Exam 9: Managing Innovation and the Dynamic Scope of the firm

Markets that do not exist can be analysed

Creativity is a necessary condition for innovation

Research suggests most large companies are innovative

Active management of business portfolios is a deleterious element of corporate strategy

It may be difficult to identify disruptive innovations a priori

Barriers to change are often erected by individuals within the firm

Today's core competences may be rendered useless by environmental changes

A due diligence process should not include assessing integration risks

Strategic alliances may enable partner firms to complement each other's strengths

An acquiring firm's vision statement may help target firm employees acclimate to the change

Revolutionary innovation damages prospects for long-term growth and value creation

Experts agree that incremental innovation is insufficient in the longer term

Many important innovations have nothing to do with new products

Acquisition premiums are uncommon

Acquiring management rarely underestimates the problems involved in integrating acquisitions

Vertically dominant growth strategies have distinct limitations

Synergistic benefits of mergers and acquisitions are easy to quantify

A portfolio of innovative ventures increases the risks of future firm failure

Mergers and acquisitions are shunned by most large companies

Functional demarcations are usually inimical to successful innovation