Globalization of markets has reduced the importance of innovation.
An individual with only a moderate degree of knowledge of a field will be able to
produce more creative solutions than an individual with extensive knowledge of the
field.
In the United States there are no laws to protect trade secrets.
Flexible manufacturing technologies have increased the importance of production
economies of scale.
If an individual knows a field too well, it can stifle creativity.
A loosely coupled structure is better suited for activities that involve exchange of tacit
knowledge.
Dynamic capabilities enable firms to quickly adapt to emerging markets or major
technological discontinuities.
Coalitions of small firms typically have a well-defined system of authority and control.
In the context of innovation productivity, a firm’s overall size is not an
easy-to-manipulate attribute.
Early leaders are firms that are the first to enter the market.
A firm’s effectiveness at managing its collaborations will increase with the number of
collaborations to which it is committed.
It is possible for a firm that follows an s-curve model too closely to end up switching
technologies later than it should.
Managers of lightweight teams are normally junior or middle management employees.
In a functional team approach to new product development, team members remain in
their functional departments and meet periodically to work on the project.
A majority of new product development projects result in an economic return.
According to Anderson and Tushman, in the era of incremental change, most
competition revolves around improving components rather than altering the
architecture.
Quality Function Deployment (QFD) was developed in Germany.
Arica Software Inc. is trying to estimate the “installed base” for its software. It is trying
to assess the number of:
a. substitutes available for its software.
b. developers working on its software.
c. uses for which its software can be applied.
d. users of its software.
A resource can be extremely difficult to imitate if:
a. it can be readily codified in written form.
b. it is not path dependent.
c. it arises through the complex interaction of multiple people.
d. it is clear how the resource gives rise to value.
In the video game console industry, Magnitude was the first firm to introduce a console
in the market. However, consumers were uncertain about the product, and its high costs
discouraged consumers from purchasing it. Eventually, Magnitude withdrew the
product from the market. A few years later, Mantel and Adventura came up with their
respective gaming consoles and successfully established their products. Mantel and
Adventura will be considered as:
a. pioneers.
b. early followers.
c. laggards.
d. late movers.
Which of the following is true of outsourcing?
a. It involves significantly less transaction costs.
b. It is a way to meet market demand with a long-term capital commitment.
c. It is a great way for a company to develop in-house manufacturing capabilities.
d. It carries a risk of proprietary technology being expropriated by the contract
manufacturer.
If the aspects that customers have come to expect in a technology are difficult for
competitors to imitate, a technology leader:
a. will have to bear monopoly costs.
b. can yield sustained monopoly rents.
c. will have lower bargaining power.
d. will have higher switching costs.
Which of the following is true of the autonomous team structure?
a. In autonomous teams, individuals may spend less than 10 percent of their time
working on team-related activities.
b. In autonomous teams, the potential for conflict between team and functions is very
low.
c. In autonomous teams, team members are collocated with a senior project manager.
d. The project manager of an autonomous team is not given full control over resources.
According to the net present value (NPV) method of evaluation of projects, if there are
cash outflows for multiple periods, then:
a. the NPV of the project will definitely be negative.
b. the NPV of the project will definitely be positive.
c. the discount rate will need to be altered.
d. those cash outflows will have to be discounted back to the current period.
Matrix Technologies Inc. has recently developed a new personal digital assistant
(PDA). The marketing director of the firm says that the firm should not use a large
sample of customers to test the market for its new PDA. Instead, it should focus on the
inputs of _____, because they have the same general needs as the marketplace, but are
likely to face them earlier than the bulk of the market.
a. focus groups
b. lead users
c. antichampions
d. laggard customers
Under U.S. patent law, which of the following is one of the mandatory requirements to
be met by a new invention in order to be eligible for receiving a patent?
a. It must be obvious.
b. It must be novel.
c. It must substitute one material for another.
d. It must substitute an element for an equivalent element.
Alpha Cleaning Equipment Co. wants to use the house of quality matrix in designing
and developing a new vacuum cleaning machine. What is the last step that Alpha will
have to take?
a. Determine the relative value or weight of customer requirements.
b. Create a new design based on the design targets.
c. Identify engineering attributes that determine the performance of the vacuum cleaner.
d. Evaluate competing products to determine how well they meet customer needs.
Albert has put together a new product development team based on the functional team
structure. Which of the following is most likely to be true about this team?
a. Team members will spend up to 50% of their time on team-related activities.
b. The team will typically require dedicated liaison personnel.
c. The team will have a high degree of cross-functional integration.
d. The team structure will be straightforward to implement.
Gemini Car Inc. buys car components from other manufacturers and assembles them
into cars, which it sells under its own brand name. This is an example of:
a. pirate operator.
b. original equipment manufacturer (OEM).
c. disintermediation.
d. category captain.
_____ refer to costs (or benefits) of technological innovations that are borne by
individuals other than those responsible for creating them.
a. Externalities
b. Innovation funnels
c. Opportunity costs
d. Cultural lags
The difference between patents and copyrights is that:
a. copyrights can last as long as the copyrighted work is in use, but the registration
requires periodic renewal.
b. copyright protection is secured automatically when an eligible work is created and
fixed in a copy.
c. patents are a form of protection granted to works of authorship.
d. patents are established by legitimate use of the patented invention.
Which of the following is considered a radical innovation?
a. Introducing a range of cell phones with different colors and patterns on the cover
b. Reducing the size and weight of a cell phone, to make it more compact and easier to
carry
c. Developing a cell phone that allows customers to scan the prices of the products in
stores and make payments for their purchases
d. Increasing the clarity of a cell phone’s camera by replacing the three megapixel
camera with a five megapixel camera
New innovations typically tend to:
a. be adopted very slowly at first.
b. have a rapid initial takeoff.
c. provide high sales revenue when they are first introduced.
d. be adopted as soon as they are introduced.
When Western Franchise Services announced that its plans to go international in the
next 15 years, it stated its:
a. core competence.
b. inventory of capabilities.
c. strategic intent.
d. supplier bargaining power.
Susan, a biologist, works in the research and development department of a chemical
company. The company has assigned her to study the reproduction processes of various
insects to develop an effective technique to control insect damage to crops. The type of
research Susan is engaged in is called _____ research.
a. basic
b. applied
c. exploratory
d. quantitative
As a firm grows bigger it becomes:
a. easier to effectively monitor and motivate employees.
b. less vulnerable to bureaucratic inertia.
c. less efficient in R&D due to loss of managerial control.
d. increasingly easy for individual scientists to appropriate the returns of their efforts.
Dynamix Developers Co. wants to develop its technology very fast, with low cost and
low control. It would also like to leverage its existing competencies without developing
new competencies, and may need to access the competencies of other firms. Which of
the following is the best mode of development for Dynamix Developers to meet these
criteria?
a. Solo internal development
b. Joint venture
c. License out
d. Collective research organization
What are the some of the negative impacts on society due to technological innovation?
How would you answer critics of technological innovation who cite these negative
impacts?
Even though many aerospace manufacturing firms are very profitable, there are very
few upcoming firms. Explain the reason using Porter’s five-force model.
BioSense Prosthetics was a leader in the prosthetic arm market and profits from its
prosthetics were very high. BioSense developed a computerized prosthetic arm and is
trying to decide when to introduce it to the market. What options does it have?
Phoenix Motor Company is considering using loosely-coupled organizational structure.
They have asked for your evaluation of such a structure and if you would recommend it
for an automobile manufacturer. Provide your answer.
Biotrue produces tissues and diagnostics substances for three market segments:
hospitals, universities, and pharmaceutical companies. The firm is trying to decide
whether to decentralize its R&D activities by division or not. You have been called in as
a consultant to explain the advantages and disadvantages of such a move. What will
your opinion be?