Question 1

Common usage of a product may indicate a dominant design has been established. This is sometimes called a:
A)de facto standard
B)socipolitical standard
C)external institutional standard
D)de jure standard

Accepted Answer

A de facto standard is a standard that has been established through common usage rather than through formal regulation or agreement. This is often the case when a particular product or technology becomes dominant in the market and its features and specifications become widely adopted by users and other manufacturers. In contrast, a de jure standard is one that has been established through formal regulation or agreement, such as a government or industry standard. The other options, sociopolitical and external institutional standards, are not commonly used terms in the context of product design and development.

Question 2

The industry lifecycle model consists of the four following stages:
A)birth, growth, death, rebirth
B)introduction, growth, maturity, decline
C)introduction, shakeout, consolidation, exit
D)introduction, growth, consolidation, decline

Accepted Answer

The industry lifecycle model consists of four stages: introduction, growth, maturity, and decline. This model is widely used to analyze industries and their future prospects. The introduction stage is characterized by low sales, high costs, and limited competition. The growth stage is marked by increasing sales, profits, and competition. The maturity stage is marked by slow growth, high competition, and low profits. The decline stage is characterized by decreasing sales, profits, and competition. Therefore, option B is the best choice as it correctly identifies the four stages of the industry lifecycle model.

Question 3

BlackBerry, a smartphone company, reduced its workforce by 40% to cut costs. This industry is in the ____________ stage of the lifecycle model.
A)introduction
B)growth
C)maturity
D)decline

Accepted Answer

B

Question 4

Consumers becoming more demanding and more price conscious about certain products in an industry means the industry is likely in the ____________ stage.
A)introduction
B)growth
C)maturity
D)decline

Accepted Answer

When consumers become more demanding and price conscious, it indicates that the industry is in its maturity stage. In this stage, there is often intense competition, and market saturation leads to an increased focus on pricing and differentiation.

Question 5

A health conscious trend towards "no smoking" has contributed to a decline in the tobacco industry and is likely due to a:
A)change in demographics
B)shift in consumer tastes
C)technical substitution
D)societal health strategy

Accepted Answer

The decline in the tobacco industry due to a "no smoking" trend is primarily a result of a shift in consumer tastes, as people are increasingly choosing healthier lifestyles and avoiding smoking.

Question 6

An innovation that alters how the components interact and are linked with each other is a/an:
A)competence-enhancing innovations
B)competence-destroying innovation
C)architectural innovation
D)modular innovations

Accepted Answer

An architectural innovation is a type of innovation that alters how the components interact and are linked with each other. It refers to changing the underlying structure or architecture of a product or system. This can be contrasted with modular innovations, which involve changing the individual components of a product or system without altering the underlying structure, and competence-enhancing or competence-destroying innovations, which affect the skills and knowledge required to produce or use a product or system.

Question 7

The decline in the use of pay phones is mostly due to a:
A)change in demographics
B)shift in consumer tastes
C)technical substitution
D)niche strategy

Accepted Answer

The decline in the use of pay phones is due to technical substitution, as more people now have access to mobile phones and other forms of communication technology. This has made pay phones less essential and less used, ultimately leading to their decline. Demographics or consumer tastes may have played a role in the shift, but the main reason for the decline is technical substitution. Niche strategy is unrelated to this scenario.

Question 8

Innovations that involve changes to the product's components but leave the overall configuration of the system relatively intact are called:
A)incremental innovation
B)modular innovations
C)competence-enhancing technology
D)competence-destroying technology

Accepted Answer

Modular innovations involve changes to the product's components without altering the overall system configuration, focusing on specific modules or parts of a product rather than the entire system.

Question 9

An endorsement of an industry by stakeholders such as the government means an industry has achieved:
A)cognitive legitimacy
B)stakeholder legitimacy
C)sociopolitical legitimacy
D)external institution legitimacy

Accepted Answer

Sociopolitical legitimacy is the recognition and acceptance of an industry or organization's existence and actions by its stakeholders, including the government, due to its perceived contributions to society.

Question 10

A new biomedical technology that replaces a current medical procedure and lowers the overall cost likely fits into the ___________ stage of the industry lifecycle model.
A)introduction
B)growth
C)maturity
D)decline

Accepted Answer

The introduction stage of the industry lifecycle model is where new technologies or innovations are first brought to market, often replacing older methods and potentially reducing costs.

Question 11

The invention of the digital camera is considered to be a:
A)incremental innovation
B)technological discontinuity
C)competence-enhancing technology
D)competence-destroying technology

Accepted Answer

The answer of The invention of the digital camera is...

Question 12

An electrical outlet with technical standards established by the government is often referred to as a/an:
A)de facto standard
B)socipolitical standard
C)external institutional standard
D)de jure standard

Accepted Answer

A de jure standard is a technical standard established by the government or other regulatory bodies. An electrical outlet with technical standards established by the government falls under this category. A de facto standard, on the other hand, is a technical standard that has become popular through widespread use rather than regulatory action. Socio-political and external institutional standards are not relevant in this context.

Question 13

Walmart spending large amounts of money on advertising and lowering prices would indicate that this discount retailer is in the ____________ stage of the industry lifecycle model.
A)introduction
B)growth
C)maturity
D)decline

Accepted Answer

Walmart's strategy of spending large amounts on advertising and lowering prices is indicative of the maturity stage of the industry lifecycle model. In this stage, companies face intense competition and market saturation, leading them to focus on differentiating their products and services and maintaining market share through strategies like price reductions and increased promotional activities.

Question 14

Bottled water likely fits into the ________ stage of the industry lifecycle model.
A)introduction
B)growth
C)maturity
D)decline

Accepted Answer

Bottled water is currently in the maturity stage of the industry lifecycle model. The market for bottled water has become saturated and growth has slowed down. The industry is focused on maintaining its current market share and profitability through branding and marketing.

Question 15

An upgrade from the iPhone5S to a more recent model with small improvements is an example of an:
A)incremental innovation
B)technological discontinuity
C)competence-enhancing technology
D)competence-destroying technology

Accepted Answer

An upgrade from one model of a product to a more recent one with small improvements is an example of an incremental innovation. In this case, the iPhone5S has been upgraded to a newer model with small improvements, such as better camera, faster processor or design changes, but not with a new, groundbreaking technology that would create a technological disruption.

Question 16

Over time as an industry ages, it typically exhibits a pattern consistent with a/an:
A)continuing growth curve
B)U-shaped growth curve
C)inverted U-shaped growth curve
D)straight, upward line curve

Accepted Answer

As an industry ages, it typically exhibits an inverted U-shaped growth curve, with initial growth as the industry emerges, followed by consolidation and maturity, and finally, decline due to saturation or obsolescence.

Question 17

To deal with declining sales in the tobacco industry, tobacco companies have tried to pursue customers who favour cigars. This is typically referred to as a:
A)leadership stance
B)niche strategy
C)harvesting profits
D)customer leadership techniques

Accepted Answer

Pursuing customers who favour a specific type of tobacco product (cigars) is a niche strategy. This allows the companies to focus their marketing and resources on a specific segment of the market, rather than trying to compete with declining sales across the entire industry. The other options are not appropriate for this situation.

Question 18

Technological innovations that build on a firm's existing knowledge and skills in certain areas are called ______________.
A)competence-enhancing innovations
B)competence-destroying innovation
C)architectural innovation
D)modular innovations

Accepted Answer

Competence-enhancing innovations are those that draw on a firm's existing knowledge and skills in certain areas, allowing them to improve and build upon what they already know. This can lead to increased efficiency, flexibility, and competitiveness. Alternatively, competence-destroying innovations would require the firm to completely discard their existing knowledge and skills, which can be costly and difficult to manage. Architectural innovations and modular innovations refer to different types of innovation altogether.

Question 19

In the industry lifecycle model, when patents expire and rivalry becomes more fierce with larger players, the industry is likely in the ___________ stage.
A)introduction
B)growth
C)maturity
D)decline

Accepted Answer

In the maturity stage of the industry lifecycle model, the early adopters have already adopted the technology or product, patents have expired, and the market has become saturated. This leads to increased rivalry among larger players as they compete for market share and profits. Therefore, as per the question, the industry is likely in the maturity stage.

Question 20

In the 1980s, the invention of the personal computer replacing the typewriter is an example of:
A)creative destruction
B)the punctuated equilibrium
C)the dominant design
D)the S curve

Accepted Answer

The invention of the personal computer replacing the typewriter is an example of creative destruction, which is a process where new technologies replace old ones, creating new markets and disrupting existing industries. The personal computer caused a significant shift in the way people work and communicate, leading to the demise of the typewriter industry.

Quiz 7: Section 3: Strategy: How Do Businesses Generate a Successful Strategy

Common usage of a product may indicate a dominant design has been established. This is sometimes called a:

The industry lifecycle model consists of the four following stages:

BlackBerry, a smartphone company, reduced its workforce by 40% to cut costs. This industry is in the ____________ stage of the lifecycle model.

Consumers becoming more demanding and more price conscious about certain products in an industry means the industry is likely in the ____________ stage.

A health conscious trend towards "no smoking" has contributed to a decline in the tobacco industry and is likely due to a:

An innovation that alters how the components interact and are linked with each other is a/an:

The decline in the use of pay phones is mostly due to a:

Innovations that involve changes to the product's components but leave the overall configuration of the system relatively intact are called:

An endorsement of an industry by stakeholders such as the government means an industry has achieved:

A new biomedical technology that replaces a current medical procedure and lowers the overall cost likely fits into the ___________ stage of the industry lifecycle model.

The invention of the digital camera is considered to be a:

An electrical outlet with technical standards established by the government is often referred to as a/an:

Walmart spending large amounts of money on advertising and lowering prices would indicate that this discount retailer is in the ____________ stage of the industry lifecycle model.

Bottled water likely fits into the ________ stage of the industry lifecycle model.

An upgrade from the iPhone5S to a more recent model with small improvements is an example of an:

Over time as an industry ages, it typically exhibits a pattern consistent with a/an:

To deal with declining sales in the tobacco industry, tobacco companies have tried to pursue customers who favour cigars. This is typically referred to as a:

Technological innovations that build on a firm's existing knowledge and skills in certain areas are called ______________.

In the industry lifecycle model, when patents expire and rivalry becomes more fierce with larger players, the industry is likely in the ___________ stage.

In the 1980s, the invention of the personal computer replacing the typewriter is an example of: