Lately, computer users have been using

STRATEGIC MANAGEMENT

1.(TCO A) If you were in charge of a Research and
Development (R&D) department for a large pharmaceutical company, would you
encourage your researchers to do basic research or applied research? Provide
the rationale for your answer. (Points : 30)
2.(TCO A) Lately, computer users have been using
USB jump drives to copy and store files. These are also called thumb drives,
pen drives, and other names. These are small drives you can attach to a key
chain and plug into any USB port and have the utility of a hard drive. The size
of their memory varies from 16 kilobytes to several gigabytes. Assume you are
the CEO of the Ajax Thumb Drive Company. How might you use the s-curve model to
predict when to switch to a new technology? What would be the limitations of
this approach? (Points : 30)
3.(TCO B) Explain what factors affect the
technology trajectory and chance of success of a new technology besides its
quality and technical advantage. (Points : 29)
4.(TCO B) Explain why it is that if a company’s
technology is adopted by users ahead of other technologies, it might be at a
tremendous advantage and competitors will have trouble catching up. (Points
: 29)
5.(TCO C) Gallon, Stillman & Coates suggest a
six-step approach for identifying and cultivating a firm s core competencies.
Describe this approach and provide examples. (Points : 29)
6.(TCO D) Explain why the cash flows (profits
minus costs) for a project that are expected to continue for 20 years need to
be discounted. Why not simply use the amounts as they are? Would it make a
difference if 80% of the profits came in during the first 5 years? (Points
: 29)

1.(TCO A) Among member countries of the Organization for
Economic Cooperation and Development, the majority of R&D funds come
from ______. (Points : 4)

government
industry
universities
private nonprofit organizations

2.(TCO A) Which of the following is most clearly an example of
process innovation? (Points : 4)

a pizza chain is able to develop a method of
baking pizza that enables pizzas to be baked in 10 minutes rather than the
standard 20 minutes during the late 1980s
a potato chip company introduces a line of
its potato chips with a new type of seasoning.
a major motion picture studio releases a new
3D movie.
a tire manufacturer develops a tire that
re-inflates itself instantly when it is punctured

3.(TCO B) When both Nintendo and Sega claimed to have over 60
percent market share of the video game console market, both were trying
to influence _____________. (Points : 4)

users perceptions and expectations about the
installed base.
perceived technical utility.
pre-order demand.
technology bias.

4.(TCO B) Most graphic artists, newspapers, magazines, and
other professionals who work intensely with pictures use Photoshop. To be
perceived as a better value, a new graphics program would have to offer
more value than Photoshop’s _________________
(Points : 4)

complementary goods
installed base
complementary goods and installed base
technological ability, complementary goods,
and installed base

5.(TCO C) Which of the following would describe a primary
activity according to Michael Porter’s model of the value chain?
(Points : 4)

The human resource activities of Wal-Mart
A Wal-Mart advertising campaign
The accounting function at Wal-Mart
The development of new scanning equipment at
Wal-Mart

6.(TCO D) Using the real options approach, if the cost of
future investments to capitalize on the R&D program is less than the
returns from this investment, then __________.
(Points : 4)

the program should be abandoned
the program should be pursued
further calculations should be made
the exercise price should be determined

 

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