MGMT 425 MARINO FINAL EXAM QUESTIONS WELL ANSWERED LATEST UPDATE 2026
Crossing the Chasm Framework - Answers The critical gap between early adopters (visionaries) and
the early majority (pragmatists). Firms must bridge this to achieve mainstream success.
Technology Enthusiasts - Answers 2.5%: Introduction stage. Engineering mindset, seek new tech,
tinker, give free feedback.
Early Adopters - Answers 13.5%: Growth stage. Visionaries driven by imagination — 'What can this do
for me?'
Early Majority - Answers 34%: Shakeout stage. Pragmatic, weigh costs vs. benefits, need
endorsements. THIS IS THE KEY GROUP to cross the chasm.
Late Majority - Answers 34%: Maturity stage. Wait for standards, dislike uncertainty, buy from
established brands.
Laggards - Answers 16%: Decline stage. Adopt only if forced. Not worth pursuing.
Idea - Answers Abstract concept or research finding.
Invention - Answers Transforming the idea into a product.
Innovation - Answers Commercializing the invention (actual value creation in the market).
Imitation - Answers Competitors copy the successful innovation.
Incremental Innovation - Answers Existing tech + existing market. Steady, continuous improvements
on established knowledge.
Radical Innovation - Answers New tech + new market. Novel methods/materials, entirely new
knowledge base.
Architectural Innovation - Answers Existing tech + new market. Known components used in a novel
way.
Disruptive Innovation - Answers New tech + existing market. New product/process meets existing
needs differently.
Industry Life Cycle - Answers Introduction: High R&D costs, high barriers to entry, goal is market
acceptance.
Growth Stage - Answers Demand surges, first-time buyers rush in, product/process standards
emerge.
Shakeout Stage - Answers Growth slows, intense competition, weak firms exit, industry consolidates.
Maturity Stage - Answers Few large firms remain, economies of scale, replacement/repeat demand
only.
Decline Stage - Answers Demand falls rapidly. Options: exit, harvest, maintain, or consolidate (buy
rivals).
Strategic Entrepreneurship - Answers Pursuit of innovation using strategic tools and concepts to
create/exploit opportunities for competitive advantage.
Social Entrepreneurship - Answers Pursuit of social goals while creating profitable businesses. Triple
bottom line — people, planet, profit.
Platform Business - Answers Enables matches between producers and consumers. Scales efficiently
by eliminating gatekeepers.
Pipeline Business - Answers Linear value chain: R&D → Design → Manufacture → Sell. Scaling
requires proportional resource investment.
Corporate Strategy - Answers WHERE to compete — which industries and markets. Decisions about
diversification, M&A, alliances, vertical integration.
Business Strategy - Answers HOW to compete — within one industry. Cost leadership, differentiation,
or focus strategy.
Backward Integration - Answers Moving upstream toward suppliers (e.g., manufacturer acquires a
raw materials supplier).
Forward Integration - Answers Moving downstream toward customers (e.g., manufacturer opens its
own retail stores).
Vertical Integration - Answers Expanding up or down the value chain (backward + forward combined).
Horizontal Integration - Answers Merging with or acquiring a competitor at the SAME stage of the
value chain (e.g., Facebook acquiring Instagram).
Principal - Answers Owner/shareholder — wants maximum firm value.
Agent - Answers Manager — may pursue personal interests (empire-building, prestige, higher pay).
Core Problem - Answers Goals conflict + information asymmetry between principals and agents.
Adverse Selection - Answers Choosing inferior alternatives due to hidden information.
Crossing the Chasm Framework - Answers The critical gap between early adopters (visionaries) and
the early majority (pragmatists). Firms must bridge this to achieve mainstream success.
Technology Enthusiasts - Answers 2.5%: Introduction stage. Engineering mindset, seek new tech,
tinker, give free feedback.
Early Adopters - Answers 13.5%: Growth stage. Visionaries driven by imagination — 'What can this do
for me?'
Early Majority - Answers 34%: Shakeout stage. Pragmatic, weigh costs vs. benefits, need
endorsements. THIS IS THE KEY GROUP to cross the chasm.
Late Majority - Answers 34%: Maturity stage. Wait for standards, dislike uncertainty, buy from
established brands.
Laggards - Answers 16%: Decline stage. Adopt only if forced. Not worth pursuing.
Idea - Answers Abstract concept or research finding.
Invention - Answers Transforming the idea into a product.
Innovation - Answers Commercializing the invention (actual value creation in the market).
Imitation - Answers Competitors copy the successful innovation.
Incremental Innovation - Answers Existing tech + existing market. Steady, continuous improvements
on established knowledge.
Radical Innovation - Answers New tech + new market. Novel methods/materials, entirely new
knowledge base.
Architectural Innovation - Answers Existing tech + new market. Known components used in a novel
way.
Disruptive Innovation - Answers New tech + existing market. New product/process meets existing
needs differently.
Industry Life Cycle - Answers Introduction: High R&D costs, high barriers to entry, goal is market
acceptance.
Growth Stage - Answers Demand surges, first-time buyers rush in, product/process standards
emerge.
Shakeout Stage - Answers Growth slows, intense competition, weak firms exit, industry consolidates.
Maturity Stage - Answers Few large firms remain, economies of scale, replacement/repeat demand
only.
Decline Stage - Answers Demand falls rapidly. Options: exit, harvest, maintain, or consolidate (buy
rivals).
Strategic Entrepreneurship - Answers Pursuit of innovation using strategic tools and concepts to
create/exploit opportunities for competitive advantage.
Social Entrepreneurship - Answers Pursuit of social goals while creating profitable businesses. Triple
bottom line — people, planet, profit.
Platform Business - Answers Enables matches between producers and consumers. Scales efficiently
by eliminating gatekeepers.
Pipeline Business - Answers Linear value chain: R&D → Design → Manufacture → Sell. Scaling
requires proportional resource investment.
Corporate Strategy - Answers WHERE to compete — which industries and markets. Decisions about
diversification, M&A, alliances, vertical integration.
Business Strategy - Answers HOW to compete — within one industry. Cost leadership, differentiation,
or focus strategy.
Backward Integration - Answers Moving upstream toward suppliers (e.g., manufacturer acquires a
raw materials supplier).
Forward Integration - Answers Moving downstream toward customers (e.g., manufacturer opens its
own retail stores).
Vertical Integration - Answers Expanding up or down the value chain (backward + forward combined).
Horizontal Integration - Answers Merging with or acquiring a competitor at the SAME stage of the
value chain (e.g., Facebook acquiring Instagram).
Principal - Answers Owner/shareholder — wants maximum firm value.
Agent - Answers Manager — may pursue personal interests (empire-building, prestige, higher pay).
Core Problem - Answers Goals conflict + information asymmetry between principals and agents.
Adverse Selection - Answers Choosing inferior alternatives due to hidden information.
