MAN 4720 FINAL EXAM 2025/2026
QUESTIONS AND ANSWERS (GRADED
A+)
Invention - ANSWER-when you discover/create a new product or service-
Transformation of an idea into products or processes
Innovation - ANSWER-The commercialized form of invention EX:Boeing and Airbus
selling airplanes
What causes rapid technology diffusion and adoption? - ANSWER-Initial innovations
are foundational for other rapid innovation
What makes innovation possible? - ANSWER-Business models
Four I's - ANSWER-Idea, invention, innovation, imitation
Idea - ANSWER-Abstract concepts or research findings
Imitation - ANSWER-copying a successful innovation
Entrepreneurship - ANSWER-Undertake economic risk to innovate new products,
processes and organizations
Strategic Entrepreneurship - ANSWER-capitalizing on an opportunity- whether that be
through cost strategy or differentiation strategy- all for the purpose or achieving
competitive advantage
Innovations create: - ANSWER-New industries such as; big-box retailing, express
delivery, nanotechnology (still developing)
5 phases of an industry lifecycle - ANSWER-Intro, Growth, shakeout, maturity and
decline
1st stage of industry lifecycle- Intro - ANSWER-Early adopters, will pay a premium, few
innovators, high barriers to entry, highly differentiated, market acceptance (seeds to
grow)
2nd stage of industry lifecycle- Growth - ANSWER-early majority (buyers increase
growth rapidly), dominant design, government influences, QWERTY keyboards, core
competencies (move from heavy R&D to manufacturing) EX: DVD to Blu Ray
, 3rd stage of industry lifecycle- Shakeout - ANSWER-Firms compete more intensely,
weaker firms are forced out, the industry consolidates, only strongest competitors
survive
4th stage of industry lifecycle- maturity - ANSWER-few large firms remain, additional
market demand is limited, market has reached maximum size, competition is intense
5th stage of industry lifecycle- decline - ANSWER-demand falls rapidly, strong pressure
on prices
Strategic options to pursue - ANSWER-Exit, Harvest, Maintain & consolidate
Exit - ANSWER-bankruptcy/liquidation
Harvest - ANSWER-reduce further investments
Maintain - ANSWER-support at a given level
Consolidate - ANSWER-buy rivals
Biggest competitive weapon - ANSWER-cost advantage
Novel - ANSWER-a useful idea that is successfully implemented
Demand is driven by? - ANSWER-Imagination and creativity / intuition and imagination
How to Respond to Disruptive Innovation? - ANSWER-Continue to innovate, Guard
against disruptive innovation, Disrupt yourself
Reverse innovation - ANSWER-Rather than wait for others to disrupt you, disrupt
yourself
Corporate Strategy - ANSWER-The decision and actions taken to gain and sustain
competitive advantage in several industries.
Questions That Executives Ask to Determine Corporate Strategy - ANSWER--In what
stages of the industry value chain should we participate?
-What range of products and services should the we offer?
-Where should we compete geographically?
Why Firms Need to Grow - ANSWER--Increase profits
-Lower costs
-Increase market power
-Reduce risk
-Motivate management
QUESTIONS AND ANSWERS (GRADED
A+)
Invention - ANSWER-when you discover/create a new product or service-
Transformation of an idea into products or processes
Innovation - ANSWER-The commercialized form of invention EX:Boeing and Airbus
selling airplanes
What causes rapid technology diffusion and adoption? - ANSWER-Initial innovations
are foundational for other rapid innovation
What makes innovation possible? - ANSWER-Business models
Four I's - ANSWER-Idea, invention, innovation, imitation
Idea - ANSWER-Abstract concepts or research findings
Imitation - ANSWER-copying a successful innovation
Entrepreneurship - ANSWER-Undertake economic risk to innovate new products,
processes and organizations
Strategic Entrepreneurship - ANSWER-capitalizing on an opportunity- whether that be
through cost strategy or differentiation strategy- all for the purpose or achieving
competitive advantage
Innovations create: - ANSWER-New industries such as; big-box retailing, express
delivery, nanotechnology (still developing)
5 phases of an industry lifecycle - ANSWER-Intro, Growth, shakeout, maturity and
decline
1st stage of industry lifecycle- Intro - ANSWER-Early adopters, will pay a premium, few
innovators, high barriers to entry, highly differentiated, market acceptance (seeds to
grow)
2nd stage of industry lifecycle- Growth - ANSWER-early majority (buyers increase
growth rapidly), dominant design, government influences, QWERTY keyboards, core
competencies (move from heavy R&D to manufacturing) EX: DVD to Blu Ray
, 3rd stage of industry lifecycle- Shakeout - ANSWER-Firms compete more intensely,
weaker firms are forced out, the industry consolidates, only strongest competitors
survive
4th stage of industry lifecycle- maturity - ANSWER-few large firms remain, additional
market demand is limited, market has reached maximum size, competition is intense
5th stage of industry lifecycle- decline - ANSWER-demand falls rapidly, strong pressure
on prices
Strategic options to pursue - ANSWER-Exit, Harvest, Maintain & consolidate
Exit - ANSWER-bankruptcy/liquidation
Harvest - ANSWER-reduce further investments
Maintain - ANSWER-support at a given level
Consolidate - ANSWER-buy rivals
Biggest competitive weapon - ANSWER-cost advantage
Novel - ANSWER-a useful idea that is successfully implemented
Demand is driven by? - ANSWER-Imagination and creativity / intuition and imagination
How to Respond to Disruptive Innovation? - ANSWER-Continue to innovate, Guard
against disruptive innovation, Disrupt yourself
Reverse innovation - ANSWER-Rather than wait for others to disrupt you, disrupt
yourself
Corporate Strategy - ANSWER-The decision and actions taken to gain and sustain
competitive advantage in several industries.
Questions That Executives Ask to Determine Corporate Strategy - ANSWER--In what
stages of the industry value chain should we participate?
-What range of products and services should the we offer?
-Where should we compete geographically?
Why Firms Need to Grow - ANSWER--Increase profits
-Lower costs
-Increase market power
-Reduce risk
-Motivate management
