MAN4720 (Capstone) Session 10-13 Exam
With Complete Solutions
Strategic entrepreneurship - ANSWER the pursuit of innovation using tools and
concepts from strategic management
social entrepreneurship - ANSWER the pursuit of social goals while creating a
profitable business
Innovation - ANSWER concerns the commercialization of an invention by
entrepreneurs (within existing companies or new ventures)
Idea - ANSWER The innovation process begins with an ____.
Invention - ANSWER describes the transformation of an idea into a new product
or process, or the modification and recombination of existing ones
Four I's - ANSWER describes the discovery and development of new knowledge
in a four-step process; idea, invention, innovation, and imitation
Imitate - ANSWER If an innovation is successful in the marketplace, competitors
will attempt to _______ it
Introduction - ANSWER __________ Stage of the Product Life Cycle
Price Levels: Depends on choice of introductory strategy
Number of Competitors: few
Industry profits: Negative
Customers: Few - Innovators only
Objectives: Awareness and Adoption
Growth - ANSWER __________ Stage of the Product Life Cycle
Price Levels: Converges as competitors enter market
Number of Competitors: Rapidly rising
Industry profits: Rising
, Customers: Rising - Early Adopters
Objectives: Gain Market Share
Maturity - ANSWER __________ Stage of the Product Life Cycle
Price Levels: Initially high but tend to decline as growth disappears
Number of Competitors: Begins to decline through consolidation
Industry profits: Highest
Customers: High/Stable, begins to drop late in cycle
Objectives: Defend share and maximize profits
Decline - ANSWER __________ Stage of the Product Life Cycle
Price Levels: Initially declines but may rise as competitors exit
Number of Competitors: few or one
Industry profits: Declining
Customers: Declining
Objectives: Milk remaining value, minimize investment
Penetration pricing - ANSWER If the company has or expects a lot of competition
it may decide to use ____________ _______and capture a lot of market share,
which may discourage some potential competitors from entering the market at
all
Slotting fee - ANSWER Most retailers charge what is called a "_________ ___" - a
payment the manufacturer makes to persuade the retailer to stock the item. If
the product fails, they do not offer refunds on these charges, so producers will
want to be confident that a product will draw enough customers before they pay
these fees and so may limit its initial distribution.
Industry Consolidation - ANSWER When larger competitors buy up smaller
competitors in order to find synergies and build share to scale economies
Shakeout stage - ANSWER The stage in the product life cycle which occurs
towards the end of the growth stage and the beginning of the maturity stages as
a result of industry consolidation
With Complete Solutions
Strategic entrepreneurship - ANSWER the pursuit of innovation using tools and
concepts from strategic management
social entrepreneurship - ANSWER the pursuit of social goals while creating a
profitable business
Innovation - ANSWER concerns the commercialization of an invention by
entrepreneurs (within existing companies or new ventures)
Idea - ANSWER The innovation process begins with an ____.
Invention - ANSWER describes the transformation of an idea into a new product
or process, or the modification and recombination of existing ones
Four I's - ANSWER describes the discovery and development of new knowledge
in a four-step process; idea, invention, innovation, and imitation
Imitate - ANSWER If an innovation is successful in the marketplace, competitors
will attempt to _______ it
Introduction - ANSWER __________ Stage of the Product Life Cycle
Price Levels: Depends on choice of introductory strategy
Number of Competitors: few
Industry profits: Negative
Customers: Few - Innovators only
Objectives: Awareness and Adoption
Growth - ANSWER __________ Stage of the Product Life Cycle
Price Levels: Converges as competitors enter market
Number of Competitors: Rapidly rising
Industry profits: Rising
, Customers: Rising - Early Adopters
Objectives: Gain Market Share
Maturity - ANSWER __________ Stage of the Product Life Cycle
Price Levels: Initially high but tend to decline as growth disappears
Number of Competitors: Begins to decline through consolidation
Industry profits: Highest
Customers: High/Stable, begins to drop late in cycle
Objectives: Defend share and maximize profits
Decline - ANSWER __________ Stage of the Product Life Cycle
Price Levels: Initially declines but may rise as competitors exit
Number of Competitors: few or one
Industry profits: Declining
Customers: Declining
Objectives: Milk remaining value, minimize investment
Penetration pricing - ANSWER If the company has or expects a lot of competition
it may decide to use ____________ _______and capture a lot of market share,
which may discourage some potential competitors from entering the market at
all
Slotting fee - ANSWER Most retailers charge what is called a "_________ ___" - a
payment the manufacturer makes to persuade the retailer to stock the item. If
the product fails, they do not offer refunds on these charges, so producers will
want to be confident that a product will draw enough customers before they pay
these fees and so may limit its initial distribution.
Industry Consolidation - ANSWER When larger competitors buy up smaller
competitors in order to find synergies and build share to scale economies
Shakeout stage - ANSWER The stage in the product life cycle which occurs
towards the end of the growth stage and the beginning of the maturity stages as
a result of industry consolidation
