Chapter 14 – Innovation and Entrepreneurship
Chapter 14
Innovation and Entrepreneurship
Multiple Choice Questions
1. (p. 399) A recent study by Boston Consulting Group found that the executives indicated their
three biggest problems with innovation. Which of the following is NOT one of those biggest
problems according to the study?
2. (p. 399) _________ is the creation of new products or processes through the development of
new knowledge or from new combinations of existing knowledge.
3. (p. 400) __________ is the initial commercialization of invention by producing and selling a
new product, service or process.
4. (p. 400) __________ is turning ideas into profits.
5. (p. 400) The iPod is an example of ____ innovation, while iTunes is an example of ______
innovation.
6. (p. 400) Which of the following is NOT a primary method of innovation?
7. (p. 400) ________ refers to simple changes or adjustments in existing products, services or
processes.
8. (p. 400) _________, called kaizen in Japanese, is the process of relentlessly trying to find
ways to improve and enhance a company’s products and processes from design through
assembly, sales and service.
9. (p. 400) A major driver of ______ innovation in many companies the last several years has
come from programs aimed at continuous improvement, cost reduction, and quality
management.
10. (p. 401) CCC21 stands for:
11. (p. 402) ________ is a continuous improvement approach many companies have adopted to
spur incremental innovation in their businesses. It is a very rigorous and analytical approach
in quality and continuous improvement.
12. (p. 402) The DMAIC (define, measure, analyze, improve, control) process is relevant to
13. (p. 405) __________ are inherently more risky than ___________.
14. (p. 405) A(n) ___________ is an innovation in a product, process, technology or the cost
associated with it that represents a quantum leap forward in one or more of these ways.
15. (p. 405) A _____ technology is distinct from a “disruptive” technology.
16. (p. 402) Breakthrough innovations are also called ______ innovations.
17. (p. 407) ________ is an idea factor involving actively looking for an answer to a known
problem.
18. (p. 407) _________ is an idea factor involving finding a new way of using an existing
technology.
19. (p. 407) __________ is an idea factor involving things dreamed up in the head with little
reference to the outside world.
20. (p.407) _________ are serendipitous moments when innovators stumbled on something they
were not looking for but immediately recognized its significance.
21. (p.408) _______ is an idea factor involving traditional research techniques to find ideas.
22. (p. 408) ___________ is an idea factor involving following demographic and other broad
trends and trying to develop ideas that may be relevant and useful.
23. (p. 408) Managers ask if they can retain existing customers and improve targeted coverage of
existing and similar new customers, without innovation. Which of the following points about
managing risk relates to this question?
24. (p. 408) Tweaking a business process does not incur much:
25. (p.408) Incremental business process innovations can:
26. (p. 409) While ________ may under perform established products in mainstream markets,
they often offer features or capabilities appreciated by some fringe customer group.
27. (p. 410) __________ with other firms that have an interest in a possible innovation share the
costs and risks associated with the effort.
28. (p. 411) ____________ are also referred to as “crowdsourcing” or “open innovation.”
29. (p. 414) ____________ is the process of bringing together creative and innovative ideas and
actions with the management and organizational skills necessary to mobilize the appropriate
people, money and operating resources to meet an identifiable need and create wealth in the
process.
30. (p. 414) __________ are exceptional for their technical talents, insights and creativity, but
their creations are often unsuccessful in becoming commercial realities.
31. (p. 414) __________ are clever at devising schemes or programs to push a product or
service, but aimed more at a quick payoff than a profitable, business building endeavor for the
longer term.
32. (p. 414) Good _______ develop strong management skills, specific business know-how and
the ability to organize people.
33. (p. 414) _______ usually take pride in overseeing the smooth, efficient functioning of
operations largely as they are.
34. (p. 414) The ideal ________ has strength in both creativity and management.
35. (p. 414) Because certain ideal strengths rarely coexist in one individual, __________ is
increasingly found to involve teams of people that combine their strengths.
36. (p. 416) When entrepreneurs can sell their product or service at gross margins in the
________ range, there is an attractive cushion built in that covers the mistakes they are likely
to make while developing a new enterprise.
37. (p. 417) The entrepreneur or team must possess the knowledge and skill necessary to create
the products or services the new venture will provide. This refers most directly to the
entrepreneur’s: