Question 1

Which of the following factors is least important for a firm to consider when engaged in a patent race and determining whether to increase its investment?

Accepted Answer

The cost of other R&D projects the firm is conducting is least directly related to the specific patent race in question, as it does not directly impact the firm's chances of winning the race or the strategic dynamics involved.

Question 2

Which of the following terms best describes an idea,developed by Gary Hamel and C.K.Prahalad,which combines commitment to the firm's ambitions with the flexibility to change with circumstances?

Accepted Answer

C

Question 3

Which of the following is not an example of disruptive technologies?

Accepted Answer

E

Question 4

Which of the following terms best describes the situation when sources of competitive advantage in an industry are being created and eroded at an increasingly rapid rate?

Accepted Answer

Hypercompetition best describes the situation when sources of competitive advantage in an industry are being created and eroded at an increasingly rapid rate. It is a state of constant and disruptive competition where competitors are always trying to outdo each other and gain a competitive advantage. This type of environment is characterized by rapid changes and uncertainty, with new competitors, technologies, and business models emerging frequently.

Question 5

What of the following factors did not help Geneva watchmakers ultimately gain dominant status from the British in the industry in the 19ᵗʰ century?

Accepted Answer

Outsourcing labor to the United States is not a factor that helped Geneva watchmakers gain dominant status over the British in the industry in the 19th century. The other factors mentioned - wars draining the British economy, access to crucible steel, uncased movements and parts, and tailoring watches to consumer tastes - all played a role in the Swiss watch industry's rise.

Question 6

What term describes the class of technologies that has higher B-C than their predecessors,but does so through a combination of lower B and much lower C?

Accepted Answer

Disruptive technologies have lower costs (B) and much lower carbon emissions (C) than their predecessors, which allows them to have a higher B-C ratio even though their individual components are lower than those of their predecessors. Disruptive technologies often create new markets or disrupt existing markets, which is why they have a higher B-C ratio despite not having the highest B or C values.

Question 7

Which of the following terms best refers to the fact that the benefit to a firm from being a monopolist as compared with being one of two competitors in a duopoly is greater than the benefit to a firm from being a duopolist as compared with not being in the industry at all?

Accepted Answer

The answer of Which of the following terms best refers...

Question 8

What term describes the achievement of long-term growth and technological improvement?

Accepted Answer

Dynamic efficiency refers to the ability of an economy or a firm to achieve long-term growth and technological improvement. This is an important aspect of economic development as it allows for the creation of new products and processes, leading to higher productivity and ultimately higher living standards.

Question 9

What term best characterizes the battle between firms to innovate first?

Accepted Answer

The answer of What term best characterizes the battle between...

Question 10

Which of the following is the least likely factor contributing to early British dominance in the watchmaking industry?

Accepted Answer

Pricing of British watches being lower than other makers would not be a major factor contributing to early British dominance in the watchmaking industry. Other factors such as cheaper labor costs, division of labor, specialization of labor, and access to materials like crucible steel would have played a bigger role.

Question 11

Which of the following is a possible explanation for the reason that American steelmakers continued to invest in less efficient OH technology instead of newer more efficient BOF technology throughout the 1950s?

Accepted Answer

The sunk cost effect, which occurs when a company continues to invest in a technology or project even if it is no longer the most efficient or cost-effective option because they have already invested significant resources into it.

Question 12

Which of the following terms best describes the ability of a firm to maintain and adapt the capabilities that are the basis of its competitive advantage?

Accepted Answer

Dynamic capabilities refer to the ability of a firm to maintain and adapt the capabilities that are the basis of its competitive advantage. This involves constantly updating and enhancing organizational processes, resources, and competencies in response to changes in the business environment.

Question 13

What term best describes the characteristic of a process if past circumstances could exclude certain evolutions in the future?

Accepted Answer

Path dependence refers to a situation where the path that a process takes in the present is dependent on the path that it took in the past. This means that past circumstances can limit or exclude certain evolutions in the future.

Question 14

Which of the following terms best describes a phenomenon whereby,despite equal innovative capabilities,an entrant is willing to spend more to develop an innovation?

Accepted Answer

The replacement effect describes a situation where an entrant (new competitor) is willing to spend more on innovation than an incumbent (established company) because the entrant has more to gain. The entrant's innovation could potentially replace the incumbent's existing products or services, thus the entrant values the innovation more highly.

Question 15

Which of the following statements is least true with regards to firms' choice of research methodology in the patent race process?

Accepted Answer

The other statements are all true with regards to firms' choice of research methodology in the patent race process. However, when two research methods have the same expected completion date, but the date for one is less certain than the other, the choice of methodology may not be clear as firms must also consider other factors such as the potential rewards and risks associated with each methodology.

Question 16

What term best describes when quiet periods in markets are punctuated by fundamental "shocks" or "discontinuities" that destroy old sources of advantage and replace them with new ones?

Accepted Answer

The term that best describes this phenomenon is "creative destruction," which refers to the process by which innovation and market competition lead to the continuous replacement of old technologies, products, and business models with new ones. This process is characterized by cycles of disruptive innovation that destroy established businesses and create new opportunities for entrepreneurs and other market participants.

Question 17

What term describes the optimal allocation of society's resources at a given point in time?

Accepted Answer

The answer of What term describes the optimal allocation of...

Question 18

Which of the following terms best describes an idea,developed by Gary Hamel and C.K.Prahalad,which means a fundamental focus of a firm's strategy that commits it well beyond its current resource profile?

Accepted Answer

The term described in the question is "Strategic intent," which was developed by Gary Hamel and C.K. Prahalad. It refers to a fundamental focus of a firm's strategy that commits it well beyond its current resource profile. Choices A, C, D, and E are not relevant to the given definition.

Question 19

Which of the following terms best describes a place in which a firm can sell its ideas for full value?

Accepted Answer

The term "Market for ideas" best describes a place where a firm can sell its ideas for full value. This term makes it clear that ideas are being sold in a market, implying that there is demand for them and that they have monetary value. It also doesn't specify any particular industry or community, making it a broad and inclusive term.

Question 20

Which of the following terms best describes a phenomenon whereby a profit-maximizing firm sticks with its current technology or product concept even though the profit-maximizing decision for a firm starting from scratch would be to choose a different technology or product concept?

Accepted Answer

This phenomenon is known as the sunk cost effect, where a firm continues with its current technology or product concept due to already invested resources (i.e. sunk costs) even though starting from scratch would suggest a different decision. The firm is influenced by the perception that abandoning the sunk cost would lead to a loss.

Quiz 15: The Origins of Competitive Advantage, innovation, evolution, and Environment part Five internal Organization