Question 1

AgroPharm is searching for a top-level executive. AgroPharm has marketed its products only to U.S. farmers and agribusinesses in the past. Now, the company plans to expand operations to Mexico and Central America in the next two years. To maximize the chances of success it is critical that the new executive
A) be of Hispanic descent.
B) have international experience.
C) possess an advanced degree in animal science.
D) have a background in managing agribusiness firms.

Accepted Answer

Since AgroPharm is planning to expand operations to Mexico and Central America, it would be beneficial for the new executive to have international experience. This would ensure that the executive is familiar with the cultural nuances and business practices in these regions, thereby maximizing the chances of success in these markets. While it may be helpful for the executive to have a background in managing agribusiness firms or possess an advanced degree in animal science, these qualifications are not as critical as international experience for the given expansion plan. Hispanic descent is also not a requirement for success in these markets.

Question 2

Autonomous strategic behavior is a(an) ____ process in which product champions pursue new ideas.
A) top-down
B) horizontal
C) integrated
D) bottom-up

Accepted Answer

Autonomous strategic behavior is a bottom-up process, meaning it originates from individuals or teams within the organization who pursue new ideas without being directed from top management. Product champions play a key role in this process, as they are responsible for promoting and advocating for their ideas within the organization.

Question 3

Which of the following is true? For firms to be entrepreneurial, they require a culture with
A) an emphasis on individualism in Western nations and an emphasis on collectivism in Eastern nations.
B) an exceptionally high level of collectivism.
C) a balance of individualism and collectivism.
D) an exceptionally high level of individualism.

Accepted Answer

An entrepreneurial culture requires a balance of individualism and collectivism. This means valuing both individual creativity and collaboration with others. A strictly individualistic culture may discourage cooperation and teamwork among employees, while a strictly collectivist culture may discourage taking risks and pursuing innovation.

Question 4

Panera Bread develops and produces its own dough-based products, but it works with manufacturing partners to create new soups. Panera Bread is therefore
A) increasing its costs and reducing its potential to succeed.
B) engaged in internal corporate venturing.
C) pursuing innovation through both internal and cooperative strategies.
D) not an innovative company.

Accepted Answer

Panera Bread is pursuing innovation through both internal and cooperative strategies by developing and producing its own dough-based products while also working with manufacturing partners to create new soups. This allows the company to benefit from both internal creativity and external expertise, which can increase the likelihood of success and reduce costs. Therefore, option C is the best choice.

Question 5

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
A) uses the induced strategic behavior form of internal corporate venturing.
B) uses the autonomous strategic behavior form of internal corporate venturing.
C) makes significant investment in research and development.
D) focuses on an acquisition strategy for gaining innovative ideas.

Accepted Answer

The autonomous strategic behavior form of internal corporate venturing allows employees to independently pursue innovative ideas and projects within the company, which would provide the opportunity for Charles to use his creative ideas for improving customer satisfaction. Option A (induced strategic behavior form) involves the company encouraging and incentivizing employees to come up with innovative ideas, but it may not provide as much autonomy as option B. Option C (investment in R&D) may not necessarily involve customer service improvements, and option D (acquisition strategy) may not utilize Charles's talents in a direct manner.

Question 6

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
A) is encouraged through a bottom-up or top-down process.
B) is encouraged by a product champion or an entrepreneur external to the organization.
C) relies on internal structure or existing strategy to encourage innovation.
D) is in a large or small organization.

Accepted Answer

The distinguishing difference between autonomous strategic behavior and induced strategic behavior is whether the innovation process is encouraged through a bottom-up or top-down process. Autonomous strategic behavior is bottom-up, meaning innovation comes from employees at lower levels of the organization, while induced strategic behavior is top-down, meaning innovation is encouraged by senior management.

Question 7

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
A) entrepreneurial incubation.
B) creative destruction.
C) internal corporate venturing.
D) cooperative innovation strategies.

Accepted Answer

WayWard Products' deliberate strategy to encourage internal innovations and the establishment of processes to support autonomous and induced strategic behavior indicates that it is practicing internal corporate venturing. This involves creating internal mechanisms to foster innovation and entrepreneurial activities within the organization.

Question 8

____ involves internally developed incremental and radical innovations that result from deliberate efforts.
A) Internal corporate venturing
B) Autonomous strategic behaviors
C) Bottom-up strategic behaviors
D) Product championing

Accepted Answer

Internal corporate venturing refers to deliberate efforts by a company to internally develop new innovations, which can be incremental or radical. Autonomous and bottom-up strategic behaviors refer to less formal, spontaneous actions by employees, while product championing refers to individual employees advocating for a specific product, rather than the overall innovation process.

Question 9

In the Chapter 13 Strategic Focus, the new abrasive, Cubitron II, was developed through cooperative relationships among 3M business units. As such, Cubitron II is an example of ____________.
A) the use of autonomous strategic behavior
B) the use of induced strategic behavior
C) development of radical innovations
D) innovation through acquisitions

Accepted Answer

The answer of In the Chapter 13 Strategic Focus, the...

Question 10

Innovations that involve significant technological breakthroughs and create new knowledge
A) build incrementally on the firm's existing technologies and knowledge.
B) are the most common type of innovation.
C) involve substantial uncertainty and risk.
D) typically have clear market opportunities.

Accepted Answer

Innovations that involve significant technological breakthroughs and create new knowledge are known as radical innovations. They involve substantial uncertainty and risk because they are based on unproven technologies and require significant investments in research and development. They may not have clear market opportunities because they often create new markets or disrupt existing ones.

Question 11

Panera Bread has innovated to improve the quality of its distribution system, to improve the quality of its bread dough, and to introduce new menu items. These are examples of
A) incremental innovation.
B) invention.
C) imitation.
D) the use of social capital.

Accepted Answer

Panera Bread has made improvements in its distribution system, dough quality, and menu items, which are all examples of incremental innovation, meaning they are small improvements or modifications made to an existing product or service, rather than completely new inventions.

Question 12

____ is one of the reasons for the differences in rates of entrepreneurship among different countries.
A) Climate
B) Competitiveness
C) Culture
D) Constitution

Accepted Answer

Culture plays a significant role in shaping entrepreneurial activity. Different countries have different cultural beliefs, attitudes, and values that can either encourage or discourage entrepreneurship. For instance, countries that encourage risk-taking, innovation, and individualism are likely to have higher rates of entrepreneurship compared to those that emphasize conformity and traditionalism. Therefore, entrepreneurship rates vary across countries as a result of cultural differences.

Question 13

A successful ____ innovation will be less risky but less profitable than a successful ____ innovation.
A) incremental, radical
B) radical, incremental
C) alliance-generated, acquisition-generated
D) acquisition-generated, alliance-generated

Accepted Answer

Incremental innovation typically involves small-scale improvements to existing products or processes, and is considered less risky than radical innovation, which requires more significant changes or entirely new products or processes. However, successful radical innovation often results in higher profits due to the potential for market disruption and new market opportunities.

Question 14

The idea that it is "vital to sell the ideas to others in the organization so that innovations will be commercialized" is the rationale behind the use of
A) product champions.
B) joint ventures.
C) strategic leadership.
D) cross-functional teams.

Accepted Answer

Product champions are individuals in an organization who are passionate advocates for a particular innovation and work to promote and sell the idea to others in the organization. They are often key to getting new ideas off the ground and ensuring that they are commercialized. Therefore, the use of product champions aligns with the idea that it is vital to sell the ideas to others in the organization so that innovations will be commercialized. Joint ventures, strategic leadership, and cross-functional teams may also play a role in commercializing innovations, but they are not specifically focused on the task of selling ideas within the organization.

Question 15

QuadroVax is investing heavily in research and development on new methods of vaccine development that would speed up the creation of vaccines for newly emerging viruses and to get these vaccines to the market rapidly. QuadroVax's shareholders can expect
A) immediate wealth creation.
B) a long wait for an uncertain payoff.
C) a long wait for a high probability payoff.
D) a large payoff in the short-term with rapidly decreasing wealth generation in the longer run.

Accepted Answer

The answer of QuadroVax is investing heavily in research and...

Question 16

Successfully creating innovations through internal means requires
A) a highly individualistic culture.
B) significant spending on R&D.
C) acquisitions of innovative firms.
D) venture capital.

Accepted Answer

Successfully creating innovations through internal means requires significant spending on R&D. Innovation is a complex process that requires a lot of experimentation and iteration, as well as investment in research and development to support those efforts. Therefore, companies that are serious about innovation need to be willing to allocate resources and invest in the long-term development of their own capabilities. While culture, acquisitions, and venture capital can also play a role in innovation, they are not sufficient on their own to drive sustained innovation success.

Question 17

Research suggests that _________ is needed to encourage entrepreneurial behavior.
A) individualism rather than collectivism
B) a balance between individualism and cooperative behavior
C) collectivism rather than individualism
D) limited autonomy and incentives

Accepted Answer

Research suggests that a balance between individualism and cooperative behavior is needed to encourage entrepreneurial behavior. While individualism can drive innovation and risk-taking, cooperative behavior is necessary for sharing knowledge, resources, and networks. Successful entrepreneurship often involves both independent thinking and collaboration with others.

Question 18

The development of the original personal computer (PC) was a(n) ____ innovation at the time, whereas adding a different kind of whitening agent to a soap detergent in an example of a(n) ____ innovation.
A) incremental; radical
B) radical; incremental
C) concentric; radical
D) radical; concentric

Accepted Answer

The development of the original personal computer was a radical innovation as it completely changed the way people interacted with technology. On the other hand, adding a different kind of whitening agent to a soap detergent is an incremental innovation as it is a small improvement to an existing product.

Question 19

A negative effect of acquiring other firms for the purpose of innovation is
A) innovations cannot be transferred between organizations.
B) the effect it can have on the firm's own ability to produce innovations.
C) innovations may not actually be present in the firm after the purchase is completed.
D) the acquired firm's employees usually leave.

Accepted Answer

Acquiring other firms for the purpose of innovation can take a toll on the acquirer's own ability to produce innovations. This is because the focus and resources of the acquirer may get diverted towards integrating and managing the acquired firm, rather than on their own innovative capabilities. Additionally, there may be cultural and operational differences between the acquiring firm and the acquired firm that can lead to integration difficulties and innovation stagnation.

Question 20

Internal corporate venturing does NOT involve
A) autonomous strategic behavior.
B) induced strategic behavior.
C) strategic alliances.
D) product champions.

Accepted Answer

Internal corporate venturing is the process of creating new businesses or investments within an existing organization, usually through autonomous or induced strategic behavior or with the help of product champions. However, it does not involve strategic alliances, as this involves partnerships with external organizations rather than new ventures created within the company itself.

Quiz 13: Entrepreneurial Implications for Strategy

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

Which of the following is true? For firms to be entrepreneurial, they require a culture with

Panera Bread develops and produces its own dough-based products, but it works with manufacturing partners to create new soups. Panera Bread is therefore

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

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

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

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

In the Chapter 13 Strategic Focus, the new abrasive, Cubitron II, was developed through cooperative relationships among 3M business units. As such, Cubitron II is an example of ____________.

Innovations that involve significant technological breakthroughs and create new knowledge

Panera Bread has innovated to improve the quality of its distribution system, to improve the quality of its bread dough, and to introduce new menu items. These are examples of

____ is one of the reasons for the differences in rates of entrepreneurship among different countries.

A successful innovation will be less risky but less profitable than a successful innovation.

The idea that it is "vital to sell the ideas to others in the organization so that innovations will be commercialized" is the rationale behind the use of

QuadroVax is investing heavily in research and development on new methods of vaccine development that would speed up the creation of vaccines for newly emerging viruses and to get these vaccines to the market rapidly. QuadroVax's shareholders can expect

Successfully creating innovations through internal means requires

Research suggests that _________ is needed to encourage entrepreneurial behavior.

The development of the original personal computer (PC) was a(n) innovation at the time, whereas adding a different kind of whitening agent to a soap detergent in an example of a(n) innovation.

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

Internal corporate venturing does NOT involve