CH 12

Question 1

The use of new knowledge to transform organizational processes or create commercially viable products and services

Answer 1

Innovation

Question 2

Q. Whereas ____ are often associated with the low-cost leader strategy, ____ are frequently an important aspect of the differentiation strategy

Answer 2

Process innovations; product innovations

Question 3

Efforts to create product designs and applications of technology to develop new products for end-users

Answer 3

Productive innovation

Question 4

Efforts to improve the efficiency of organizational processes

Answer 4

Process innovation

Question 5

An innovation that fundamentally changes existing practices

Answer 5

Radical innovation

Question 6

An innovation that enhances existing practices or makes small improvements in products and processes

Answer 6

Incremental innovation

Question 7

Are those that extend sales in existing markets

Answer 7

Sustaining innovations

Question 8

Those that overturn markets by providing an altogether new approach to meeting customer needs

Answer 8

Disruptive innovations

Question 9

Reflects the fact that most companies have an abundance of innovative ideas

Answer 9

Seeds vs weeds

Question 10

Reflects the fact that companies must decide who will lead an innovation project

Answer 10

Experience vs initiative

Question 11

Reflects the fact that innovation projects need competent staff to succeed

Answer 11

Internal versus external staffing

Question 12

Implies that innovation projects often require new sets of skills

Answer 12

Building capabilities vs collaborating

Question 13

Managing the timing and scale of new innovation projects

Answer 13

Incremental vs preemptive launch

Question 14

Allows leaders to see the potential in innovations

Answer 14

Discovery skills

Question 15

The key attribute that firms need to develop in their managers in order to improve their innovative potential

Answer 15

Creative intelligence

Question 16

A firm-specific view of innovation that defines how a firm can create new knowledge and learn from a innovation initiative even if the project fails

Answer 16

Strategic envelope

Question 17

The creation of new value for a corporation, through investments that create either new sources of competitive advantages or renewal of the value proposition

Answer 17

Corporate entrepreneurship

Question 18

A group of individuals, or a division within a corporation that cultivates venture opportunities

Answer 18

New venture group

Question 19

A corporate new venture group that supports and nurtures fledgling ventures until they can thrive on their own

Answer 19

Business Incubator

Question 20

Corporate entrepreneurship in which a dedication to the principles and policies spread throughout the organization

Answer 20

Dispersed approaches to corporate entrepreneurship

Question 21

Corporate culture in which change and renewal are a constant focus of attention

Answer 21

Entrepreneurial culture

Question 22

Firm’s willingness to invest in the generation and execution of innovative ideas

Answer 22

Resource allotments

Question 23

Individual working within a corporation who brings entrepreneurial ideas forward

Answer 23

Product champion

Question 24

Implies that an opportunity has to be justified in terms of its attractiveness in the marketplace and how well it fits with objectives

Answer 24

Project definition

Question 25

An options analysis tool that looks at an investment or activity as a series of sequential steps

Answer 25

Real options analysis

Question 26

Problem with investment decisions in which managers scheme to have a project meet criteria

Answer 26

Back-solver dilemma

Question 27

Biases, blind spots, and other human frailties that lead to poor managerial decisions

Answer 27

Managerial conceit

Question 28

The tendency for managers to irrationally stick with an investment, even one that is broken

Answer 28

Escalation of commitment

Question 29

Strategy making practices that businesses use in identifying and launching corporate ventures

Answer 29

Entrepreneurial orientation

Question 30

Independent action by an individual or team aimed at bringing forth a business concept and carrying it through to completion

Answer 30

Autonomy

Question 31

A willingness to introduce novelty through experimentation and creative processes aimed at developing new products and services as well as new processes

Answer 31

Innovativeness

Question 32

A forward looking perspective characteristics of a marketplace leader that has the foresight to seize opportunities in anticipation of future demand

Answer 32

Proactiveness

Question 33

An intense effort to outperform industry rivals characterized by a competitive posture or an aggressive response aimed at improving position

Answer 33

Competitive aggressiveness