Question 1

Product champions

Accepted Answer

A)   are typically senior executives.
B)   are usually inventors of some sort.
C)   scavenge for resources and encourage others to back promising new ideas.
D)   are strong supporters of the status quo. C

Question 2

First movers in an industry often capture above-average profits but usually find it difficult to maintain early market share gains.

Accepted Answer

A) True 
 B)False  False

Question 3

From watching his wife struggle to keep track of the family finances, Intuit founder Scott Cook identified the need for easy-to-use financial software that provided a single place formanaging bills, bank accounts, and investments. This is an example of which innovator DNA trait?

Accepted Answer

A)   experimenting
B)   associating
C)   observing
D)   networking C

Question 4

What are new venture groups? What purpose do they serve? Are they more than a typical R&D department? Explain.

Accepted Answer

The answer of What are new venture groups? What purpose...

Question 5

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 scale

Question 6

One of the following is not a question that should be answered when evaluating the performance of corporate venturing efforts. Which is it?

Accepted Answer

A)   Is the venture attracting external venture funding?
B)   Is the venture considered to be a market success?
C)   Does the venture add to the worth of the firm internally?
D)   Does the value proposition offered by the venture insulate it from competitive attack?

Question 7

After 15 teams created 128 different phones, Chris Galvin, former CEO of Motorola, eliminated the autonomous teams being used to develop new wireless phones. This was necessary becausesuch teams

Accepted Answer

A)   often lack coordination.
B)   typically waste the CEOs attention.
C)   create efficiencies through duplication of effort.
D)   never duplicate efforts of the rest of the firm.

Question 8

One of the following statements about innovativeness is false. Which is it?

Accepted Answer

A)   Innovativeness refers to making decisions and taking risks without certain knowledge of probable outcomes.
B)   Innovativeness refers to efforts of a firm to find new opportunities and novel solutions.
C)   Innovativeness involves creativity and experimentation.
D)   Innovativeness is aimed at developing new products, services, and processes.

Question 9

________ refers to efforts to create designs and applications of technology to develop new products, while ________ refers to efforts to improve the efficiency of organizational systems such as manufacturing and operations.

Accepted Answer

A)   Radical innovation; incremental innovation
B)   Breakthrough innovation; instrumental innovation
C)   Product innovation; process innovation
D)   Product innovation; service innovation

Question 10

Product innovations are commonly associated with a differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 11

Some of the most common applications of real options are with property and insurance. A real estate option grants the holder the right to buy or sell a piece of property at an establishedprice sometime in the future. If the price of the property goes ________, the owner of the option is likely to buy it. If the market value of the property ________ the strike price, the option holder is unlikely to execute the purchase.

Accepted Answer

A)   down; goes above
B)   down; drops below
C)   up; drops below
D)   up; goes above

Question 12

Michael Lazaridis got the idea for a wireless email device that led him to found Research in Motion, now called BlackBerry, from a conference he attended. At the conference, a speakerwasdiscussing a wireless system Coca-Cola was using that allowed vending machines to send a signal when they needed refilling. Lazaridis saw the opportunity to use the same concept with email communications, and the idea for the smartphone was hatched. This is an example of which innovator DNA trait?

Accepted Answer

A)   experimenting
B)   associating
C)   observing
D)   networking

Question 13

Define the five dimensions of an entrepreneurial orientation and why are they important?

Accepted Answer

The answer of Define the five dimensions of an entrepreneurial...

Question 14

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.

Question 15

Pierre Omidyar saw the opportunity that led to eBay when he linked three items: (1) a personal fascination with creating more efficient markets, (2) the desire of his fiancée to locatehard-to-find collectible Pez dispensers, and (3) the ineffectiveness of local classified ads in locating such items. This is an example of which innovator DNA trait?

Accepted Answer

A)   questioning
B)   associating
C)   experimenting
D)   networking

Question 16

Which of the following do corporate business incubators typically not provide?

Accepted Answer

A)   physical space
B)   mentoring
C)   funding
D)   student interns

Question 17

________ are the benefits gained by firms that are the first to enter new markets, establish brand identity, and/or adopt new technologies.

Accepted Answer

A)   Competitive aggressiveness
B)   Technological capabilities
C)   First-mover advantages
D)   Breakthrough innovations

Question 18

According to the text, ________, which support fledgling startups are often used to pursue specific entrepreneurial ventures developed by ________.

Accepted Answer

A)   collaboration partners; strategic partners
B)   business incubators; new venture groups
C)   product champions; corporate venture capitalists
D)   lower-level managers; upper-level managers

Question 19

According to researchers from Drexel University and Rutgers University as presented in the Journal of Management, in industries that rely heavily on intellectual capital, such as technology, life sciences, or the arts, the loss of talented employees may have an unexpected benefit for the organization. While turnover of star scientists did disrupt innovation related to existing lines of research in the companies, it also increased the rate of innovation in previously unexplored areas. Companies adapt to the loss of talent by exploring products, brands, and methods they may not have otherwise considered. Which of the following statements is not a key takeaway from this research?

Accepted Answer

A)   The loss of talented employees disrupts innovation related to established products.
B)   The loss of talented employees allows fresh perspectives and ideas to emerge.
C)   Companies adapt to star turnover by innovating in formerly unexplored areas.
D)   Employee turnover broadly hurts an organization.

Question 20

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 riseto

Accepted Answer

A)   managerial conceit.
B)   the illusion of control.
C)   escalation of commitment.
D)   agency problems.

Exam 12: Managing Innovation and Fostering Corporate Entrepreneurship