Deck 9: International Strategy

Question 1

What is the key choice for social entrepreneurs relating to organisational form?

A) Is the aim gradual or revolutionary change?
B) What business model should we adopt?
C) Which stakeholders should be included?
D) Is the focus to be end objectives or operational processes?

Answer 1

C

Question 2

When considering a portfolio of innovation options what approach will be most suitable in markets of lo uncertainty where the technologies are have low levels of uncertainty?

A) Stepping stones
B) Enhancement launches
C) Scouting options
D) Platform launches

Answer 2

B

Question 3

According to Kanter, what are the benefits of commercial companies being involved in social enterprise? Choose all that apply.

A) It accesses new pools of potential employees.
B) It can create new relationships with governments that can develop into new markets.
C) It may develop new technologies and services.
D) It means that they do not need to contribute to more traditional charities.

Answer 3

A, B, C

Question 4

What are the axes of the S- curve? Choose all that apply.

A) Rate of diffusion
B) Diffusion
C) Total demand
D) Time

Question 5

What term is used for an innovation that creates substantial growth by offering a new performance trajectory that, even if it is initially inferior, has the potential to become markedly superior?

A) Disruptive innovation
B) Anterior innovation
C) Radical innovation
D) Sustaining innovation

Question 6

Select the option that best explains why large incumbent organisations may develop new venture divisions?

A) To discourage innovation throughout the organisation
B) To protect new ventures from the usual systems and disciplines of the core business
C) To encourage innovation throughout the organisation
D) To protect the core business from the risk associated with new ventures

Question 7

Why are social entrepreneurs able to pursue social problems more effectively than many public sector organisations?

A) Because they are more flexible and dynamic, and less bureaucratic.
B) Because most social entrepreneurs have personal experience of social problems
C) Because they focus primarily on creating profit and financial success
D) Because their staff are better qualified

Question 8

What are the two key stages of innovation?

A) To put a new product, process or service into use.
B) To initially focus only on those ideas that will prove profitable.
C) To make a startling, brand new discovery.
D) To convert new knowledge into a new product, process or service.

Question 9

Which two of the following highlight the key differences between a business model and a high- level corporate strategy?

A) Radical change in the business model versus incremental change in the business- level strategy
B) Detailed business model versus high- level strategy
C) Standard business model versus competitive business- level strategy
D) Technology- based business model versus structure based business- level strategy

Question 10

Which two of the following may be suitable responses to disruptive innovation?

A) Continue as before and ignore the disruptive innovation.
B) Move out of the segment.
C) Develop a portfolio or real options.
D) Develop independent business units.

Question 11

Which of the following are important contextual factors that managers must consider when deciding whether to move first or not?

A) Do we have complementary assets?
B) Is there capacity for profit capture?
C) Is the arena fast- moving?
D) All of the above

Question 12

What is the main challenge for entrepreneurs during the growth stage?

A) To develop an exit strategy
B) To create further innovation
C) To find sources of funding
D) To move from doing to managing

Question 13

Which companies are most challenged by disruptive innovations?

A) Those with a single business model based on many products or services
B) Those with a multi- business model based on many products or services
C) Those with a single business model based on one main product or service
D) Those with a multi- business model based on one main product or service

Question 14

What is the key choice for social entrepreneurs relating to social mission?

A) Which stakeholders should be included?
B) What business model should we adopt?
C) How much income is required?
D) Is the focus to be end objectives or operational processes?

Question 15

What components are included in the 'business model'? Choose all that apply.

A) The structure of product, service and information flows
B) The processes and procedures for manufacture
C) The history of the firm
D) The role of participating parties

Question 16

What key change occurs once a dominant design has been developed in a particular sector?

A) Large incumbent firms are replaced by smaller companies.
B) Innovation ceases.
C) Process innovation becomes more important than product innovation.
D) Process and product innovation become equally important.

Question 17

How are social enterprises typically funded?

A) From charitable donations
B) From revenues earned in the marketplace
C) From government subsidy
D) From all of the above sources

Question 18

Which of the following statements state valid conclusions that can be reached from knowledge of the S- curve? Choose all that apply.

A) Diffusion patterns can be interrupted or reversed at any point.
B) Managers should not simply extrapolate next- year's sales from last- year's figures.
C) Innovations do not follow an inevitable process.
D) Diffusion is generally a rapid and even progress.

Question 19

Which of the following are not aspects of the demand side that are likely to affect the pace of diffusion? Choose all that apply.

A) Observability
B) Customer innovativeness
C) Compatibility
D) Market awareness
E) Relationship management

Question 20

First movers are monopolists. Why do they generally not charge high prices, even though they know that these could not be undercut by competitors? Choose all that apply.

A) They suffer from diseconomies of scale.
B) They are not seeking to make a profit.
C) They know monopoly is usually temporary.
D) They want sales growth.

Question 21

A company has developed a new component for a mobile phone and is confident that a market can be found for the new product. What is this an example of?

A) Market pull
B) Innovation diffusion
C) Technology push
D) Process innovation

Question 22

What are the two principal potential benefits of being a late mover?

A) Buyer- switching costs
B) Learning
C) Free- riding
D) Economies of scale

Question 23

What point identifies the time at which demand for a new product or service suddenly collapses?

A) Diffusion point
B) S- curve inflexion
C) Tipping point
D) Tripping point

Question 24

Which two of the following are important concepts linked to open innovation?

A) Structuralism
B) Corporate venturing
C) Ecosystems
D) Exit strategies

Question 25

Which of the following is not a robust first- mover advantage?

A) Profit capture
B) Buyer switching costs
C) Scale benefits
D) Experience curve benefits

Question 26

Which of the following is a key issue for entrepreneurs during the start- up stage?

A) Finding potential purchasers for the business
B) Creating an organisational structure
C) Finding sources of capital
D) Generating growth

Question 27

Which two of the following are benefits of corporate venturing?

A) Customers gain because costs of innovation are reduced
B) Corporations gain because the costs of innovation are shared between many organisations
C) Large corporations gain by increasing the range of ideas they are exposed to
D) Entrepreneurs gain by accessing capital and contacts through the large- organisation network

Question 28

What point identifies the time at which demand for a new product or service starts to show a rapid increase?

A) S- curve inflexion
B) Diffusion point
C) Tripping point
D) Tipping point

Question 29

Managers identify a small decrease in demand for one of their products while experiencing growth or steady demand in others. What could you conclude?

A) The product is reaching the tipping point.
B) The product is reaching the tripping point.
C) The product is reaching the plateau.
D) They should increase production rates in that product.

Question 30

What term is used for the process by which innovations spread amongst users?

A) Tipping
B) Tripping
C) Entrepreneurship
D) Diffusion

Question 31

What term is used for an approach in which individuals and groups create independent organisations to mobilise ideas and resources and address social problems?

A) Social engineering
B) Sociological innovation
C) Social entrepreneurship
D) Entrepreneurship

Question 32

A leading snowboard competitor has suggested a new material to the manufacturer, who trials the new product and then introduces it into the market. What is this an example of?

A) Market pull
B) Innovation diffusion
C) Process innovation
D) Technology push

Question 33

IBM has many alliances, mainly with small firms that act as suppliers, agents, distributors, makers of complementary products etc. What term is used for this approach?

A) Entrepreneuring
B) Social entrepreneurship
C) Ecosystem
D) Corporate venturing

Question 34

Which three of the following should be considered by a manager writing a business case for an improved product?

A) Value to customers
B) Critical success factors of consumers and intermediaries
C) The position of the tripping point
D) Issues of compatibility

Question 35

Which of the following are not aspects of the supply side that are likely to affect the pace of diffusion? Choose all that apply.

A) Relationship management
B) Observability
C) Customer innovativeness
D) Degree of improvement in performance
E) Compatibility

Question 36

Which of the following are robust first- mover advantages? Choose all that apply.

A) Pre- emption of scarce resources
B) Reputation for being first
C) Scale benefits
D) Ability to charge high prices

Question 37

When considering a portfolio of innovation options what approach will be most suitable in markets of high uncertainty where the technologies are still highly uncertain?

A) Positioning options
B) Stepping stones
C) Scouting options
D) Platform launches

Question 38

Which are the three fundamental dilemmas that face managers with relation to innovation?

A) How can innovation be planned in advance?
B) Technology push as against market pull?
C) Technological or broader business model innovation?
D) Product or process innovation?

Question 39

At what stages of the sequence of product innovation are small firms likely to play the most important part?

A) Once the market is declining
B) The early stages
C) In the late stages
D) Once a dominant design has been identified

Question 40

Which two of the following make up the crucial elements of the business model?

A) The predicted profit
B) The selling
C) The innovation process
D) The product

Question 41

Social entrepreneurs typically earn revenues and aim to maximise profit.

Question 42

All successful entrepreneurs work independently ('the garage entrepreneur') rather than working in some form of partnership with large organisations.

Question 43

First mover advantage occurs where an organisation is less well off than its competitors as a result of being first to market with a new product.

Question 44

Which of the following comments apply to the fair- trade business model? Choose all that apply.

A) Fair- trade operations aim to become highly profitable businesses.
B) There are often benefits to both sides if a fair- trade organisation works with a commercial enterprise.
C) Fair- trade organisations often become much more closely involved with their suppliers than commercial organisations do.
D) The primary social mission of a fair- trade is to benefit customers by minimising costs.

Question 45

Market pull is always more likely than technology push to create products that will be successful in the marketplace.

Question 46

Comparing two companies manufacturing IT equipment, Apple can be said to focus on product innovation and Dell on process innovation.

Question 47

A company developed a new product, experienced a sudden growth in demand and invested heavily in new production equipment. What risk are they facing?

A) That demand will accelerate as the diffusion curve reaches the plateau stage
B) That demand will accelerate as the diffusion curve reaches the tipping point
C) That demand will slow down as the diffusion curve reaches the plateau stage
D) That demand will slow down as the diffusion curve reaches the tipping point

Question 48

Entrepreneurs who have successfully exited ventures and started others in a sequence are known as serial entrepreneurs.

Question 49

Which of the following is a key issue for entrepreneurs during the maturity stage?

A) Finding sources of capital
B) Creating an organisational structure
C) Finding potential purchasers for the business
D) Generating new growth

Question 50

What name is given to the way in which large organisations draw on new ventures and external partners to create innovation?

A) Exploratory innovation
B) Exploratory partnerships
C) Entrepreneurial innovation
D) Open innovation