Deck 9: Managing Innovation and the Dynamic Scope of the firm

Question 1

Vertically dominant growth strategies have distinct limitations

Answer 1

True
Eventually market saturation will occur and/or new technologies may cause the market to disappear or shrink dramatically

Question 2

Markets that do not exist can be analysed

Answer 2

False
A nonsensical statement. We can attempt to assess potential demand and customers' unmet needs, but we cannot analyse a non-existent entity

Question 3

Barriers to change are often erected by individuals within the firm

Answer 3

True
Change seems inevitably to be resisted by some individuals in an organization

Question 4

Today's core competences may be rendered useless by environmental changes

Question 5

Research suggests most large companies are innovative

Question 6

Revolutionary innovation damages prospects for long-term growth and value creation

Question 7

Creativity is a necessary condition for innovation

Question 8

Many important innovations have nothing to do with new products

Question 9

A portfolio of innovative ventures increases the risks of future firm failure

Question 10

Experts agree that incremental innovation is insufficient in the longer term

Question 11

It may be difficult to identify disruptive innovations a priori

Question 12

Functional demarcations are usually inimical to successful innovation

Question 13

Mergers and acquisitions are shunned by most large companies

Question 14

Active management of business portfolios is a deleterious element of corporate strategy

Question 15

Acquisition premiums are uncommon

Question 16

An acquiring firm's vision statement may help target firm employees acclimate to the change

Question 17

A due diligence process should not include assessing integration risks

Question 18

Synergistic benefits of mergers and acquisitions are easy to quantify

Question 19

Acquiring management rarely underestimates the problems involved in integrating acquisitions

Question 20

Strategic alliances may enable partner firms to complement each other's strengths