Business Strategy: Innovation, Entrepreneurship, And Platforms
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Questions Bank
- What Is StrategyStrategic Leadership: Managing the Strategy ProcessExternal Analysis: Industry Structure, Competitive Forces, and Strategic GroupsInternal Analysis: Resources, Capabilities, and Core CompetenciesCompetitive Advantage, Firm Performance, and Business ModelsBusiness Strategy: Differentiation, Cost Leadership, and Blue OceansBusiness Strategy: Innovation, Entrepreneurship, and PlatformsCorporate Strategy: Vertical Integration and DiversificationCorporate Strategy: Strategic Alliances, Mergers and AcquisitionsGlobal Strategy: Competing Around the WorldOrganizational Design: Structure, Culture, and ControlCorporate Governance and Business Ethics
Question 1
Free
Multiple Choice
How was Wikipedia able to outperform both Encyclopedia Britannica and Microsoft Encarta?
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By lowering its network effects
By launching an electronic encyclopedia that included a variety of entries
By leveraging first-mover advantages
By allowing any person, expert or novice, to generate and edit content
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Question 2
Free
Multiple Choice
Which of the following is a drawback of Wikipedia's business model?
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The company's superior differentiated appeal is highly correlated to its cost.
The user-generated content may be unreliable and unauthoritative.
The company relies on the wisdom of the experts rather than the public.
The chances of falling in the competitive chasm, between the early adopters and early majority, are high.
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Question 3
Free
Multiple Choice
The typical four-step innovation process begins with:
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the modification and recombination of an existing product or process.
the presentation of an idea as findings derived from basic research.
the commercialization of an invention by entrepreneurs.
a competitor's attempt to imitate an innovation.
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Question 4
Free
Multiple Choice
A _____ is best described as a form of intellectual property that gives the inventor exclusive rights to benefit from commercializing a technology for a specified time period in exchange for public disclosure of the underlying idea.
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patent
promissory note
franchise
royalty
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Question 5
Free
Multiple Choice
When TrueHeal Pharma Inc.released a new drug to treat insomnia, its chemical composition was disclosed at the back of the drug's cover.However, any attempts by competitors to copy the chemical composition would result in infringement of TrueHeal Pharma's intellectual property rights.Thus, the drug is protected by a _____ .
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promissory bill
patent
franchise
royalty
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Question 6
Multiple Choice
In the U.S., the time period for the right to exclude others from the use of a patented technology is _____ from the filing date of a patent application.
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20 years
25 months
15 months
25 years
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Question 7
Multiple Choice
_____ is best described as the commercialization of any new product, process, or the modification and recombination of existing ones.
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Direct imitation
Mass customization
Innovation
Headhunting
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Question 8
Multiple Choice
As a research scholar, Richard had built a helicam as part of his project.The helicam could capture aerial images.Realizing the potential use of this product in movie production and military and rescue operations, he started a new venture where he could customize these helicams to fit the specific needs of the buyers and sell them.Richard can be best described as a(n) _____ .
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entrepreneur
category captain
franchisor
early adopter
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Question 9
Multiple Choice
An intrapreneur is described as a person who:
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restricts changes within an organization.
innovates within existing companies.
introduces new products or services by starting his or her own ventures.
invests funds in the ideas of another person in the same organization.
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Question 10
Multiple Choice
Which of the following statements is NOT true about innovation?
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Innovation as a competitive weapon can simultaneously create and destroy value.
Successful innovation allows a firm to extract temporary monopoly profits.
Innovation has to be high-tech in order to be a potent competitive weapon.
Process innovations are made possible through advances such as the Internet.
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Question 11
Multiple Choice
How has Apple been able to sustain its competitive advantage in the smartphone industry?
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By reducing its network effects
By targeting its new products and services toward laggards
By driving the price for the end user to zero
By regularly introducing incremental improvements in its products
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Question 12
Multiple Choice
Which of the following is a competitive benefit experienced by the first mover firm in an industry?
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The first mover will be able to achieve a less steeper learning curve.
The first mover will be able to reduce the switching costs.
The first mover will not have to patent its products or technology.
The first mover will be able to reduce costs through economies of scale.
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Question 13
Multiple Choice
The four-step innovation process ends with:
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idea generation.
invention.
idea testing.
imitation.
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Question 14
Multiple Choice
As the inventor of hypertension medication, OneSure Pharmaceuticals (OSP)Inc.was able to reap the benefits of economies of scale due to a large consumer demand for the drug.Even when competitors later developed similar drugs after the expiry of OSP's patents, regular users did not want to switch because they were concerned about possible side-effects.Which of the following benefits does this scenario best illustrate?
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First-mover advantages
Social benefits
Network externalities
Fringe benefits
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Question 15
Multiple Choice
Which of the following statements accurately describes social entrepreneurs?
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Social entrepreneurs are individuals who invest in start-up businesses in order to earn huge returns.
Social entrepreneurs are individuals who rely primarily on social networking sites to generate revenues.
Social entrepreneurs are employees within organizations who are responsible for carrying out lean production.
Social entrepreneurs are those who consider financial, ecological, and social metrics to evaluate their firm's performance.
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Question 16
Multiple Choice
Georgia Ray is the founder of the departmental stores chain, Ether Inc.She ensures that the products in her stores are ethically and responsibly sourced.Most products are therefore 100 percent organic and manufactured from recycled material.Also, her company purchases handicrafts from non-profit organizations supporting the aged.Georgia's belief is that her company should be able to support the community at large.Which of the following terms best describes Georgia Ray?
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Headhunter
Category captain
Social entrepreneur
Trade creditor
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Question 17
Multiple Choice
After Jeff Bezos read about how the Internet was growing by 2,000 percent a month, he set out to use the Internet as a new distribution channel and founded Amazon, which is now the world's largest online retailer.This is clearly an example of a(n):
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firm that uses closed innovation.
entrepreneur who commercialized invention into an innovation.
business that entered the industry during its maturity stage.
exception to the long tail business model.
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Question 18
Multiple Choice
The market for 3D televisions is in the introduction stage of the industry life cycle.What does this imply?
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There are only a few competitors in the 3D television market.
The number of buyers in the market is high.
The prices of 3D televisions will be lowest during this stage.
The barriers to entry are low in the industry.
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Question 19
Multiple Choice
The strategic objective of a first mover during the introduction stage of the industry life cycle is to:
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pursue a harvest strategy.
survive by drawing on deep pockets.
achieve market acceptance.
lower entry barriers.
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Question 20
Multiple Choice
FindFriend is an instant messaging application for smartphones.New smartphone users find it easier to connect with friends and relatives through this mobile app when compared to other similar instant messaging applications.Hence, it has the largest user base in the industry.Thus, FindFriend app's value has increased primarily due to its _____ .
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learning curve effects
economies of scale
economies of scope
network effects
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