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• A type of innovation that can be classified according to the context in which new products or services are introduced:

  • Product
  • Position
  • Paradigm
  • Process
• Wanting to improve existing capabilities in existing markets and having a clear idea of what problems need to be solved and what skill domains are required to solve them is known as:

  • Basic Research
  • Sustaining Innovation
  • Disruptive Innovation
  • Breakthrough Innovation
• Assuring a good fit between the overall business strategy and the proposed change, not innovating because it is fashionable or as a knee-jerk response to a competitor is:

  • Recognizing
  • Aligning
  • Learning
  • Discovering
• Broadly, the following is not an activity in the general innovation process:

  • Implementation
  • Search
  • Selection
  • Acquisition
• Misleading assertion about innovation in small firms:

  • Small firms make most of the minor innovations
  • Small firms make few innovations since they do so little R&D
  • New small firms create a lot of employment
  • Small firms are much more innovative than large firms, since they account for a higher share of innovations than of R&D
• Factors influencing a firm's capacity to benefit commercially from its technology, except

  • Product Complexity
  • Accumulated Tacit knowledge
  • Pioneering radical new products
  • Technological Leadership
• whic h is not a Learning from foreign innovation systems:

  • They will be the sources of firms with a strong capacity to compete through innovation
  • They are also potential sources of improvement in the corporate management of innovation, and in national systems of innovation
  • Firms can benefit more specifically from the technology generated in foreign systems of innovation
  • None of the above
• Pace of change of the relevant science, technology, and markets which influence effective innovation strategy and management according to Roger Miller and team:

  • Institution
  • Velocity
  • Challenge
  • Uncertainty
• True about technological evolution:

  • Information technology has higher pervasiveness of production than in microelectronic
  • Visibility in statistics of 'microelectronic' is lower than IT
  • IT focuses on the electronics industry while Microelectronic focuses on manufacturing and services
  • IT has lesser corporate functions than in 'microelectronic'
• Identifying resources within business units, recognizing where these might be exploited by other BUs, and implementing the necessary organizational changes to execute the transfer is known as:

  • Reconfiguration
  • Leveraging
  • Learning
  • Integration
• Factors affecting the right balance between corporate and divisional initiatives in R&D, except

  • Firm's main technological trajectory
  • Degree of maturity of the technology
  • Executive-level compensation
  • Links to 'new science-based' technologies
• Definition of why an organization exists:

  • Mission
  • Vision
  • Values
  • Profit
• not a Benefit of strategic planning:

  • It creates a single, forward-focused vision that can align a company and its shareholders
  • It forces the participants to examine and explain why they're making each decision and back it up with data, projections, or case studies, thus combatting their cognitive biases
  • It requires time, effort, and continual reassessment
  • It can enable one to track progress toward goals
• Integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets:

  • Business-level Strategy
  • Corporate-level Strategy
  • International-level Strategy
  • National-level Strategy
• Foundation of successful business-level strategies:

  • Owners
  • Shareholders
  • Creditors
  • Customers
• Core strategy that describes how a firm intends to compete in a product market:

  • Business-level Strategy
  • Corporate-level Strategy
  • International-level Strategy
  • National-level Strategy
• Building blocks of competitive advantage, except:

  • Efficiency
  • Innovation
  • Quality
  • Conscientiousness
• Least efficient among the following:

  • Low productivity of labor
  • Low cost of direct materials
  • Low cost of factory overhead
  • Low cost of indirect materials
• High level of responsiveness to customers is suggested by:

  • Plenty of repeat customers
  • High customer defection rates
  • Late delivery to customers
  • High volume of customer complaints
• True statement about cost differentiation and cost structure decisions:

  • Differentiation and cost structure decisions affect one another
  • To maximize profitability, managers must choose a premium pricing option that compensates for the extra costs of product differentiation, one which is high enough so that it inhibits the increase in expected demand
  • To increase profitability, managers must search for additional ways to reduce the cost structure, and harm the differentiated appeal of its products
• Business model based on using cost leadership to compete for customers by offering low-priced products to only one, or a few, market segments is called:

  • Differentiation
  • Segmented business model
  • Focused cost leadership
  • Differentiation
• Disadvantage of focused cost leadership:

  • Because it has no cost disadvantage in its market segments, a focused cost leader also operates on the value creation frontier, and therefore earns above-average profits
  • The focused cost leader concentrates on small-volume custom products, for which it has a cost advantage
  • A focused company makes and sells only a relatively small quantity of a product, so its cost structure will often be higher than that of the cost leader
• Value creation by building upon or extending all the following, except:

  • Resources
  • Capabilities
  • Core competencies
  • None of the above
• If Crocs only sells shoes, it is involved in a:

  • Single business
  • Dominant business
  • Highly diversified business
  • Moderately diversified business
• More links among businesses lead to more ________ relatedness of diversification:

  • Unrelated
  • Constrained
  • Diverse
  • Uniform
• Reason for diversification that does not create (or creates the least) value:

  • Sharing activities
  • Transferring core competencies
  • Increasing the salaries of managers
  • Allocating capital efficiently
• Existence when the value created by businesses working together exceeds the value created by them working independently:

  • Interdependence
  • Metanoia
  • Synergy
  • Diversification
• Conglomerates are generally classified as having which type of diversification:

  • Dominant Business
  • Unrelated
  • Single business
  • All of the above
• When a firm generates cost savings because of either sharing activities or transferring core competencies between and among its businesses, it has most likely achieved:

  • Economies of scope
  • Economies of scale
  • Synergy
  • Market power
• Definition of vertical integration:

  • Vertical integration is when the firm stands up for what is right and values integrity as an integral pillar of the company's success
  • Vertical integration is when a firm takes ownership of a firm in a different industry
  • Vertical integration is when a firm expands by gaining ownership of its suppliers or distributors
  • Vertical integration is when a firm merges with another firm
• Component of the innovative organization dealing with promoters, champions, gatekeepers, and other roles which energize or facilitate innovation:

  • Key Individuals
  • Group Efforts
  • Internal and External customers
  • Organizational Structure
• Not true about a mission-oriented structural archetype:

  • There could be an overdependence on key visionaries to provide clear purpose, and lack of "buy-in" to the corporate mission
  • Normally, the organization has a clear sense of common purpose and the empowerment of individuals to take initiatives in that direction
  • Employees have high commitment and can take initiatives without reference to others because of shared views about the overall goal
  • Has control and formal sanctions
• Structural archetype with a decentralized organic form designed to adapt to local environmental challenges:

  • Simple Structure
  • Adhocracy
  • Professional Bureaucracy
  • Divisionalized Form
• Structural archetype with control largely achieved through consensus on standards and individuals possess a high degree of autonomy:

  • Simple Structure
  • Adhocracy
  • Professional Bureaucracy
  • Divisionalized Form
• Structural archetype that is a centralized organic type which is centrally controlled but can respond quickly to changes in the environment:

  • Simple Structure
  • Adhocracy
  • Professional Bureaucracy
  • Divisionalized Form
• Long-term commitment to education and training to ensure high levels of competence and the skills to learn effectively is a representation of:

  • High involvement in innovation
  • Effective team working
  • Learning organization
  • Continuing and stretching individual development
• Improvement through stretching individuals on training and development, excluding:

  • Empowerment
  • Change management
  • Reward mechanism
  • Temporary suspension
• Level of involvement requiring a high degree of understanding of, and commitment to, the overall strategic objectives, together with training to a high level:

  • Level 1
  • Level 2
  • Level 3
  • Level 4
• Elements of effective high-performance teams, except:

  • Effective team leadership
  • Good balance of team roles and match to individual behavioral style
  • Clearly defined tasks and objectives
  • Presence of weak conflict resolution mechanisms within the group
• 21. Which of the following statements about cost leadership is true?

  • The cost leader has an advantage over industry competitors because it has a lower cost structure. So, it’s
  • less affected than its competitors by increases in the price of inputs if there are powerful suppliers, and less affected by the lower prices it can charge if powerful buyers exist.