Question 1

Only about 50 percent of corporate venturing efforts reach profitability within six years of their launch.

Accepted Answer

A) True 
 B)False  True

Question 2

What do Taco Bell,Mondelez,General Electric,Tyco,and MasterCard have in common as they work to be innovative?

Accepted Answer

A)  They outsource the innovation process. 
B)  They tend to be very conservative in their innovative efforts. 
C)  They do not worry about being on the cutting edge of the market. 
D)  They use NVGs and business incubators to focus innovation activities. 
A)  They outsource the innovation process. 
B)  They tend to be very conservative in their innovative efforts. 
C)  They do not worry about being on the cutting edge of the market. 
D)  They use NVGs and business incubators to focus innovation activities. D

Question 3

Which of the following is not characteristic of a disruptive innovation?

Accepted Answer

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. 
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. A

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

One of the following is not a question that should be answered when evaluating the performance of corporate venturing efforts.Which is it?

Accepted Answer

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)  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?

Question 6

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?

Accepted Answer

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. 
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.

Question 7

Real options analysis is most appropriate when

Accepted Answer

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. 
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.

Question 8

________ are the benefits gained by firms that are the first to enter new markets,establish brand identity,and/or adopt new technologies.

Accepted Answer

A)  Competitive aggressiveness 
B)  Technological capabilities 
C)  First-mover advantages 
D)  Breakthrough innovations 
A)  Competitive aggressiveness 
B)  Technological capabilities 
C)  First-mover advantages 
D)  Breakthrough innovations

Question 9

The term strategic envelope refers to the scope of innovation efforts of a firm.

Accepted Answer

A) True 
 B)False

Question 10

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.

Accepted Answer

A) True 
 B)False

Question 11

What are new venture groups? What purpose do they serve? Are they more than a typical R&D department? Explain.

Accepted Answer

Corporations often form new venture grou

Question 12

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?

Accepted Answer

A)  experimenting 
B)  associating 
C)  questioning 
D)  networking 
A)  experimenting 
B)  associating 
C)  questioning 
D)  networking

Question 13

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?

Accepted Answer

A)  experimenting 
B)  associating 
C)  observing 
D)  networking 
A)  experimenting 
B)  associating 
C)  observing 
D)  networking

Question 14

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.

Accepted Answer

A)  agency problems 
B)  reasoning by analogy 
C)  managerial conceit 
D)  escalation of commitment 
A)  agency problems 
B)  reasoning by analogy 
C)  managerial conceit 
D)  escalation of commitment

Question 15

Business incubators are designed to support fledgling entrepreneurial ventures until they can operate as stand-alone businesses.

Accepted Answer

A) True 
 B)False

Question 16

What is the difference between product innovation and process innovation? How is each used?

Accepted Answer

Product innovation refers to efforts to

Question 17

Which of the following do corporate business incubators typically not provide?

Accepted Answer

A)  physical space 
B)  mentoring 
C)  funding 
D)  student interns 
A)  physical space 
B)  mentoring 
C)  funding 
D)  student interns

Question 18

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?

Accepted Answer

A)  incremental innovation 
B)  technology innovation 
C)  process innovation 
D)  product innovation 
A)  incremental innovation 
B)  technology innovation 
C)  process innovation 
D)  product innovation

Question 19

Two common forms of a focused approach to corporate entrepreneurship include ________ and ________.

Accepted Answer

A)  internal collaboration; internal venturing 
B)  social capital; collaboration capital 
C)  business incubators; new venture groups 
D)  focus groups; business incubators 
A)  internal collaboration; internal venturing 
B)  social capital; collaboration capital 
C)  business incubators; new venture groups 
D)  focus groups; business incubators

Question 20

The Kraft Heinz Company makes MiO Drops.This is an example of a high-tech source of innovation.

Accepted Answer

A) True 
 B)False

Only about 50 percent of corporate venturing efforts reach profitability within six years of their launch.

What do Taco Bell,Mondelez,General Electric,Tyco,and MasterCard have in common as they work to be innovative?

Which of the following is not characteristic of a disruptive innovation?

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 following is not a question that should be answered when evaluating the performance of corporate venturing efforts.Which is it?

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?

Real options analysis is most appropriate when

________ are the benefits gained by firms that are the first to enter new markets,establish brand identity,and/or adopt new technologies.

The term strategic envelope refers to the scope of innovation efforts of a firm.

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.

What are new venture groups? What purpose do they serve? Are they more than a typical R&D department? Explain.

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.

Business incubators are designed to support fledgling entrepreneurial ventures until they can operate as stand-alone businesses.

What is the difference between product innovation and process innovation? How is each used?

Which of the following do corporate business incubators typically not provide?

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?

Two common forms of a focused approach to corporate entrepreneurship include and .

The Kraft Heinz Company makes MiO Drops.This is an example of a high-tech source of innovation.

Strategic Management: Creating Competitive Advantages

Analyzing the External Environment of the Firm: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firm's Intellectual Assets: Moving Beyond a Firm's Tangible Resources

Business-level Strategy: Creating and Sustaining Competitive Advantages

Corporate-level Strategy: Creating Value Through Diversification

International Strategy: Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Filters

Exam 12: Managing Innovation and Fostering Corporate Entrepreneurship

Only about 50 percent of corporate venturing efforts reach profitability within six years of their launch.

What do Taco Bell,Mondelez,General Electric,Tyco,and MasterCard have in common as they work to be innovative?

Which of the following is not characteristic of a disruptive innovation?

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 following is not a question that should be answered when evaluating the performance of corporate venturing efforts.Which is it?

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?

Real options analysis is most appropriate when

________ are the benefits gained by firms that are the first to enter new markets,establish brand identity,and/or adopt new technologies.

The term strategic envelope refers to the scope of innovation efforts of a firm.

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.

What are new venture groups? What purpose do they serve? Are they more than a typical R&D department? Explain.

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.

Business incubators are designed to support fledgling entrepreneurial ventures until they can operate as stand-alone businesses.

What is the difference between product innovation and process innovation? How is each used?

Which of the following do corporate business incubators typically not provide?

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?

Two common forms of a focused approach to corporate entrepreneurship include ________ and ________.

The Kraft Heinz Company makes MiO Drops.This is an example of a high-tech source of innovation.

Strategic Management: Creating Competitive Advantages

Analyzing the External Environment of the Firm: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firm's Intellectual Assets: Moving Beyond a Firm's Tangible Resources

Business-level Strategy: Creating and Sustaining Competitive Advantages

Corporate-level Strategy: Creating Value Through Diversification

International Strategy: Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Filters

Two common forms of a focused approach to corporate entrepreneurship include and .