Deck 12: Managing Innovation and Fostering Entrepreneurship

Question 1

For an opportunity to be viable, it must be attractive, achievable, durable, and

A) physically located.
B) compelling.
C) fun.
D) value creating.

Answer 1

D

Question 2

Focus strategies are often associated with small businesses because there is a natural fit between the narrow scope of the strategy and the

A) small size of the firm.
B) a strong spirit of entrepreneurship.
C) a top-down approach to supporting entrepreneurial behaviour.
D) an entrepreneurial culture.

Answer 2

A

Question 3

Which of the following innovation dilemmas refers to the decision that companies must make in terms of who will lead the project?

A) Seeds versus Weeds
B) Internal versus External Staffing
C) Experience versus Initiative
D) Incremental versus Pre-emptive Launch

Answer 3

C

Question 4

The benefits of converting innovations into successful business ventures include

A) declining competitiveness.
B) shutting down product lines.
C) growth and rewards.
D) focus groups and business incubators.

Question 5

Incremental innovations

A) are usually highly disruptive.
B) usually represent technological breakthroughs.
C) are usually small improvements in products or processes.
D) nearly always can be patented.

Question 6

The key attribute that firms need to develop in their managers to improve their innovative potential is

A) emotional intelligence
B) creative intelligence
C) social intelligence
D) experimental intelligence

Question 7

_____ produce fundamental changes that can transform a company or even revolutionize an industry; _____ enhance existing practices and often represent evolutionary applications of fundamental breakthroughs.

A) Technological breakthroughs; product-market breakthroughs
B) New technologies; new paradigms
C) Incremental innovations; radical innovations
D) Radical innovations; incremental innovations

Question 8

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

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

Question 9

In corporations with a strong entrepreneurial culture, the willingness and ability to change

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 10

All of the following are traits of an effective innovator, except:

A) Associating
B) Questioning
C) Deliberating
D) Experimenting

Question 11

According to the text, in addition to financial resources, young firms often need the following resources, except:

A) social capital.
B) logistics support.
C) human capital.
D) government resources.

Question 12

One of the key factors that makes it difficult for new ventures to be successful as differentiator is

A) strategic renewal.
B) internal development is challenging.
C) mergers and acquisitions are a threat.
D) enacting the strategy is expensive.

Question 13

Which of the following is not one of the characteristics of good opportunities?

A) Attractive
B) Achievable
C) Value creating
D) Opportunism

Question 14

Type of entry strategies include all of the following, except

A) imitative.
B) adaptive.
C) pioneering.
D) generic.

Question 15

All of the following are questions that should be answered when evaluating the performance of corporate venturing efforts, except:

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 16

Process innovation:

A) are highly disruptive.
B) improve the efficiency of an organizational process, especially manufacturing systems and operations.
C) usually involves very small improvements in products
D) cannot be patented.

Question 17

_____ are often associated with a low-cost leader strategy, whereas, _____ are frequently an important aspect of a differentiation strategy.

A) Process innovations; product innovations
B) Product innovations; service innovations
C) Radical innovations; instrumental innovations
D) Marketing innovations; management innovations

Question 18

Which of the following innovation dilemmas refers to the decisions companies must make concerning the timing and scale of new innovation projects?

A) Seeds versus Weeds
B) Internal versus External Staffing
C) Experience versus Initiative
D) Incremental versus Pre-emptive Launch

Question 19

The innovation dilemma known as seeds versus weeds refers to

A) choosing to pursue radical rather than incremental innovations.
B) choosing to pursue product rather than process innovations.
C) promoting organizational stars onto innovation teams rather than involving all employees in innovation efforts.
D) choosing which innovation ideas are most likely to "bear fruit."

Question 20

The innovation dilemma known as building capabilities versus collaborating refers to

A) developing innovation skills internally versus partnering with qualified outsiders.
B) building innovative products in-house versus outsourcing.
C) building credibility by launching products ahead of potential collaboration partners.
D) choosing which innovation ideas are most likely to "bear fruit."

Question 21

In general, radical innovations occur quickly and incremental innovations take a long time to develop.

Question 22

Which of the following refers to the independent action by an individual or team aimed at bringing forth a business concept or vision and carrying it through to completion?

A) Proactiveness
B) Risk taking
C) Autonomy
D) Competitive aggressiveness

Question 23

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

A) competitive aggressiveness.
B) technological capabilities.
C) first mover advantages.
D) breakthrough innovations.

Question 24

WestJet was cited by the text as being able to develop a toehold in Western Canada through

A) proceeding slow and steady.
B) partnering with Air Canada.
C) using American pilots.
D) an aggressive market entry and competitiveness.

Question 25

The majority of new firms are low-budget start-ups financed through

A) an initial public offering (IPO)
B) bank financing
C) venture capital
D) personal savings and contributions of family and friends

Question 26

Radical innovation often involves open-ended experimentation which can be very time consuming.

Question 27

Strategic renewal and the pursuit of new venture opportunities are the two primary aims of corporate entrepreneurship.

Question 28

The root of the word innovation is the Latin "novus," which means "sustainable."

Question 29

As an industry matures, there are greater opportunities for change and so innovations tend to be more radical.

Question 30

The 3M Corporation, one of the most highly innovative companies, uses corporate venturing activities to promote innovation. An advantage of this approach is that

A) the ability to change is considered a core capability.
B) new ideas are not well received.
C) employees must be constantly reminded to think entrepreneurially.
D) employees are not willing to change.

Question 31

Process innovations are often associated with a low-cost leadership strategy.

Question 32

Radical innovations often begin with a long period of exploration in which experimentation makes strict timelines unrealistic

Question 33

The term "strategic envelope" refers to the scope of a firm's innovation efforts.

Question 34

Venture capital is

A) a form of private equity
B) available only at the start-up stage
C) a form of human capital
D) a form of angel investing

Question 35

All of the following statements about innovativeness are , except

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

Question 36

Which of the following dimensions of entrepreneurial orientation is described as "a forward-looking perspective characteristic of a marketplace leader that has the foresight to seize opportunities"?

A) Proactiveness
B) Risk taking
C) Autonomy
D) Competitive aggressiveness

Question 37

The term "innovations" refers primarily to inventions that use the latest technologies.

Question 38

According to the text, firms that want to enhance their entrepreneurial position by being competitively aggressive should

A) enter markets with drastically lower prices.
B) foster creativity and experimentation.
C) continuously seek out new products or services.
D) research risk factors to minimize uncertainty.

Question 39

The discovery phase:

A) refers to more than just the "Eureka!" feeling that people sometimes experience at the moment they identify a new idea.
B) refers to the process of becoming aware of a new business concept
C) occurs after an opportunity has been identified.
D) involves analyzing an opportunity to determine whether it is viable and strong enough to be developed into a full-fledged new venture.

Question 40

Which kind of new entry strategy sometimes involves filling a market space where the need has not previously been filled adequately?

A) Adaptive
B) Imitative
C) Pioneering
D) Technological risk taking

Question 41

Pioneering involves creating new ways to solve old problems or meeting customers' needs in a unique new way.

Question 42

The discovery phase refers to the period when one becomes aware of a new business concept.

Question 43

Business risk taking refers to the risk associated with entering untested markets or committing to unproven technologies.

Question 44

Firms using a focused approach to corporate entrepreneurship typically separate corporate venturing activities from on-going operations of the firm.

Question 45

Describe three first mover advantages.

Question 46

WestJet, like more other airline companies, consistently runs a budget deficit because of this preferred long-term financing strategy.

Question 47

What is meant by the terms "radical" innovation and "incremental" innovation? Provide example of each.

Question 48

Innovativeness refers to creating autonomous work units and encouraging independent action.

Question 49

Most new entrants use an adaptive strategy.

Question 50

Explain what is meant by the term "entrepreneurial orientation" or EO.

Question 51

Corporate venturing that is focused permeates all parts of the organization and involves every member of the organization.

Question 52

Financial resources are the only kind of resource a new venture needs.

Question 53

A venture opportunity may be justified regardless of whether it is attractive in the marketplace.

Question 54

Every idea developed by an entrepreneur represents a viable business opportunity.

Question 55

Discuss the concept of venture capital as a means of funding entrepreneurial initiatives.

Question 56

An imitative new entry strategy is in many respects the same as pioneering.

Question 57

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

Question 58

What are the differences between product and process innovation? What are the strategic implications of each approach to innovation?

Question 59

Changes in the external environment spark innovative new ideas.

Question 60

Corporate entrepreneurship is sometimes called "intrapreneuring."

Question 61

New-entry strategies typically fall into one of three categories: pioneering new-entry; imitative new-entry; or adaptive new entry. Outline the key strategic intentions of each and provide an example of each.

Question 62

Discuss the how the generic strategies of cost leadership, differentiation and focus may be used by new ventures and small businesses.