Test bank for concepts in strategic management and business policy toward global sustainability 13th edition wheelen

Test Bank for Concepts in Strategic Management and Business Policy Toward Global Sustainability 13th Edition Wheelen78 Test Multiple Choice Questions - Page 1 What is the term that refer

Test Bank for Concepts in Strategic Management and Business Policy Toward Global Sustainability 13th Edition Wheelen

78 Test Multiple Choice Questions - Page 1

What is the term that refers to the development of

completely new products?

1 A) conducting untested market research procedures.

2 B) simply following what the market leader does.

3 C) probing potential markets with early versions of new products to see which have potential.

4 D) developing new, much more sophisticated market research techniques which involve global testing.

5 E) forming alliances to pool their research findings.

Which type of innovation is important in achieving cost

5 E) category two innovation

Innovations such as new product designs and features are

1 A) logistical innovations.

2 B) product innovations.

3 C) category one innovations.

4 D) process innovations.

5 E) category two innovations.

A study by Kuczmarski & Associates revealed that

of all newly introduced products were still being sold five years later

The first phase of the lead user process is

1 A) determining the trends.

2 B) identifying lead users.

3 C) laying the foundation.

4 D) developing the breakthrough.

5 E) hosting seminars.

The involvement of the customer in the commercialization of

a new technology is known as

Innovations such as improved manufacturing facilities,

increasing product quality, and faster distribution, are

An extension of a product can be referred to as

Research by Von Hippel indicates that 77 percent of the

innovations in the scientific instruments industry come from

1 A) the needs of the supplier.

2 B) the needs of the employees.

3 C) the needs of the customers.

4 D) the needs of the shareholders.

5 E) the needs of the corporation itself.

Research by Hitt, Hoskisson, and Harrison indicates that the maximum innovator in an industry tends to be

1 A) the smallest firm.

2 B) the largest firm.

3 C) the middle-sized firm.

4 D) the newest firm.

5 E) the one with the largest R&D department.

Software firms know that in order to remain on the leading edge of technology, they must have a programming

presence in

1 A) Silicon Valley, California.

2 B) Austin, Texas.

3 C) Fayetteville, Arkansas.

4 D) New York, New York.

5 E) Los Angeles, California.

The effort to talk with users at the leading edge of the target and related market to understand their needs is indicative of which phase in the lead user process?

1 A) determining the trends

2 B) identifying lead users

3 C) laying the foundation

4 D) developing the breakthrough

A study of the impact of technological discontinuity in

various industries revealed that the leading firms failed to switch to the new technology because

1 A) management was ignorant of the new development.

2 B) it was too expensive.

3 C) they listened too closely to their current customers.

4 D) of government regulations.

5 E) they did studies which revealed that the new technology was inferior to the current technology.

Imitating new products developed by pioneers, refining

them, and outmarketing the competition is a process known

According to the textbook, the watch maker that introduces hundreds of new models of watches into the marketplace then makes more of the models that sell, dropping those that don't sell is

Japanese steel industry?

1 A) United States

2 B) Sweden

of which of the following features?

1 A) They were moderately new to the market.

2 B) They were based on tried-and-tested technology.

3 C) They saved money, met customer needs, and supported existing practices.

4 D) all of the above

5 E) none of the above

Which type of innovation is important in achieving

5 E) category two innovation

Lead user teams are typically composed of employees from the

1 A) accounting department.

2 B) marketing department.

3 C) technical department.

4 D) finance department.

5 E) marketing and technical departments.

In the early stages of a product's life cycle, are most important

1 A) process innovations

2 B) product innovations

3 C) cost leadership strategies

4 D) improved manufacturing facilities

5 E) faster distribution

Based on the lead user team process, what company was able to successfully implement this process in eight of its 55 divisions?

What technology(ies) was the catalyst for the United States

to lose its market share of the world steel market when they were not recognized and adopted?

1 A) flexible manufacturing

2 B) reengineering

3 C) assembly line manufacturing

4 D) basic oxygen furnace and reengineering

5 E) basic oxygen furnace and continuous casting

Time to market is an important consideration in the

management of technology because

1 A) cycle times are getting longer.

2 B) technology management is a discontinuous business.

3 C) 60% of successful patented innovations are imitated within four years at 65% of the cost of the innovation.

4 D) R&D budgets are becoming a higher proportion of total revenues in most large corporations.

5 E) the distinction between process and product R&D is becoming blurred.

According to research conducted by Forbes and others, the most important driver of corporate value for both durable and non-durable companies is said to be

1 A) mass customization.

2 B) innovation.

3 C) synergy.

4 D) logistics.

5 E) flexible manufacturing.

According to one study cited in the textbook, what is the innovation rate of small businesses?

1 A) 200 innovations per million employees

2 B) 225 innovations per million employees

3 C) 275 innovations per million employees

4 D) 322 innovations per million employees

5 E) 350 innovations per million employees

What company was cited in the textbook as using the

embrace and extend strategy as a way to monitor the

competition for new developments?

Companies, organizations, or individuals that are well ahead

of market trends and have needs that go far beyond those of the average user are known as

1 A) first to market benefactors.

The corporation was able to establish itself as the industry standard for browsers

1 A) spend twice as much as the market leader.

2 B) spend half as much as the market leader.

3 C) spend the same as the market leader.

4 D) spend at a "normal" rate for that industry.

5 E) spend whatever it takes to build market share.

Information that assesses where breakthroughs are likely to occur can be depicted on a

1 A) within one's own industry.

2 B) outside one's own industry.

3 C) one's current competitors.

4 D) within one's own corporation.

5 E) Bell Labs.

What company has been able to successfully use market research in its survey of current users in directing

incremental improvements in existing products?

What term refers to the time from inception to profitability of

a specific R&D program?

78 Free Test Bank for Concepts in Strategic

Management and Business Policy Toward Global

Sustainability 13th Edition Wheelen Multiple Choice Questions - Page 2

Intrapreneurship is another name for

1 A) entrepreneurship.

2 B) mentoring.

3 C) corporate entrepreneurship.

4 D) joint ventures.

5 E) strategic alliances.

A company should develop a technology INTERNALLY

rather than externally when

1 A) the technology is of little significance to competitive advantage.

2 B) the supplier has proprietary technology.

3 C) the technology development process requires special expertise.

4 D) the technology development process requires new people and new resources.

5 E) technology is rare, valuable, hard to imitate and has no close substitutes.

The innovations which dominate the major home appliance industry are

1 A) financial innovations.

2 B) product innovations.

3 C) technological innovations.

4 D) process innovations.

5 E) category two innovations.

What is the term for a person who generates a new idea and supports it through many organizational obstacles?

To improve its R&D effectiveness, Chrysler Corporation

1 A) replaced its entire R&D Department.

2 B) introduced cross-functional teams.

3 C) began utilizing the index of R&D effectiveness.

4 D) hired scientists from its competition.

5 E) started using strategic alliances.

An organization's ability to use a new technology effectively

5 E) index of R&D effectiveness.

What is the first stage of new product development?

1 A) idea generation

2 B) concept evaluation

3 C) preliminary design

4 D) prototype build and test

5 E) final design and pilot production

Which organizational design for corporate entrepreneurship occurs when the new business has uncertain strategic

importance and is only partly related to present corporate operations?

1 A) direct integration

2 B) special business units

3 C) new product business department

4 D) micro new-venture department

5 E) new venture division

Which organizational design for corporate entrepreneurship occurs when 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-off from the

corporation?

1 A) nurturing and contracting

2 B) micro new-venture department

3 C) new venture division

4 D) new product business department

5 E) complete spin-off

The traditionally heavy emphasis by U.S major home

appliance manufacturers on is one reason they have such a strong position in the North American market

imitate and that have no close substitutes

1 A) buy; license

2 B) buy; make

3 C) make; license

4 D) make; acquire firms producing

5 E) none of the above

What percent of their R&D budgets do U.S firms spend on process R&D?

What is a limitation of the product/market evolution matrix?

1 A) developing products cannot always be depicted on other portfolio matrices

2 B) the size of an industry is seldom known

3 C) the product life cycle does not always hold for every product

4 D) a company's market share is rarely known

5 E) all of the above

The Fifteen-cell Product/Market Evolution Matrix

1 A) varies with the number of products considered.

2 B) represents the amount of assets deployed by the company to the product or SBU.

3 C) represents market shares of the firm's SBUs or products.

4 D) represents the size of the industries involved in terms of sales.

5 E) is based on the product life cycle.

Which of the following is NOT one of the 13 best practices reported in the textbook that successful MNCs followed?

1 A) Corporate and business unit strategies are well defined and clearly

communicated.

2 B) Core technologies are defined and communicated to R&D.

3 C) Transfer of technology to business units is the least important measure of R&D effectiveness.

4 D) Formal mechanisms are used for monitoring external technological

developments.

5 E) Formal, cross-functional teams are created for basic, applied, and

developmental projects.

What term describes the situation where a corporation

finances the costs of developing a new technology by

coordinating its R&D effort with that of other firms?

The Index of R&D Effectiveness is calculated by

1 A) totaling the number of new patents obtained by a company.

2 B) dividing the percentage of total revenue spent on R&D into new product

5 E) comparing the company against the 13 best R&D practices.

What percent of their R&D budgets do German firms spend

on product R&D?

1 A) 30%

2 B) 50%

3 C) 60%

3 C) exploiting strategic advantages

4 D) developing new capabilities

5 E) creating revolutionary change

Which organizational design is appropriate when the

strategic importance and operational relatedness of the new business are negligible?

1 A) complete spin-off

2 B) new product business department

3 C) special business units

4 D) new venture division

5 E) nurturing and contracting

Which organizational design for corporate entrepreneurship occurs if the new business has uncertain strategic

importance and high operational relatedness and is a

peripheral project which is likely to emerge in the operating divisions on a continuous basis?

1 A) nurturing and contracting

2 B) micro new-venture department

3 C) new venture division

4 D) new product business department

5 E) complete spin-off

Which organizational design for corporate entrepreneurship occurs as the required capabilities and skills of the new

business are less related to those of the corporation, but the parent keeps some relationship with the new firm?

1 A) nurturing and contracting

2 B) micro new-venture department

3 C) new venture division

4 D) new product business department

5 E) contracting

What is the last stage of new product development?

1 A) idea generation

2 B) preliminary design

3 C) prototype build and test

4 D) final design and pilot production

5 E) new business development

Which of the following is characteristic of a strategic R&D alliance?

1 A) joint programs or contracts to develop a new technology

2 B) joint ventures establishing a separate company to take a new product to market

3 C) minority investments in innovative firms wherein the innovator obtains needed capital and the investor obtains access to valuable research

4 D) all of the above

5 E) none of the above

What term describes the birth of new businesses within an existing organization?

Licensing technology to other companies may be an

excellent R & D strategy – especially in

1 A) a stable low-tech environment.

2 B) a turbulent high-tech environment.

3 C) an environment where being a late mover may be desirable.

4 D) a low-tech environment

5 E) none of the above

What percent of their R&D budgets do Japanese firms spend

1 A) management support and individual initiative

2 B) industry skills and consumer demand

3 C) the strategic importance of the new business to the organization and the relatedness of the unit's operations to those of the corporation

4 D) financial sponsorship and available technology

5 E) venture spirit and management direction

What stage of new product development is occurring when a venture team is formed to prepare desired product

specifications?

1 A) idea generation

2 B) preliminary design

3 C) prototype build and test

4 D) final design and pilot production

5 E) new business development

According to the textbook, companies with entrepreneurial cultures have two characteristics in common:

1 A) centralized R&D responsibility with decentralized operating management.

2 B) employees are dedicated to a particular project outcome and are responsible for all functional activities and for all phases of the innovation process.

3 C) project champions and matrix structures.

4 D) employees dedicated to innovation in general and total freedom to pursue any new idea they wish.

5 E) total management control of all new project budgets coupled with the dart board approach to new product selection.

All of the following are characteristics of innovative

organizations as cited by Rogers in his book, Diffusion of Innovation EXCEPT

Outsourcing technology may be appropriate when

1 A) the technology is of low significance to competitive advantage.

2 B) the supplier has proprietary technology.

3 C) the technology development process requires special expertise.

4 D) the technology development process requires new people and new resources.

5 E) all of the above

A matrix that depicts the types of developing products

according to their competitive positions and their stages of product/market evolution is referred to as

1 A) BCG Matrix.

2 B) GE Business Screen.

3 C) Product/market evolution matrix.

4 D) Developing product evolution matrix.

5 E) Innovative product evolution matrix.