Deck 15: Innovating and Changing

Question 1

Organizations must consider the feasibility of technological innovations because technical obstacles may represent barriers to progress.

Answer 1

True

Question 2

Environmental scanning focuses on what can be done and what is being developed.

Answer 2

True

Question 3

A promising technological advancement will be successful in any organization.

Answer 3

False

Question 4

Firms that are not technology oriented must develop new competencies in order to survive.

Question 5

The essential characteristic of great companies, according to Collins and Porras, was their relentless focus on beating the competition.

Question 6

Bureaucracy facilitates innovation.

Question 7

Patents and copyrights can help organizations recoup the costs of their investments in technological innovations.

Question 8

Development projects are focused on creating a new product or process.

Question 9

Benchmarking and scanning are enough to stay ahead of the innovation curve.

Question 10

There need not be a financial incentive for adopting new technology if a firm can "pull it off."

Question 11

A performance gap can occur when performance is good but someone realizes that it could be better.

Question 12

Technology trading is becoming increasingly common because of the high cost of developing advanced technologies independently.

Question 13

Benchmarking is the process of comparing the organization's use of technology over time.

Question 14

Total organization change involves introducing and sustaining multiple policies, practices, and procedures across multiple units and levels.

Question 15

Failure to correctly assess the organization's technology can fundamentally impair the organization's effectiveness.

Question 16

When management realizes that its current practices are no longer appropriate and the company must break out of its present mold by doing things differently, this is called refreezing.

Question 17

Becoming world-class means merely striving to improve.

Question 18

The "tyranny of the or" refers to the belief that only one goal can be attained at a time.

Question 19

Early adopters of new technologies tend to be more profitable.

Question 20

Without the demand for technology, there is no reason for technological innovation to occur.

Question 21

The companies that lead change most effectively establish a sense of urgency.

Question 22

Which of the following is the first consideration in developing a strategy around technological innovation?

A) Organizational suitability
B) Market potential
C) Technological feasibility
D) Economic viability
E) Political barriers

Question 23

______ technologies have proven effective but offer a strategic advantage because not everyone uses them.

A) Base
B) Emerging
C) Key
D) Elevated
E) Pacing

Question 24

An entrepreneur wanted to sell washing machines with dryers in a tropical country. To his disappointment, he found that nobody wanted to buy his machines. He realized that the dry climate of the country contributed to his failure. People usually hung their washing out in the sun to dry. The lack of _____ was responsible for the failure of his product.

A) market receptiveness
B) technological feasibility
C) organizational suitability
D) economic viability
E) capability development

Question 25

_____ refers to a process by which a product, service, or business model takes root initially in simple applications at the bottom of a market and then moves "up market," eventually displacing established competitors.

A) Greenfield venturing
B) Diversification
C) Differentiation
D) Disruptive innovation
E) Licensing

Question 26

Anti-lock brake systems are a well-established feature for automobiles but are not yet used uniformly by every automobile company. This technology should be grouped under:

A) base technology.
B) key technology.
C) emerging technology.
D) market technology.
E) active technology.

Question 27

Adapters try to change the structure of their industries, creating a future competitive landscape of their own design.

Question 28

_____ emphasizes identifying and monitoring the sources of new technologies for an industry.

A) Licensing
B) Differentiation
C) Environmental scanning
D) Just-in-time
E) Mass customization

Question 29

Technology that is commonplace in the industry and provides little competitive advantage is referred to as:

A) base technology.
B) emerging technology.
C) key technology.
D) environmental technology.
E) pacing technology.

Question 30

Jonathan, a scientist, invented a method of using solar energy to power electrical devices. However, the cost of using the method on a large scale was prohibitive. Hence, his invention was not adopted by industry. The lack of _____ was the reason for the failure of his invention.

A) organizational suitability
B) technological feasibility
C) economic viability
D) anticipated capability development
E) market potential

Question 31

_______ technologies have yet to prove their full value but have the potential to alter the rules of competition by providing significant advantage.

A) Base
B) Emerging
C) Key
D) Elevated
E) Pacing

Question 32

Flexible manufacturing practices such as just-in-time, mass customization, and simultaneous engineering are examples of _____.

A) differentiation
B) process innovations
C) technology audit
D) entrepreneurship
E) licensing

Question 33

Reactive change means anticipating and preparing for an uncertain future.

Question 34

Continuous learning is a vital route to renewable competitive advantage.

Question 35

In assessing market receptiveness, executives should determine that the new technology:

A) is not being used by any other company in the industry.
B) has an immediate and valuable application in the short run.
C) alters the rules of competition in the industry.
D) is commonplace in the industry.
E) offers a strategic advantage because not every company uses it.

Question 36

The tendency of managers to miss the significance of disruptive changes because they are more focused on investing in and making incremental improvements to their core profitable businesses is known as _____.

A) a make-or-buy decision
B) just-in-time
C) a devil's advocate
D) management myopia
E) the innovator's dilemma

Question 37

Pierce, an entrepreneur and inventor, developed new software to help retail stores manage their inventory. He was able to successfully sell his software to the retail industry. However, certain unscrupulous organizations began producing cheaper versions of the software. This lowered the popularity of the original version. Which of the following factors is affected by the knock-offs?

A) Organizational suitability
B) Technological feasibility
C) Economic viability
D) Capability development
E) Market potential

Question 38

Which of the following technologies are still under development and thus are unproved?

A) Base technologies
B) Emerging technologies
C) Key technologies
D) Ordinary technologies
E) Pacing technologies

Question 39

Joan, a retail designer, came up with a new design for trial rooms in clothing stores. According to her design, the changing rooms had talking mirrors that were connected to a computer that analyzed the reflection of the person and provided fashion advice. However, when the design was implemented in stores, numerous problems arose. The stores could not update the computer software quickly enough to reflect changing trends. Thus, the mirrors provided fashion tips that were out of sync with the present times and many customers were annoyed. The lack of _____ led to the failure of Joan's design.

A) organizational suitability
B) technological feasibility
C) market potential
D) capability development
E) economic viability

Question 40

Failing to create a guiding coalition can endanger a change effort.

Question 41

Executives in _____ firms give priority to developing and exploiting technological expertise, and decision makers have bold, intuitive visions of the future.

A) defender
B) prospector
C) analyzer
D) adopter
E) shaper

Question 42

A disadvantage of _____, a way of acquiring new technology, is that it usually requires additional staff and funding for long periods.

A) licensing
B) contracted development
C) purchase
D) joint venture
E) internal development

Question 43

In _____ firms, strategic decisions are likely to be based on careful analysis and experience in the industry setting.

A) defender
B) prospector
C) analyzer
D) shaper
E) adopter

Question 44

A start-up had developed technological expertise in a particular area. It entered into an agreement with an established company that provided the start-up with funding and management know-how. This method of acquiring new technology is known as:

A) licensing.
B) research partnership.
C) purchase.
D) technology trading.
E) internal development.

Question 45

In most situations, the simplest, easiest, and most cost-effective way to acquire new technology is to:

A) buy it.
B) develop it internally.
C) license it from others.
D) develop a joint venture.
E) purchase the owner of the technology.

Question 46

_____ firms typically have technology champions who articulate competitively aggressive, first-mover technological strategies.

A) Prospector
B) Adopter
C) Defender
D) Shaper
E) Analyzer

Question 47

_____ firms adopt an early-follower strategy to grab a dominant position more from their strengths in marketing and manufacturing than from technological innovation.

A) Shaper
B) Adopter
C) Prospector
D) Analyzer
E) Defender

Question 48

Which of the following is a reason for a firm to choose technology trading to acquire new technology?

A) For proprietary ownership
B) Cost effectiveness
C) To build barriers to entry
D) For competitive advantage
E) To enhance product differentiation

Question 49

An independent research laboratory entered into an agreement with a multinational agricultural company for the development of a new hybrid seed for cold climates, in return for funding from the company. This method of acquiring technology is known as:

A) state funding.
B) internal development.
C) technology trading.
D) licensing.
E) contracted development.

Question 50

Which of the following is an advantage of technology trading?

A) It reduces costly trial-and-error approaches to using new technologies.
B) It enables a firm to gain control and ownership over desired technology.
C) It is simple to implement and cost-effective.
D) It allows a firm without internal development capabilities to acquire technology.
E) The acquired technology is proprietary and provides competitive advantage.

Question 51

_____ is/are arrangements for jointly pursuing specific new technology development.

A) Purchase
B) Research partnerships
C) Acquisition of a technology owner
D) Internal development
E) Licensing

Question 52

_____, a way of acquiring new technology, keeps the technology proprietary-exclusive to the organization.

A) Joint ventures
B) Contracted development
C) Purchase
D) Internal development
E) Licensing

Question 53

Which of the following describes a technical innovator?

A) Has the status, authority, and resources to support an innovation
B) Promotes a new technology throughout the organization
C) Develops a new technology
D) Coordinates the technological efforts of various business units
E) Assesses technological implications

Question 54

In _____ firms, executives tend to be more concerned about the opportunity costs of not taking action than they are about the potential to fail.

A) defender
B) analyzer
C) prospector
D) shaper
E) adopter

Question 55

Ethel has developed and patented a new process for recycling plastic. A number of companies have expressed an interest in buying her company in order to gain access to the technology. If she sells her company, the buyer will employed the method of:

A) acquisition of a technology owner.
B) research partnerships and joint ventures.
C) technology trading.
D) contracted development.
E) internal development.

Question 56

Which of the following is a responsibility of the chief information officer?

A) Developing new technology
B) Finding new ways to produce old products
C) Searching for support and acceptance for a new idea
D) Identifying ways that technology can support the company's strategy
E) Developing skills needed to install and operate new technology

Question 57

Companies that excel at solving problems, seeking and finding new approaches, and sharing new knowledge with all members of an organization are known as:

A) defender firms.
B) learning organizations.
C) analyzer firms.
D) strategic organizations.
E) organic firms.

Question 58

Which of the following describes a product champion?

A) Has the status, authority, and resources to support an innovation
B) Promotes a new technology throughout the organization
C) Develops a new technology
D) Coordinates the technological efforts of various business units
E) Assesses technological implications

Question 59

Which of the following is a disadvantage of acquisition of a technology owner?

A) It can be time consuming to develop.
B) There can be high monitoring costs and risk that the technology eventually appears in the marketplace.
C) Coordination costs can be high and organizational cultures can clash, limiting the outcomes.
D) Firm does not own or control the unique technology; it depends on another firm.
E) Purchase of the company can be expensive.

Question 60

The _____, in an effort to exploit untried technologies, invents new products or finds new ways to produce old products.

A) franchisee
B) angel investor
C) stockholder
D) entrepreneur
E) executive champion

Question 61

Jane, a secretary at a law firm, had a comfortable job with fixed working hours. Suddenly, her boss informed her that she would have to start working extra hours from the next week. He said that the firm had received many new clients and so the workload had increased. However, he reassured her that she would be paid more for the extra work. Taken aback, Jane refused to comply with his wishes. Which of the following is a reason why she resisted the change?

A) Jane had formed a different assessment of the proposed change.
B) The change was unexpected and took Jane by surprise.
C) Jane did not understand why the change was being implemented.
D) Jane felt that it was a management tactic.
E) Jane felt that the change was not in her best interest.

Question 62

Who developed force-field analysis?

A) Lawrence Ellison
B) Kurt Lewin
C) Frederick Taylor
D) Peter Drucker
E) Adam Smith

Question 63

Which of the following is true of a world-class organization?

A) It merely strives for improvement.
B) It applies the best and latest knowledge and ideas.
C) It has a lofty, impossible, unnecessary goal.
D) It focuses on competition instead of profits.
E) It enforces rigid rules and regulations for employees.

Question 64

The _____ approach redesigns tasks in a way that jointly optimizes the social and technical efficiency of work.

A) sociotechnical systems
B) structural systems
C) technology-oriented systems
D) remodeling systems
E) ergonomic

Question 65

_____ is a systemwide application of behavioral science knowledge to develop, improve, and reinforce the strategies, structures, and processes that lead to organization effectiveness.

A) Organization development
B) Management myopia
C) Outplacement
D) Groupthink
E) Performance

Question 66

The _____ refers to the ability to achieve multiple objectives at the same time.

A) make-or-buy decision
B) "genius of the and"
C) management myopia
D) laissez faire style
E) just-in-time manufacturing

Question 67

_____ interventions, an organization development technique relate to organization structure and design, employee involvement, and work design.

A) Technostructural
B) Strategic
C) Tactical
D) Human process
E) Human resources management

Question 68

_____ interventions, an organization development technique, include attracting good people, setting goals, and appraising and rewarding performance.

A) Strategic
B) Technostructural
C) Human process
D) Tactical
E) Human resources management

Question 69

Which of the following describes an executive champion?

A) Possesses the status, authority, and resources to support an innovation
B) Promotes an idea throughout the organization
C) Develops a new technology
D) Coordinates the technological efforts of various business units
E) Assesses technological implications

Question 70

The _____ refers to the belief that things must be either A or B and cannot be both.

A) devil's advocate
B) innovator's dilemma
C) just-in-time manufacturing
D) make-or-buy decision
E) "tyranny of the or"

Question 71

Which of the following is true of development projects?

A) They promote an idea throughout the organization, searching for support.
B) They develop the skills needed to install and operate new technology.
C) They assess the technological implications of major strategic initiatives.
D) They adopt an early-follower strategy to grab a dominant position in the market.
E) They feature a cross-functional team that works together on an overall concept.

Question 72

Strengthening the new behaviors that support the change is known as:

A) moving.
B) unfreezing.
C) freezing.
D) refreezing.
E) enforcing.

Question 73

Focused organizational effort to create a new product or process via technological advances is known as:

A) development project.
B) sociotechnical system.
C) benchmarking.
D) technology scanning.
E) technological strategy.

Question 74

_____, an organization development technique, include helping organizations conduct mergers and acquisitions, change their strategies, and develop alliances.

A) Strategic interventions
B) Tactical interventions
C) Human resources management interventions
D) Technostructural interventions
E) Human process interventions

Question 75

Which of the following is a characteristic of enduringly great companies?

A) They are driven by incremental goals.
B) They focus on beating the competition.
C) They have a strong strategy that they believe in deeply.
D) They undergo continuous change.
E) They focus only on profits.

Question 76

_____ interventions, an organization development technique, include conflict resolution, team building, communication, and leadership.

A) Human resources management
B) Strategic
C) Outplacement
D) Human process
E) Technostructural

Question 77

Samuel, project manager of a manufacturing company, observed that the quality of customer service was not too good. Employees were not motivated enough to solve the problems of clients. Samuel felt that the employees needed a pep talk to help them deliver better service. Based on this scenario, Samuel has identified a:

A) service initiative.
B) performance gap.
C) management problem.
D) proactive need for change.
E) need for technological innovation.

Question 78

In an effort to decrease the amount of waste produced in her department, Taylor, a technician, developed a device. She felt that her device would be useful for all technicians. She tried to convince her supervisor and higher authorities to provide the resources needed to make the device on a large scale. Her role is that of a(n):

A) entrepreneur.
B) technical innovator.
C) executive champion.
D) product champion.
E) technology officer.

Question 79

_____ refers improving the organization's ability to respond to customers, stockholders, governments, employees, and other stakeholders, which results in better-quality products, higher financial returns, and high quality of work life.

A) Product champion
B) Management myopia
C) Skunkworks
D) Organizational effectiveness
E) Technical innovation

Question 80

_____ refers to special temporary project structures established by a company that are isolated from the rest of the organization and allowed to operate under different rules.

A) Skunkworks
B) Technology trading
C) Development project
D) Research partnerships
E) Joint ventures