Deck 13: Innovation, Entrepreneurship, and Creativity

Question 1

To retain innovative R&D scientists, an organization needs to:

A)establish a joint venture.
B)adopt TQM.
C)adopt a mechanistic structure.
D)have strong property rights.

Answer 1

D

Question 2

According to Anderson and Tushman, the era of ferment:

A)is best management using a lightweight team leader.
B)begins with a technological discontinuity.
C)spars elaboration on the dominant design.
D)begins with an incremental innovation.

Answer 2

B

Question 3

Which of the following does not reduce innovation in an organization?

A)Increases in the age of personnel
B)"Skunk works"
C)Increases in horizontal differentiation
D)Increases in organizational age

Answer 3

B

Question 4

Why did The Gap have trouble managing the innovation process?

A)They were not able to innovate effectively enough in production to produce a cost effective product.
B)Front line manager were given too much authority to determine product lines.
C)They didn't recognize where the products were positioned in the life cycle.
D)Front line managers were not given enough authority to determine product lines.

Question 5

PDAs or Palm Pilots are currently at which stage in the product life cycle?

A)Growth
B)Maturity
C)Embryonic
D)Decline

Question 6

A PERT/CAM network would most likely be used during .

A)incremental change
B)project management
C)quantum change
D)stage 1 of the stage gate model.

Question 7

In which part of the stage- gate model would a proposal be reviewed in terms of its technical feasibility or its fit with the organizational strategy?

A)Gate 1
B)Gate 2
C)Stage 1
D)Stage 2

Question 8

A stage- gate development funnel typically has _ stages.

A)five
B)four
C)two
D)three

Question 9

To maintain a capacity for innovation, an organization should:

A)centralize authority.
B)maintain diversity in scientists.
C)decrease property rights.
D)recruit like- minded scientists.

Question 10

How long is the product life cycle estimated to be in the PC industry today?

A)5 years
B)3 months
C)12 months
D)2 years

Question 11

Core team members:

A)refers to a group of 10 people who are assigned primary responsibility for product development.
B)typical work on only one development project at a time.
C)are top managers.
D)are usually engineers.

Question 12

What might have helped The Gap manage its innovation process better?

A)a decentralized structure to foster creativity
B)project management
C)more boundary spanners
D)a computer- aided design (CAD)system

Question 13

Which of the following products or industries has the shortest product life cycle?

A)VCRs
B)Automobiles
C)Computers
D)Electric power

Question 14

Which of the following would be the best project manager?

A)A heavyweight leader
B)A lightweight leader
C)A product champion
D)A skunk works leader

Question 15

A product champion:

A)is appointed by top management.
B)is responsible for establishing a "skunk works."
C)is responsible for performing the marketing activities associated with a product created by a "skunk works."
D)resolves conflict among team members.

Question 16

Which of the following products or industries has the longest product life cycle?

A)VCRs
B)Electric power
C)Automobiles
D)Computers

Question 17

According to Anderson and Tushman, a technological discontinuity is:

A)an incremental innovation.
B)an obsolete product.
C)a type of quantum innovation that is the basis of a company.
D)an unprofitable new product.

Question 18

Which of the following structures is most appropriate for a high- tech organization?

A)Multidivisional matrix
B)Product team
C)Functional
D)Market

Question 19

In which part of the stage- gate model do managers develop a detailed product development plan?

A)Stage 1
B)Gate 2
C)Stage 2
D)Gate 1

Question 20

The Pentium chip is an example of:

A)a quantum innovation.
B)an incremental innovation.
C)an incremental technological change.
D)a quantum technological change.

Question 21

The technical feasibility of new product ideas is evaluated at in the stage- gate development funnel.

A)gate 2
B)stage 2
C)gate 1
D)gate 3

Question 22

A "skunk works" is:

A)another term for an integrating department.
B)a new organization.
C)responsible for marketing a new product.
D)located in an independent facility.

Question 23

Amazon.com's addition of CD's and gifts represents .

A)quantum innovation
B)reengineering
C)an incremental innovation
D)revolutionary change

Question 24

If the typical consumer for a product purchases the product as a replacement, such as upgrading a computer or getting a new car, that product is considered to be in what stage of the life cycle?

A)Maturity
B)Growth
C)Embryonic
D)Decline

Question 25

Which innovation technique is most likely to ensure that projects receive the necessary funding?

A)Intrapreneurs
B)Stage- gate development funnel
C)Product champion
D)Product team structure

Question 26

A heavyweight team leader would be appropriate for an organization seeking:

A)incremental innovation.
B)technological discontinuities.
C)revolutionary change.
D)quantum innovations.

Question 27

Automobiles are currently at which stage in the product life cycle?

A)Embryonic
B)Decline
C)Growth
D)Maturity

Question 28

The leaders of innovation and new product development in established organizations are called .

A)entrepreneurs
B)team leaders
C)intrapreneurs
D)project managers

Question 29

How long is the product life cycle estimated to be in the auto industry today?

A)7 years
B)5 years
C)10+ years
D)2 years

Question 30

What is a knowledge creating organization?

A)One in which innovation is occurring at all levels of the organization.
B)One in which intrapreneurs share ideas.
C)A research firm finding a cure for a disease.
D)One that provides a knowledge service, such as a web search engine.

Question 31

VCRs are currently at which stage in the product life cycle?

A)Growth
B)Embryonic
C)Maturity
D)Decline

Question 32

A new organization is created with both:

A)a new venture division and a joint venture.
B)a joint venture and a "skunkworks."
C)a heavyweight team leader and a new venture division.
D)a new venture division and a "skunkworks."

Question 33

Senior management typically looks at proposals at what part of the stage- gate model?

A)Gate 2
B)Gate 1
C)Stage 1
D)Stage 2

Question 34

Which of the following is a task force?

A)New venture
B)"Skunk works"
C)Quality control circle
D)Flexible teams

Question 35

Establishing the balance of control between a division and corporate headquarters is a problem associated with .

A)new ventures
B)project managers
C)CIIS
D)"skunk works"

Question 36

What percentage of R&D activities results in a product getting to market?

A)12 to 20
B)30 to 40
C)1 to 16
D)15 to 32

Question 37

What is the first step in the project management process?

A)Developing a critical path model
B)Charting all activities on a PERT chart
C)Aligning product champions
D)Developing a clear plan to take the product from its concept phase to market

Question 38

A stage- gate development funnel typically has gates.

A)one
B)three
C)two
D)four

Question 39

Which of the following is not one of the factors that shapes organizational culture?

A)People
B)Property rights
C)Structure
D)All are factors that shape culture.

Question 40

According to Anderson and Tushman, design competition is most prevalent in the era of .

A)product champions
B)dominant designs
C)incremental change
D)ferment

Question 41

When Don Frey directed his efforts to build the Mustang, he was a(n).

A)product champion
B)engineer
C)innovator
D)entrepreneur

Question 42

An upstart biotechnology firm fears losing its talented scientists. What can it do to avoid this problem?

Question 43

A lightweight team leader is normally the head of a functional department.

Question 44

A lightweight team leader would be appropriate for an organization seeking:

A)incremental innovation.
B)quantum innovations.
C)technological discontinuities.
D)revolutionary change.

Question 45

Product life cycles are becoming shorter as managers focus their resources on innovation to increase customer responsiveness.

Question 46

Your text discusses how the VCR industry slipped into the decline stage because of a failure to provide cost effective products.

Question 47

Most companies focus on:

A)technological discontinuities.
B)quantum technological change.
C)revolutionary change.
D)incremental technological change.

Question 48

At gate one of the stage- gate development funnel, cross- functional managers create a product development plan.

Question 49

Which of the following companies will most likely be innovative?

A)A chicken processing plant that has 11 hierarchical levels
B)A biotechnology company that hires all of its scientists from one university
C)A refrigerator manufacturer that has an older workforce
D)A computer software company that gives its employees stock options

Question 50

Knowledge creating organizations have boundary spanners at the top that direct employees at all levels.

Question 51

A boundary spanner is one who:

A)constantly pushes the innovation envelope.
B)has the traits to be an effective product champion.
C)monitors projects from a distance.
D)interacts with individuals outside the boundary of the organization.

Question 52

As organizations age, they tend to become less flexible and less innovative.

Question 53

The invention of the microchip by Intel is considered to be a quantum innovation.

Question 54

An organization has innovative products and ideas, but consistently fails to meet cost projections. In addition, they are almost always a couple of months late in getting the product to market. What would you recommend?

Question 55

It has been estimated that between 12 to 20% of R&D projects result in a product that gets to the market.

Question 56

Quantum innovations are relatively uncommon.

Question 57

Don Frey, the champion of Ford's Mustang, encountered little opposition to his idea to build the Mustang.

Question 58

The main innovation problem at The Gap was that front- line managers were given too much authority to innovate.

Question 59

An organization hires a large amount of intrapreneurs, but they seem to get frustrated because they cannot get approval for their projects. These intrapreneurs often leave the organization and achieve success on their own. What can this organization do to both determine whether a product will be successful, and keep the intrapreneurs?

Question 60

The stage- gate funnel is designed to foster innovation because left to their own devices, managers tend not to take on as many projects as they can handle.

Question 61

Strong property rights weaken obstacles to change.

Question 62

It is difficult for individuals to remain entrepreneurial throughout their careers.

Question 63

The concept of fad and fashion in the product life cycle primarily applies to the clothing industry.

Question 64

The growth stage in the product life cycle begins right after the product is introduced to the market.

Question 65

Innovation is associated with a high level of risk.

Question 66

One downside to linking employees through information technology is that bad advice may increase along with good advice.

Question 67

Boundary spanners typically push the innovation envelope as far as they can, sometimes upsetting top management.

Question 68

The Gap used innovation to develop a more cost effective production process for its clothing line.

Question 69

Organic structures promote innovation and creativity

Question 70

TQM is an example of an incremental innovation.

Question 71

The shorter the product life cycle, the more important innovation is to an industry or organization.

Question 72

Creativity can be defined as simply going beyond the current boundaries.

Question 73

For innovative processes to be successful, R&D activities must be integrated with other functions.

Question 74

The informal organization can be used to overcome obstacles presented by the formal structure in inhibiting innovation.