Chapter 7: Innovation and Entrepreneurship – Flashcards

The typical four-step innovation process begins with: a) The modification and recombination of an existing product or process. b) The presentation of an idea as findings derived from basic research c) The commercialization of an invention by entrepreneurs. d) A competitor's attempt to imitative an innovation.

An intrapreneur is described as a person who a) Restricts changes within an organization b) Innovates within existing companies c) Introduces new products or services by starting her or her own ventures d) Invests funds in the ideas of another person in the same organization

Which of the following statements accurately describes social entrepreneurship? a) Social entrepreneurs are individuals who invest in start-up business in order to earn huge returns b) Social entrepreneurs are individuals who rely primarily on social networking sites to generate revenues. c) Social entrepreneurs are employees within organizations who are responsible for carrying out lean production. d) Social entrepreneurs are those who consider financial, ecological, and social metrics to evaluate their firm's performance

Dollar Shave Club is an e-commerce start-up that delivers razors by mail. By doing this, Dollar Shave Club is using a(n) __________ disrupt an existing market. a) Innovation ecosystem b) Architectural innovation c) Business model innovation d) Incremental innovation

Which of the following best illustrates a process innovation as opposed to product innovation? a) A consumer electronic company developing a new generation of tablet computers b) An automobile company using computer-aided design in its production. c) A consumer electronics company launching 3-D televisions. d) An automobile company commercializing electric cars.

While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage. In the context of this scenario, which of the following statements is true? a) The industry for cell phones with holographic keyboards will face greater competition than the tablet industry. b) While the industry for cell phones with holographic keyboards will focus on product innovation, the tablet industry will focus on process innovation. c) While the industry for cell phones with holographic keyboards can reap the benefits of economies of scale, the tablet industry will experience no such benefits. d) The industry for cell phones with holographic keyboards will face price competition, whereas, in the tablet industry, the mode of competition will be non-price.

While the domestic airline industry is in the maturity stage of the industry life cycle, the pet clothing industry is in its growth stage. Which of the following can be inferred from the given data? a) Competitive intensity will be higher in the domestic airline industry than the pet clothing industry. b) The pet clothing industry is ahead of the domestic airline industry in the industry life cycle. c) While the domestic airline industry is free from excess capacity, the pet clothing industry will have new entrants. d) The mode of competition will be price based in the pet clothing industry and will be non-priced based.

On which of the following tenets is the crossing-the-chasm framework suggested by Geoffrey-Moore based? a) The number and size of competitors remain constant throughout the industry life cycle b) Each stage of the industry life cycle is dominated by a different customer group c) Industries tend to follow an unpredictable industry life cycle d) The supply and demand side of the market remain constant, irrespective of the phase of the industry life cycle.

Incumbent firms favor incremental innovation over radical innovation because: a) Radical innovation will disturb the existing power distribution within the firms b) Business decisions are independent of the other parties in their innovation ecosystem. c) Incumbent firms do not have formal organizational structures and processes like the way new entrants do. d) Incremental innovations help firms sustain a permanent competitive advantage, whereas radical innovations only help gain a temporary advantage.

Norce Autos Inc. allows its customers, suppliers, researchers, and the community in general to contribute their ideas toward new product developments. Customers and other interested stakeholders can let the company know what new features they want to see in their next car. If the company faces any technical complexities that its internal R&D team cannot solve, it posts the problem on its website and allows people from the external community to provide solutions. In this scenario, Norce Autos Inc is primarily leveraging its _______ a) Economies of scope b) Razor-razor blade business model c) Open innovation model d) Experience-curve effects