Strategic Management
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Course Introduction
Strategic Management is a comprehensive course that explores the formulation, implementation, and evaluation of cross-functional decisions essential to achieving organizational objectives. Students will analyze internal and external business environments, assess competitive advantages, and develop skills in crafting and executing effective strategies. The course emphasizes practical frameworks and case studies to help learners understand the complexities of leading organizations in dynamic and competitive global markets, enabling them to make informed, strategic decisions that drive long-term success.
Recommended Textbook
Strategic Management of Technological Innovation 4th Edition by Melissa A. Schilling
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13 Chapters
642 Verified Questions
642 Flashcards
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Chapter 1: Introduction
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Sample Questions
Q1) The majority of effort and money invested in technological innovation comes from non-industrial firms.
A)True
B)False
Answer: False
Q2) If a business discharges untreated chemical waste into local water bodies,it imposes a negative externality on the community members.
A)True
B)False
Answer: True
Q3) A firm's organizational structure and control systems have no influence on the generation of innovative ideas.
A)True
B)False
Answer: False
Q4) Investing in process innovation helps firms lower their costs.
A)True
B)False
Answer: True
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Chapter 2: Sources of Innovation
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Sample Questions
Q1) Regional districts that are set up by the government to foster R&D collaboration between government,universities,and private firms are typically called _____.
A) technological trajectories
B) free trade areas
C) complementors
D) science parks
Answer: D
Q2) Which of the following is true about the Bayh-Dole Act of 1980?
A) It made university technology transfer activities illegal and unethical.
B) It allowed universities to collect royalties on inventions funded with taxpayer dollars.
C) It restricted provision of patents for inventions developed at universities.
D) It made investment in research and technology mandatory for public companies.
Answer: B
Q3) The terms research and development represent different kinds of investment in innovation-related activities.
A)True
B)False
Answer: True
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Chapter 3: Types and Patterns of Innovation
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Sample Questions
Q1) Which of the following is true of s-curves in technological improvement?
A) They are obtained by plotting the cumulative number of adopters of the technology against time.
B) They typically show that technology goes through initial accelerated improvement, then slow improvement, then diminishing improvement.
C) S-curves in technology diffusion and s-curves in technology performance are fundamentally the same processes.
D) The s-curves flatten when the cost of each marginal improvement increases and when diminishing returns to effort begin to set in.
Answer: D
Q2) Product innovations are more visible than process innovations.
A)True
B)False
Answer: True
Q3) A modular innovation significantly affects the overall configuration of a system.
A)True
B)False
Answer: False
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Chapter 4: Standards Battles and Design Dominance
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Sample Questions
Q1) Future Electronics' body scanning machine has been adopted by the larger portion of the healthcare market.As a result,the company charges a high price from its customers,mainly hospitals.It is not investing much on innovation and its product variety is also very low.This cost borne by the users is referred to as:
A) marginal cost.
B) social cost.
C) monopoly cost.
D) deferred cost.
Q2) Though learning curves are found in a wide range of organizational processes,there are substantial differences in the rates at which organizations learn.
A)True
B)False
Q3) A firm that supports a technology that is not chosen as the dominant design will have better potential to earn near-monopoly rents in the short run than a firm that develops a dominant design.
A)True
B)False
Q4) What is vaporware? What are its advantages?
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Chapter 5: Timing of Entry
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Sample Questions
Q1) Explain why sometimes the follower and not the first mover of a new technology is more successful in the marketplace.
Q2) New innovations typically tend to:
A) be adopted very slowly at first.
B) have a rapid initial takeoff.
C) provide high sales revenue when they are first introduced.
D) be adopted as soon as they are introduced.
Q3) Not all innovations require complementary goods.
A)True
B)False
Q4) Which of the following statements is true of customer preferences?
A) The importance of technological features to customers stays constant over time.
B) Customers can differ from producers in their understanding of a new technology.
C) All pioneers of new-to-the-world technologies face customer uncertainty.
D) Other things being equal, more customer uncertainty favors earlier timing of entry.
Q5) What assumptions underlie the use of timing of entry strategies into the market for new products?
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Chapter 6: Defining the Organizations Strategic Direction
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Sample Questions
Q1) The combination and harmonization of multiple abilities make core competencies difficult to imitate.
A)True
B)False
Q2) Which of the following statements is true of core competencies?
A) A firm's core competency refers to a single ability.
B) A firm's core competency is more than just a core technology.
C) An individual business unit has only one core competency.
D) A firm's core competency is usually easy to imitate.
Q3) Recently,three cell phone companies announced the addition of a nationwide "walkie-talkie" service to supplement their regular cell phone service.Will this be a sustainable competitive advantage? Justify your answer.
Q4) The Weekly News bought the paper mill that supplied paper for printing its magazine.This is an example of horizontal integration.
A)True
B)False
Q5) Explain the advantages and disadvantages of rewarding and promoting development of the core competency.
Q6) What are core competencies?
Page 8
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Chapter 7: Choosing Innovation Projects
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Q1) Qualitative methods of analyzing new projects usually entail converting projects into some estimate of future cash returns from a project.
A)True
B)False
Q2) An efficiency frontier is the range of _____ that optimize a combination of features of a potential project.
A) product features
B) attribute arrangements
C) hypothetical configurations
D) conjoint dimensions
Q3) Jupiter Systems is planning to develop a new telescope.The initial cost of the project is estimated to be $600,000 with an anticipated recovery of $300,000,till perpetuity.The payback period for this project is _____.
A) 6 months
B) 2 years
C) 4 years
D) 6 years
Q4) Explain how the real options method using stock options.Are there any drawbacks to this method?
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Chapter 8: Collaboration Strategies
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Sample Questions
Q1) What are the characteristics of collective research organizations?
Q2) Gerden Price Co.and New Ware Systems formed an alliance to develop a new line of technologically advanced cooking stoves.What outcomes can they expect from this alliance?
A) Getting the product to the market faster
B) Increased security of proprietary knowledge
C) Lesser opportunities to pursue other projects
D) Fewer resources to cope with contingencies
Q3) Building the necessary capabilities and resources in-house reduces a firm's asset commitment.
A)True
B)False
Q4) What is the advantage of collaborating at the development stage of a technology?
A) To increase asset commitment
B) To ensure cooperation in the commercialization stage
C) To increase a product's cycle time
D) To facilitate the emergence of multiple competing standards for a product
Q5) A firm cannot collaborate with its competitor.
A)True
B)False
10
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Chapter 9: Protecting Innovation
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Sample Questions
Q1) In the United States patent owners are granted a term of _____ years of protection.
A) 17
B) 20
C) 15
D) 30
Q2) Albert has designed a license plate holder for automobiles that makes theft of the license plate practically impossible.He has limited income and feels that he needs to protect his patent in numerous countries so that he can sell his product there in the future.Discuss how Albert can accomplish this.
Q3) Sandy lives in a country that is a member of the Madrid Union and has registered her trademark within her country.That trademark is now protected: A) throughout the world.
B) only in countries which Sandy chooses among the members of the Madrid Union. C) only in her own country.
D) only in the countries where the product related to the trademark is manufactured.
Q4) What is a copyright? Discuss the provisions of the section 106 of the 1976 Copyright Act.
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Chapter 10: Organizing for Innovation
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Sample Questions
Q1) Modular products become more valuable when customers have heterogeneous demands.
A)True
B)False
Q2) Liam,an employee at Centaurs Inc.,is a part of a new product development team that operates in a completely different manner from its parent organization.Within the team,there is considerable decentralization of authority,limited bureaucracy,and it also has its own unique culture.Liam's team can be referred to as:
A) a mechanistic team.
B) skunk works.
C) an inorganic group.
D) a quality circle.
Q3) Managers choose a local-for-local approach to innovation when they have a strong desire to control the evolution of a technology.
A)True
B)False
Q4) In globally linked strategies to innovation,R&D divisions are centralized.
A)True
B)False
Q5) Explain why a mechanistic organizational structure stifles creativity.
Page 12
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Chapter 11: Managing the New Product Development Process
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Q1) What are the risks of championing?
Q2) In Stage 1 of the stage-gate process,the team builds a business case that includes a defined product,its business justification,and a detailed plan of action for the next stages.
A)True
B)False
Q3) A(n) _____ of a product is an early working prototype of a product released to users for testing and feedback.
A) beta version
B) substitute
C) spiral model
D) alpha model
Q4) Using computer-aided design (CAD) to build and test product design increases cycle time.
A)True
B)False
Q5) Quality Function Deployment (QFD) was developed in Germany.
A)True
B)False
Q6) What is partly parallel development process? Is it universally used? Page 13
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Chapter 12: Managing New Product Development Teams
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Sample Questions
Q1) Which of the following types of international virtual teams conducts all R&D through decentralized divisions,but each division coordinates with one person?
A) Decentralized self-coordination
B) System integrator as coordinator
C) Core team as system architect
D) Centralized venture team
Q2) Functional teams typically have a project manager or dedicated liaison personnel.
A)True
B)False
Q3) The evaluation of members of a heavyweight team is done by the project manager rather than the functional manager.
A)True
B)False
Q4) Typically collocation of team members:
A) provides opportunities for rich face-to-face communication.
B) ensures that whistle-blowers are well protected.
C) reduces the cross-fertilization of ideas.
D) reduces opportunities for informal interaction.
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Chapter 13: Crafting a Deployment Strategy
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Q1) Which of the following is true of innovators and early adopters?
A) They are unwilling to take risks and to pay high prices.
B) They may demand considerable customization and technical support.
C) They are more likely to respond to marketing that communicates the product's completeness.
D) For this market segment, detailed technical information is not as important as using market channels with high reach and high credibility.
Q2) In marketing a new product to the late majority and laggards,a company should emphasize the advanced technological features of the new product.
A)True
B)False
Q3) Which of the following is true of the different advertising media?
A) Magazines have a short ad purchase lead time.
B) Yellow pages have low believability and are expensive.
C) Newsletters have a narrow reach, but provide high selectivity.
D) Telephone advertising has relatively low cost.
Q4) Firms should always be racing to launch their products as early as possible.
A)True
B)False
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