Deck 15: Innovating and Changing

Question 1

________ is best described as the advantage that comes from offering a unique good or service for which customers are willing to pay a premium price.

A) Equilibrium
B) Standardization
C) Differentiation
D) Liquidity
E) Capitalization

Answer 1

C

Question 2

________ technology is commonplace in the industry and provides little competitive advantage.

A) Base
B) Emerging
C) Key
D) Large batch
E) Pacing

Answer 2

A

Question 3

________ technologies have proved effective but offer a strategic advantage because not everyone knows or uses them.

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

Answer 3

C

Question 4

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

Question 5

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

A) product differentiation.
B) process innovations.
C) technology audit.
D) large batch technologies.
E) product innovations.

Question 6

________ is the first consideration in developing a strategy around technological innovation.

A) Organizational suitability
B) Market potential
C) Social feasibility
D) Ethnographical viability
E) Political support

Question 7

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

Question 8

Becoming world-class means merely striving to improve.

Question 9

The anti-lock braking system is a desired feature that can provide automobiles a significant competitive edge. However, it is not used uniformly by every automobile company. Thus, this technology is best grouped under ________ technologies.

A) base
B) key
C) emerging
D) large batch
E) active

Question 10

Technology trading speeds the learning curve.

Question 11

________ compares an organization's practices and technologies with those of other companies.

A) Benchmarking
B) Auditing
C) Differentiation
D) Environmental scanning
E) Capitalization

Question 12

________ is a process by which a product, service, or business model takes root initially in simple applications and then moves "up market," eventually displacing established competitors.

A) Reverse mentoring
B) Concentric diversification
C) Strategic liquidation
D) Disruptive innovation
E) Crowdsourcing

Question 13

Even though ________ technologies have yet to prove their full value, they have the potential to alter the rules of competition.

A) base
B) emerging
C) key
D) large-batch
E) pacing

Question 14

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

Question 15

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

A) The black swan effect
B) A fundamental attribution error
C) Survivor's syndrome
D) The glass ceiling effect
E) Innovator's dilemma

Question 16

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

Question 17

________ technologies are still under development, and managers might not want to invest in them until they have been developed more fully.

A) Base
B) Emerging
C) Key
D) Large-batch
E) Pacing

Question 18

Organizations that operate closer to the cutting edge of a technology rely more on ________ and less on benchmarking what is already being practiced elsewhere.

A) base technologies
B) auditing
C) key technologies
D) environmental scanning
E) capitalization

Question 19

________ seeks new technologies by reading cutting-edge research journals and attending conferences and seminars.

A) Social audit
B) Gap analysis
C) Environmental scanning
D) Internal analysis
E) Open-book management

Question 20

To assist managers in understanding their current technology base, a(n) ________ helps clarify which technologies the organization most depends upon.

A) process innovation
B) technology audit
C) make-or-buy decision
D) agile design
E) disruptive innovation

Question 21

Firms that are not technology oriented must develop new capabilities to survive. For example, when Amazon.com changed the face of e-retailing in the 1990s, traditional brick-and-mortar bookstores had to adapt quickly. To regain competitiveness, they had to ________, which wasn't always easy for them to do.

A) bolster their information technology capabilities
B) eliminate all books from their product mix
C) build more stores
D) hire more sales staff
E) pay higher salaries to their employees

Question 22

Sergei, 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 his target customers. The lack of ________ was the reason for the failure of his invention.

A) organizational suitability
B) technological feasibility
C) economic viability
D) social adaptability
E) political suitability

Question 23

Bill, a bright entry-level chemist, recommended to his manager, "Suzanne, we should develop and maintain a 'wiki'-a website to capture knowledge that will be lost when senior staff retire in the next five years." Suzanne replied, "Bill, I appreciate your enthusiasm. However, we just don't have the technical know-how to undertake your idea." Suzanne's reluctance to implement Bill's idea can be attributed to the lack of

A) chemistry expertise.
B) technological feasibility.
C) market responsiveness.
D) internal capabilities.
E) economic viability.

Question 24

Helena 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 be obtaining the new technology through

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

Question 25

In organizations without the skills needed to implement an innovation, even

A) certain technologies may have tremendous market applicability.
B) promising technological advances may prove disastrous.
C) internal capabilities to execute their technology strategies must be developed.
D) base strategies on core capabilities applies to technology.
E) efficiency becomes effective.

Question 26

An independent research laboratory entered into an agreement with a multinational agricultural company to develop a new variety of hybrid seeds for cold climates. In return, the agricultural company would fund the research. This method of acquiring new technology is known as

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

Question 27

"BioLabs does not want to sell the technology, but BioLabs is willing to allow us to legally use the technology for a fee," said Sylvia Sparks, sales professional, "and I would like to use the technology in our proposed project for TopFlight Construction." Lee Jaffrey, Division Manager, replied, "OK. I'm fine with that. I will approve expenditure for a(n) ________ fee."

A) processing
B) license
C) customs
D) patent
E) lading

Question 28

"Ben, I'm in favor of developing technology internally if there is business value to keeping it proprietary," said Julius Stiles, CFO of Beatty Goods, to his product development manager. "However, in this case, I don't see the value. After all, developing the technology internally will probably ________," Julius concluded.

A) make us dependent on other firms
B) not provide a competitive advantage
C) not allow its use to be exclusive to the firm
D) result in high coordination costs
E) require additional staff and funding for long periods

Question 29

Executives in defender firms are most likely to

A) be concerned about the opportunity costs of not taking an action.
B) support an outward-looking and opportunistic culture.
C) base strategic decisions on careful analysis and experience in the industry setting.
D) adopt a first-mover strategy to grab a dominant position in the industry.
E) be more innovative than their counterparts in prospector firms.

Question 30

If a firm can "pull off" a technological innovation, executives must consider

A) the economic feasibility of new technologies.
B) the long-term commitment of substantial resources.
C) whether there is a good financial incentive for doing so.
D) if they can recoup the costs of their investments in technological innovations
E) the lack of staff time to work on the technology.

Question 31

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) follower
E) reactor

Question 32

An entrepreneur wanted to sell washing machines with dryers in a tropical country. To his disappointment, he found that nobody wanted to buy these machines. He realized that the dry climate of the country contributed to his failure. People usually hung their washed clothes 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 33

"Thanks to the patents that we have filed over the past decade, we have been able to exclusively market our new technologies at premium pricing. And premium pricing has been critical to our success because our technologies have been very expensive to develop," said Karen. What is Karen's message about patents and copyrights?

A) Piracy and fakery of her company's technologies render patent protection worthless.
B) Her company's technology development costs cannot be justified.
C) Patents have allowed her company to recoup the costs of their investments in technologies.
D) Exclusive marketing requires patent protection.
E) Her company has not gained value from legal counsel due to a patent lawyer's high hourly rates.

Question 34

________ is an arrangement for jointly developing a particular new technology.

A) Offshoring
B) Research partnership
C) Acquisition of a technology owner
D) Internal development
E) Corporate espionage

Question 35

Select a defining characteristic of prospector firms.

A) Such firms adopt strategies that focus on deepening their capabilities through technologies that extend rather than replace their current ones.
B) They tend to adopt an early-follower strategy to grab a dominant position more from their strengths in marketing and manufacturing than from technological innovation.
C) Executives in such firms tend to be more concerned about the opportunity costs of not taking action than they are about the potential to fail.
D) Such firms are risk averse and tend to operate in environments that are stable and predictable.
E) They are less innovative than defender firms because they tend to let others demonstrate solid demand in new arenas before responding.

Question 36

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

A) Entrepreneurial
B) First-move
C) Prospector
D) Analyzer
E) Defender

Question 37

In assessing market receptiveness, executives should typically determine whether the new technology

A) is capable of drawing political support.
B) has an immediate and valuable application in the short run.
C) can alter the rules of competition in the industry.
D) can be patented.
E) will violate the company's vision.

Question 38

A start-up and an established company have entered into a business agreement. In this arrangement, the established company will provide capital and other resources and the start-up will contribute its technological expertise. This method of acquiring new technology is known as

A) offshoring.
B) research partnership.
C) benchmarking.
D) technology trading.
E) internal development.

Question 39

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

A) Prospector
B) Follower
C) Defender
D) Reactor
E) Analyzer

Question 40

Thomas, an entrepreneur and inventor, developed new software to help retail stores manage their supply chain effectively. 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. In this case, ________ is affected by the knock-offs.

A) organizational suitability
B) technological feasibility
C) economic viability
D) capability development
E) social adaptability

Question 41

An executive champion is a person who

A) possesses the status, authority, and resources to support an innovation or change.
B) has the technical skills needed to install and operate the technology.
C) develops a new technology from scratch.
D) coordinates the technological efforts of various business units.
E) is primarily responsible for securing employee acceptance and support for new ideas.

Question 42

A disadvantage of licensing as a means of acquiring new technology is that

A) it involves high monitoring costs.
B) the firm does not control or own the unique technology.
C) it is less economical than internal development.
D) it is the most time-consuming way to develop new technology.
E) the firm will need to acquire internal development capabilities.

Question 43

A ________ is a focused organizational effort to create a new product or process via technological advances.

A) development project
B) sociotechnical system
C) quality circle
D) turnkey project
E) contracted development

Question 44

A function of a technical innovator is to

A) support an innovation by sponsoring financial and managerial resources.
B) promote a new technology throughout the organization.
C) develop a new technology.
D) secure acceptance for a new idea within the organization.
E) impart training for specific interpersonal skills.

Question 45

Select the true statement regarding development projects.

A) The teams involved in development projects are isolated from suppliers and customers.
B) They are given a lot of time and other resources to develop a product.
C) They work against the philosophy of continuous improvement.
D) The members of a development project pursue different and conflicting goals.
E) They feature a cross-functional team that works together on an overall concept.

Question 46

In an effort to decrease the amount of industrial waste generated during production, Cerise wanted her company to use a new machine designed by one of the employees. She felt that the new machine could also bring down the company's costs. She tried to convince her supervisor and higher authorities to provide the resources needed to build and install the machine on a large scale. Cerise's role is that of a(n)

A) category captain.
B) technical innovator.
C) executive champion.
D) product champion.
E) gatekeeper.

Question 47

A disadvantage of joint ventures as a means to acquire new technology is that

A) it is the most expensive and time-consuming way to develop new technology.
B) it makes a firm solely dependent on its internal development capabilities.
C) coordination costs can be high and organizational cultures can clash, limiting the outcomes.
D) purchase of a company can be expensive.
E) it fails to establish a new company.

Question 48

A function of a product champion is to

A) have the status, authority, and resources to sponsor an innovation.
B) be responsible for promoting a new technology throughout the organization.
C) be responsible for developing a new technology.
D) be responsible for coordinating the technological efforts of various business units.
E) have the technical skills needed to install and operate the technology.

Question 49

A disadvantage of acquiring a new technology by purchasing the technology owner is that

A) developing technology becomes time consuming.
B) the process requires more staff than internal development.
C) it makes the purchasing firm highly dependent on its internal development capabilities.
D) the purchasing company will not own or control the unique technology.
E) acquiring the company can be expensive.

Question 50

An advantage of technology trading is that it

A) helps a firm speed up its learning curve.
B) enables a firm to gain control and ownership over desired technology.
C) enables a firm to adopt the trial-and-error approach to using technologies.
D) helps a firm gain easy access to new technology as all industries willingly share information.
E) helps a firm gain competitive advantage in its industry.

Question 51

________ are companies that excel at solving problems, seeking and finding new approaches, and sharing new knowledge.

A) Defender firms
B) Learning organizations
C) Analyzer firms
D) Closed-book organizations
E) Bureaucratic firms

Question 52

A logical extension of the sociotechnical philosophy is a(n)

A) organizational bureaucracy.
B) lean and flat organization.
C) mechanistic structure.
D) micromanagement approach.
E) closed-book management approach.

Question 53

An advantage of purchasing technology already available in products or processes is that

A) it is simple to implement and cost-effective.
B) the technology is proprietary and provides competitive advantage.
C) it speeds up the purchasing firm's learning curve.
D) it helps improve the purchasing firm's internal development capabilities.
E) the purchasing firm gains control and ownership over the desired technology.

Question 54

Tom's business has environmental databases that are readily available and cost-effective, but his vice president of operations thinks they need to develop a database for a new project. What would you advise them to do to make it the simplest, easiest, and most effective way to have that needed database?

A) Patent it.
B) Purchase it.
C) License it from others.
D) Form a joint venture.
E) Acquire the owner of the technology.

Question 55

An advantage of internal development as a means of acquiring new technology is that

A) it is simple to implement and cost-effective.
B) the costs associated with new technology development can be shared by two or more firms.
C) it permits firms to access unique technology for a minimal fee.
D) the technology is proprietary and it provides a competitive edge.
E) it does not require firms to maintain a large staff.

Question 56

________ is when an organization asks itself about whether to acquire new technology from an outside source or develop it internally.

A) Technology trading
B) A make-or-buy decision
C) Benchmarking
D) Positioning
E) Differentiation

Question 57

Keeping the technology proprietary is accomplished through

A) joint venture.
B) contracted development.
C) technology trading.
D) internal development.
E) licensing.

Question 58

A responsibility of the chief information officer is

A) gaining unauthorized access to proprietary information of competitors.
B) finding new ways to produce old products.
C) ensuring that employees have no access to information from outside the organization.
D) identifying ways that technology can support the company's strategy.
E) limiting information exchanged through the company grapevine.

Question 59

A disadvantage of purchasing technology that already is available in products or processes is that

A) it is the most time-consuming way to acquire new technology.
B) it is the least cost-effective way to acquire new technology.
C) the purchase requires more staff than internal development.
D) the coordination and monitoring costs will be high.
E) the technology itself will not offer a competitive advantage.

Question 60

________ refer 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) Quality circles
C) Development projects
D) Research partnerships
E) Joint ventures

Question 61

Motivating people to change often requires three basic stages. One of these is ________, or strengthening the new behaviors that support the change.

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

Question 62

________ will lead to sustained, superior performance in organizations.

A) Limiting the exchange of information within the organization
B) Fine-tuning strategies continually based on marketplace changes
C) Pursuing strategies that focus on competitors
D) Limiting the decision-making authority to the top management
E) Believing that only one goal can be attained at a time

Question 63

The CEO of Star Group is implementing changes to the company that will be difficult for the employees. The best approach to managing resistance to change would be to ________ the staff about the upcoming changes, before they occur, and to ________ the nature of the change and its logic.

A) learn from; harmonize
B) educate; minimize
C) educate; communicate
D) vaguely communicate to; not mention
E) freeze; refreeze

Question 64

"We've had to cut our overhead expenses, and we let go several of our support staff," said J. Richard Peale, Managing Partner of Lockstill and Ratcliffe LLC. "However, I am counting upon each of us to creatively deliver even better legal services to our clients, although we've each had to pick up extra work that was previously done by our support staff." J. Richard is counting upon his team to subscribe to the belief known as the ________, the ability to achieve multiple objectives at the same time.

A) "tyranny of the or"
B) "genius of the and"
C) "purpose of the because"
D) "desire of the want"
E) "reason for the why"

Question 65

When people are resistant to a change because of adjustment problems, the most effective way to manage the resistance is through

A) manipulation and cooptation.
B) training and other resources.
C) explicit and implicit coercion.
D) centralization and micromanagement.
E) negotiation and rewards.

Question 66

________ intervention involves improving conflict resolution, team building, communication, and leadership.

A) Marketing
B) Strategic
C) Sociotechnical
D) Human process
E) Technostructural

Question 67

In return for cooperating with the management in the implementation of a major organizational change, Evergreen Electronics provided an annual bonus to all its employees. This method for managing resistance to change exemplified

A) education and communication.
B) facilitation and support.
C) incentives and rewards.
D) manipulation and cooptation.
E) explicit and implicit coercion.

Question 68

Stephanie Miller, factory manager at Stratford Manufacturing, told his shift supervisor, "Billy, our target reject rate is 1.5 percent or less. Your shift usually does a lot better than that, but your reject rate has been averaging 3 percent for the past month. That's unacceptable." Stephanie has identified a

A) loophole.
B) performance gap.
C) unfreezing.
D) force field analysis.
E) refreezing.

Question 69

Patricia, a secretary at a law firm, had a comfortable job with fixed working hours. Suddenly, her boss informed her that starting next week, she would be required to work extra hours. He said that the firm had received many new clients; therefore, the workload had increased. Taken aback by the unanticipated change, Patricia refused to comply with her boss's wishes. Patricia resisted the change because

A) she had expected it.
B) the change was unexpected and took her by surprise.
C) she had sufficient time to think about the change and prepare for it.
D) the timing of the change was wrong from the company's perspective.
E) her current job already had variable working hours.

Question 70

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

A) glass ceiling effect
B) survivor's syndrome
C) black swan effect
D) "genius of the and"
E) "tyranny of the or"

Question 71

________ intervention relates to enhancing organization structure and design, employee involvement, and work design.

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

Question 72

A world-class organization

A) merely strives for improvement.
B) applies the best and latest knowledge and ideas.
C) primarily focuses on producing goods at the lowest cost possible.
D) focuses on competition instead of profits.
E) exemplifies a bureaucratic organizational structure.

Question 73

An essential characteristic of enduringly great companies is that they

A) are solely driven by incremental improvements.
B) focus on beating the competition.
C) oppose experimentation.
D) undergo continuous change.
E) are risk averse.

Question 74

________ is a method to manage resistance that managers sometimes resort to when they must lay down the law.

A) Negotiation and rewards
B) Punishment and threats
C) Manipulation and cooptation
D) Education and communication
E) Facilitation and support

Question 75

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

A) "tyranny of the or"
B) "genius of the and"
C) glass ceiling effect
D) black swan effect
E) agile design concept

Question 76

Increasing ________ involves improving an 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) micromanagement
B) management myopia
C) groupthink
D) organizational effectiveness
E) organizational bureaucracy

Question 77

"Our new start-up has an innovative product, a new website, and a new name. I'm eager to talk to potential customers. Why do we have to spend so much time in planning and strategy?" asked Jonathan. "Because I want to build a company that is enduringly great," replied Stan, CEO of TruLife Group, "and that requires that we have ________, know what they are and what they mean, and live by them, year after year."

A) core values
B) efficiencies
C) different assessments
D) management tactics
E) performance gaps

Question 78

"Brian, your group members are going to resist that change, regardless of the content of the change. That's human nature. The old ways of doing things are comfortable and easy, so your staff will not want to try something new. That's called ________," said Brian's manager and mentor.

A) moving
B) inertia
C) freezing
D) management tactics
E) refreezing

Question 79

________ intervention involves attracting good people, setting goals, and appraising and rewarding performance.

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

Question 80

________ is best described as 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) Development project
D) Groupthink
E) Micromanagement