download full le at http://testbankcafe.com Strategic Management and Business Policy, 13e - Web Web Chapters (Wheelen/unger! Web Chapter A: Strategic Issues in Managing Technology and Innovation 1! "nno#ation and the management o$ technology are not crucial to corporate success% &ns'er )&*S+ i$$ 1 Pag Page e e$ &-. opic opic he ole o$ Management .! he importance o$ technology and inno#ation must be emphasi0ed by top management and rein$orced by all employees in the company% compan y% &ns'er + i$$ 1 Pag Page e e$ &-. opic opic he ole o$ Management 3! Bet'een 332 and 42 o$ all ne' products that reach the mar5et $ail to ma5e a pro$it% &ns'er + i$$ 1 Pag Page e e$ &-6 opic opic he ole o$ Management 6! esearch re#eals that $irms that $ocus in'ard on their core competencies as a 'ay to generate ne' products or processes are more inno#ati#e% &ns'er )&*S+ i$$ 1 Pag Page e e$ &-7 opic opic "ssues in in Corporate 8o#ernance 7! )ocusing one9s scanning e$$orts too closely on one9s current product line are dangerous% &ns'er + i$$ 1 Pag Page e e$ &-7 opic opic "ssues in in Corporate 8o#ernance ! &ccording to :o :on ippel, customers are a 5ey source o$ inno#ations in many industries% &ns'er + i$$ 1 Pag Page e e$ &- opic opic "ssues in in Corporate 8o#ernance ;! *ead users are companies, organi0ations, or indi#iduals that are 'ell ahead o$ mar5et trends and ha#e needs that go $ar beyond those o$ the a#erage user% &ns'er + i$$ 1 Pag Page e e$ &- opic opic "ssues in in Corporate 8o#ernance
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download full le at http://testbankcafe.com =! Mar5et research is used to sur#ey current users as to 'hat they 'ould li5e in a ne' product% &ns'er + i$$ 1 Pag Page e e$ &-; opic opic "ssues in in Corporate 8o#ernance 14! Mar5et research is a good source to pro#ide the in$ormation needed $or radical inno#ation% &ns'er )&*S+ i$$ 1 Pag Page e e$ &-; opic opic "ssues in in Corporate 8o#ernance 11! *eading $irms o$ten $ail to s'itch to the ne' technology a#ailable because management is ignorant o$ the ne' de#elopment% &ns'er )&*S+ i$$ 1 Pag Page e e$ &-; opic opic "ssues in in Corporate 8o#ernance 1.! Some success$ul companies are de#eloping their products by probing potential mar5ets 'ith early #ersions o$ the products, learning $rom the probes, and probing again% &ns'er + i$$ i$$ 1 Page Page e$ e$ &-; - &-< opic opic "ssues in in Corporate 8o#ernance 13! Microso$t $ollo's an embrace and e>tend strategy o$ imitating ne' products de#eloped by pioneers, re$ining them, and out-mar5eting the competition% &ns'er + i$$ 1 Pag Page e e$ &-< opic opic "ssues in in Corporate 8o#ernance 16! ? intensity is a principal means o$ gaining mar5et share in global competition% &ns'er + i$$ 1 Pag Page e e$ &-< opic opic "ssues in in Corporate 8o#ernance 17! ime ime to mar5et in the 1=<4s 'as generally accepted to be ; to 11 years@ today it is closer to 1. to 17 years% &ns'er )&*S+ i$$ 1 Pag Page e e$ &-= opic opic "ssues in in Corporate 8o#ernance 1! esearch indicates that too much emphasis by a $irm on e$$iciency-oriented process ? can dri#e out product ? % &ns'er + i$ i$$ 1 Page Page e$ e$ &-14 -14 opic opic Aot-$or-Pro$it Aot-$or-Pro$it Strategies Strategies
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download full le at http://testbankcafe.com 1;! echnology sourcing, typically a sell-or-buy decision, can be important in a $irm9s ? strategy% &ns'er )&*S+ i$$ 1 Page e$ &-14 opic Aot-$or-Pro$it Strategies 1cellent ? strategy especially in a stable, lo' technology en#ironment 'here second mo#ers ha#e an ad#antage% &ns'er )&*S+ i$$ 1 Page e$ &-11 opic Aot-$or-Pro$it Strategies .4! &bsorpti#e capacity is a $irm9s ability to #alue, assimilate, and utili0e ne' e>ternal 5no'ledge% &ns'er + i$$ 1 Page e$ &-13 opic Aot-$or-Pro$it Strategies .1! he product/mar5et e#olution matri> depicts the types o$ de# eloping products that cannot be easily sho'n on other port$olio matrices% &ns'er + i$$ 1 Page e$ &-17 opic Aot-$or-Pro$it Strategies ..! With the product/mar5et e#olution matri>, the circles represent the si0es o$ the industries in#ol#ed, and the pie 'edges represent the mar5et shares o$ the $irm9s business product lines% &ns'er + i$$ 1 Page e$ &-17 opic Aot-$or-Pro$it Strategies .3! he $irst stage o$ ne' product de#elopment is p reliminary design% &ns'er )&*S+ i$$ 1 Page e$ &-17 opic "mportance o$ Small Business and +ntrepreneurial :entures .6! he $inal stage o$ ne' product de#elopment is ne' business de#elopment% &ns'er + i$$ 1 Page e$ &-17 opic "mportance o$ Small Business and +ntrepreneurial :entures
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download full le at http://testbankcafe.com .7! &ccording to the boo5 Diffusion of Innovations, inno#ati#e organi0ations tend to ha#e a positi#e attitude to'ard change% &ns'er + i$$ 1 Page e$ &-1 opic "mportance o$ Small Business and +ntrepreneurial :entures .! & sponsor is usually a department manager 'ho recogni0es the #alue o$ the idea, helps obtain $unding to de#elop the inno#ation, and $acilitates its implementation% &ns'er + i$$ 1 Page e$ &-1 opic "mportance o$ Small Business and +ntrepreneurial :entures .;! & product champion is a person 'ho generates a ne' idea and supports it through many organi0ational obstacles% &ns'er + i$$ 1 Page e$ &-1 opic "mportance o$ Small Business and +ntrepreneurial :entures .
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download full le at http://testbankcafe.com 3.! &ccording to research conducted by )orbes and others, the most important dri#er o$ corporate #alue $or both durable and non-durable companies is said to be &! mass customi0ation% B! inno#ation% C! synergy% ! logistics% +! $le>ible manu$acturing% &ns'er B i$$ 1 Page e$ &-. opic he ole o$ Management 33! &ppro>imately ho' much o$ the pro$its o$ all %S% companies come $rom products launch ed in the pre#ious ten yearsD &! 742 B! 1442 C! <42 ! .42 +! less than 12 &ns'er & i$$ 1 Page e$ &-. opic he ole o$ Management 36! & study o$ 111 success$ul and < unsuccess$ul product inno#ations $ound that the success$ul inno#ations had some o$ 'hich o$ the $ollo'ing $eaturesD &! hey 'ere moderately ne' to the mar5et% B! hey 'ere based on tried-and-tested technology% C! hey sa#ed money, met customer needs, and supported e>isting practices% ! all o$ the abo#e +! none o$ the abo#e &ns'er i$$ 1 Page e$ &-6 opic he ole o$ Management 37! & study by Euc0mars5i ? &ssociates re#ealed that FFFFFFFF o$ all ne'ly introduced products 'ere still being sold $i#e years later% &! .12 B! 372 C! 72 ! <42 +! =72 &ns'er C i$$ 1 Page e$ &-7 opic "ssues in Corporate 8o#ernance
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download full le at http://testbankcafe.com 3! "n$ormation that assesses 'here brea5throughs are li5ely to occur can be depicted on a &! technology chart% B! technology strategic blueprint% C! technology roadmap% ! technology high'ay% +! technology monograph% &ns'er C i$$ 1 Page e$ &-7 opic "ssues in Corporate 8o#ernance 3;! Most ne' de#elopments that threaten e>isting business practices and technologies come $rom &! 'ithin one9s o'n industry% B! outside one9s o'n industry% C! one9s current competitors% ! 'ithin one9s o'n corporation% +! Bell *abs% &ns'er B i$$ 1 Page e$ &-7 opic "ssues in Corporate 8o#ernance 3as% C! )ayette#ille, &r5ansas% ! Ae' Gor5, Ae' Gor5% +! *os &ngeles, Cali$ornia% &ns'er & i$$ 1 Page e$ &- opic "ssues in Corporate 8o#ernance
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download full le at http://testbankcafe.com 64! esearch by :on ippel indicates that ;; percent o$ the inno#ations in the scienti$ic instruments industry come $rom &! the needs o$ the supplier% B! the needs o$ the employees% C! the needs o$ the customers% ! the needs o$ the shareholders% +! the needs o$ the corporation itsel$% &ns'er C i$$ 1 Page e$ &- opic "ssues in Corporate 8o#ernance 61! Besides the users o$ the products, help$ul ad#ance s to'ard inno#ations are deri#ed $rom &! suppliers% B! employees% C! shareholders% ! go#ernment regulators% +! lobbyists% &ns'er & i$$ 1 Page e$ &- opic "ssues in Corporate 8o#ernance 6.! he in#ol#ement o$ the customer in the commerciali0ation o$ a ne' technology is 5no'n as &! lead technology% B! co-de#elopment% C! technology customi0ation% ! de#elopmental manu$acturing% +! technological continuity% &ns'er B i$$ 1 Page e$ &- opic "ssues in Corporate 8o#ernance 63! Companies, organi0ations, or indi#iduals that are 'ell ahead o$ mar5et trends and ha#e needs that go $ar beyond those o$ the a#erage user are 5no'n as &! $irst to mar5et bene$actors% B! traditionalists% C! lead users% ! strategic pursuers% +! technological maneu#ers% &ns'er C i$$ 1 Page e$ &- opic "ssues in Corporate 8o#ernance
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download full le at http://testbankcafe.com 66! he $irst phase o$ the lead user process is &! determining the trends% B! identi$ying lead users% C! laying the $oundation% ! de#eloping the brea5through% +! hosting seminars% &ns'er C i$$ 1 Page e$ &- opic "ssues in Corporate 8o#ernance 67! *ead user teams are typically composed o$ employees $rom the &! accounting department% B! mar5eting department% C! technical department% ! $inance department% +! mar5eting and technical departments% &ns'er + i$$ 1 Page e$ &- opic "ssues in Corporate 8o#ernance 6! Based on the lead user team process, 'hat company 'as able to success$ully implement this process in eight o$ its 77 di#isionsD &! 3M B! Corning C! Microso$t ! &merica nline +! 8eneral +lectric &ns'er & i$$ 1 Page e$ &- opic "ssues in Corporate 8o#ernance 6;! )or a lead user team, 'hat is the minimum duration o$ each phase in the processD &! one day B! one 'ee5 C! three 'ee5s ! $our 'ee5s +! eight 'ee5s &ns'er i$$ 1 Page e$ &- opic "ssues in Corporate 8o#ernance
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download full le at http://testbankcafe.com 6pensi#e% C! they listened too closely to their current customers% ! o$ go#ernment regulations% +! they did studies 'hich re#ealed that the ne' technology 'as in$erior to the current technology% &ns'er C i$$ 1 Page e$ &-; opic "ssues in Corporate 8o#ernance 74! What company has been able to success$ully use mar5et research in its sur#ey o$ current users in directing incremental impro#ements in e>isting productsD &! 3M B! Proctor and 8amble C! BMW ! 8eneral Motors +! Chrysler &ns'er B i$$ 1 Page e$ &-; opic "ssues in Corporate 8o#ernance 71! &ccording to the te>tboo5, the 'atch ma5er that introduces hundreds o$ ne' models o$ 'atches into the mar5etplace then ma5es more o$ the models that sell, dropping those that don9t sell is &! ime>% B! Wittnauer% C! S'atch% ! Sei5o% +! Pulsar% &ns'er i$$ 1 Page e$ &-< opic "ssues in Corporate 8o#ernance
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download full le at http://testbankcafe.com 7.! "mitating ne' products de#eloped by pioneers, re$ining them, and outmar5eting the competition is a process 5no'n as &! embrace and e>tend strategy% B! no change strategy% C! $irst to mar5et strategy% ! hold strategy% +! re$inement strategy% &ns'er & i$$ 1 Page e$ &-< opic "ssues in Corporate 8o#ernance 73! What company 'as cited in the te>tboo5 as using the embrace and e>tend strategy as a 'ay to monitor the competition $or ne' de#elopmentsD &! Sei5o B! Microso$t C! Maytag ! rilogy +! 3M &ns'er B i$$ 1 Page e$ &-< opic "ssues in Corporate 8o#ernance 76! he consulting $irm &rthur % *ittle $ound that the use o$ standard mar5et research techniHues has resulted in a success rate $or ne' cereals o$ &! o#er =.2% B! only <2% C! around ;72% ! 742% +! around .72% &ns'er B i$$ 1 Page e$ &-< opic "ssues in Corporate 8o#ernance 77! "nstead o$ conducting traditional mar5et research, a number o$ companies are &! conducting untested mar5et research procedures% B! simply $ollo'ing 'hat the mar5et leader does% C! probing potential mar5ets 'ith early #ersions o$ ne' products to see 'hich ha#e potential% ! de#eloping ne', much more sophisticated mar5et research techniHues 'hich in#ol#e global testing% +! $orming alliances to pool their research $indings% &ns'er C i$$ . Page e$ &-; - &-< opic "ssues in Corporate 8o#ernance
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download full le at http://testbankcafe.com 7! What percentage o$ sales is spent on ? $or the computer so$t'are and drug industriesD &! bet'een 112 and 132 B! bet'een .2 and 72 C! bet'een 1<2 and .42 ! bet'een .72 and .<2 +! bet'een 612 and 662 &ns'er & i$$ 1 Page e$ &-< opic "ssues in Corporate 8o#ernance 7;! & rule o$ thumb $or ? spending is that a corporation should &! spend t'ice as much as the mar5et leader% B! spend hal$ as much as the mar5et leader% C! spend the same as the mar5et leader% ! spend at a InormalI rate $or that industry% +! spend 'hate#er it ta5es to build mar5et share% &ns'er i$$ 1 Page e$ &-< opic "ssues in Corporate 8o#ernance 7tboo5, 'hat is the inno#ation rate o$ small businessesD &! .44 inno#ations per million employees B! ..7 inno#ations per million employees C! .;7 inno#ations per million employees ! 3.. inno#ations per million employees +! 374 inno#ations per million employees &ns'er i$$ 1 Page e$ &-< - &-= opic "ssues in Corporate 8o#ernance 7=! &n e>tension o$ a product can be re$erred to as &! incremental inno#ation% B! no#el inno#ation% C! incenti#e inno#ation% ! strategic inno#ation% +! radical inno#ation% &ns'er & i$$ 1 Page e$ &-= opic "ssues in Corporate 8o#ernance
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download full le at http://testbankcafe.com 4! What is the term that re$ers to the de#elopment o$ co mpletely ne' productsD &! incremental inno#ation B! radical inno#ation C! inno#ati#e technology ! manu$acturing technology +! $le>ible manu$acturing &ns'er B i$$ 1 Page e$ &-= opic "ssues in Corporate 8o#ernance 1! esearch by itt, os5isson, and arrison indicates that the ma>imum inno#ator in an industry tends to be &! the smallest $irm% B! the largest $irm% C! the middle-si0ed $irm% ! the ne'est $irm% +! the one 'ith the largest ? department% &ns'er C i$$ 1 Page e$ &-= opic "ssues in Corporate 8o#ernance .! Con$irming that ? spending can be 'asted, bet'een 1=74 and 1=;=, 'hich country9s steel industry spent .42 more money on plant maintenance and upgrading $or each ton o$ production capacity added or replaced than did the Japanese steel industryD &! nited States B! S'eden C! 8ermany ! )rance +! Eorea &ns'er & i$$ 1 Page e$ &-= opic "ssues in Corporate 8o#ernance 3! What technology(ies! 'as the catalyst $or the nited States to lose its mar5et share o$ the 'orld steel mar5et 'hen they 'ere not recogni0ed and adoptedD &! $le>ible manu$acturing B! reengineering C! assembly line manu$acturing ! basic o>ygen $urnace and reengineering +! basic o>ygen $urnace and continuous casting &ns'er + i$$ 1 Page e$ &-= opic "ssues in Corporate 8o#ernance
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download full le at http://testbankcafe.com 6! What term re$ers to the time $rom inception to pro$itability o$ a speci$ic ? programD &! duration o$ inno#ation B! time to mar5et C! time to shel$ ! duration o$ ? intensity +! span o$ ? &ns'er B i$$ 1 Page e$ &-= opic "ssues in Corporate 8o#ernance 7! ime to mar5et is an important consideration in the management o$ technology because &! cycle times are getting longer% B! technology management is a discontinuous business% C! 42 o$ success$ul patented inno#ations are imitated 'ithin $our years at 72 o$ the cost o$ the inno#ation% ! ? budgets are becoming a higher proportion o$ total re#enues in most large corporations% +! the distinction bet'een process and product ? is becoming blurred% &ns'er C i$$ 1 Page e$ &-= opic "ssues in Corporate 8o#ernance ! "n the early stages o$ a product9s li$e cycle, FFFFFFFF are most important% &! process inno#ations B! product inno#ations C! cost leadership strategies ! impro#ed manu$acturing $acilities +! $aster distribution &ns'er B i$$ 1 Page e$ &-= opic Aot-$or-Pro$it Strategies ;! "nno#ations such as impro#ed manu$acturing $acilities, increasing product Huality, and $aster distribution, are &! logistical inno#ations% B! product inno#ations% C! category one inno#ations% ! process inno#ations% +! category t'o inno#ations% &ns'er i$$ 1 Page e$ &-= - &-14 opic Aot-$or-Pro$it Strategies
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download full le at http://testbankcafe.com ;.! What percent o$ their ? budgets do %S% $irms spend on process ?D &! 342 B! 742 C! 42 ! ;42 +! =42 &ns'er & i$$ 1 Page e$ &-14 opic Aot-$or-Pro$it Strategies ;3! What percent o$ their ? budgets do 8erman $irms spend on product ?D &! 342 B! 742 C! 42 ! ;42 +! =42 &ns'er B i$$ 1 Page e$ &-14 opic Aot-$or-Pro$it Strategies ;6! What percent o$ their ? budgets do Japanese $irms spend on process ?D &! 342 B! 742 C! 42 ! ;42 +! <42 &ns'er i$$ 1 Page e$ &-14 opic Aot-$or-Pro$it Strategies ;7! What term is appropriate $or identi$ying a ma5e-or-buy decision as it relates to technologyD &! technology sourcing B! technology continuity C! technology discontinuity ! process inno#ation +! product inno#ation &ns'er & i$$ 1 Page e$ &-14 opic Aot-$or-Pro$it Strategies
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download full le at http://testbankcafe.com ;! he traditionally hea#y emphasis by %S% maKor home appliance manu$acturers on FFFFFFFF is one reason they ha#e such a strong position in the Aorth &merican mar5et% &! technology sourcing B! technology continuity C! technology discontinuity ! process inno#ation +! product inno#ation &ns'er i$$ 1 Page e$ &-14 opic Aot-$or-Pro$it Strategies ;;! he inno#ations 'hich dominate the maKor ho me appliance industry are &! $inancial inno#ations% B! product inno#ations% C! technological inno#ations% ! process inno#ations% +! category t'o inno#ations% &ns'er i$$ 1 Page e$ &-14 opic Aot-$or-Pro$it Strategies ;cellent ? strategy especially in &! a stable lo'-tech en#ironment% B! a turbulent high-tech en#ironment% C! an en#ironment 'here being a late mo#er may be desirable% ! a lo'-tech en#ironment +! none o$ the abo#e &ns'er B i$$ 1 Page e$ &-11 opic "ssues in Corporate 8o#ernance
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download full le at http://testbankcafe.com <4! What term describes the situation 'here a corporation $inances the costs o$ de#eloping a ne' technology by coordinating its ? e$$ort 'ith that o$ other $irmsD &! #enture a$$iliation B! #ertical integration C! ? outsourcing ! strategic ? alliance +! corporate entrepreneurship &ns'er i$$ 1 Page e$ &-11 opic Aot-$or-Pro$it Strategies <1! Which o$ the $ollo'ing is characteristic o$ a strategic ? allianceD &! Koint programs or contracts to de#elop a ne' technology B! Koint #entures establishing a separate company to ta5e a ne' product to mar5et C! minority in#estments in inno#ati#e $irms 'herein the inno#ator obtains needed capital and the in#estor obtains access to #aluable research ! all o$ the abo#e +! none o$ the abo#e &ns'er i$$ . Page e$ &-11 opic Aot-$or-Pro$it Strategies <.! utsourcing technology may be appropriate 'hen &! the technology is o$ lo' signi$icance to competiti#e ad#antage% B! the supplier has proprietary technology% C! the technology de#elopment process reHuires special e>pertise% ! the technology de#elopment process reHuires ne' people and ne' resources% +! all o$ the abo#e &ns'er + i$$ . Page e$ &-11 opic Aot-$or-Pro$it Strategies <3! & company should de#elop a technology "A+A&**G rather than e>ternally 'hen &! the technology is o$ little signi$icance to competiti#e ad#antage% B! the supplier has proprietary technology% C! the technology de#elopment process reHuires special e>pertise% ! the technology de#elopment process reHuires ne' people and ne' resources% +! technology is rare, #aluable, hard to imitate and has no close substitutes% &ns'er + i$$ 1 Page e$ &-11 opic Aot-$or-Pro$it Strategies
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download full le at http://testbankcafe.com <6! Which term is used to describe a $irm9s ability to recogni0e, to assimilate and to utili0e ne' e>ternal 5no'ledgeD &! anticipated bene$it B! $le>ible manu$acturing system C! planned potential ! absorpti#e capacity +! competiti#e ad#antage &ns'er i$$ 1 Page e$ &-13 opic Aot-$or-Pro$it Strategies <7! &n organi0ation9s ability to use a ne' technology e$$ecti#ely is called &! technological competence% B! absorpti#e capacity% C! technological continuity% ! technology trans$er% +! inde> o$ ? e$$ecti#eness% &ns'er & i$$ 1 Page e$ &-13 opic Aot-$or-Pro$it Strategies <! Which o$ the $ollo'ing is A one o$ the categories o$ inno#ationD &! impro#ing core businesses B! allocating resources C! e>ploiting strategic ad#antages ! de#eloping ne' capabilities +! creating re#olutionary change &ns'er B i$$ 1 Page e$ &-13 opic Aot-$or-Pro$it Strategies <;! he )i$teen-cell Product/Mar5et +#olution Matri> &! #aries 'ith the number o$ products considered% B! represents the amount o$ assets deployed by the company to the product or SB% C! represents mar5et shares o$ the $irm9s SBs or products% ! represents the si0e o$ the industries in#ol#ed in terms o$ sales% +! is based on the product li$e cycle% &ns'er + i$$ 1 Page e$ &-17 opic Aot-$or-Pro$it Strategies
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download full le at http://testbankcafe.com < that depicts the types o$ de#eloping products according to their competiti#e positions and their stages o$ product/mar5et e#olution is re$erred to as &! BC8 Matri>% B! 8+ Business Screen% C! Product/mar5et e#olution matri>% ! e#eloping product e#olution matri>% +! "nno#ati#e product e#olution matri>% &ns'er C i$$ 1 Page e$ &-17 opic Aot-$or-Pro$it Strategies <=! What is a limitation o$ the product/mar5et e#olution matri>D &! de#eloping products cannot al'ays be depicted on other port$olio matrices B! the si0e o$ an industry is seldom 5no'n C! the product li$e cycle does not al'ays hold $or e#ery product ! a company9s mar5et share is rarely 5no'n +! all o$ the abo#e &ns'er C i$$ . Page e$ &-17 opic Aot-$or-Pro$it Strategies =4! What is the $irst stage o$ ne' product de#elopmentD &! idea generation B! concept e#aluation C! preliminary design ! prototype build and test +! $inal design and pilot production &ns'er & i$$ 1 Page e$ &-17 opic "mportance o$ Small Business and +ntrepreneurial :entures =1! What is the last stage o$ ne' product de#elop mentD &! idea generation B! preliminary design C! prototype build and test ! $inal design and pilot production +! ne' business de#elopment &ns'er + i$$ 1 Page e$ &-17 opic "mportance o$ Small Business and +ntrepreneurial :entures
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download full le at http://testbankcafe.com =.! What stage o$ ne' product de#elopment is occurring 'hen a #enture team is $ormed to prepare desired product speci$icationsD &! idea generation B! preliminary design C! prototype build and test ! $inal design and pilot production +! ne' business de#elopment &ns'er B i$$ 1 Page e$ &-17 opic "mportance o$ Small Business and +ntrepreneurial :entures =3! &ll o$ the $ollo'ing are characteristics o$ inno#ati#e organi0ations as cited by ogers in his boo5, Diffusion of Innovation +LC+P &! comple>ity% B! interconnectedness% C! $ormal structure% ! large si0e% +! decentrali0ed decision-ma5ing% &ns'er C i$$ . Page e$ &-1 opic "mportance o$ Small Business and +ntrepreneurial :entures =6! &ccording to the te>tboo5, companies 'ith entrepreneurial cultures ha#e t'o ch aracteristics in common &! centrali0ed ? responsibility 'ith decentrali0ed operating management% B! employees are dedicated to a particular proKect outcome and are responsible $or all $unctional acti#ities and $or all phases o$ the inno#ation process% C! proKect champions and matri> structures% ! employees dedicated to inno#ation in general and total $reedom to pursue any ne' idea they 'ish% +! total management control o$ all ne' proKect budgets coupled 'ith the dart board approach to ne' product selection% &ns'er B i$$ . Page e$ &-1 opic "mportance o$ Small Business and +ntrepreneurial :entures =7! & department manager 'ho recogni0es the #alue o$ an idea, helps obtain $unding to de#elop the inno#ation, and $acilitates its implementation is called a(n! &! orchestrator% B! conductor% C! sponsor% ! product champion% +! angel% &ns'er C i$$ 1 Page e$ &-1 opic "mportance o$ Small Business and +ntrepreneurial :entures =! What is the term $or a person 'ho generates a ne' idea and supports it through many download full le at http://testbankcafe.com
download full le at http://testbankcafe.com organi0ational obstaclesD &! orchestrator B! conductor C! sponsor ! product champion +! inno#ati#e champion &ns'er i$$ 1 Page e$ &-1 opic "mportance o$ Small Business and +ntrepreneurial :entures =;! o impro#e its ? e$$ecti#eness, Chrysler Corporation &! replaced its entire ? epartment% B! introduced cross-$unctional teams% C! began utili0ing the inde> o$ ? e$$ecti#eness% ! hired scientists $rom its competition% +! started using strategic alliances% &ns'er B i$$ 1 Page e$ &-1 opic "mportance o$ Small Business and +ntrepreneurial :entures =isting organi0ationD &! spin-o$$ proKect B! corporate entrepreneurship C! enterprise creation ! #enture origination +! industry gro'th &ns'er B i$$ 1 Page e$ &-1 opic "mportance o$ Small Business and +ntrepreneurial :entures ==! "ntrapreneurship is another name $or &! entrepreneurship% B! mentoring% C! corporate entrepreneurship% ! Koint #entures% +! strategic alliances% &ns'er C i$$ 1 Page e$ &-1 opic "mportance o$ Small Business and +ntrepreneurial :entures
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download full le at http://testbankcafe.com 144! &ccording to Burgelman, 'hat are the t'o interacting $actors 'hich result in the nine organi0ational designs $or corporate entrepreneurshipD &! management support and indi#idual initiati#e B! industry s5ills and consumer demand C! the strategic importance o$ the ne' business to the organi0ation and the relatedness o$ the unit9s operations to those o$ the corporation ! $inancial sponsorship and a#ailable technology +! #enture spirit and management direction &ns'er C i$$ . Page e$ &-1; opic "mportance o$ Small Business and +ntrepreneurial :entures 141! Which organi0ational design $or corporate entrepreneurship occurs 'hen the ne' business has a great deal o$ strategic importance and operational relatedness and must be a part o$ the corporation9s mainstreamD &! direct integration B! special business units C! ne' product business department ! micro ne'-#enture department +! ne' #enture di#ision &ns'er & i$$ 1 Page e$ &-1; opic "mportance o$ Small Business and +ntrepreneurial :entures 14.! Which organi0ational design $or corporate entrepreneurship occurs 'hen the ne' business has uncertain strategic importance and is only partly related to present corporate operationsD &! direct integration B! special business units C! ne' product business department ! micro ne'-#enture department +! ne' #enture di#ision &ns'er + i$$ 1 Page e$ &-1< opic "mportance o$ Small Business and +ntrepreneurial :entures 143! Which organi0ational design $or corporate entrepreneurship occurs i$ the ne' b usiness has uncertain strategic importance and high operational relatedness and is a peripheral proKect 'hich is li5ely to emerge in the operating di#isions on a continuous basisD &! nurturing and contracting B! micro ne'-#enture department C! ne' #enture di#ision ! ne' product business department +! complete spin-o$$ &ns'er B i$$ 1 Page e$ &-1< opic "mportance o$ Small Business and +ntrepreneurial :entures 146! Which organi0ational design is appropriate 'hen the strategic importance and operational download full le at http://testbankcafe.com
download full le at http://testbankcafe.com relatedness o$ the ne' business are negligibleD &! complete spin-o$$ B! ne' product business department C! special business units ! ne' #enture di#ision +! nurturing and contracting &ns'er & i$$ 1 Page e$ &-1< - &-1= opic "mportance o$ Small Business and +ntrepreneurial :entures 147! Which organi0ational design $or corporate entrepreneurship occurs 'hen an entrepreneurial proposal might not be important strategically to the corporation but is strongly related to present operations and top management might help the entrepreneurial unit to spin-o$$ $rom the corporationD &! nurturing and contracting B! micro ne'-#enture department C! ne' #enture di#ision ! ne' product business department +! complete spin-o$$ &ns'er & i$$ 1 Page e$ &-1< opic "mportance o$ Small Business and +ntrepreneurial :entures 14! Which organi0ational design $or corporate entrepreneurship occurs as the reHuired capabilities and s5ills o$ the ne' business are less related to those o$ the corporation, but the parent 5eeps some relationship 'ith the ne' $irmD &! nurturing and contracting B! micro ne'-#enture department C! ne' #enture di#ision ! ne' product business department +! contracting &ns'er + i$$ 1 Page e$ &-1< opic "mportance o$ Small Business and +ntrepreneurial :entures 14;! e#eloped at Mitsubishi9s Eobe shipyards, the tool to help proKect teams ma5e important design decisions by getting them to thin5 about 'hat users 'ant and ho' to get it to them most e$$ecti#ely is &! stage-gate process% B! house o$ Huality% C! total Huality management% ! outsourcing% +! reengineering% &ns'er B i$$ 1 Page e$ &-.4 opic +#aluation and Control 14 o$ ? +$$ecti#eness is calculated by download full le at http://testbankcafe.com
download full le at http://testbankcafe.com &! totaling the number o$ ne' patents obtained by a company% B! di#iding the percentage o$ total re#enue spent on ? into ne' product pro$itability% C! measuring the re#enue coming $rom ne' products as a percentage o$ total re#enue% ! a#eraging the amount o$ time it ta5es $or all ne' products to mo#e $rom the lab to the mar5etplace% +! comparing the company against the 13 best ? practices% &ns'er B i$$ . Page e$ &-.1 opic +#aluation and Control 14=! Which o$ the $ollo'ing is A one o$ the 13 best practices reported in the te>tboo5 that success$ul MACs $ollo'edD &! Corporate and business unit strategies are 'ell de$ined and clearly communicated% B! Core technologies are de$ined and communicated to ?% C! rans$er o$ technology to business units is the least important measure o$ ? e$$ecti#eness% ! )ormal mechanisms are used $or monitoring e>ternal technological de#elopments% +! )ormal, cross-$unctional teams are created $or basic, applied, and de#elopmental proKects% &ns'er C i$$ 1 Page e$ &-.1 opic +#aluation and Control 114! What are lead usersD iscuss the $our phases o$ the lead user process% &ns'er *ead users are Icompanies, organi0ations, or indi#iduals that are 'ell ahead o$ mar5et trends and ha#e needs that go $ar beyond those o$ the a#erage userI% hey are the $irst to adopt a product because they bene$it signi$icantly $rom its use e#en i$ it is not $ully de#eloped% he $our phases o$ the lead user process are laying the $oundation (identi$ying target mar5ets and the type and le#el o$ inno#ations desired!, determining the trends (researching the $ield and tal5ing 'ith e>perts 'ith a broad #ie' o$ emerging technologies!, identi$ying lead users (tal5ing 'ith them to understand their needs!, and de#eloping the brea5through (hosting a 'or5shop 'ith se#eral lead users and mar5eting/technical people!% i$$ . Page e$ &- - &-; opic "ssues in Corporate 8o#ernance 111! What is ? intensityD &ns'er ? intensity is a company9s spending on ? as a percentage o$ sales re#enue% his is a principal means o$ gaining mar5et share in global competition% i$$ 1 Page e$ &-< opic "ssues in Corporate 8o#ernance
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download full le at http://testbankcafe.com 11.! istinguish bet'een product and process ?% &ns'er "n the early stages o$ the product li$e cycle, product inno#ations are most important because the product9s physical attributes and capabilities most a$$ect $inancial per$ormance% *ater, process inno#ations such as impro#ed manu$acturing $acilities, increasing product Huality, and $aster distribution become important to maintaining the product9s economic returns% 8enerally product ? has been 5ey to achie#ing di$$erentiation strategies, 'hereas process ? has been at the core o$ success$ul cost leadership strategies% i$$ . Page e$ &-= - &-14 opic Aot-$or-Pro$it Strategies 113! nder 'hat conditions may outsourcing technology be appropriateD &ns'er utsourcing technology may be appropriate 'hen he technology is o$ lo' signi$icance to competiti#e ad#antage he supplier has proprietary technology he supplier9s technology is better and/or cheaper and reasonably easy to integrate into the current system he company9s strategy is based on system design, mar5eting, distribution, and ser#ice not on de#elopment and manu$acturing he technology de#elopment process reHuires special e>pertise he technology de#elopment process reHuires ne' people and ne' resources% i$$ . Page e$ &-11 opic Aot-$or-Pro$it Strategies 116! What are the $our basic categories o$ inno#ationsD &ns'er he $our basic categories o$ inno#ations are as $ollo's "mpro#ing core businesses this type o$ inno#ation $ocuses on incremental inno#ations that can be de#eloped rapidly and ine>pensi#ely% +>ploiting strategic ad#antages this type o$ inno#ation $ocuses on ta5ing e>isting brands and product lines to ne' customers and mar5ets 'ithout reHuiring maKor change in current capabilities% e#eloping ne' capabilities this type o$ inno#ation $ocuses o n deepening customer satis$action and loyalty to the brand or product line by adding ne' organi0ational capabilities 'ithout introducing maKor changes in strategic scope% Creating re#olutionary change this type o$ inno#ation $ocuses on radical inno#ations that transcend current product lines or brands to ma5e $undamental changes in both its strategic scope and its capabilities i$$ . Page e$ &-13 - &-16 opic Aot-$or-Pro$it Strategies
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download full le at http://testbankcafe.com 117! &ccording to ogers, 'hat are some o$ the characteristics o$ inno#ati#e organi0ationsD &ns'er &ccording to ogers, inno#ati#e organi0ations tend to ha#e the $ollo'ing characteristics Positi#e attitude to'ard change ecentrali0ed decision-ma5ing Comple>ity "n$ormal structure "nterconnectedness rgani0ational slac5 *arge si0e System openness i$$ . Page e$ &-1 opic "mportance o$ Small Business and +ntrepreneurial :entures 11! iscuss the nine organi0ational designs $or corporate entrepreneurship% &ns'er he nine organi0ational designs $or corporate entrepreneurship are as $ollo's irect integration & ne' business 'ith a great deal o$ strategic importance and operational relatedness must be a part o$ the corporation9s mainstream% Ae' product business department & ne' business 'ith a great deal o$ strategic importance and partial operational relatedness should be a separate department, organi0ed around an entrepreneurial proKect in the di#ision 'here s5ills and capabilities can be shared% Special business units & ne' business 'ith a great deal o$ strategic importance and lo' operational relatedness should be a special ne' business unit 'ith speci$ic obKecti#es and time hori0ons% Micro ne' #entures department & ne' business 'ith uncertain strategic importance and high operational relatedness should be a peripheral proKect, 'hich is li5ely to emerge in the operating decisions on a continuous basis% Ae' #enture di#ision & ne' business 'ith uncertain strategic importance that is only partly related to present corporate operations belongs in a ne' #enture di#ision% "ndependent business units ncertain strategic importance coupled 'ith no relationship to present corporate acti#ities can ma5e e>ternal arrangements attracti#e% Aurturing and contracting When an entrepreneurial proposal might not be important strategically to the corporation but is strongly related to present operations, top management might help the entrepreneurial unit to spin o$$ $rom the corporation% Contracting &s the reHuired capabilities and s5ills o$ the ne' business are less related to those o$ the corporation, the parent corporation may spin o$$ the strategically unimportant unit, yet 5eep some relationship through a contractual arrangement 'ith the ne' $irm% Complete spin-o$$ "$ both the strategic importance and the operational relatedness o$ the ne' business are negligible, the corporation is li5ely to completely sell o$$ the business to another $irm or to the present employees in some $orm o$ +SP% i$$ 3 Page e$ &-1; - &-1= opic "mportance o$ Small Business and +ntrepreneurial :entures
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download full le at http://testbankcafe.com 11;! What are the 13 best practices o$ success$ul ? operations that can be used as a benchmar5 $or a company9s ? acti#itiesD &ns'er he 13 best practices o$ success$ul ? operations that can be used as a benchmar5 $or a company9s ? acti#ities are as $ollo's Corporate and business unit strategies are 'ell de$ined and clearly communicated% Core technologies are de$ined and communicated to ?% "n#estments are made in de#eloping multinational ? capabilities to tap ideas throughout the 'orld% )unding $or basic research comes $rom corporate sources to ensure a long term $ocus@ $unding $or de#elopment comes $rom business units to ensure accountability% Basic and applied research are per$ormed either at a central $acility or at a small number o$ labs% e#elopment 'or5 is usually per$ormed at business unit sites% )ormal cross-$unctional teams are created $or basic, applied, and de#elopmental proKects% )ormal mechanisms e>ist $or regular interaction among scientists, and bet'een ? and other $unctions% &nalytical tools are used $or selecting proKects% he trans$er o$ technology to business units is the most important measure o$ ? per$ormance% +$$ecti#e measures o$ career de#elopment are in place a t all le#els o$ ?% ecruiting o$ ne' people is $rom di#erse uni#ersities and $rom other companies 'hen speci$ic e>perience is reHuired that 'ould ta5e a long time to de#elop internally% Some basic research is per$ormed internally, but there are also many uni#ersity and third-party relationships% )ormal mechanisms are used $or monitoring e>ternal technological d e#elopments% i$$ 3 Page e$ &-.1 opic +#aluation and Control
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