Question 1

Microsoft has difficulty increasing its innovativeness.One of the challenges has been that the conservatism of the culture of the firm has led to a focus on _____________ over innovation.

Accepted Answer

A)   long term profitability
B)   short term costs
C)   long term costs
D)   short term profitabilityE) A) and D)
F) A) and B)

Question 2

Research indicates that leaders of innovative firms spend 50 percent more time on discovery activities than the leaders of less innovative firms.

Accepted Answer

A) True 
 B)False

Question 3

Corporate venturing that is focused permeates all parts of the organization and involves every member of the organization.

Accepted Answer

A) True 
 B)False

Question 4

Fostering creativity and experimentation is the only innovativeness technique that company managers should consider when identifying and launching corporate ventures.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not part of a culture of entrepreneurship?

Accepted Answer

A)   The search for venture opportunities permeates every part of the organization.
B)   Every value chain activity is viewed as a source of entrepreneurial value creation.
C)   Employees at every level are attuned to opportunities to help create new businesses.
D)   Only those directly involved in the innovation effort are attuned to new opportunities to create business.E) B) and C)
F) B) and D)

Question 6

Which of the following is not an advantage of collaborating with strategic partners in order to innovate?

Accepted Answer

A)   obtaining skills and new knowledge from outside sources
B)   making firms identify their own strengths and weaknesses
C)   managers clarifying what an innovation project requires to be successful and who will accomplish it
D)   decreasing economies of scaleE) C) and D)
F) A) and D)

Question 7

The failure of the Motorola Iridium global satellite telecom project was a result of its exit champion.

Accepted Answer

A) True 
 B)False

Question 8

As an industry matures,there are greater opportunities for change and so innovations tend to be more radical.

Accepted Answer

A) True 
 B)False

Question 9

Corporate business incubators often provide physical space and business services to internal ventures,but not funding.

Accepted Answer

A) True 
 B)False

Question 10

Intel uses option contracts for the right to purchase key pieces of equipment at a specific future date.They simulate the likelihood that they will need to purchase a specific piece of equipment and then create the options contracts to reduce risk and potentially save money.

Accepted Answer

A) True 
 B)False

Question 11

In corporations with a strong entrepreneurial culture,the willingness and ability to change

Accepted Answer

A)   is imposed from the top-down.
B)   is considered a core capability.
C)   often leads to instability.
D)   often worries stakeholders such as suppliers and creditors.E) A) and C)
F) A) and B)

Question 12

One of the pitfalls of real options analysis is that managers may have an incentive and know-how to game the system and back-solve a formula to get a proposal approved.This can give rise to

Accepted Answer

A)   managerial conceit.
B)   the illusion of control.
C)   escalation of commitment.
D)   agency problems.E) C) and D)
F) All of the above

Question 13

Product innovations are commonly associated with a differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 14

McGrath and Keil researched the types of human resource management practices that effective firms use to capture value from their innovation efforts.Which of the following is not one of their findings?

Accepted Answer

A)   Create innovation teams with experienced players.
B)   Require that employees serve in the new venture group as part of their career climb.
C)   Transfer people to mainstream management positions after they have experience in the new venture group.
D)   Integrate the performance of individuals with the performance of the innovation.E) None of the above
F) All of the above

Question 15

If managers believe that their abilities can reduce the risks inherent in decision making to a much greater extent that they actually can,they might demonstrate ______ and trust only their own judgment rather than conduct sufficient analysis.

Accepted Answer

A)   agency problems
B)   the illusion of control
C)   managerial conceit
D)   escalation of commitmentE) A) and B)
F) B) and D)

Question 16

A strategic decision can contain embedded options,which is a _________ of investments in which at each stage of the investment there is ______ decision.

Accepted Answer

A)   basket; a permanent
B)   series; a go/no-go
C)   portfolio; a final
D)   series; a tentativeE) B) and D)
F) All of the above

Question 17

Competitive aggressiveness is a response to threats whereas proactiveness is a response to opportunities.

Accepted Answer

A) True 
 B)False

Question 18

There are two major avenues through which companies can expand or improve their business.One is innovation and the other is strategic renewal.

Accepted Answer

A) True 
 B)False

Question 19

In evaluating the effectiveness of the venturing initiatives of a corporation,marketplace acceptance of the new products or services needs to be assessed.

Accepted Answer

A) True 
 B)False

Question 20

The innovation dilemma known as seeds versus weeds refers to

Accepted Answer

A)   choosing to pursue radical rather than incremental innovations.
B)   choosing to pursue product rather than process innovations.
C)   promoting organizational stars onto innovation teams rather than involving all employees in innovation efforts.
D)   choosing to pursue investment in one innovative idea over another.E) All of the above
F) None of the above

Exam 12: Managing Innovation and Fostering Corporate Entrepreneurship

Corporate business incubators often provide physical space and business services to internal ventures,but not funding.

Correct AnswerverifiedShow Answer

Which of the following is not an advantage of collaborating with strategic partners in order to innovate?

Correct AnswerverifiedShow Answer

McGrath and Keil researched the types of human resource management practices that effective firms use to capture value from their innovation efforts.Which of the following is not one of their findings?

Correct AnswerverifiedShow Answer

Intel uses option contracts for the right to purchase key pieces of equipment at a specific future date.They simulate the likelihood that they will need to purchase a specific piece of equipment and then create the options contracts to reduce risk and potentially save money.

Correct AnswerverifiedShow Answer

One of the pitfalls of real options analysis is that managers may have an incentive and know-how to game the system and back-solve a formula to get a proposal approved.This can give rise to

Correct AnswerverifiedShow Answer

In evaluating the effectiveness of the venturing initiatives of a corporation,marketplace acceptance of the new products or services needs to be assessed.

Correct AnswerverifiedShow Answer

Which of the following is not part of a culture of entrepreneurship?

Correct AnswerverifiedShow Answer

As an industry matures,there are greater opportunities for change and so innovations tend to be more radical.

Correct AnswerverifiedShow Answer

Competitive aggressiveness is a response to threats whereas proactiveness is a response to opportunities.

Correct AnswerverifiedShow Answer

Research indicates that leaders of innovative firms spend 50 percent more time on discovery activities than the leaders of less innovative firms.

Correct AnswerverifiedShow Answer

In corporations with a strong entrepreneurial culture,the willingness and ability to change

Correct AnswerverifiedShow Answer

There are two major avenues through which companies can expand or improve their business.One is innovation and the other is strategic renewal.

Correct AnswerverifiedShow Answer

Microsoft has difficulty increasing its innovativeness.One of the challenges has been that the conservatism of the culture of the firm has led to a focus on _____________ over innovation.

Correct AnswerverifiedShow Answer

If managers believe that their abilities can reduce the risks inherent in decision making to a much greater extent that they actually can,they might demonstrate ______ and trust only their own judgment rather than conduct sufficient analysis.

Correct AnswerverifiedShow Answer

The innovation dilemma known as seeds versus weeds refers to

Correct AnswerverifiedShow Answer

Fostering creativity and experimentation is the only innovativeness technique that company managers should consider when identifying and launching corporate ventures.

Correct AnswerverifiedShow Answer

The failure of the Motorola Iridium global satellite telecom project was a result of its exit champion.

Correct AnswerverifiedShow Answer

Corporate venturing that is focused permeates all parts of the organization and involves every member of the organization.

Correct AnswerverifiedShow Answer

Product innovations are commonly associated with a differentiation strategy.

Correct AnswerverifiedShow Answer

A strategic decision can contain embedded options,which is a _________ of investments in which at each stage of the investment there is ______ decision.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

A strategic decision can contain embedded options,which is a ___ of investments in which at each stage of the investment there is decision.

Correct Answer
verified