NETW 583 - NETW 583 Strategic Management of Technology-Devry University- Midterms.-Graded A

(TCO A) The relationship between speed of innovation and product obsolescence is (Points : 5) *direct (as innovation speed increases, products become obsolete more quickly). inverse (as innovation speed increases, products become obsolete more slowly). indirect (there is an effect, but it cannot be directly determined). nonexistent (there is no relationship at all). Question 2.2. (TCO A) While rapid innovation often benefits society, it often makes success for companies (Points : 5) *more complicated as they strive to keep up with the latest innovations. profitable as long as they do not innovate themselves, but rather use innovations of others to their advantage. easier since innovation always makes things simpler. less likely because customers will not be willing to pay as much for goods and services. Question 3.3. (TCO B) The scientists at Gerusa are former award-winning Soviet scientists who have all focused their attention on a cancer treatment. Working together, they have come up with remarkable solutions. The knowledge base they have (Points : 5) is explicit. is easily imitable. *is socially complex. has a low degree of appropriability. Question 4.4. (TCO B) Absorptive capacity (Points : 5) is the result of effective strategic decisions by a firm's upper management. *increases a firm's future ability to assimilate information. is an essential component of a learning organization. is inversely proportionate to the size of the organization. Question 5.5. (TCO C) Natal Technologies is developing a superior ultrasound machine for which it is required to invest $800,000. Based on the company's analysis, the product will generate $200,000 from the first year till perpetuity. According to this, the payback period is . (Points : 5)NETW 583 - NETW 583 Strategic Management of Technology-Devry University.NETW 583Strategic Management