Deck 7: Section 3: Strategy: How Do Businesses Generate a Successful Strategy

Question 1

Common usage of a product may indicate a dominant design has been established. This is sometimes called a:

A)de facto standard
B)socipolitical standard
C)external institutional standard
D)de jure standard

Answer 1

A

Question 2

The industry lifecycle model consists of the four following stages:

A)birth, growth, death, rebirth
B)introduction, growth, maturity, decline
C)introduction, shakeout, consolidation, exit
D)introduction, growth, consolidation, decline

Answer 2

B

Question 3

BlackBerry, a smartphone company, reduced its workforce by 40% to cut costs. This industry is in the ____________ stage of the lifecycle model.

A)introduction
B)growth
C)maturity
D)decline

Answer 3

B

Question 4

Consumers becoming more demanding and more price conscious about certain products in an industry means the industry is likely in the ____________ stage.

A)introduction
B)growth
C)maturity
D)decline

Question 5

A health conscious trend towards "no smoking" has contributed to a decline in the tobacco industry and is likely due to a:

A)change in demographics
B)shift in consumer tastes
C)technical substitution
D)societal health strategy

Question 6

An innovation that alters how the components interact and are linked with each other is a/an:

A)competence-enhancing innovations
B)competence-destroying innovation
C)architectural innovation
D)modular innovations

Question 7

The decline in the use of pay phones is mostly due to a:

A)change in demographics
B)shift in consumer tastes
C)technical substitution
D)niche strategy

Question 8

Innovations that involve changes to the product's components but leave the overall configuration of the system relatively intact are called:

A)incremental innovation
B)modular innovations
C)competence-enhancing technology
D)competence-destroying technology

Question 9

An endorsement of an industry by stakeholders such as the government means an industry has achieved:

A)cognitive legitimacy
B)stakeholder legitimacy
C)sociopolitical legitimacy
D)external institution legitimacy

Question 10

A new biomedical technology that replaces a current medical procedure and lowers the overall cost likely fits into the ___________ stage of the industry lifecycle model.

A)introduction
B)growth
C)maturity
D)decline

Question 11

The invention of the digital camera is considered to be a:

A)incremental innovation
B)technological discontinuity
C)competence-enhancing technology
D)competence-destroying technology

Question 12

An electrical outlet with technical standards established by the government is often referred to as a/an:

A)de facto standard
B)socipolitical standard
C)external institutional standard
D)de jure standard

Question 13

Walmart spending large amounts of money on advertising and lowering prices would indicate that this discount retailer is in the ____________ stage of the industry lifecycle model.

A)introduction
B)growth
C)maturity
D)decline

Question 14

Bottled water likely fits into the ________ stage of the industry lifecycle model.

A)introduction
B)growth
C)maturity
D)decline

Question 15

An upgrade from the iPhone5S to a more recent model with small improvements is an example of an:

A)incremental innovation
B)technological discontinuity
C)competence-enhancing technology
D)competence-destroying technology

Question 16

Over time as an industry ages, it typically exhibits a pattern consistent with a/an:

A)continuing growth curve
B)U-shaped growth curve
C)inverted U-shaped growth curve
D)straight, upward line curve

Question 17

To deal with declining sales in the tobacco industry, tobacco companies have tried to pursue customers who favour cigars. This is typically referred to as a:

A)leadership stance
B)niche strategy
C)harvesting profits
D)customer leadership techniques

Question 18

Technological innovations that build on a firm's existing knowledge and skills in certain areas are called ______________.

A)competence-enhancing innovations
B)competence-destroying innovation
C)architectural innovation
D)modular innovations

Question 19

In the industry lifecycle model, when patents expire and rivalry becomes more fierce with larger players, the industry is likely in the ___________ stage.

A)introduction
B)growth
C)maturity
D)decline

Question 20

In the 1980s, the invention of the personal computer replacing the typewriter is an example of:

A)creative destruction
B)the punctuated equilibrium
C)the dominant design
D)the S curve

Question 21

A _____________ allows for the standardization of parts and the optimization of organizational processes for volume and efficiency.

A)dynamic environments
B)new skill
C)dominant design
D)machine

Question 22

Modern work technology in organizations has allowed companies to save labour costs due to:

A)antivirus software
B)automation
C)conference calls
D)intranet capabilities

Question 23

The power and performance of microchips would double every 18 months as a function of semiconductor manufacturers' ability to double the number of transistors on a chip. This prediction has proven fairly accurate and has become to be known as:

A)The S curve theory
B)Moore's law
C)Cumilative Development Effort
D)Technological S-Curve

Question 24

The modern view of work and a job is replacing the traditional view of work as:

A)compartmentalization of tasks
B)new skills and new combinations of work
C)filling a job
D)rigid roles

Question 25

A change in automobiles from steel to lighter weight aluminum composites are:

A)modular innovation
B)competence-enhancing innovation
C)competence-destroying innovation
D)architectural innovation

Question 26

Work today often exists in:

A)stable environments
B)dynamic environments
C)unchanging environments
D)unskilled environments

Question 27

An example of an architectural innovation would be a:

A)new breakthrough medical drug
B)tablet
C)digital camera
D)changes in the materials used in automobile bodies from steel to lighter-weight aluminum

Question 28

The era of ferment is typically associated with:

A)substantial product-class variation
B)the industry maturity stage
C)punctuated equilibrium
D)the maturity of the dominant design

Question 29

_________________ is a way of explaining how innovations swept away old technologies, skills, products, ideas, and industries and replaced them with new ones

A)S curve theory
B)transitional phase
C)creative destruction
D)punctuated equilibrium

Question 30

A laptop computer changed the standard configuration of the personal computer by making it more portable while its components remained essentially the same. This is an example of:

A)modular innovation
B)competence-enhancing innovation
C)competence-destroying innovation
D)architectural innovation