Deck 12: Managing Innovation and Fostering Corporate Entrepreneurship

Question 1

All of the following statements about innovativeness are true except

A) it refers to making decisions and taking risks without certain knowledge of probable outcomes.
B) it refers to a firm's efforts to find new opportunities and novel solutions.
C) it involves creativity and experimentation.
D) it is aimed at developing new products, services, and processes.

Answer 1

A

Question 2

Venture capital is

A) a form of private equity
B) available only at the start-up stage
C) a form of human capital
D) a form of angel investing

Answer 2

A

Question 3

All of the following are questions that should be answered when evaluating the performance of corporate venturing efforts except

A) Is the venture attracting external venture funding?
B) Is the venture considered to be a market success?
C) Does the venture add to the worth of the firm internally?
D) Does the value proposition offered by the venture insulate it from competitive attack?

Answer 3

A

Question 4

One of the key factors that makes it difficult for new ventures to be successful as differentiator is

A) strategic renewal.
B) internal development is challenging.
C) mergers and acquisitions are a threat.
D) enacting HYPERLINK "" the strategy is expensive.

Question 5

Which of the following is not one of the characteristics of good opportunities?

A) Attractive
B) Achievable
C) Value creating
D) Opportunism

Question 6

According to the text,in addition to financial resources,young firms often need the following resources except

A) social capital.
B) logistics support.
C) human capital.
D) government resources.

Question 7

_____ are often associated with a low-cost leader strategy,whereas,_____ are frequently an important aspect of a differentiation strategy.

A) Process innovations; product innovations
B) Product innovations; service innovations
C) Radical innovations; instrumental innovations
D) Marketing innovations; management innovations

Question 8

_____ produce fundamental changes that can transform a company or even revolutionize an industry; _____ enhance existing practices and often represent evolutionary applications of fundamental breakthroughs.

A) Technological breakthroughs; product-market breakthroughs
B) New technologies; new paradigms
C) Incremental innovations; radical innovations
D) Radical innovations; incremental innovations

Question 9

In corporations with a strong entrepreneurial culture,the willingness and ability to change

A) is imposed from the top down.
B) is considered a core capability.
C) often leads to instability.
D) often worries stakeholders such as suppliers and creditors.

Question 10

For an opportunity to be viable,it must be attractive,achievable,durable,and

A) physically located.
B) compelling.
C) fun.
D) value creating.

Question 11

Which of these statements is incorrect? Canadian communications Rogers got started by

A) being involved in wireless telegraphy.
B) creating a radio tube that could be operated from a 110 volt current instead of batteries.
C) being the leading manufacturer of radios in Canada and the U.S.
D) introducing process innovation.

Question 12

Incremental innovations

A) are usually highly disruptive.
B) usually represent technological breakthroughs.
C) are usually small improvements in products or processes.
D) nearly always can be patented.

Question 13

Focus strategies are often associated with small businesses because there is a natural fit between the narrow scope of the strategy and the

A) small size of the firm.
B) a strong spirit of entrepreneurship.
C) a top-down approach to supporting entrepreneurial behaviour.
D) an entrepreneurial culture.

Question 14

The innovation dilemma known as building capabilities versus collaborating refers to

A) developing innovation skills internally versus partnering with qualified outsiders.
B) building innovative products in-house versus outsourcing.
C) building credibility by launching products ahead of potential collaboration partners.
D) all of these are correct

Question 15

Which of the following dimensions of entrepreneurial orientation is described as "a forward-looking perspective characteristic of a marketplace leader that has the foresight to seize opportunities"?

A) Proactiveness
B) Risk taking
C) Autonomy
D) Competitive aggressiveness

Question 16

The vast majority of new firms are low-budget start-ups financed through

A) an initial public offering (IPO)
B) bank financing
C) venture capital
D) personal savings and contributions of family and friends

Question 17

Type of entry strategies include all of the following except

A) imitative.
B) adaptive.
C) pioneering.
D) generic.

Question 18

_____ refers to efforts to create designs and applications of technology to develop new products; _____ refers to efforts to improve the efficiency of organizational systems such as manufacturing and operations.

A) Radical innovation; incremental innovation
B) Breakthrough innovation; instrumental innovation
C) Product innovation; process innovation
D) Product innovation; service innovation

Question 19

The innovation dilemma known as seeds versus weeds refers to

A) choosing to pursue radical rather than incremental innovations.
B) choosing to pursue product rather than process innovations.
C) promoting organizational stars onto innovation teams rather than involving all employees in innovation efforts.
D) none of these are correct

Question 20

The benefits of converting innovations into successful business ventures include

A) declining competitiveness.
B) shutting down product lines.
C) growth and rewards.
D) focus groups and business incubators.

Question 21

Firms using a focused approach to corporate entrepreneurship typically separate corporate venturing activities from on-going operations of the firm.

Question 22

The benefits gained by firms that are the first to enter new markets,establish brand identity,and/or adopt new technologies are known as

A) competitive aggressiveness.
B) technological capabilities.
C) first mover advantages.
D) breakthrough innovations.

Question 23

Process innovations are often associated with a low cost leadership strategy.

Question 24

Rogers may be known as a company involved in cell phones and cable TV but it was once the leading manufacturer of radios in Canada and the U.S.

Question 25

The term "strategic envelope" refers to the scope of a firm's innovation efforts.

Question 26

WestJet was cited by the text as being able to develop a toehold in Western Canada through

A) proceeding slow and steady.
B) partnering with Air Canada.
C) using American pilots.
D) an aggressive market entry and competitiveness.

Question 27

Changes in the external environment spark innovative new ideas.

Question 28

In general,radical innovations occur quickly and incremental innovations take a long time to develop.

Question 29

A venture opportunity may be justified regardless of whether or not it is attractive in the marketplace.

Question 30

Corporate entrepreneurship is sometimes called "intrapreneuring."

Question 31

According to the text,firms that want to enhance their entrepreneurial position by being competitively aggressive should

A) enter markets with drastically lower prices.
B) foster creativity and experimentation.
C) continuously seek out new products or services.
D) research risk factors to minimize uncertainty.

Question 32

The 3M Corporation,one of the most highly innovative companies,uses corporate venturing activities to promote innovation.An advantage of this approach is that

A) the ability to change is considered a core capability.
B) new ideas are not well received.
C) employees have to be constantly reminded to think entrepreneurially.
D) employees are not willing to change.

Question 33

Radical innovation often involves open-ended experimentation which can be very time consuming.

Question 34

As an industry matures,there are greater opportunities for change and so innovations tend to be more radical.

Question 35

Strategic renewal and the pursuit of new venture opportunities are the two primary aims of corporate entrepreneurship.

Question 36

The term "innovations" refers primarily to inventions that use the latest technologies.

Question 37

Which kind of new entry strategy sometimes involves filling a market space where the need has not previously been filled adequately?

A) Adaptive
B) Imitative
C) Pioneering
D) Technological risk taking

Question 38

The discovery phase refers to the period when one becomes aware of a new business concept.

Question 39

Every idea developed by an entrepreneur represents a viable business opportunity.

Question 40

Corporate venturing that is focused permeates all parts of the organization and involves every member of the organization.

Question 41

Business risk taking refers to the risk associated with entering untested markets or committing to unproven technologies.

Question 42

An imitative new entry strategy is in many respects the same as pioneering.

Question 43

What is meant by the terms "radical" innovation and "incremental" innovation? Provide example of each.

Question 44

Outline the five dilemmas that companies must wrestle with when pursuing innovation.

Question 45

Discuss the concept of venture capital as a means of funding entrepreneurial initiatives.

Question 46

Discuss the how the generic strategies of cost leadership,differentiation and focus may be used by new ventures and small businesses.

Question 47

Most new entrants use an adaptive strategy.

Question 48

Financial resources are the only kind of resource a new venture needs.

Question 49

New-entry strategies typically fall into one of three categories: pioneering new-entry; imitative new-entry; or adaptive new entry.Outline the key strategic intentions of each and provide an example of each.

Question 50

Outline the opportunity process and discuss the qualities necessary for an opportunity to become viable.

Question 51

What are the differences between product and process innovation? What are the strategic implications of each approach to innovation?

Question 52

First movers in an industry often capture above-average profits,but usually find it difficult to maintain early market share gains.

Question 53

Westjet is similar to most other airlines in that it runs a deficit.

Question 54

Explain what is meant by the term "entrepreneurial orientation" or EO.

Question 55

Pioneering involves creating new ways to solve old problems or meeting customers' needs in a unique new way.