MAN 4720, Chapter 7, Exam 1 UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS
1. The shakeout stage of the industry life cycle is dominated by
a. The late majority
b. Early adopters
c. The early majority
d. Laggards - Correct answers✔✔c. The early majority
2. An innovation that targets a new market with existing technologies is called
a. A disruptive innovation
b. An architectural innovation
c. An incremental innovation
d. A radical innovation - Correct answers✔✔b. An architectural innovation
3. Which of the following is most likely to produce a radical innovation?
a. An established restaurant chain with a clear organizations structure and strictly defined roles
for employees
b. A financial services firm that has been in business for 75 years and has longstanding customer
relationships
c. A leading toy manufacturer with a significant interest in maintaining the status quo
, d. A new sportswear company with a handful of employees that perform a number of loosely-
defined roles - Correct answers✔✔d. A new sportswear company with a handful of employees
that perform a number of loosely-defined roles
4. The invention of small desktop copiers out of the same technology used to create large,
standalone copiers, is an example of a(n)
a. Incremental innovation
b. Disruptive innovation
c. Radical innovation
d. Architectural innovation - Correct answers✔✔d. Architectural innovation
5. GE's decision to let a GE team in China develop an inexpensive and portable ultrasound
machine for developing markets is an example of _______
a. A top-down innovation strategy
b. A failure to innovate
c. A roundabout innovation strategy
d. A bottom-up innovation strategy - Correct answers✔✔d. A bottom-up innovation strategy
6. A large incumbent firm that has established a number of formalized practices and procedures
may have a difficult time producing radical innovations due to its
a. High labor costs
b. Organizational inertia
c. Competitive complacency
d. Conflicting investor interests - Correct answers✔✔b. Organizational inertia
ACTUAL QUESTIONS AND CORRECT
ANSWERS
1. The shakeout stage of the industry life cycle is dominated by
a. The late majority
b. Early adopters
c. The early majority
d. Laggards - Correct answers✔✔c. The early majority
2. An innovation that targets a new market with existing technologies is called
a. A disruptive innovation
b. An architectural innovation
c. An incremental innovation
d. A radical innovation - Correct answers✔✔b. An architectural innovation
3. Which of the following is most likely to produce a radical innovation?
a. An established restaurant chain with a clear organizations structure and strictly defined roles
for employees
b. A financial services firm that has been in business for 75 years and has longstanding customer
relationships
c. A leading toy manufacturer with a significant interest in maintaining the status quo
, d. A new sportswear company with a handful of employees that perform a number of loosely-
defined roles - Correct answers✔✔d. A new sportswear company with a handful of employees
that perform a number of loosely-defined roles
4. The invention of small desktop copiers out of the same technology used to create large,
standalone copiers, is an example of a(n)
a. Incremental innovation
b. Disruptive innovation
c. Radical innovation
d. Architectural innovation - Correct answers✔✔d. Architectural innovation
5. GE's decision to let a GE team in China develop an inexpensive and portable ultrasound
machine for developing markets is an example of _______
a. A top-down innovation strategy
b. A failure to innovate
c. A roundabout innovation strategy
d. A bottom-up innovation strategy - Correct answers✔✔d. A bottom-up innovation strategy
6. A large incumbent firm that has established a number of formalized practices and procedures
may have a difficult time producing radical innovations due to its
a. High labor costs
b. Organizational inertia
c. Competitive complacency
d. Conflicting investor interests - Correct answers✔✔b. Organizational inertia
