Question 1

Dominic is the founder of an innovative "impromptu catering" business that provides elegant, healthy party food and decorations on less than 24 hours' notice. The company has grown by over 150 percent in the past year. Dominic credits some of the company's success to studying the strategies of prominent social entrepreneurs, such as Wikipedia's Jimmy Wales. What can Dominic do to exemplify the social entrepreneurship model?

Accepted Answer

A)   Launch a social media platform for food lovers.
B)   Provide free weekly catered meals for the homeless.
C)   Seek investments from venture capitalists.
D)   Buy out his closest competitors to ensure a competitive advantage.

Question 2

The pace of innovation has slowed in the 21st century.

Accepted Answer

A) True 
 B)False

Question 3

In the context of industrial growth, which of the following statements is true of standards?

Accepted Answer

A)   Standards emerge exclusively from bottom-up through competition in the marketplace.
B)   As the size of a market expands, a standard signals the market's agreement on a common set of engineering features and design choices.
C)   Standards are exclusively imposed top-down by government or other standard-setting agencies such as the Institute of Electrical and Electronics Engineers.
D)   After a standard is established in an industry, the basis of competition tends to move away from process innovations toward product innovations.

Question 4

Innovation that targets new markets with existing technologies is known as disruptive innovation.

Accepted Answer

A) True 
 B)False

Question 5

A. G. Lafley at Procter & Gamble (P&G)  had implemented an open-innovation model, which had greatly benefitted the company. In the light of this information, we can conclude that A. G. Lafley is a(n)

Accepted Answer

A)   venture capitalist.
B)   category captain.
C)   intrapreneur.
D)   early adopter.

Question 6

Which of the following lists the stages of the industry life cycle in the correct order?

Accepted Answer

A)   introduction, growth, shakeout, maturity, and decline
B)   introduction, shakeout, growth, maturity, and decline
C)   introduction, growth, maturity, shakeout, and decline
D)   introduction, shakeout, maturity, growth, and decline

Question 7

The key objective for firms during the growth phase is to

Accepted Answer

A)   invest as many resources as possible in product innovations.
B)   stake out a strong strategic position not easily imitated by rivals.
C)   pursue a harvest strategy.
D)   reduce their network effects.

Question 8

Explain the reasons for increasingly rapid technological diffusion and adoption.

Accepted Answer

One determinant is that initial innovati...

Question 9

Discuss the differences between pipeline businesses and platform businesses in terms of the value chain.

Accepted Answer

A firm's value chain captures the intern...

Question 10

While the personal computer industry is flooded and growing with laptops and tablets, Malik recently bought a desktop, his first personal computer. He realized that a computer at home would be helpful for his children for their school projects, and he could use it to maintain the simple accounts of his plumbing business. Which of the following customer segments does Ivan best represent?

Accepted Answer

A)   early adopters
B)   category captains
C)   laggards
D)   early majority

Question 11

Why is it easier for new entrants to get involved in radical innovations when compared to incumbent firms?

Accepted Answer

A)   Unlike incumbent firms, new entrants do not have to face the high entry barriers, initially.
B)   New entrants are embedded in an innovation ecosystem, while incumbent firms are not.
C)   Unlike incumbent firms, new entrants do not have formal organizational structures and processes.
D)   Incumbent firms do not have the advantages of network effects that new entrants have.

Question 12

What are the competitive benefits that first movers in an industry experience?

Accepted Answer

Successful innovators can benefit from a...

Question 13

According to the crossing-the-chasm framework, the biggest chasm between customer segments is between early adopters and the mass market made up of the early majority and the late majority.

Accepted Answer

A) True 
 B)False

Question 14

Pipeline businesses are typically better than platform businesses at incorporating user feedback and taking advantage of network effects.

Accepted Answer

A) True 
 B)False

Question 15

When ReGen Pharmaceuticals released a new drug to treat insomnia, its chemical composition was disclosed at the back of the drug's cover. However, any attempts by competitors to copy the chemical composition would result in infringement of ReGen Pharmaceuticals intellectual property rights. Thus, the drug is protected by a

Accepted Answer

A)   promissory bill.
B)   patent.
C)   franchise.
D)   royalty.

Question 16

Sunshine Technologies introduced a tablet that could run completely on solar energy and was less expensive than competitors' tablets. On the downside, it required more frequent charging than the competition's tablets. However, the technology of the Sunshine tablet improved rapidly, thereby improving its recharge frequency. This example describes

Accepted Answer

A)   architectural innovation.
B)   incremental innovation.
C)   radical innovation.
D)   disruptive innovation.

Question 17

When firms innovate by leveraging existing technologies into new markets, they are said to be involved in

Accepted Answer

A)   incremental innovations.
B)   radical innovations.
C)   architectural innovations.
D)   disruptive innovations.

Question 18

Which of the following is a competitive benefit experienced by the first mover firm in an industry?

Accepted Answer

A)   The first mover will be able to achieve a less steep learning curve.
B)   The first mover will be able to reduce the switching costs.
C)   The first mover will not have to patent its products or technology.
D)   The first mover will be able to reduce costs through economies of scale.

Question 19

Describe network effects and their potential to help or hurt a platform business.

Accepted Answer

Network effects refers to the effect tha...

Question 20

When Japanese carmakers entered the existing U.S. automobile market by first offering small fuel-efficient cars, and then leveraging their low-cost and high-quality advantages into high-end luxury segments, they were engaging in

Accepted Answer

A)   regressive innovation.
B)   radical innovation.
C)   disruptive innovation.
D)   architectural innovation.

Exam 7: Business Strategy: Innovation, Entrepreneurship, and Platforms

The pace of innovation has slowed in the 21st century.

Correct Answer
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Correct Answer
verified

Which of the following is a competitive benefit experienced by the first mover firm in an industry?

Correct Answer
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Which of the following lists the stages of the industry life cycle in the correct order?

Correct Answer
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When Japanese carmakers entered the existing U.S. automobile market by first offering small fuel-efficient cars, and then leveraging their low-cost and high-quality advantages into high-end luxury segments, they were engaging in

Correct Answer
verified

Describe network effects and their potential to help or hurt a platform business.

Correct Answer
verified
Network effects refers to the effect tha...
View Answer

Correct Answer
verified

When firms innovate by leveraging existing technologies into new markets, they are said to be involved in

Correct Answer
verified

Pipeline businesses are typically better than platform businesses at incorporating user feedback and taking advantage of network effects.

Correct Answer
verified

A. G. Lafley at Procter & Gamble (P&G) had implemented an open-innovation model, which had greatly benefitted the company. In the light of this information, we can conclude that A. G. Lafley is a(n)

Correct Answer
verified

According to the crossing-the-chasm framework, the biggest chasm between customer segments is between early adopters and the mass market made up of the early majority and the late majority.

Correct Answer
verified

Discuss the differences between pipeline businesses and platform businesses in terms of the value chain.

Correct Answer
verified
A firm's value chain captures the intern...
View Answer

Innovation that targets new markets with existing technologies is known as disruptive innovation.

Correct Answer
verified

Explain the reasons for increasingly rapid technological diffusion and adoption.

Correct Answer
verified
One determinant is that initial innovati...
View Answer

In the context of industrial growth, which of the following statements is true of standards?

Correct Answer
verified

What are the competitive benefits that first movers in an industry experience?

Correct Answer
verified
Successful innovators can benefit from a...
View Answer

Why is it easier for new entrants to get involved in radical innovations when compared to incumbent firms?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The key objective for firms during the growth phase is to

Correct Answer
verified

Exam 7: Business Strategy: Innovation, Entrepreneurship, and Platforms

The pace of innovation has slowed in the 21st century.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a competitive benefit experienced by the first mover firm in an industry?

Correct AnswerverifiedShow Answer

Which of the following lists the stages of the industry life cycle in the correct order?

Correct AnswerverifiedShow Answer

When Japanese carmakers entered the existing U.S. automobile market by first offering small fuel-efficient cars, and then leveraging their low-cost and high-quality advantages into high-end luxury segments, they were engaging in

Correct AnswerverifiedShow Answer

Describe network effects and their potential to help or hurt a platform business.

Correct AnswerverifiedNetwork effects refers to the effect tha...View AnswerShow Answer

Correct AnswerverifiedShow Answer

When firms innovate by leveraging existing technologies into new markets, they are said to be involved in

Correct AnswerverifiedShow Answer

Pipeline businesses are typically better than platform businesses at incorporating user feedback and taking advantage of network effects.

Correct AnswerverifiedShow Answer

A. G. Lafley at Procter & Gamble (P&G) had implemented an open-innovation model, which had greatly benefitted the company. In the light of this information, we can conclude that A. G. Lafley is a(n)

Correct AnswerverifiedShow Answer

According to the crossing-the-chasm framework, the biggest chasm between customer segments is between early adopters and the mass market made up of the early majority and the late majority.

Correct AnswerverifiedShow Answer

Discuss the differences between pipeline businesses and platform businesses in terms of the value chain.

Correct AnswerverifiedA firm's value chain captures the intern...View AnswerShow Answer

Innovation that targets new markets with existing technologies is known as disruptive innovation.

Correct AnswerverifiedShow Answer

Explain the reasons for increasingly rapid technological diffusion and adoption.

Correct AnswerverifiedOne determinant is that initial innovati...View AnswerShow Answer

In the context of industrial growth, which of the following statements is true of standards?

Correct AnswerverifiedShow Answer

What are the competitive benefits that first movers in an industry experience?

Correct AnswerverifiedSuccessful innovators can benefit from a...View AnswerShow Answer

Why is it easier for new entrants to get involved in radical innovations when compared to incumbent firms?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The key objective for firms during the growth phase is to

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Network effects refers to the effect tha...
View Answer

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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A firm's value chain captures the intern...
View Answer

Correct Answer
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Correct Answer
verified
One determinant is that initial innovati...
View Answer

Correct Answer
verified

Correct Answer
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Successful innovators can benefit from a...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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