MGMT 478 - Final Exam UPDATED ACTUAL Questions And Correct Answers
Terms in this set (73)
Entrepreneurship The process by which people undertake economic risk to innovate—to create new
products, processes, and sometimes new organizations.
Industry Life Cycle The five different stages—introduction, growth, shakeout, maturity, and decline—
that occur in the evolution of an industry over time.
Disruptive Innovation An innovation that leverages new technologies to attack existing markets from the
bottom up.
Innovation The commercialization of any new product or process, or the modification and
recombination of existing ones.
Invention The transformation of an idea into a new product or process, or the modification
and recombination of existing ones.
Patent A form of intellectual property that gives the inventor exclusive rights to benefit
from commercializing a technology for a specified time period in exchange for
public disclosure of the underlying idea.
Platform ecosystem The market environment in which all players participate relative to the platform.
strategic activity system
Process Innovation New ways to produce existing products or deliver existing services.
crossing-the-chasm framework
Reverse Innovation An innovation that was developed for emerging economies before being
introduced in developed economies. Sometimes also called frugal innovation.
Social Entrepreneurship The pursuit of social goals while creating a profitable business.
Standard An agreed-upon solution about a common set of engineering features and design
choices.
Trade Secret Valuable proprietary information that is not in the public domain and where the
firm makes every effort to maintain its secrecy.
Conglomerate A company that combines two or more strategic business units under one
overarching corporation; follows an unrelated diversification strategy.
Corporate Strategy The decisions that senior management makes and the goal-directed actions it
takes to gain and sustain competitive advantage in several industries and markets
simultaneously.
, Diversification An increase in the variety of products and services a firm offers or markets and
the geographic regions in which it competes.
Franchising A long-term contract in which a franchisor grants a franchisee the right to use the
franchisor's trademark and business processes to offer goods and services that
carry the franchisor's brand name.
Geographic Diversification Corporate strategy in which a firm is active in several different countries.
Industry Value Chain Depiction of the transformation of raw materials into finished goods and services
along distinct vertical stages, each of which typically represents a distinct industry
in which a number of different firms are competing.
Licensing A form of long-term contracting in the manufacturing sector that enables firms to
commercialize intellectual property.
Joint Venture A standalone organization created and jointly owned by two or more parent
companies.
Product Diversification Strategy Corporate strategy in which a firm is active in several different product markets.
Restructuring The process of reorganizing and divesting business units and activities to refocus
a company to leverage its core competencies more fully.
Strategic Alliances Voluntary arrangement between firms that involves the sharing of knowledge,
resources, and capabilities with the intent of developing processes, products, or
services.
Vertical Integration The firm's ownership of the inputs needed for production or of the channels
through which it distributes its outputs.
Acquisition The purchase or takeover of one company by another; can be friendly or
unfriendly.
Corporate Venture Capital Equity investments by established firms in entrepreneurial ventures; CVC falls
under the broader rubric of equity alliances.
Horizontal Integration The process of merging with competitors, leading to industry consolidation.
Merger The joining of two independent companies to form a combined entity.
Non-Equity Alliance Partnership based on contracts between firms.
Real Options Choices that afford managers the right but not the obligation to make further
investments.
Hostile Takeover Acquisition in which the target company does not wish to be acquired.
Terms in this set (73)
Entrepreneurship The process by which people undertake economic risk to innovate—to create new
products, processes, and sometimes new organizations.
Industry Life Cycle The five different stages—introduction, growth, shakeout, maturity, and decline—
that occur in the evolution of an industry over time.
Disruptive Innovation An innovation that leverages new technologies to attack existing markets from the
bottom up.
Innovation The commercialization of any new product or process, or the modification and
recombination of existing ones.
Invention The transformation of an idea into a new product or process, or the modification
and recombination of existing ones.
Patent A form of intellectual property that gives the inventor exclusive rights to benefit
from commercializing a technology for a specified time period in exchange for
public disclosure of the underlying idea.
Platform ecosystem The market environment in which all players participate relative to the platform.
strategic activity system
Process Innovation New ways to produce existing products or deliver existing services.
crossing-the-chasm framework
Reverse Innovation An innovation that was developed for emerging economies before being
introduced in developed economies. Sometimes also called frugal innovation.
Social Entrepreneurship The pursuit of social goals while creating a profitable business.
Standard An agreed-upon solution about a common set of engineering features and design
choices.
Trade Secret Valuable proprietary information that is not in the public domain and where the
firm makes every effort to maintain its secrecy.
Conglomerate A company that combines two or more strategic business units under one
overarching corporation; follows an unrelated diversification strategy.
Corporate Strategy The decisions that senior management makes and the goal-directed actions it
takes to gain and sustain competitive advantage in several industries and markets
simultaneously.
, Diversification An increase in the variety of products and services a firm offers or markets and
the geographic regions in which it competes.
Franchising A long-term contract in which a franchisor grants a franchisee the right to use the
franchisor's trademark and business processes to offer goods and services that
carry the franchisor's brand name.
Geographic Diversification Corporate strategy in which a firm is active in several different countries.
Industry Value Chain Depiction of the transformation of raw materials into finished goods and services
along distinct vertical stages, each of which typically represents a distinct industry
in which a number of different firms are competing.
Licensing A form of long-term contracting in the manufacturing sector that enables firms to
commercialize intellectual property.
Joint Venture A standalone organization created and jointly owned by two or more parent
companies.
Product Diversification Strategy Corporate strategy in which a firm is active in several different product markets.
Restructuring The process of reorganizing and divesting business units and activities to refocus
a company to leverage its core competencies more fully.
Strategic Alliances Voluntary arrangement between firms that involves the sharing of knowledge,
resources, and capabilities with the intent of developing processes, products, or
services.
Vertical Integration The firm's ownership of the inputs needed for production or of the channels
through which it distributes its outputs.
Acquisition The purchase or takeover of one company by another; can be friendly or
unfriendly.
Corporate Venture Capital Equity investments by established firms in entrepreneurial ventures; CVC falls
under the broader rubric of equity alliances.
Horizontal Integration The process of merging with competitors, leading to industry consolidation.
Merger The joining of two independent companies to form a combined entity.
Non-Equity Alliance Partnership based on contracts between firms.
Real Options Choices that afford managers the right but not the obligation to make further
investments.
Hostile Takeover Acquisition in which the target company does not wish to be acquired.
