Question 1.1. (TCO A) Which of the following persons is most
likely to come up with a new way of manufacturing socks for a textile company?
(Points : 5)
Bill, who has
been the mechanic working on the current socks manufacturing equipment for the
last 15 years. He proudly states that he is a true expert on every aspect of
these machines.
Kate, who knows
the basics of how the socks are now manufactured and how the machines work but
comes from a completely different background as far as training and experience
are considered.
Frank, who has
been newly hired because of his mechanical knowledge but has no real knowledge
or understanding of how socks are manufactured.
Lisa, who is
the plant manager and is known for being impatient with her subordinates.
Question 2.2. (TCO A) Which of the following products would
be considered novel? (Points : 5)
A detergent
advertises that it can remove spots.
A company
announces it has produced a recreational hovercraft for sale in toy stores.
A cell phone
company announces that it now offers text messaging.
A college
announces it will install artificial turf on its football field.
Question 3.3. (TCO B) During the 1990s, more and more people
started using cell phones. As a result, the cell phone (Points : 5)
began to
deteriorate in quality because the industry could not keep up with production.
became more
expensive in response to increased demand.
became better
in quality.
began to lose
its technological utility.
Question 4.4. (TCO B) The scientists at Gerusa are former
award-winning Soviet scientists who have all focused their attention on a
cancer treatment. Working together, they have come up with remarkable
solutions. The knowledge base they have (Points : 5)
is explicit.
is easily
imitable.
is socially
complex.
has a low
degree of appropriability.
Question 5.5. (TCO C) Sheila Kessler is a retired
millionaire who still likes to invest in new businesses and help other people
get started in business. She would be called a(n) (Points : 5)
loan shark.
angel investor.
first
generation mentor.
venture
investor.
Question 6.6. (TCO C) Which of the following would describe
a primary activity according to Michael Porter’s model of the value chain?
(Points : 5)
The human
resource activities of Walmart
A Walmart
advertising campaign
The accounting
function at Walmart
The development
of new scanning equipment at Walmart
Question 7.7. (TCO C) Natal Technologies is developing a
superior ultrasound machine for which it is required to invest $800,000. Based
on the company’s analysis, the product will generate $200,000 from the first
year till perpetuity. According to this, the payback period is ________.
(Points : 5)
10 years
6 years
3 months
4 years
Question 8.8. (TCO D) When technology is progressing
rapidly, firms are more likely to (Points : 5)
commit
themselves to fixed assets.
focus on
developing the necessary skills in-house.
use linkages
with other specialized firms to access resources they do not possess.
focus on
broadening their capabilities.
Question 9.9. (TCO E) Bob King is a Senior Vice President at
Associated Grocers, and has been assigned to be the project champion for the
development and implementation of a software pricing program. Both the buying
department and the pricing department have determined that the new software
pricing program is worthless, but they do not tell Bob. This is probably
because (Points : 5)
of Bob’s
seniority.
they lack a
sense of ownership for the project.
they have
different goals.
they cannot
prove that it is worthless.
Question 10.10. (TCO E) Your boss does not favor the use of
cross-functional teams. How would you respond to this? (Points : 5)
The use of
cross functional teams can result in products that do not satisfy customers’
needs.
A
cross-functional interface can help better ensure a product’s quality and
price.
Cross-functional teams usually result in products that cannot be
engineered.
Cross-functional teams necessitate the need for back and forth
iterations between different stages in the product development process leading
to longer cycle times.
Question 11.11. (TCO F) When eBay developed its online
auction service, a need arose for making online payments, and PayPal was born.
This is an example of how moving commerce online (Points : 5)
can create
additional intermediaries.
reduces
effectiveness.
necessitates
the need for virtual alliances.
poses
additional costs to suppliers and customers.
Question 12.12. (TCO F) Which of the following is an
advantage of making a new generation of technology backward compatible? (Points
: 5)
Consumers will
have to buy completely new complements.
Consumer
switching costs may be lower because they anticipate using their existing
complements.
Competitors
will be unable to imitate the company’s strategy of making the technology
backward compatible.
It is typically
less expensive to make a new generation of technology backward compatible than
to not make it backward compatible.
1. (TCO A) In the opening case,
Honda was developing both hybrid electric vehicles and hydrogen fuel cell
vehicles. Which do you think would take longer to diffuse through the market
and why? (Points : 40)
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Question 2. 2. (TCO B) Fred Stringer has come up
with a new computer program to help online sellers manage online auctions at
sites such as eBay and others. It is superior to just using a spreadsheet to
track auctions. He would like for his program to become the dominant design,
but he also wants to earn a profit from all his hard work. What can Fred do to
meet both of these objectives? (Points : 40)
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Question 3. 3. (TCO C) Explain the advantages and
disadvantages of rewarding and promoting development of the core competency.
(Points : 40)
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Question 4. 4. (TCO D) GERUSA is a company that
uses Photodynamic Therapy to treat cancer and has major divisions in Germany,
Russia, and the United States. The scientists in Russia develop cancer
treatment methods. The Germans organize treatment clinics. The U.S. division
gathers the financing and markets the treatment methods. What type of strategy
is this, and what are the advantages and disadvantages of this type of
strategy? (Points : 40)
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Question 5. 5. (TCO E) When John Vegas contacted
Dr. House about developing a marketing plan for GERUSA, Dr. House learned the
following facts. Mr. Vegas lived in Kentucky. Dr. House was in North Carolina.
The marketing expert lived in New Mexico. The medical director lived in
Germany, and the scientist who had come up with this cancer treatment lived in
Russia. What type of team would work for this far-flung organization? What
problems might they encounter? (Points : 40)
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Question 6. 6. (TCO F) Friction Technologies has
come out with a new fuel-efficient engine for automobiles. Explain how Friction
might use connectors, mavens, and salespersons to create an information
epidemic about this new product. (Points : 40)
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