Question 1

Induced strategic behavior is a process that fosters product innovations that

Accepted Answer

Induced strategic behavior is a process where organizations try to influence the innovation process to align with their current strategies and structures. Hence, the product innovations that result from this process are closely aligned with the firm's existing strategy and structure. This helps the firm to make better use of its resources, capabilities, and competencies to achieve a competitive advantage.

Question 2

When used effectively, cross-functional teams will often bring about

Accepted Answer

Cross-functional teams bring together individuals from different departments and areas of expertise, allowing for increased collaboration and knowledge sharing. This often leads to faster and more efficient product development processes.

Question 3

The concept that "no business idea takes root purely on its own merits; it has to be sold," is the rationale behind the use of

Accepted Answer

The concept of selling a business idea requires a product champion who is responsible for advocating and promoting the idea within the organization. Therefore, the use of product champions is the best choice to support the rationale that no business idea takes root purely on its own merits. Joint ventures, strategic leadership, and cross-functional teams may also be relevant in different contexts, but they are not directly related to the concept of selling a business idea.

Question 4

Autonomous strategic behavior is a(an) ____ process in which product champions pursue new ideas.

Accepted Answer

Autonomous strategic behavior is a bottom-up process in which product champions pursue new ideas. This means that individuals within the organization take the initiative to develop and promote new products or ideas without necessarily needing approval from top-level management.

Question 5

Which of the following is one of the barriers to effectiveness when using cross-functional teams to integrate organizational functions?

Accepted Answer

Organizational politics can be a significant barrier to effectiveness when using cross-functional teams. When team members prioritize their individual interests or the interests of their specific functional unit over the overall objectives of the team, it can lead to delays, conflicts, and a lack of consensus on critical decisions. Moreover, political infighting can undermine the trust and collaboration necessary for cross-functional teamwork to succeed. Dissension within the top management team, informal organizational processes, and strategic orientation are also challenges, but they are not as directly related to cross-functional teamwork as organizational politics.

Question 6

Cross-functional teams are useful in developing and commercializing new products because each team member brings his or her special competencies to the project. Each team member brings his/her point of view from his/his experience and background. On the other hand, these ____ may cause barriers to effective communication among team members.

Accepted Answer

Independent frames of reference refer to each team member's unique perspective and background. While this can be beneficial in bringing diverse ideas to the table, it can also create barriers to effective communication if team members struggle to understand and appreciate each other's points of view. The other answer choices (entrepreneurial mind-sets, professional rivalries, politicized points of view) may also create obstacles to effective communication, but they are not as directly related to the diverse perspectives of cross-functional teams.

Question 7

Netflix continues to develop video on demand technologies, even though few of its current customers are interested in it. This is an example of

Accepted Answer

Induced strategic behavior refers to a firm's deliberate efforts to develop new products or technologies, even if current demand is low, to anticipate future market needs or to maintain a competitive edge.

Question 8

A major barrier to the use of cross-functional teams is

Accepted Answer

Independent frames of reference of team members can lead to misunderstandings, conflicts, and lack of direction within the team. This can hinder collaboration and make it difficult for the team to achieve their goals. It is important for cross-functional team members to work together towards a common goal, and having a shared understanding of the problem they are trying to solve is critical for success.

Question 9

Charles is a customer service representative for a home improvement store. He has creative ideas about how to increase customer satisfaction. Charles's talents will be most likely to be used in a firm that

Accepted Answer

The autonomous strategic behavior form of internal corporate venturing involves empowering individual employees, like Charles, to generate and implement innovative ideas within the company. This allows employees like Charles to use their creativity to increase customer satisfaction and potentially lead to new products or services for the company.

Question 10

A product-development team has been examining a proposed new product intensively for six months. They have decided that although the product is unique and technologically-advanced, the cost of production will exceed the price that the consumer would be willing to pay. At this point, the product development team should

Accepted Answer

If the cost of production exceeds the price the consumer would be willing to pay, it is not a viable business proposition. Therefore, the best option would be to recommend that the project be set aside. Continuing to invest time and resources into a project that will not generate a profit is not a wise decision.

Question 11

____ involves internally developed incremental and radical innovations that result from deliberate efforts.

Accepted Answer

Internal corporate venturing refers to deliberate efforts made by a company to internally develop incremental and radical innovations. This can involve creating new products, services, or processes through research and development, experimentation, and other strategic activities within the organization.

Question 12

One of the distinguishing differences between the two sources of internal corporate venturing (autonomous strategic behavior and induced strategic behavior) is whether the innovation process

Accepted Answer

The distinguishing difference between the two sources of internal corporate venturing is whether the innovation process is encouraged through a bottom-up or top-down process. Autonomous strategic behavior encourages bottom-up innovation, while induced strategic behavior encourages top-down innovation.

Question 13

Induced strategic behavior as a form of internal innovation is a(an) ____ process.

Accepted Answer

The answer of Induced strategic behavior as a form of...

Question 14

WayWard Products has a deliberate strategy to encourage internal innovations. It has established processes to support autonomous strategic behavior as well as induced strategic behavior. WayWard Products is involved in

Accepted Answer

WayWard Products is involved in internal corporate venturing, which refers to the process of encouraging and supporting internal innovations within an organization. The company has established processes to support autonomous and induced strategic behaviors, demonstrating its commitment to fostering innovation from within. Entrepreneurial incubation, creative destruction, and cooperative innovation strategies are other methods of promoting innovation, but they are not specifically mentioned in the scenario.

Question 15

A negative effect of acquiring other firms for the purpose of innovation is

Accepted Answer

Acquiring other firms for the purpose of innovation can lead to a negative effect on the acquiring firm's own ability to produce innovations. This can happen because the firm may become dependent on external sources for innovation rather than developing it internally, which can lead to a decrease in creative ability and innovation over time. Additionally, acquiring firms may focus too much on integrating the acquired firm rather than continuing to develop their own innovation capabilities.

Question 16

To be successful, an autonomous process for developing new products relies on

Accepted Answer

The answer of To be successful, an autonomous process for...

Question 17

Internal corporate venturing does NOT involve

Accepted Answer

Internal corporate venturing refers to the process of developing new businesses or products within an established company. Autonomous and induced strategic behavior as well as product champions are all commonly associated with internal corporate venturing. However, strategic alliances involve partnering with external firms rather than developing new ventures within the organization, so they are not considered part of internal corporate venturing.

Question 18

Motorola's Razr cell phone best illustrates ____ innovation, whereas their Razr2 is best seen as ____ innovation.

Accepted Answer

The original Motorola Razr was a radical innovation due to its groundbreaking design and features at the time. The Razr2, however, was an incremental innovation as it built upon and improved the existing Razr model without introducing a fundamentally new concept.

Question 19

Through the work of cross-functional teams, product development stages are grouped into ____ processes.

Accepted Answer

The answer of Through the work of cross-functional teams, product...

Question 20

Informal (often invisible) processes are best supported through ____ organizational structures.

Accepted Answer

Horizontal structures are best suited for informal processes as they emphasize collaboration across functions and encourage communication and information sharing among employees. Vertical structures, on the other hand, tend to be hierarchical and can stifle creativity and flexibility. Functionally-oriented and multidivisional structures may have some degree of informality, but they are still focused on functional specialties or different business units, respectively, which may not be conducive to informal processes.

Quiz 13: Strategic Entrepreneurship