Deck 7: Innovation and Change

Question 1

Wenayton, a company that manufactures and supplies ceramic kitchenware, uses broken and rejected pieces of ceramics to design its office interiors. It also uses novel ways to utilize solar energy for interior lighting. This scenario best illustrates _____.

A) organizational innovation
B) corporate entropy
C) reverse engineering
D) agile development

Answer 1

A

Question 2

Waltert, a cell phone manufacturer, has been the market leader in the country of Besmagia ever since cell phones were introduced in the country. None of the other domestic or foreign cell phone brands have been able to match the high quality and low price that Waltert's products offer. In the context of innovation streams, Waltert most likely has a _____.

A) fixed working capital
B) distinctive competence
C) fiduciary responsibility
D) matrix organization structure

Answer 2

B

Question 3

In the context of resistance to change, _____ is the use of formal power and authority to force others to change.

A) refreezing
B) unfreezing
C) coercion
D) negotiation

Answer 3

C

Question 4

The compression approach to innovation assumes that innovation is occurring within a highly uncertain environment and that the key to fast product innovation is to use intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding.

Question 5

The standalone scanners and printers at Indentom, a law firm, have been replaced with all-in-one printers that perform the functions of printing, scanning, and photocopying. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

A) Technological singularity
B) Technological lockout
C) Technological substitution
D) Technological determinism

Question 6

The chefs at Lorifusion, a continental restaurant, are given the freedom to try out new ways of presenting their dishes. This helps them avoid monotony and encourages them to innovate. The employees believe that this challenges their skills and keeps them interested and motivated. In the context of managing sources of innovation, which of the following concepts does this scenario best illustrate?

A) A creative work environment
B) Generational change
C) Technological lockout
D) A compression approach to innovation

Question 7

In the context of organizational decline, which of the following is true of the crisis stage?

A) Key managers fail to recognize the internal or external changes that will harm their organizations.
B) Management recognizes the need to change but still takes no action.
C) Companies lack the resources to fully change how they run their businesses.
D) Management announces belt-tightening plans designed to cut costs and restore profits.

Question 8

In terms of change tools and techniques, the General Electric workout is a special kind of results-driven change.

Question 9

Organizational development takes a short-range approach to change, and it assumes that top-management support is necessary for the change to succeed.

Question 10

Nearly all technology cycles follow a typical S-curve pattern of innovation.

Question 11

In contrast to change forces, resistance forces support the status quo, that is, the existing conditions in an organization.

Question 12

__________is a cycle of repetition in which a company tests a prototype of a new product or service, improves on the design, and then builds and tests the improved product or service prototype.

A) Unrelated diversification
B) Design iteration
C) Discontinuous change
D) Technological lockout

Question 13

Glaler, a large-scale cell phone manufacturer, has a robot in each of its outlets that studies a customer's usage history and suggests a model of Glaler's cell phone that is most likely to suit the customer. This scenario best illustrates _____.

A) organizational innovation
B) corporate entropy
C) reverse engineering
D) agile development

Question 14

More companies are likely to go out of business during an economic recession or slowdown than in a time of discontinuous change and changing standards.

Question 15

Mozbert is a company that manufactures and supplies wireless headsets. It started an online advertising campaign that explains the advantages and ease of using wireless headsets over wired headsets. As a mitigation plan, Beloway, a wired headset manufacturer, launched new offers and discounts to retain its customers. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

A) Design competition
B) Technological lockout
C) Technological substitution
D) Design iteration

Question 16

In the context of managing resistance to change, an error in the refreezing stage is not systematically planning for and creating short-term wins.

Question 17

Which of the following best defines an incremental change?

A) It is the competition between old and new technologies to establish a new technological standard or dominant design.
B) It is the purchase of new technologies to replace older ones.
C) It is a phase in which companies innovate by lowering the cost and improving the functioning and performance of a dominant design.
D) It is a phase of a technology cycle characterized by technological substitution and design competition.

Question 18

Work group encouragement occurs when group members have diverse experience, education, and backgrounds and the group fosters mutual openness to ideas; positive, constructive challenge to ideas; and shared commitment to ideas.

Question 19

Dominant technological designs can also emerge through independent standards bodies.

Question 20

Bankruptcy or dissolution is likely to occur in the crisis stage unless a company completely reorganizes the way it does business.

Question 21

__________is the phase of an innovation stream in which a scientific advance or unique combination of existing technologies creates a significant breakthrough in performance or function.

A) Technological discontinuity
B) Technological substitution
C) Technological lockout
D) Technological singularity

Question 22

In the context of organizational development, the purpose of large-system interventions is to:

A) assess how a group functions and help it work more effectively to accomplish its goals.
B) increase interpersonal effectiveness by helping people to become aware of their attitudes.
C) change the character and performance of an organization, business unit, or department.
D) help a work group establish short- and long-term goals.

Question 23

Which of the following best defines the General Electric workout?

A) It is based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology.
B) It is an approach to innovation that assumes that incremental innovation can be planned using a series of steps and that compressing those steps can speed innovation.
C) It is a three-day meeting in which managers and employees from different levels and parts of an organization quickly generate and act on solutions to specific business problems.
D) It is a philosophy and collection of planned change interventions designed to improve an organization's long-term health and performance.

Question 24

Technological substitution occurs when:

A) customers establish a new technological standard or dominant design.
B) customers purchase new products to replace older technologies.
C) a new dominant design prevents a company from competitively selling its products.
D) a new technological design or process becomes the accepted market standard.

Question 25

_____ are workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged.

A) Creative work environments
B) Design iterations
C) Functional groups
D) Core change coalitions

Question 26

When a few domestic manufacturers of solar water heaters gained popularity in the country Likambea, solar water heaters replaced the old models of water heaters and became the accepted market standard for heaters. In the context of innovation streams, this scenario best illustrates _____.

A) a dominant design
B) the compression approach to innovation
C) the experiential approach to innovation
D) a design iteration

Question 27

Which of the following is true of the S-curve pattern of innovation of a product?

A) A flat slope indicates that increased effort brings only small improvements in technological performance.
B) A flat slope indicates that small amounts of effort will result in significant increases in technological performance.
C) A steep slope at the midpoint of the curve indicates that further efforts to develop this particular technology will result in only small increases in performance.
D) A steep slope near the endpoint of the curve indicates that the performance limits of that particular technology are being reached.

Question 28

Which of the following statements is true of resistance to change?

A) Employees are more likely to resist change if they have to participate in planning and implementing the change process.
B) Employees are more likely to resist change if they are asked to focus on short-term wins, rather than long-term goals.
C) It decreases when change efforts receive significant managerial support.
D) It is used to manage innovation in more certain environments during periods of incremental change.

Question 29

Arthumt's carpool service application gained popularity among its customers within a few months of its release. However, the customers eventually discovered that the application caused the phone battery to heat up to abnormal levels. This made them switch to a newer and efficient application. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

A) Technological singularity
B) The compression approach to innovation
C) The experiential approach to innovation
D) Technological lockout

Question 30

When Pocdio, an application development software, was released, it was widely accepted by customers. However, a few months after its release, users began experiencing a lag in its user interface. Customers eventually stopped using this software and started to use newer and better alternatives. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

A) Technological singularity
B) The compression approach to innovation
C) The experiential approach to innovation
D) Technological lockout

Question 31

Kappawn, a cell phone manufacturer, observes that its customers have started purchasing only touchscreen cell phones. It hence stops manufacturing traditional cell phones and switches to the manufacture of touchscreen cell phones. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

A) Technological singularity
B) Technological lockout
C) Technological substitution
D) Technological determinism

Question 32

The manual computer entry system for calculating employee attendance at Kartufly, an apparel retail store, has been replaced with a biometric system. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

A) Technological singularity
B) Technological lockout
C) Technological substitution
D) Technological determinism

Question 33

In the context of managing resistance to change, which of the following is an error that managers make in the change phase?

A) They overlook victory after the first large-scale success.
B) They do not create a powerful enough coalition.
C) They do not establish a great enough sense of urgency.
D) They undercommunicate the vision by a factor of ten.

Question 34

Cinebravos, a television manufacturer in Ashtemston, observes that its customers have stopped purchasing its CRT television sets and that they have begun purchasing its LED and LCD television sets. It hence stops manufacturing CRT television sets entirely. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

A) Technological substitution
B) Technological lockout
C) Technological singularity
D) Technological determinism

Question 35

Which of the following best defines technological discontinuity?

A) It is the phase of a technology cycle in which companies innovate by lowering costs and improving the functioning and performance of a dominant technological design.
B) It is the inability of a company to competitively sell its products because it relies on old technology or a nondominant design.
C) It is the phase of an innovation stream in which a scientific advance or unique combination of existing technologies creates a significant breakthrough in performance or function.
D) It is an approach to innovation that assumes a highly uncertain environment and uses intuition and hands-on experience to reduce uncertainty and accelerate learning and understanding.

Question 36

__________is a change that occurs when incremental improvements are made to a dominant technological design such that the improved version of the technology is fully backward compatible with the older version.

A) Results-driven change
B) Generational change
C) Discontinuous change
D) Incremental change

Question 37

In the context of organizational development, the purpose of small-group interventions is to:

A) assess how a group functions and help it work more effectively to accomplish its goals.
B) increase interpersonal effectiveness by helping people to become aware of their attitudes.
C) change the character and performance of an organization, business unit, or department.
D) help people acquire new skills and knowledge.

Question 38

Russeng, a travel agency, had a huge setback in its business as customers started to book travel tickets online and make their own itineraries using the information available on the Internet. It failed to take the necessary corrective measures to address this issue, and this led to an overall decrease in the company's performance. Which of the following concepts does this scenario best illustrate?

A) Organizational decline
B) Design iteration
C) Technological discontinuity
D) Generational change

Question 39

Cleanreef, a chain of stores that provides dry-cleaning services, has been the market leader in the country of Gregoramas for the past 20 years. None of its competitors have been able to match Cleanreef's technology, logistics, and pricing. In the context of innovation streams, Cleanreef most likely has a _____.

A) fixed working capital
B) distinctive competence
C) fiduciary responsibility
D) matrix organization structure

Question 40

__________is a philosophy and collection of planned change interventions designed to improve an organization's long-term health and performance.

A) Supervisory encouragement
B) Organizational development
C) Organizational structure
D) Functional departmentalization

Question 41

Large investments in old technology and incompatiblility of new and old technologies with each other are the main reasons companies and consumers are reluctant to switch to a different technology during a(n)__________.

A) innovation stream
B) design competition
C) design iteration
D) change intervention

Question 42

When LED televisions started becoming popular in the city of Jazetta, all the electronic stores in the city stopped selling CRT televisions. Following this, LED televisions dominated the market and became the accepted market standard for televisions in the city. In the context of innovation streams, this scenario best illustrates _____.

A) a dominant design
B) the compression approach to innovation
C) the experiential approach to innovation
D) a design iteration

Question 43

In the context of organizational decline, which of the following is true of the dissolution stage?

A) Cutbacks and layoffs will have reduced the level of talent among employees.
B) Key managers fail to recognize the threats due to an inability to understand their significance.
C) The managers may be waiting to see if the problems will correct themselves.
D) The company is dissolved through bankruptcy proceedings.

Question 44

Carolint, a watch manufacturer, has installed custom smart lighting and ventilation systems in employees' workspaces. These enable employees to set their preferences, and the system automatically senses their presence and modifies the temperature and light settings. This scenario best illustrates _____.

A) corporate entropy
B) organizational innovation
C) reverse engineering
D) agile development

Question 45

During design competition, _____.

A) the patterns of innovation over time create sustainable competitive advantage
B) an older technology usually improves significantly in response to the competitive threat from the new technologies
C) a scientific advance of existing technologies creates a significant breakthrough in performance or function
D) a new dominant design prevents a company from competitively selling its products or makes it difficult to do so

Question 46

The employees of Antrobe, a leading daily newspaper, believe that their managers encourage them to voice their ideas and opinions. They also believe that they are given challenging tasks that interest and motivate them. In the context of managing sources of innovation, which of the following concepts does this scenario best illustrate?

A) A creative work environment
B) Generational change
C) Technological lockout
D) A compression approach to innovation

Question 47

When Nathanil Inc., a network service provider, introduced 4G data plans, it observed that most of its customers completely stopped using 2G and 3G data plans and switched to 4G. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

A) Technological singularity
B) Technological lockout
C) Technological substitution
D) Technological determinism

Question 48

Pagent, a company that manufactures watches, introduces a new range of watches with a safety application programmed into it. This application is designed especially for women and helps them alert people in case of danger. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

A) A technological discontinuity
B) Technological lockout
C) Technological singularity
D) A technological barrier

Question 49

The employees of Carlofen, a cell phone manufacturer, raised a concern to their management about their poor pay and excess workload. However, the management failed to address their issue, so a majority of them resigned at once. As a result, the company's sales began to fall and its overall performance began to deteriorate. Which of the following concepts does this scenario best illustrate?

A) Organizational decline
B) Design iteration
C) Technological discontinuity
D) Generational change

Question 50

_____ are forces that produce differences in the form, quality, or condition of an organization over time.

A) Change forces
B) Resistance forces
C) Effort forces
D) Defiance forces

Question 51

In the context of organizational development, the purpose of person-focused interventions is to:

A) assess how a group functions and help it work more effectively to accomplish its goals.
B) increase interpersonal effectiveness by helping people to become aware of their attitudes.
C) change the character and performance of an organization, business unit, or department.
D) help a work group establish short- and long-term goals.

Question 52

Which of the following is an error that managers make in the refreezing phase?

A) They do not create a powerful enough coalition.
B) They undercommunicate the vision by a factor of ten.
C) They declare victory too soon.
D) They lack a vision for change.

Question 53

Sun Technologies changed the operating system of their phones and insisted that all its current users switch to the new one. They started listing out the benefits of the new system in the update log in an attempt to make its users believe that the change was for the better. In the process of managing organizational change, Sun Technologies is in the__________phase.

A) refreezing
B) coercion
C) unfreezing
D) innovation

Question 54

Which of the following statements is true of technological lockout?

A) It occurs when customers purchase new technologies to replace older technologies.
B) It occurs when a new dominant design prevents a company from competitively selling its products.
C) It occurs when companies innovate by improving the functioning and performance of the dominant design.
D) It occurs when new technologies compete to establish a new technological standard.

Question 55

_____ is the process used to get workers and managers to change their behaviors and work practices.

A) Unfreezing
B) Change intervention
C) Refreezing
D) Change remediation

Question 56

Arthills is a retail store that sells paintings. The entire store of Arthills is energy efficient and uses a glass ceiling to naturally light the room during the day and sensors to automatically turn the internal lighting system on during the night. This scenario best illustrates _____.

A) organizational innovation
B) corporate entropy
C) reverse engineering
D) agile development

Question 57

Ebdino, a company that manufactures tires, observes that the sales of its traditional tires have declined drastically and that the sales of tubeless tires have increased. Ebdino hence decides to stop manufacturing traditional tires and replace them with tubeless tires. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

A) Technological substitution
B) Technological lockout
C) Technological singularity
D) Technological determinism

Question 58

In the__________of organizational decline, as organizational performance problems become more visible, management may recognize the need to change but still take no action.

A) blinded stage
B) inaction stage
C) faulty action stage
D) crisis stage

Question 59

When Dalemend Inc. started manufacturing gaming consoles, it had difficulties with performance growth. Over time, the consoles began performing well, and the company's growth rate became rapid. However, after this period of rapid growth, the performance growth rate began to drop again. In the context of technology cycles, this scenario best illustrates _____.

A) a compression approach to innovation
B) resistance to change
C) technological lockout
D) the S-curve pattern of innovation

Question 60

When cell phones were introduced, most customers stopped using landline telephones. Eventually, cell phones almost entirely replaced landline telephones and became the accepted market standard for phones. In the context of innovation streams, this scenario best illustrates _____.

A) a dominant design
B) the compression approach to innovation
C) the experiential approach to innovation
D) a design iteration

Question 61

Which of the following best defines results-driven change?

A) It is the change created quickly by focusing on the measurement and improvement of outcomes.
B) It is the change based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology.
C) It is the phase of a technology cycle characterized by technological substitution and design competition.
D) It is the phase of a technology cycle in which companies innovate by lowering costs and improving the functioning and performance of the dominant technological design.

Question 62

Keniey, a company that manufactures and supplies home appliances, launches a fully automatic advanced food processor that performs the functions of slicing, chopping, grinding, shredding, grating, pureeing, kneading, mixing, and blending. The product is priced lower than semi-automatic food processors sold by other brands. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

A) Change intervention
B) Unfreezing
C) Incremental change
D) Refreezing

Question 63

In the context of managing resistance to change,__________is supporting and reinforcing the new changes so that they stick.

A) unfreezing
B) refreezing
C) resistance force
D) change force

Question 64

Zavacomp, a company that manufactures sports accessories, earlier manufactured and sold fitness shoes and activity tracking watches as separate units. It observed that customers frequently bought these two accessories together and hence created a new integrated product with a tracking device embedded in its sports shoes. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

A) A technological discontinuity
B) Technological lockout
C) Technological singularity
D) A technological barrier

Question 65

Bluewood, a paper manufacturing company, has redecorated the interiors of its headquarters using waste materials from tree barks that get rejected after extracting wood pulp. This scenario best illustrates _____.

A) organizational innovation
B) corporate entropy
C) reverse engineering
D) agile development

Question 66

Brandack is a leading manufacturer of storage devices. During a span of every five years, it produces one high-performance storage device. At the beginning of the five-year period, the device's performance improvement is slow. However, the improvement becomes rapid over time, and toward the end of the five-year period, it gradually begins to drop. In the context of technology cycles, this scenario best illustrates _____.

A) a compression approach to innovation
B) resistance to change
C) technological lockout
D) the S-curve pattern of innovation

Question 67

When USB flash drives started becoming popular, customers stopped purchasing CDs. As a result, USB flash drives almost completely replaced CDs in the market and became the accepted market standard for storage devices. In the context of innovation streams, this scenario best illustrates _____.

A) a dominant design
B) the compression approach to innovation
C) the experiential approach to innovation
D) a design iteration

Question 68

In the context of organizational decline, which of the following is true of the blinded stage?

A) Key managers fail to recognize the internal or external changes that will harm their organizations.
B) Management recognizes the need to change but still takes no action.
C) Companies plan to cut costs and restore profits rather than recognizing the need for fundamental changes.
D) Companies lack the resources to fully change how they run their businesses.

Question 69

The customers of Curtofan, a gaming console manufacturer, stopped purchasing its traditional hand-held gaming device after it introduced a real-time, high-end gaming device. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

A) Technological singularity
B) Technological lockout
C) Technological substitution
D) Technological determinism

Question 70

Solylin, a company that manufactures electronic goods, has introduced solar chargers that are compatible with all brands and models of cell phones in the market. These chargers help save costs because they work on solar power, and they are sold at a lower price than traditional chargers. In the context of innovation streams, which of the following does this scenario best illustrate?

A) Change intervention
B) Unfreezing
C) Incremental change
D) Refreezing

Question 71

_____ is a change based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology.

A) Results-driven change
B) Discontinuous change
C) Generational change
D) Incremental change

Question 72

Seaneng, a company that has been manufacturing printers for computers for the past 20 years, initially specialized in dot matrix printers. However, dot matrix printers were inefficient in color printing. To overcome this disadvantage, it developed and started selling inkjet and laser printers. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

A) A technological discontinuity
B) Technological lockout
C) Technological singularity
D) A technological barrier

Question 73

In the context of managing resistance to change, which of the following is an error that managers make during the unfreezing stage?

A) They do not establish a great enough sense of urgency.
B) They lack a vision for change.
C) They undercommunicate the vision by a factor of ten.
D) They do not systematically plan for short-term wins.

Question 74

When Rebopy, a network service provider, started providing 4G data services, it attracted a large number of customers because of the high speed and cost effectiveness of Rebopy's services. However, after few months of using the service, the customers found that it had poor connectivity and hence switched to more efficient data services. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

A) Technological singularity
B) The compression approach to innovation
C) The experiential approach to innovation
D) Technological lockout

Question 75

Which of the following is a difference between experiential and compression approaches to innovation?

A) Experiential approach is used in fast-growing environments, whereas compression approach is used in highly uncertain environments.
B) Experiential approach is used in periods of incremental change, whereas compression approach is used in periods of discontinuous change.
C) Experiential approach is used to establish a new dominant design, whereas compression approach is used to improve the function of an existing dominant design.
D) Experiential approach is used to shorten the time of individual steps in the innovation process, whereas compression approach is used to test the improved product or service prototype.

Question 76

Maxsigma, a software company, released a text processing application. This application was user-friendly and widely accepted by its customers. However, a few months later, users found that it was susceptible to virus, and they switched to newer and more efficient text processing applications. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

A) Technological singularity
B) The compression approach to innovation
C) The experiential approach to innovation
D) Technological lockout

Question 77

_____ is a new technological design or process that becomes the accepted market standard.

A) Dominant design
B) Design competition
C) Technological substitution
D) Technological lockout

Question 78

In an attempt to eliminate spectacles from the market, Lensamt, a company that manufactures and supplies contact lenses, launched an advertising campaign to popularize its products. To counter this and stay in the market, the spectacle manufacturers introduced new offers and discounts on spectacles. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

A) Design competition
B) Technological lockout
C) Technological substitution
D) Design iteration

Question 79

Musccanic Inc., a company that manufactures microprocessors, updates the technology used in its microprocessors once every four years. A study conducted by the R&D team of the company revealed that the microprocessors' growth rate is initially slow, then becomes rapid, and eventually becomes slow again toward the end of the four-year cycle. In the context of technology cycles, this scenario best illustrates _____.

A) a compression approach to innovation
B) resistance to change
C) technological lockout
D) the S-curve pattern of innovation

Question 80

Irolt, a company that supplies fast-moving consumer durables, recruits only graduates from top business schools as management trainees in its marketing department. The company ensures that its employees are always given challenging tasks that interest them, and the employees believe that the management welcomes innovative ideas and thoughts. In the context of managing sources of innovation, which of the following concepts does this scenario best illustrate?

A) A creative work environment
B) Generational change
C) Technological lockout
D) A compression approach to innovation