Deck 1: Introduction

Question 1

The reduction of costs and the improvement in quality of products made in lower wage countries have led to enhanced markets for firms in developed countries

Answer 1

False

Question 2

On average, product life cycles have been shortened because more companies are offering differentiated products.

Answer 2

True

Question 3

Microsoft's Xbox 360 provides an excellent example of a company's efforts to develop an innovative new product as part of its overall technology strategy.

Answer 3

True

Question 4

Technology can be effectively defined as the use of zeros and ones in digital form on computers.

Question 5

Invention is the process of using knowledge to solve a problem.

Question 6

Technological innovation is the use of knowledge to apply tools, materials, processes and techniques to come up with new solutions to problems.

Question 7

Michael Dell's approach to selling personal computers assembled from standard components direct to customers is an example of technology innovation.

Question 8

Technology innovation almost always comes from the knowledge of computer science.

Question 9

Economists have shown that much of the growth in gross domestic product comes from the use of technology to make more productive use of labor and capital.

Question 10

The impact from almost all technology innovation is positive.

Question 11

Process development is the anticipation and resolution of problems that arise in the production of a product

Question 12

A technology strategy is the approach that a firm takes to obtain and use technology to achieve a new competitive advantage, or to defend an existing technology-oriented competitive advantage against erosion.

Question 13

Technology strategy is different form overall business strategy in that business strategy involves the use of intellectual property management to capture financial returns to a much greater degree than technology.

Question 14

Technology strategy is different form overall business strategy in that technology strategy has to deal much more with issues of uncertainty than general business strategy.

Question 15

The study of technology innovation is largely centered in general strategy principles.

Question 16

In the U.S., services now account for more than half the total gross domestic product.

Question 17

Technology strategy is basically the same for both large established firms and small new companies.

Question 18

Research and development intensity is much higher for small firms than for large ones.

Question 19

Developing an effective technology strategy includes making decisions about how to organize a company for innovation.

Question 20

Technology innovation has become a crucial part of most firms strategy because:

A) technology innovation generates competitive advantage
B) most firms produce only a few related products
C) companies have been taking longer to introduce new products
D) sales and profits from new products has been decreasing

Question 21

Which of the following would not be considered one of the reasons why companies have recently increased their level of technology innovation?

A) to produce a greater variety of new products
B) to introduce new products to market faster
C) increase profit from established products
D) generate competitive advantage

Question 22

Why are more companies in developed countries introducing new products at a faster pace and using technological innovation to reduce production costs?

A) the licensing of technology to other companies has become an important revenue stream at many companies
B) there has been significant growth in the formation of high technology startups
C) more companies that once produced commodity products are now seeking to differentiate their offerings
D) reduced costs and improved quality of products made in lower wage countries have posed a major challenge for firms in developing countries

Question 23

Why has the demand for individual entrepreneurs who create spin-off companies using technology developed at major corporations or universities been increasing?

A) the leasing of technology to other companies has become an important revenue stream at many companies
B) there has been significant growth in the formation of high technology startups
C) more companies that once produced commodity products are now seeking to differentiate their offerings
D) reduced costs and improved quality of products made in lower wage countries have posed a major challenge for firms in developed countries

Question 24

When developing the Xbox 360, Microsoft faced all of the following strategic issues, except:

A) the relationship between game and console makers
B) the lack of significant economies of scale
C) needs to develop the capabilities different from those needed in the software business
D) development of a new supply chain

Question 25

Which of the following strategic issues that Microsoft encountered when developing the Xbox 360 is best explained as benefiting from a reduction in cost per unit as production volume increases?

A) economies of scale
B) significant investment in research and development
C) developing new supply channels
D) managing contractual relationships with other companies

Question 26

Which of the following is an example of an important technology?

A) information technology
B) biologically-based technology
C) mechanically-based technology
D) all of the above are important

Question 27

What is the best definition of mechanically-based technologies?

A) the use of zeros and ones in digital form on computers
B) technologies used to make pumps or valves
C) technologies used to create new drugs or clean up pollution
D) plan of action to achieve a particular goal

Question 28

What is the best definition of biologically-based technologies?

A) the use of zeros and ones in digital form on computers
B) technologies used to make pumps or valves
C) technologies used to create new drugs or clean up pollution
D) plan of action to achieve a particular goal

Question 29

What is the best definition of information-based technologies?

A) the use of zeros and ones in digital form on computers
B) technologies used to make pumps or valves
C) technologies used to create new drugs or clean up pollution
D) plan of action to achieve a particular goal

Question 30

The process of using knowledge to solve a problem is the best definition of:

A) strategy
B) technology
C) innovation
D) invention

Question 31

Discovery of a new idea is the best definition of:

A) strategy
B) technology
C) innovation
D) invention

Question 32

The use of knowledge to apply tools, materials, processes, and techniques to come up with new solutions is the best definition of:

A) strategy
B) technology innovation
C) innovation
D) invention

Question 33

Michael Dell's approach to selling computers - selling personal computers assembled from standard components direct to customers - would most likely be considered:

A) strategy
B) technology innovation
C) innovation
D) invention

Question 34

Alexander Fleming's discovery of penicillin because a spore of mold, containing a sample of bacteria he was using, inhibited its growth is an example of:

A) strategy
B) technology innovation
C) disruptive innovation
D) process development

Question 35

When Pfizer discovered Viagra as a solution to the problem of erectile dysfunction, they were testing drugs to treat angina. Pfizer's discovery is an example of:

A) strategy
B) technology innovation
C) disruptive innovation
D) process development

Question 36

Which of the following implications is important to understand how technology innovation relates to technology strategy?

A) technology strategy does not have to be profitable
B) there are many kinds of technology innovation
C) there is not a direct one-to-one relationship between technology change and new products or processes
D) all of the above are important to understand how technology innovation relates to technology strategy

Question 37

Which of the following best describes how there is not a direct, one-to-one, relationship between technology change and new products or processes?

A) ExxonMobil's creation of speedpass
B) EZPass highway toll collection system
C) inventory tracking systems in libraries
D) all of the above are examples

Question 38

Technology innovation is important because:

A) it helps limit the creation of wealth for corporate shareholders
B) it has a major impact on peoples' lives
C) it helps limit the creation of wealth for individual entrepreneurs
D) all of the above are examples of why technology innovation is important

Question 39

Increasing the life expectancy of humans through medical diagnostics and treatments is an example of which of the following benefits from technology innovation?

A) technology innovation is an important source of value creation
B) technology innovation has a tremendous economic impact
C) technology innovation makes possible the formation and rapid growth of companies
D) technology innovation has a major impact on lives of people

Question 40

Economists demonstrating that much of the growth in gross domestic product comes from the use of technology to make more productive use of labor and capital provide an example of which benefit from technology innovation?

A) technology innovation has a tremendous economic impact
B) technology innovation makes possible the formation and rapid growth of companies
C) technology innovation is an important source of value creation
D) technology innovation has a major impact on lives of people

Question 41

Which of the following reasons demonstrates why technology innovation is not always positive?

A) social isolation
B) increased time pressure
C) inability to disconnect from work
D) all of the above are examples of how technology innovation is not always positive

Question 42

Which of the following is an example of how technology innovation is not always positive?

A) technology innovation has led to the formation and rapid growth of companies
B) technology innovation allows for more efficient production of existing products and services
C) technology innovation has created the need to constantly multi-task
D) technology innovation has led to significant growth in gross domestic product

Question 43

T.J. Maxx and Marshalls attempt to gather customer information to enhance targeted marketing inadvertently leading to a loss of customer information to identify thieves and subsequently leading to the alienation of large numbers of customers is an example of which element of technology innovation?

A) technology innovation can lead to adverse consequences
B) technology innovation is an important source of value creation
C) technology innovation has a tremendous economic impact
D) technology innovation is an important source of wealth for individual entrepreneurs and corporate shareholders

Question 44

Gillette's development of the sensor razor is a good example of which statement?

A) not all of the impact of technology innovation is positive
B) process development is more important than product development as a source of competitive advantage
C) technology innovation is an important source of value creation
D) technology innovation has a profound effect on the creation of wealth for individual entrepreneurs and corporate shareholders

Question 45

The anticipation and resolution of problems that arise in the production of a product is the best definition of:

A) technology innovation
B) process development
C) innovation
D) invention

Question 46

The approach that a firm takes in obtaining and using technology to achieve a new competitive advantage is the best definition of:

A) technology innovation
B) technology strategy
C) economy of scale
D) invention

Question 47

How is technology strategy different from overall strategy?

A) business strategy has to deal much more with issues of uncertainty than general technology strategy
B) business strategy involves the use of intellectual property management to capture financial returns to a much greater degree than technology strategy
C) technological change occurs in ways that influence the design of effective strategies, and create business dynamics that are different from those that exist when new technology is not important
D) business strategy involves the creation of new products and services that are sometimes new to the world, which demand different mechanisms for assessing market needs and designing products than is the case with technology strategy

Question 48

How is technology strategy different from overall business strategy?

A) organizations faced with a great deal of technical change need to organize, manage human resources, and design business models that are different from organizations that are not faced by technical change
B) making decisions about technology projects requires the use of different decision making tools than is the case with non-technology projects
C) technology change opens up opportunities for new high growth businesses in ways not possible in other settings
D) all of the above demonstrate ways in which technology strategy is different from overall business strategy

Question 49

In order to become a successful technology strategist you need to:

A) understand the sources of opportunity for technological innovation
B) understand how to assess customer needs
C) understand organizational form and structure
D) all of the above need to be understood to become a successful technology strategist

Question 50

Which of the following demonstrate the approach to technology strategy taken in the textbook?

A) the book is inherently interdisciplinary
B) the book discusses technology strategy in all types of businesses in all kinds of industries
C) the book discusses technology strategy in service businesses as well as manufacturing businesses
D) all of the above are approaches to technology strategy taken in the book

Question 51

Which of the following is true about technology innovation in service businesses?

A) service businesses have less joint activity between companies and their customers
B) goals are more difficult to measure in service organizations
C) service businesses have outputs that can be maintained in inventory
D) all of the above are true concerning technology innovation in service businesses

Question 52

In the U.S., what percentage of gross domestic product is attributable to service businesses?

A) 87 percent
B) 78 percent
C) 68 percent
D) 48 percent

Question 53

What percent of total spending on research and development is accounted for in the public sector?

A) 73 percent
B) 62 percent
C) 55 percent
D) 30 percent

Question 54

What percentage of the private sector labor force in the U.S. in 2003 was funded by venture capitalist in 1970?

A) 9.4 percent
B) 15.5 percent
C) 21.4 percent
D) 40.5 percent

Question 55

Between 1970 and 2003, how many people were employed by start-up companies funded by venture capitalists?

A) 5 percent
B) 8 percent
C) 11 percent
D) 15 percent

Question 56

An effective technology strategy requires firms to capture all of the following except:

A) the financial returns to the investment in research and development through effective decision making about the legal protection of intellectual property
B) effective use of non-legal mechanisms to enhance imitation of other products
C) use of a company's capabilities to create competitive advantage
D) understanding of the role of technical standards and increasing and decreasing returns

Question 57

Which of the following would not be considered a macro structural issue?

A) the choice between contractual and vertically integrated modes of doing business
B) identification of the appropriate contractual form (e.g. licensing, joint venture)
C) explaining how to set up effective collaborative organizational arrangements
D) all of the above are macro structural issues

Question 58

All of the following human resource issues are essential for effective innovation, except:

A) the role of corporate culture in enhancing technological innovation
B) ways to limit employee creativity
C) management techniques specifically designed for research and development personnel
D) all of the above are human resource issues that are essential for effective innovation

Question 59

Define technology innovation and describe why it's important.

Question 60

Describe why technology innovation is important.

Question 61

Describe how technology strategy is different from overall business strategy.

Question 62

Explain how technology strategy is conducted in start-up and large, established firms.