disruptive innovation.
B)   reverse innovation.
C)   absorptive capacity.
D)   open capacity.E) A) and C)
F) All of the above

Question 15

Which of the following best illustrates a process innovation as opposed to product innovation?

Accepted Answer

A)   a consumer electronics company developing a new generation of tablet computers
B)   an automobile company using computer-aided design in its production
C)   a consumer electronics company launching 3-D televisions
D)   an automobile company commercializing electric carsE) None of the above
F) All of the above

Question 16

General Electric (GE) disrupted itself in the healthcare industry by

Accepted Answer

A)   replacing the top levels of the executive hierarchy.
B)   introducing inexpensive and smaller diagnostic devices in developing countries.
C)   saturating the global market with multiple diagnostic devices.
D)   targeting the comparatively less price-sensitive sections of the market.E) All of the above
F) A) and B)

Question 17

An intrapreneur is described as a person who

Accepted Answer

A)   restricts changes within an organization.
B)   innovates within existing companies.
C)   introduces new products or services by starting his or her own ventures.
D)   invests funds in the ideas of another person in the same organization.E) A) and C)
F) A) and D)

Question 18

Which of the following is a feature of the growth stage of the industry life cycle?

Accepted Answer

A)   The consumer demand increases.
B)   The prices of goods begin to rise.
C)   The basis of competition moves away from process innovation.
D)   The number of competitors decreases.E) All of the above
F) B) and D)

Question 19

In a radical innovation,a firm targets

Accepted Answer

A)   existing markets by using new technologies.
B)   new markets by using existing technologies.
C)   new markets by using new technologies.
D)   existing markets by using existing technologies.E) None of the above
F) A) and D)

Question 20

Which of the following reasons led to the launch of Procter & Gamble's "Connect + Develop," a web-based interface that connects the company's internal-innovation capability with the distributed knowledge in the global community?

Accepted Answer

A)   The company wanted to focus on process innovation rather than product innovation.
B)   The company was no longer able to generate adequate growth through closed innovation.
C)   The company wanted to carefully protect its intellectual property.
D)   The supply and mobility of unskilled workers within the industry had increased drastically.E) A) and B)
F) B) and D)

Exam 7: Business Strategy: Innovation and Entrepreneurship

General Electric (GE) disrupted itself in the healthcare industry by

Correct Answer
verified

Which of the following statements accurately brings out the difference between technology enthusiasts and early adopters?

Correct Answer
verified

An intrapreneur is described as a person who

Correct Answer
verified

A firm's ability to understand external technology developments,evaluate them,and integrate them into current products or create new ones is called

Correct Answer
verified

While the domestic airline industry is in the maturity stage of the industry life cycle,the pet clothing industry is in its growth stage.Which of the following can be inferred from the given data?

Correct Answer
verified

The typical four-step innovation process begins with

Correct Answer
verified

Which of the following lists the stages of the industry life cycle in the correct order?

Correct Answer
verified

Which of the following best illustrates a process innovation as opposed to product innovation?

Correct Answer
verified

The four-step innovation process ends with

Correct Answer
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Which of the following statements is strongly influenced by the not-invented-here syndrome?

Correct Answer
verified

Correct Answer
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Large companies,such as AT&T,IBM,and GE,have been shifting their knowledge landscape from closed innovation to open innovation because of the

Correct Answer
verified

Which of the following statements accurately describes social entrepreneurs?

Correct Answer
verified

In developed economies,the electric car industry is in the introduction stage,and the industry for MP3 players is in the shakeout phase.What does this imply?

Correct Answer
verified

In a radical innovation,a firm targets

Correct Answer
verified

Which of the following statements is true of the early majority section of consumers?

Correct Answer
verified

Correct Answer
verified

Which of the following reasons led to the launch of Procter & Gamble's "Connect + Develop," a web-based interface that connects the company's internal-innovation capability with the distributed knowledge in the global community?

Correct Answer
verified

What is strategic entrepreneurship?

Correct Answer
verified

Which of the following is a feature of the growth stage of the industry life cycle?

Correct Answer
verified

Exam 7: Business Strategy: Innovation and Entrepreneurship

General Electric (GE) disrupted itself in the healthcare industry by

Correct AnswerverifiedShow Answer

Which of the following statements accurately brings out the difference between technology enthusiasts and early adopters?

Correct AnswerverifiedShow Answer

An intrapreneur is described as a person who

Correct AnswerverifiedShow Answer

A firm's ability to understand external technology developments,evaluate them,and integrate them into current products or create new ones is called

Correct AnswerverifiedShow Answer

While the domestic airline industry is in the maturity stage of the industry life cycle,the pet clothing industry is in its growth stage.Which of the following can be inferred from the given data?

Correct AnswerverifiedShow Answer

The typical four-step innovation process begins with

Correct AnswerverifiedShow Answer

Which of the following lists the stages of the industry life cycle in the correct order?

Correct AnswerverifiedShow Answer

Which of the following best illustrates a process innovation as opposed to product innovation?

Correct AnswerverifiedShow Answer

The four-step innovation process ends with

Correct AnswerverifiedShow Answer

Which of the following statements is strongly influenced by the not-invented-here syndrome?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Large companies,such as AT&T,IBM,and GE,have been shifting their knowledge landscape from closed innovation to open innovation because of the

Correct AnswerverifiedShow Answer

Which of the following statements accurately describes social entrepreneurs?

Correct AnswerverifiedShow Answer

In developed economies,the electric car industry is in the introduction stage,and the industry for MP3 players is in the shakeout phase.What does this imply?

Correct AnswerverifiedShow Answer

In a radical innovation,a firm targets

Correct AnswerverifiedShow Answer

Which of the following statements is true of the early majority section of consumers?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following reasons led to the launch of Procter & Gamble's "Connect + Develop," a web-based interface that connects the company's internal-innovation capability with the distributed knowledge in the global community?

Correct AnswerverifiedShow Answer

What is strategic entrepreneurship?

Correct AnswerverifiedShow Answer

Which of the following is a feature of the growth stage of the industry life cycle?

Correct AnswerverifiedShow Answer

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