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BUSI 400 Homework 6 Strategic Leadership Assignment solutions complete answers
BUSI 400 Homework 6 Strategic Leadership Assignment solutions complete answers
As CEO of Etsy, an online platform that brings together providers of arts and craft products with customers, Josh Silverman turned around the company by prioritizing merchants, thereby reorienting the focus.
As CEO of Etsy, an online platform that brings together providers of arts and craft products with customers, Josh Silverman turned around the company by expanding the projects the firm focused on.
When acquiring Ben & Jerry, Unilever promised to allow the company to have its own CEO and board of directors because of its unique approach to social activism and ethical behavior standards.
Ben & Jerry’s ice cream uses political activism primarily to overcome competitors.
Three key interdependent strategic leadership activities are: designing the organization, determining its direction, and nurturing a culture dedicated to excellence and ethical behavior.
Setting a direction is the leadership activity that involves developing a strategic vision of what the organization could become.
The tendency of many individuals to invest further in decisions providing positive performance feedback is referred to as escalation.
Behavioral barriers to change occur because of conflicts between departments, conflicts arising from power relationships, and refusal to share information.
Leaders must draw on a range of personal skills as well as organizational mechanisms to move their organizations forward in the face of barriers to change.
Emotional intelligence (EI) is one of the components of a high intelligence quotient (IQ).
Empathy, one of the components of emotional intelligence (EI), refers to personal proficiency in managing relationships and building networks.
People with strong self-awareness are overly critical and unrealistically optimistic and are well suited to run organizations because they will make good judgment calls.
A key function of the leaders in a learning organization is to generate an organization-wide commitment to the status quo.
Inspiring and motivating people with a mission or purpose is a necessary and sufficient condition for developing a learning organization.
Internal benchmarking is discouraged in most organizations because it creates competition and internal rivalries that are counterproductive.
Leaders who fail to institute proper systems and controls that facilitate ethical conduct share responsibility with those who conceive, execute, and knowingly benefit from corporate misdeeds.
Ethical crises are bad for organization reputation, but they rarely have any financial consequences.
Research supports that there are many potential benefits of an ethical organization, including that there is a strong and consistent relationship between ethical performance and measures of financial performance.
A compliance-based approach to ethics management combines a concern for law with an emphasis on managerial responsibility for ethical behavior.
There can be a high-integrity organization without high-integrity individuals.
In integrity-based ethics programs, organizational ethics is seen as the responsibility of the employees.
If leaders do not believe in the ethical standards that they are trying to inspire, they will not be effective as good role models.
Codes of conduct help employees from diverse backgrounds to work more effectively across cultural backgrounds.
Inappropriate reward systems may cause individuals to commit unethical acts.
As CEO of Etsy, an online platform that brings together providers of arts and craft products with customers, Josh Silverman turned around the company by setting a direction. Which of the following was not used to set this new direction?
A) scanning the environment to develop a knowledge of all company stakeholders
B) scanning the environment to identify salient environmental trends and events
C) integrating environmental knowledge into a new vision
D) solving the simple problems that get in the way of a new vision
SC Johnson makes Windex, Ziploc bags, Glade Air Fresheners, and Saran Wrap. It decided to remove chlorine as an ingredient in Saran Wrap which reduced the effectiveness of the product to cling to containers. Which of the following does not exemplify Johnson’s goal?
A) maintaining a strong ethical culture
B) being environmentally responsible
C) developing an ethical organization culture
D) respecting the financial position of the company only
According to Dov Seidman, CEO of LRN, an ethics and compliance management firm, the four foundational elements for leaders to keep in mind as they strive to exhibit moral leadership include all of the following except
A) moral leaders work to build their moral judgment and intelligence.
B) moral leaders galvanize and uplift others in the organization.
C) moral leaders are motivated by strongly held ethical foundations.
D) moral leaders seek financially rewarding missions above all else.
Superbosses attract the most gifted people by doing all but of the following except
A) finding likely winners.
B) focusing on intelligence, creativity, and flexibility.
C) looking for novel ways to get to know employees.
D) adapting the organization to fit the talent.
Superbosses develop employees by doing all of the following except
A) help employees become a master.
B) set average expectations.
C) maintain connection with their people.
D) encourage continual growth.
In attracting the best talent and relentlessly looking to build their skills, the most successful managers regularly ________ the ________ and ________ capital around them. As their followers mimic this pattern of behavior, the firm is able to build a dynamic and sustainable business model.
A) eliminate; talent; social
B) expand; corporate; financial
C) expand; human; social
D) eliminate; corporate; financial
Strong leaders create a balance in giving ________ to employees while providing the ________ needed to build skills.
A) structure; finances
B) autonomy; structure
C) autonomy; mentoring
D) time off; finances
Superbosses set ________ expectations for those around them, but they also instill a sense of ________ and ________ in the team.
A) low; drive; confidence
B) no; pride; purpose
C) high; purpose; confidence
D) high; drive; security
Identifying and attracting gifted people are skills that superbosses possess in order to build high performance organizations. They do this by employing ________ in order to surround themselves with unusually gifted people.
A) standard hiring practices
B) the usual interviewing approach
C) unconventional hiring tactics
D) conventional hiring strategies
Carefully developed ________ and ________ guide behavior so that all employees will be encouraged to behave in ________ manner.
A) codes of conduct; role models; a legal
B) corporate credos; codes of conduct; an unethical
C) policies; procedures; an ethical
D) role models; standards; a stagnant
Which of the following is an important characteristic of a leader?
A) strives to maintain the status quo
B) goal-oriented
C) reactive
D) focused on past performance
Which of the following statements about leadership is false?
A) Leadership is focused on the creation and implementation of a creative vision.
B) Leadership is the process of transforming organizations from what they are to what the leader would have them become.
C) Leaders work to build a status quo and seek control mechanisms to maintain it.
D) Effective implementation of strategy is essential for successful leadership.
Effective leadership is like a three-legged stool. Which of the following is not represented by one of the stool legs?
A) maintaining the status quo
B) nurturing a culture dedicated to excellence and ethical behavior
C) setting a direction
D) designing the organization
A strategic vision provides many benefits. Which of the following is not one of those benefits?
A) a clear future direction
B) a framework for their organization mission and goals
C) enhanced employee communication and commitment
D) the ability to influence the environment of the firm
Fisk Johnson is the fifth generation CEO of the family firm, SC Johnson. The combination of the ________, its ________, and its story-driven culture reinforce the willingness of the firm to lead the market in environmental awareness.
A) ownership structure of the firm; strong leader
B) listing of fragrances; financial awareness
C) ownership structure of the firm; employee union
D) employee participation; weak leadership
According to the textbook, ________ and ________ must accept personal responsibility for developing and strengthening ethical behavior throughout the organization.
A) bankers; employees
B) employees; external stakeholders
C) managers; top executives
D) managers; stockholders
Poor organizational design by leaders can result in all the following except
A) lack of understanding of responsibility and accountability among managers.
B) inadequate or inappropriate budgeting and control systems.
C) reward systems that do not motivate individuals toward desired organizational goals.
D) teams, systems, and organizational processes that facilitate implementation.
The CEO scraps the company commission-based reward system because it rewards employees for inappropriate behavior. This is an example of
A) ethical behavior.
B) designing the organization.
C) unethical behavior.
D) the failure to maintain the status quo.
Choose the best answer: Leaders play a key role in developing and sustaining organization
A) status quo.
B) culture.
C) history.
D) guidelines.
________ are obstacles in which the design of organization structure, information processing, and reporting relationships, impede the proper flow and evaluation of information.
A) Systemic barriers
B) Behavioral barriers
C) Political barriers
D) Barriers to entry
________ are obstacles associated with a managerial tendency to look at issues from a biased or limited perspective.
A) Systemic barriers
B) Behavioral barriers
C) Political barriers
D) Barriers to exit
Refusal to share information, conflicts over resources, conflicts between departments and divisions, and petty interpersonal differences are symptoms of which type of barrier to change?
A) systemic barriers
B) political barriers
C) behavioral barriers
D) entry barriers
Which of the following does not explain why organizations are prone to inertia and slow to change?
A) personal time constraints
B) political barriers
C) vested interests in the status quo
D) entry barriers
Former GVO marketing director, David Lieberman, tells a story about a new product idea proposed by a creative person. The idea was loved by everyone except a high-ranking manufacturing representative who rejected the idea because the new proposal involved a color change which he implied would create a spare-parts problem. Because his experience in manufacturing involved cost cutting, lean inventories and focus, he could not conceive of how this new product proposal would be good for innovation. This is an example of what kind of organizational barrier?
A) vested interests in the status quo
B) personal time constraints
C) behavioral barrier
D) systemic barrier
When faced with barriers to change, leaders can create a good climate for advancing the aims of the organization and making progress towards its goals by building ________ and ________.
A) a learning organization; an ethical organization
B) a following organization; an ethical organization
C) a learning organization; an efficient organization
D) an efficient organization; a learning organization
Which of the following does not constitute organizational bases of leader power?
A) legitimate power
B) reward power
C) referent power
D) coercive power
Expert power is derived from
A) organizationally conferred decision-making authority.
B) manager access, control, and distribution of information that is not freely available to everyone in an organization.
C) referent power.
D) leader capability and knowledge in a particular field.
Coercive power is the
A) power exercised by use of fear of punishment for errors of omission or commission by employees.
B) power of persuasion exercised by a charismatic leader to get compliance from reluctant subordinates.
C) arises from manager access, control, and distribution of information that is not freely available to everyone in an organization.
D) ability of the leader or manager to confer rewards for positive behaviors or outcomes.
The source of referent power is
A) subordinate identification with the leader.
B) leader identification with the subordinates.
C) derived from the fact that the manager can potentially act as a reference when the employee applies for another job.
D) derived from manager ability to provide effective incentives to employees.
Which of the following is not a part of the three broad sets of capabilities that a leader should possess?
A) technical skills
B) cognitive abilities
C) physical abilities
D) emotional intelligence
All of the following are components of emotional intelligence (EI) except
A) self-awareness.
B) self-regulation.
C) self-promotion.
D) empathy.
Which component of emotional intelligence (EI) enables a manager to have a deep understanding of the existence and importance of cultural and ethnic differences?
A) self-awareness
B) empathy
C) social skills
D) self-regulation
Which two components of emotional intelligence (EI) deal with the personal ability to manage relationships with others?
A) motivation and self-awareness
B) self-regulation and empathy
C) empathy and social skill
D) motivation and empathy
According to research, effective leaders at all levels of organizations have high levels of Emotional Intelligence (EI). CEOs with high EI excel in all of the following except
A) managing relationships.
B) influencing people.
C) forging alliances inside and outside the firm.
D) ability to discourage outside stakeholders.
Leaders who are ________ show a passion for the work itself, such as seeking out creative challenges, a love of learning, and taking pride in a job well done.
A) self-aware
B) self-regulators
C) socially skilled
D) motivated
Former CEO of Check Point Software Technologies, Deborah Triant, says that debating is easy, listening with an open mind is not. She says that the worst thing a leader can do in the decision-making process is to voice an opinion before anyone else can. This is an example of a ________ skill.
A) design
B) organization
C) social
D) motivated
CEOs who are ________ tend to have a wide circle of acquaintances as well as a knack for finding common ground and building rapport.
A) self-aware
B) self-regulators
C) motivated
D) socially skilled
Which of the following social skills do many executives find challenging to acquire?
A) having empathy for subordinates
B) being a good listener
C) being a good motivator
D) having a large network in place
A drawback of EI is that a leader can find it easy to over-identify with others and confuse ________ with ________.
A) intelligence; empathy
B) motivation; empathy
C) empathy; sympathy
D) motivation; intelligence
Leaders risk creating a culture of fear and micromanagement if they
A) create personal connections with their people through frequent unannounced visits.
B) express their passion frequently.
C) keep their workforce motivated.
D) recognize the opinions of others so that they feel valued.
Which of the following is not a characteristic of a successful learning organization?
A) It creates a proactive, creative approach to the unknown.
B) It empowers employees at all levels.
C) It regularly engages in activities to reinforce the status quo.
D) It gathers and integrates external information.
Inspiring and motivating people with a mission or purpose is a ________ for developing an organization that can learn and adapt.
A) necessary and sufficient condition
B) necessary but not sufficient condition
C) goal but not a necessary condition
D) goal and a required precondition
The central key to empowerment in a learning organization is
A) trained employees.
B) effective leadership.
C) sufficient financial resources.
D) rigid structure.
The medical products company, Medtronic, works to restore patients to full life. They have a holiday party that includes patients, their families, and their doctors who share their survival and recovery stories. What purpose does this holiday party serve for the learning organization?
A) It offers patients a break from their problems.
B) It inspires and motivates employees with a real mission and purpose.
C) It empowers the patients.
D) It discourages employees from participating in office gatherings.
Which of the following is not an aspect of culture that effective learning organization firms need to develop as they redistribute information, knowledge and rewards?
A) encourage employees to offer ideas, ask questions, and express concerns
B) encourage widespread sharing of information from various sources
C) utilize technology that fosters tighter controls
D) encourage collaborative decision-making and the sharing of best practices
Recognizing opportunities and threats in the external environment is vital to firm success. Complexity and rapid evolution make it critical for employees and managers to become more aware of ________ trends and events.
A) internal
B) outside
C) environmental
D) human resource
In order to create an environment where employees can achieve their potential as they move the organization towards its goals, the manager role needs to be that of
A) resource allocator.
B) resource controller.
C) a flexible resource.
D) an advocator of the status quo.
Functional benchmarking
A) is not very useful for organizations with a divisional organizational structure.
B) is used to determine best practices regardless of industry.
C) restricts the search for best practices to competitors.
D) is useful when researching industry-specific standards.
Which of the following is not a guideline an organization can use to promote the challenging of the status quo?
A) establishing a culture of dissent
B) forcefully creating a sense of urgency
C) fostering a culture that encourages risk taking
D) creating a results-based reward system
Companies that cultivate cultures of experimentation and curiosity make sure that ________ is not to be avoided at all costs.
A) experimentation
B) failure
C) authority
D) risk taking
According to the former CEO of Hanover Insurance, learning organizations require that everyone feels and supports a compelling purpose. What is the most difficult aspect of creating this learning organization?
A) communicating an image of the future that draws people in and speaks to them
B) putting systems in place for training
C) find the resources for the necessary educational training
D) getting the shareholders to agree with the CEO
The central key to empowerment is effective leadership. Leading-edge organizations recognize the need for ________, ________, and ________ at all levels instead of the extensive and cumbersome rules and regulations inherent in hierarchical control.
A) trust; cultural control; expertise
B) training; finances; expertise
C) respect; finances; trust
D) control, order, finances
Which of the following is not a source for acquiring external environmental information for the firm mentioned in the text?
A) alliance partners
B) equity analysts
C) suppliers
D) scientific community
Empowering individuals by soliciting their input helps an organization to enjoy better employee
A) retention.
B) performance.
C) morale.
D) communication.
Effective learning organizations must redistribute ________, ________, and ________ in order to assure that there is a common body of knowledge.
A) rewards; training; handbooks
B) training; knowledge; pay raises
C) knowledge; financial rewards; intangible rewards
D) information; knowledge; rewards
Which of the following statements about ethics is false?
A) Ethics may be defined as a system of right and wrong.
B) Ethics assists individuals in deciding when an act is moral or immoral.
C) Ethics can be assessed by the legality of an action.
D) Business ethics is the application of ethical standards to commercial enterprises.
As a manager, when faced with ethical crises you should
A) focus on issues most relevant to stockholders.
B) wait for the other party to make the first move.
C) take the initiative to address the problem.
D) cover up as much as possible.
Unethical business practices typically involve the ________ cooperation of others and reflect the values, attitudes, and behavior patterns that define the operating culture of the organization.
A) select
B) complete
C) explicit
D) tacit
In organizations, ethical behavior must start with the ________ before the ________ can be expected to perform accordingly.
A) employees; shareholders
B) shareholders; leader
C) leader; employees
D) leader; shareholders
The chance of ethical crises occurring is enhanced if
A) the leader defines the corporate culture.
B) the organization has a weak ethical culture.
C) the shareholders have no confidence in the CEO.
D) employees follow the direction of the leader.
Which of the following positive relationships is not supported with consistent results?
A) between ethical performance and measures of financial performance
B) between ethical performance and strong organizational culture
C) between ethical performance and increased employee efforts
D) between ethical performance and enhanced social responsibility
Less than 18 percent of voluntary customer contributions in a recent year went to renewable energy development in the Duke Power of Indiana program called GoGreen Power. This is an example of
A) a benefit of an ethical organization.
B) eco-friendly program development.
C) greenwashing.
D) a successful ethical marketing campaign.
A strong ethical orientation can have ________ on employee commitment and motivation to excel.
A) mitigating results
B) a positive effect
C) a negative impact
D) an expensive outcome
An ethically sound organization, drawing on the concepts of stakeholder management, can also strengthen its bonds among its ________, ________, and ________.
A) policies; procedures; values
B) values; organizational design; employees
C) suppliers; customers; governmental agencies
D) current employees; potential employees; future employees
________ is rarely self-sustaining in an organization.
A) High-integrity
B) Integrity
C) Individual integrity
D) Leader integrity
Creating an ethical framework and developing organizational capabilities to make it operational is the responsibility of
A) employees.
B) shareholders.
C) the law.
D) leadership.
In the compliance-based approach to ethics management, the objective is to
A) conform with externally imposed standards.
B) prevent criminal misconduct.
C) enable responsible conduct.
D) reduce discretion, training, controls, audits, and penalties.
In the integrity-based approach to ethics management, the objective is to
A) conform with externally imposed standards.
B) prevent criminal misconduct.
C) enable responsible conduct.
D) reduce discretion, training, controls, audits, and penalties.
In the compliance-based approach to ethics management, the methods used include
A) education, leadership, accountability, decision processes, auditing, and penalties.
B) reduced discretion, training, controls, audits, and penalties.
C) self-governance.
D) conformity with externally imposed standards.
In the compliance-based approach to ethics management, leadership is driven by
A) management with input from functional staff.
B) management with input from shareholders.
C) the legal office.
D) the government.
In the integrity-based approach to management, ethics is the responsibility of the
A) shareholders.
B) outside stakeholders.
C) management.
D) employees.
Compliance-based ethic programs typically are designed by
A) management.
B) employees.
C) shareholders.
D) corporate counsel.
Texas Instruments teaches ethics to its employees. They include all levels of the organization in the exchange of knowledge and auditing of behaviors. This is a good example of a(n) ________ ethics program.
A) compliance-based
B) integrity-based
C) conformance-based
D) behavioral-based
The ethical compass of an organization, in the integrity-based ethics approach to management, consists of the expected ________ and ________.
A) obligations; rules
B) behaviors; penalties
C) responsibilities; aspirations
D) legalities; penalties
Proactive measures to prevent organizational ethics problems do not include
A) instituting a reward system which considers outcomes as its primary criterion.
B) using leaders as role models of ethical behavior.
C) issuing statements describing organization commitment to certain standards of behavior.
D) using organization information systems as a control system.
Which of the following statements would least likely be found in a corporate credo?
A) Maximize financial benefits for stakeholders as the primary goal of the organization.
B) Provide secure and stable employment for employees.
C) Establish an environment that enhances professional growth.
D) Support community organizations and projects.
A highly ethical organization must have all the following elements except
A) codes of conduct.
B) corporate credos.
C) payment plans.
D) role models.
Leaders as good role models must walk the talk. This means they must be ________ in their words and actions.
A) effective
B) reliable
C) consistent
D) trust-worthy
The expression the dark side of competition means that
A) illegal behaviors result in penalties.
B) unethical behaviors are more like to take place when competition is intense.
C) competition encourages ethical behavior.
D) good competition is costly.
Which of the following are used to evaluate whether a manager is acting in an ethical manner?
A) bonuses and penalties
B) job descriptions
C) assessment and penalties
D) reward and evaluation systems
Many situations that a firm faces have regular, identifiable patterns. Leaders tend to handle such routines by establishing ________ or ________ to be followed that can be applied ________ to each occurrence.
A) rules; regulations; individually
B) policies; regulations; uniformly
C) a policy; a procedure; uniformly
D) documents; credos; uniquely
The senior executive team at AES, a 14 billion USD energy company, agreed to take pay cuts because several employees of the firm lied to the EPA about water quality at an AES owned water treatment plant in Oklahoma. This is an example of
A) employees passing the responsibility to management.
B) leadership shirking responsibility.
C) leadership as role models.
D) a regulatory solution.
While carefully developed policies and procedures guide behavior, they need to be reinforced with all the following except
A) effective communication.
B) enforcement.
C) monitoring.
D) threats of dismissal.
This legal act provides considerable legal protection to employees of publicly traded companies who report unethical or illegal practices.
A) Taft-Hartley Act
B) National Labor Relations Act
C) Sarbanes-Oxley Act
D) Norris-La Guardia Act
Raytheon, a 24 billion USD defense contractor, incorporated into its Leadership Assessment Instrument the requirement of managers to maintain unequivocal commitment to honesty, truth and ethics in every facet of behavior and to conform with the letter and intent of company policies while working to affect any necessary policy change. This is an example of a
A) 360-degree evaluation.
B) leadership training program.
C) reward and evaluation system that evaluates manager ethical behavior.
D) reward system that evaluates bottom line performance.
Houston-based Baylor College of Medicine has a ________ that instructs all employees to follow the Baylor Mission Statement, Compliance Program and Conflict of Interest policy.
A) corporate reward
B) corporate motto
C) code of ethics
D) system of evaluation
The Kraft Heinz Company makes MiO Drops. This is an example of a high-tech source of innovation.
Process innovations are often associated with a low-cost leadership strategy.
Product innovations are commonly associated with a differentiation strategy.
Radical innovations are evolutionary applications of novel ideas within existing paradigms.
Proctor and Gamble has centralized 20 to 30 percent of its research efforts in a new corporate-level business creation and innovation unit. They believe that this will assist them only with developing incremental innovations that will help the overall bottom line.
Research indicates that leaders of innovative firms spend 50 percent more time on discovery activities than the leaders of less innovative firms.
The term strategic envelope refers to the scope of innovation efforts of a firm.
For innovation team members to work enthusiastically on innovation projects, it is important to separate the performance of individual team members from the performance of the innovation itself.
Focused corporate venturing permeates all parts of the organization and involves every member of the organization.
Business incubators are designed to support fledgling entrepreneurial ventures until they can operate as stand-alone businesses.
Dispersed approaches to corporate entrepreneurship are often found in organizations with a strong spirit of entrepreneurship.
Only about 50 percent of corporate venturing efforts reach profitability within six years of their launch.
Exit champions are often reluctant to gather hard data about a venture because it might kill the project.
One of the important questions the corporation must address in assessing the effectiveness of its venturing initiatives is that of the sustainability of its basis of competitive advantage.
Corporate ventures that use real options logic in decision making tend to keep total investment low in order to minimize the downside risk of a project.
One of the potential pitfalls of real options analysis is that managers may have the incentive and know-how to game the system.
Intel uses option contracts for the right to purchase key pieces of equipment at a specific future date. They simulate the likelihood that they will need to purchase a specific piece of equipment and then create the options contracts to reduce risk and potentially save money.
First movers in an industry often capture above-average profits but usually find it difficult to maintain early market share gains.
Business risk taking refers to the risk associated with entering untested markets or committing to unproven technologies.
Financial risk taking involves the risk an executive assumes in taking a stand in favor of a strategic course of action.
Firms are more likely to effectively leverage their technologies in new markets if they redefine the technology or competency in general terms.
When identifying the right markets for the company efforts in corporate entrepreneurship, the firm will find that it is not important to decide how it will organize for its corporate entrepreneurship efforts.
Firms are more likely to effectively leverage their technologies in new markets if they redefine the technology or competency in general terms.
________ refers to efforts to create designs and applications of technology to develop new products, while ________ refers to efforts to improve the efficiency of organizational systems such as manufacturing and operations.
A) Radical innovation; incremental innovation
B) Breakthrough innovation; instrumental innovation
C) Product innovation; process innovation
D) Product innovation; service innovation
Whereas ________ are often associated with a low-cost leader strategy, ________ are frequently an important aspect of a differentiation strategy.
A) process innovations; product innovations
B) product innovations; service innovations
C) radical innovations; instrumental innovations
D) marketing innovations; management innovations
Incremental innovations
A) are usually highly disruptive.
B) usually represent technological transitions.
C) are usually small improvements in products and processes.
D) nearly always can be patented.
Radical innovations
A) often result in quick profits.
B) often occur because of technological change.
C) usually apply simultaneously to products and processes.
D) are a form of contentious innovation.
________ produce fundamental changes that can transform a company or even revolutionize an industry, while ________ enhance existing practices and often represent evolutionary applications of fundamental breakthroughs.
A) Technological breakthroughs; product-market breakthroughs
B) New technologies; new paradigms
C) Incremental innovations; radical innovations
D) Radical innovations; incremental innovations
According to the characterization of innovations by Professor Clayton Christensen, the rise of the smartphone was ________ innovation rather than ________ innovation.
A) a radical; an incremental
B) an incremental; a sustaining
C) a disruptive; a sustaining
D) a sustaining; a disruptive
Innovations that extend sales in an existing market, usually by enabling new products or services to be sold at higher margins, are known as ________ innovations.
A) radical
B) disruptive
C) technology
D) sustaining
What kind of innovation do Hulu, Amazon Prime Video, and Airbnb represent?
A) incremental
B) disruptive
C) radical
D) sustaining
Which of the following is not characteristic of a disruptive innovation?
A) It is usually more sophisticated technologically.
B) It appeals to less demanding customers.
C) It is typically a less expensive solution for meeting a need.
D) It usually takes root in a new market or the low-end of an existing market.
Innovation involves using ________ knowledge to ________ organizational processes or create commercially viable products and services.
A) more; disrupt
B) good; disrupt
C) new; transform
D) old; design
MiO brought the Kraft Heinz Company many new awards including the 2011 Walmart Innovation of the Year Award and the 2012 Gold Medal Edison Innovation Award. What kind of innovation did MiO represent?
A) incremental innovation
B) technology innovation
C) process innovation
D) product innovation
New technology is an important source of new ideas because it
A) is seen by the customer as being important.
B) provides the manpower that firms need to make new products and services.
C) automatically reduces organizational waste.
D) provides the raw material that firms use to make innovative products and services.
Which of the following is not a dilemma faced by corporations trying to manage the innovation process?
A) launching incremental versus preemptive innovations
B) emphasizing marketing versus management innovations
C) choosing between experience and initiative
D) choosing between internal rather and external staffing
The innovation dilemma known as "building capabilities versus collaborating" refers to
A) developing innovation skills internally versus partnering with qualified outsiders.
B) building innovative products in-house versus outsourcing.
C) building credibility by launching products ahead of potential collaboration partners.
D) incrementally launching a product.
The innovation dilemma known as "seeds versus weeds" refers to
A) choosing to pursue radical rather than incremental innovations.
B) choosing to pursue product rather than process innovations.
C) promoting organizational stars onto innovation teams rather than involving all employees in innovation efforts.
D) choosing to pursue investment in one innovative idea over another.
Creative intelligence involves the ability to see patterns in data, integrating data, and making insights. Which of the following are the four patterns of action managers should to develop more creative and higher potential innovations?
A) observing, experimenting, cataloging, and networking
B) questioning, observing, integrating, and networking
C) questioning, observing, experimenting, and networking
D) observing, experimenting, cataloging, and integrating
Which habit is most directly related to the innovative process that managers should acquire as they start to build the innovative DNA needed to be more successful innovators in the future?
A) writing down product goals regularly
B) never sleeping over five hours at a time
C) networking across functions and organizations
D) motivating the team to work longer hours
________ means individuals with highly innovative DNA traits have the ability to connect seemingly unrelated questions, problems, and ideas from different fields that allows them the opportunity to creatively see opportunities others miss.
A) Associating
B) Integrating
C) Visioning
D) Allocating
Pierre Omidyar saw the opportunity that led to eBay when he linked three items: (1) a personal fascination with creating more efficient markets, (2) the desire of his fiancée to locate hard-to-find collectible Pez dispensers, and (3) the ineffectiveness of local classified ads in locating such items. This is an example of which innovator DNA trait?
A) questioning
B) associating
C) experimenting
D) networking
After witnessing the emergence of eBay and Amazon, Marc Benioff questioned why computer software was still sold in boxes rather than leased with a subscription and downloaded through the Internet. This was the genesis of Salesforce.com, a firm with over 6.7 billion USD in sales in 2016. This is an example of which innovator DNA trait?
A) experimenting
B) associating
C) questioning
D) networking
From watching his wife struggle to keep track of the family finances, Intuit founder Scott Cook identified the need for easy-to-use financial software that provided a single place for managing bills, bank accounts, and investments. This is an example of which innovator DNA trait?
A) experimenting
B) associating
C) observing
D) networking
Founders Larry Page and Sergey Brin provide time and resources for Google employees to experiment. Some, such as the Android cell phone platform, have been big winners. Others, such as the Orkut and Buzz social networking systems, have failed. But Google will continue to experiment with new products and services. This is an example of which innovator DNA trait?
A) experimenting
B) associating
C) observing
D) networking
Michael Lazaridis got the idea for a wireless email device that led him to found Research in Motion, now called BlackBerry, from a conference he attended. At the conference, a speaker was discussing a wireless system Coca-Cola was using that allowed vending machines to send a signal when they needed refilling. Lazaridis saw the opportunity to use the same concept with email communications, and the idea for the smartphone was hatched. Seeing this innovative idea while at a conference is an example of which innovator DNA trait?
A) experimenting
B) associating
C) observing
D) networking
Which of the following is not an advantage of collaborating with strategic partners in order to innovate?
A) obtaining skills and new knowledge from outside sources
B) making firms identify their own strengths and weaknesses
C) managers clarifying what an innovation project requires to be successful and who will accomplish it
D) decreasing economies of scale
McGrath and Keil researched the types of human resource management practices that effective firms use to capture value from their innovation efforts. Which of the following is not one of their findings?
A) Create innovation teams with experienced players.
B) Require that employees serve in the new venture group as part of their career climb.
C) Transfer people to mainstream management positions after they have experience in the new venture group.
D) Integrate the performance of individuals with the performance of the innovation.
In a typical corporation, which of the following factors does not determine how entrepreneurial projects will be pursued?
A) structural features that guide and constrain action
B) corporate culture
C) organizational systems that foster learning and manage rewards
D) number of innovation projects in the pipeline
________ involves building entrepreneurial businesses within existing corporations.
A) Insourcing
B) On-shoring
C) Intrapreneurship
D) Entrepreneurship
According to the text, ________, which support fledgling startups are often used to pursue specific entrepreneurial ventures developed by ________.
A) collaboration partners; strategic partners
B) business incubators; new venture groups
C) product champions; corporate venture capitalists
D) lower-level managers; upper-level managers
Which of the following do corporate business incubators typically not provide?
A) physical space
B) mentoring
C) funding
D) student interns
Researchers find that networking is an important part of the innovation process. Which of the following is not a benefit of connecting with dormant ties as found in the university research exposed in Insights from Research 12.1?
A) Interactions with dormant ties are longer than conversations with current ties.
B) Dormant ties provide novel advice.
C) The shared information is trusted.
D) Dormant ties have a range of other experiences developed over time.
Waguih Ishak has worked in technology firms for over 40 years. He recommends that companies do all of the following in building an innovative culture except
A) practice innovation parenting.
B) encourage the reasonable.
C) bust hierarchy.
D) cultivate external relationships.
Firms are more likely to effectively leverage their technologies in new markets if they identify new applications of the technology by considering a ________ scope of ________ markets.
A) limited; current
B) broad; potential
C) limited; past
D) broad; past
Firms are more likely to effectively leverage their technologies in new markets if they identify new applications of the technology by identifying the ________ mode to generate ________ from ________ markets.
A) latest; sales; existing
B) best; profits; new
C) best; sales; former
D) latest; sales; new
One key factor that helps a firm select the right applications for its technologies includes the need to ________ whether their technology provides advantages over ________ products.
A) evaluate; discontinued
B) assess; future
C) evaluate; future
D) assess; current
One key factor that helps a firm select the right applications for its technologies includes the need to assess the ________ of their technology and take steps to ________ the challenges they will face.
A) distinctiveness; dilute
B) uniqueness; overcome
C) practicality; identify
D) usefulness; intensify
When considering the best entry mode for effectively leveraging its technologies in new markets, firms will consider all of the following choices except
A) enter the market on its own.
B) enter the market through a strategic alliance with a partner.
C) enter the market by licensing the technology to a newcomer to the market.
D) enter the market by licensing the technology to someone already in the market.
When identifying new applications for effectively leveraging its technologies in new markets, firms consider two different types of research for identifying potential markets: ________ and ________.
A) home; foreign
B) formal; informal
C) structured; unstructured
D) desk; field
When Mario Cotta Zincometal Group, an Italian firm, had developed an innovative machine for cutting paper tissue, they sent three managers to Drupa, a printing and cutting technology trade show in Germany. Why?
A) to assure their employees that the company was not planning to declare insolvency
B) to reduce uncertainty in the marketplace for their company success
C) to help the managers overcome their fear of marketplace rejection
D) to scour conference booths to identify cutting product segments in which they could apply their technology
Which of the following is not part of a culture of entrepreneurship?
A) The search for venture opportunities permeates every part of the organization.
B) Every value chain activity is viewed as a source of entrepreneurial value creation.
C) Employees at every level are attuned to opportunities to help create new businesses.
D) A select staff are assigned to be attuned to new opportunities to create business.
Common features of a dispersed approach to corporate entrepreneurship include all the following except
A) semi-autonomous new venture groups.
B) use of product champions.
C) a top-down approach to supporting entrepreneurial behavior.
D) an entrepreneurial culture.
In corporations with a strong entrepreneurial culture, the willingness and ability to change
A) is imposed from the top-down.
B) is considered a core capability.
C) often leads to instability.
D) often worries stakeholders such as suppliers and creditors.
Product champions
A) are typically senior executives.
B) are usually inventors of some sort.
C) scavenge for resources and encourage others to back promising new ideas.
D) are strong supporters of the status quo.
Project ________ involves justifying whether an opportunity is attractive in the marketplace; project ________ involves evaluating the strategic and economic impact of a new venture.
A) impetus; definition
B) definition; impetus
C) reward; development
D) development; focus
On average, approximately what percentage of corporate ventures reaches profitability within six years?
A) 80 percent
B) 65 percent
C) 50 percent
D) 35 percent
Financial reasons for undertaking internal corporate venturing include
A) strengthening competitive position.
B) obtaining above average returns.
C) adding to the resource base of the corporation.
D) reducing stakeholder commitment.
Strategic reasons for undertaking a corporate venture do not include
A) entering into new markets.
B) expanding capabilities by acquiring new knowledge.
C) building the base of corporation resources.
D) reinforcing stakeholder commitment.
One of the following is not a question that should be answered when evaluating the performance of corporate venturing efforts. Which is it?
A) Is the venture attracting external venture funding?
B) Is the venture considered to be a market success?
C) Does the venture add to the worth of the firm internally?
D) Does the value proposition offered by the venture insulate it from competitive attack?
A(n) ________ manager's role is to question the viability of corporate venture projects.
A) product champion
B) exit champion
C) rising star
D) mentor
Whereas ________ are willing to violate procedures and operate outside normal channels, ________ gather hard data and develop a strong case for why a project should be killed.
A) senior managers; entrepreneurial leaders
B) strategic managers; financial managers
C) exit champions; product champions
D) product champions; exit champions
Another way to evaluate a corporate venture is in terms of the four criteria from the balanced scorecard. Which of the following is not one of those criteria?
A) customer perspective
B) supplier perspective
C) internal business perspective
D) financial perspective
The costly Motorola global satellite telecom project known as Iridium provides a useful illustration of the ________. Even though problems with the project existed during the lengthy development process, Motorola refused to pull the plug. Only after investing 5 billion USD and years of effort was the project abandoned.
A) overdependence on the exit champion
B) lack of a product champion
C) overdependence on the product champion
D) lack of an exit champion
Whereas ________ often emerge as heroes, ________ run the risk of losing status by opposing popular projects.
A) managers; employees
B) product champions; exit champions
C) exit champions; product champions
D) shareholders; managers
Real options analysis is most appropriate when
A) the total investment required is small, but the environment is uncertain.
B) the investment required can be justified by Discounted Cash Flow (DCF) techniques.
C) a small investment up front can be followed by a series of subsequent investments.
D) there is no prospect of obtaining additional knowledge before making subsequent investments.
One of the pitfalls of real options analysis is that managers may have an incentive and knowhow to game the system and back-solve a formula to get a proposal approved. This can give rise to
A) managerial conceit.
B) the illusion of control.
C) escalation of commitment.
D) agency problems.
Real options analysis (ROA) is an investment analysis tool from the field of finance. When applied to entrepreneurship, it suggests a path that companies can use to manage the ________ associated with launching ________ ventures.
A) certainty; large
B) risk; stable
C) uncertainty; new
D) interests; new
Some of the most common applications of real options are with property and insurance. A real estate option grants the holder the right to buy or sell a piece of property at an established price sometime in the future. If the price of the property goes ________, the owner of the option is likely to buy it. If the market value of the property ________ the strike price, the option holder is unlikely to execute the purchase.
A) down; goes above
B) down; drops below
C) up; drops below
D) up; goes above
Intel uses a forecasting model for potential demand for its chip designs in which they calculate the likelihood of a range of potential demand levels and they established a computer simulation of a production plant. From these models, they gather the information to identify what equipment they definitely will need to order. This helps with pricing as well. What kind of investment analysis tool are they using?
A) inventory analysis
B) financial analysis
C) real options analysis
D) break-even analysis
If managers believe that their abilities can reduce the risks inherent in decision making to a much greater extent that they actually can, they might demonstrate ________ and trust only their own judgment rather than conduct sufficient analysis.
A) agency problems
B) reasoning by analogy
C) managerial conceit
D) escalation of commitment
A manager might insist that separating a decision into multiple sequential decisions will increase the likelihood that the decisions made will turn out well. Doing so allows for an assessment of the project at each stage, lessening the likelihood the project will fall prey to which of the following?
A) incremental investment
B) illusion of control
C) escalation of commitment
D) paralysis by analysis
Which of the following is not one of the dimensions of entrepreneurial orientation?
A) proactiveness
B) risk taking
C) autonomy
D) opportunism
Which of the following statements about skunkworks is false?
A) They are independent work groups.
B) They are autonomous.
C) They refer to a specialized type of outside contractor that corporations use to develop entrepreneurial ideas.
D) They are used to leverage existing strengths in new arenas to identify new
opportunities.
After 15 teams created 128 different phones, Chris Galvin, former CEO of Motorola, eliminated the autonomous teams being used to develop new wireless phones. This was necessary because such teams
A) often lack coordination.
B) typically waste the CEOs attention.
C) create efficiencies through duplication of effort.
D) never duplicate efforts of the rest of the firm.
Which of the following dimensions of entrepreneurial orientation is described as a forward-looking perspective characteristic of a marketplace leader that has the foresight to seize opportunities?
A) proactiveness
B) risk taking
C) autonomy
D) competitive aggressiveness
Which of the following dimensions of entrepreneurial orientation is described as an independent action by an individual or team aimed at bringing forth a business concept or vision and carrying it through to completion?
A) autonomy
B) innovativeness
C) competitive aggressiveness
D) risk taking
One of the following statements about innovativeness is false. Which is it?
A) Innovativeness refers to making decisions and taking risks without certain knowledge of probable outcomes.
B) Innovativeness refers to efforts of a firm to find new opportunities and novel solutions.
C) Innovativeness involves creativity and experimentation.
D) Innovativeness is aimed at developing new products, services, and processes.
Which of the following is not one of the methods companies can use to enhance their competitive position via innovativeness?
A) fostering creativity and experimentation
B) investing in new technology, R&D, and continuous improvement
C) copying the business practices or techniques of successful competitors
D) departing from existing technologies to develop products and practices that go beyond the current state of the art
________ are the benefits gained by firms that are the first to enter new markets, establish brand identity, and/or adopt new technologies.
A) Competitive aggressiveness
B) Technological capabilities
C) First-mover advantages
D) Breakthrough innovations
If a company dramatically lowers prices to take market share from rival firms, this is an example of
A) innovativeness.
B) proactiveness.
C) competitive aggressiveness.
D) autonomy.
If a company regularly imitates rivals by copying new products, marketing messages, or other aspects of their strategy, this is an example of
A) innovativeness.
B) proactiveness.
C) competitive aggressiveness.
D) autonomy.
Walmart has an aggressive pricing structure that has forced smaller, local retailers out of business in many markets. Local cities responded with regulations that make it difficult for Walmart to move into or expand operations in these areas. This is an example of
A) competitive aggressiveness leading to negative stakeholder reactions.
B) community regulations not leading to competitive advantages.
C) competitive aggressiveness always leading to competitive advantages.
D) community regulations diminishing small business choices.
One of the following is not a type of risks that executives must address. Which is it?
A) business risk taking
B) financial risk taking
C) personal risk taking
D) product-market risk taking
Which kind of risk taking requires that a company borrow heavily or commit a large portion of its resources in order to grow?
A) business risk taking
B) financial risk taking
C) personal risk taking
D) technological risk taking
