MAN4720 Final exam UCF
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1. Innovation and Entrepreneurship: Session 6
2. ---- is defined as the goal directed actions a firm takes to gain and sustain a
competitive advantage: Strategy
3. A --- occurs when a firm is able to generate ABOVE average results: Competitive
advantage
4. What are the 4 stages of the industry life cycle?: 1. Introduction phase
2. growth stage
3. Shakeout stage
4. maturity stage
5. decline stage
5. Companies may use skimming pricing if competition is limited or penetration
pricing in a competitive market; low sales, high costs, focus on building aware-
ness: Introduction stage
6. the company will set initial prices high, and only those consumers who feel
especially excited about the product will buy it: skimming
7. a payment the manufacturer makes to persuade the retailer to stock the
item: slotting fee; like a deposit on an apartment
8. Who are the buyers in the introduction stage?: innovators and early adopters
9. Rapid customer adoption and high advertising costs; dominant design
emerges: Growth Stage
10. Who are the buyers in the growth stage?: early majority
11. intense competition forces weaker firms out; industry consolidates; price
competition increases: shakeout stage
12. Sales growth slows and eventually plateaus; cost leadership or differentia-
tion strategies dominate; industry consolidation: Maturity Stage
13. Who are the buyers in the maturity stage?: late majority
14. this is a key aspect of success in the maturity stage, particularly for those
companies seeking to differentiate their products as their source of competi-
tive advantage: branding
15. a product design that becomes the accepted market standard, reducing
variation and focusing competition on price and efficiency: dominant design
, MAN4720 Final exam UCF
Study online at https://quizlet.com/_hq9zn3
16. Sales significantly drop due to various factors; reduced innovation and ad-
vertising; can exit, harvest, maintain, or consolidate; high pricing power with
less competition: Decline stage
17. Who are the buyers in the decline stage?: laggards
18. products with a very short life cycle: fads
19. completely leaving the industry; liquidating assets and ceasing operations-
: exit strategy
20. making very minimal investments in the SBU with the goal of milking whatev-
er remaining profits or cash flow can be extracted before eventual divestment
(Dog in BCF matrix): Harvest strategy
21. focus on protecting the existing market share and leveraging its profitability;
invest enough cash to hold position; low-growth market but high market share;
stable earnings and cash flow; Cash Cow in BCG matrix: Maintain
22. directly linked to Mergers and Acquisitions; can be a way to reduce compet-
itive intensity, reduce costs, and increase differentiation; aim to gain market
share in a shrinking market: consolidate
23. Competitive benefits gained by being the first to innovate, like experience
curves, supplier lock-in, and switching costs: first-mover advantage
24. What is the risk of being a first mover?: competitors can learn from your mistakes and enter
with improved products
25. What are the 4 types of innovation?: 1. Architectural
2. Disruptive
3. Incremental
4. Radical
26. this innovation leverages existing technology into new markets; reconfig-
ures existing tech in new ways to serve new markets: architectural
27. leverages new technologies in existing markets; uses new tech to enter and
eventually dominate existing markets: disruptive
28. this innovation builds on an established knowledge base and usually results
from steady improvements: incremental
29. Why do incumbent firms focus on incremental innovation?: Due to economic incen-
tives, organizational inertia, and the constraints of the existing innovation ecosystem
, MAN4720 Final exam UCF
Study online at https://quizlet.com/_hq9zn3
30. this innovation draws on novel methods & materials and is designed to
target new markets with new technology; novel methods/materials creating
entirely new markets; often leads to creative destruction: radical
31. Sum of innovations in market, tech form:: - radical (new,new)
- incremental (old, old)
- architectural (new, old)
- disruptive (old, new)
32. Necessity is the...: mother of innovation
33. Invention is the discovery of new ideas, but innovation is the: commercialization of
invention
34. the process of taking economic risks to innovate, resulting in new products,
processes or organizations: Entrepreneurship
35. The use of strategic management principles in entrepreneurship to gain a
competitive advantage: strategic entrepreneurship
36. What is the difference between an entrepreneur and a strategic one?: Entre-
preneurs focus on creating new ventures; strategic ones apply strategy to innovation for long-term advantage
37. Entrepreneurship focused on achieving social goals, measured by the
triple-bottom-line; economic, social, and environmental impact: Social Entrepreneur-
ship
38. Legal protection for inventions; can attract competitors and signal where
innovation is headed: patents
39. a network of suppliers, buyers, and complements that support and influence
a firm's innovation: innovation ecosystem
40. What does Schumpeter's "Gale of creative destruction" refer to?: The process
through which innovation causes old industries or products to be replaced by new ones, fueling economic progress
41. a phenomenon where a product or service becomes more valuable as more
people use it: network effect
42. The resistance to change due to existing processes, structures, and routines
in established firms: organizational inertia
43. What is fair market appropriate salary in the context of social entrepre-
neurship?: paying team members reasonable wages in line with their skills and market norms while prioritizing
mission-driven goals
Study online at https://quizlet.com/_hq9zn3
1. Innovation and Entrepreneurship: Session 6
2. ---- is defined as the goal directed actions a firm takes to gain and sustain a
competitive advantage: Strategy
3. A --- occurs when a firm is able to generate ABOVE average results: Competitive
advantage
4. What are the 4 stages of the industry life cycle?: 1. Introduction phase
2. growth stage
3. Shakeout stage
4. maturity stage
5. decline stage
5. Companies may use skimming pricing if competition is limited or penetration
pricing in a competitive market; low sales, high costs, focus on building aware-
ness: Introduction stage
6. the company will set initial prices high, and only those consumers who feel
especially excited about the product will buy it: skimming
7. a payment the manufacturer makes to persuade the retailer to stock the
item: slotting fee; like a deposit on an apartment
8. Who are the buyers in the introduction stage?: innovators and early adopters
9. Rapid customer adoption and high advertising costs; dominant design
emerges: Growth Stage
10. Who are the buyers in the growth stage?: early majority
11. intense competition forces weaker firms out; industry consolidates; price
competition increases: shakeout stage
12. Sales growth slows and eventually plateaus; cost leadership or differentia-
tion strategies dominate; industry consolidation: Maturity Stage
13. Who are the buyers in the maturity stage?: late majority
14. this is a key aspect of success in the maturity stage, particularly for those
companies seeking to differentiate their products as their source of competi-
tive advantage: branding
15. a product design that becomes the accepted market standard, reducing
variation and focusing competition on price and efficiency: dominant design
, MAN4720 Final exam UCF
Study online at https://quizlet.com/_hq9zn3
16. Sales significantly drop due to various factors; reduced innovation and ad-
vertising; can exit, harvest, maintain, or consolidate; high pricing power with
less competition: Decline stage
17. Who are the buyers in the decline stage?: laggards
18. products with a very short life cycle: fads
19. completely leaving the industry; liquidating assets and ceasing operations-
: exit strategy
20. making very minimal investments in the SBU with the goal of milking whatev-
er remaining profits or cash flow can be extracted before eventual divestment
(Dog in BCF matrix): Harvest strategy
21. focus on protecting the existing market share and leveraging its profitability;
invest enough cash to hold position; low-growth market but high market share;
stable earnings and cash flow; Cash Cow in BCG matrix: Maintain
22. directly linked to Mergers and Acquisitions; can be a way to reduce compet-
itive intensity, reduce costs, and increase differentiation; aim to gain market
share in a shrinking market: consolidate
23. Competitive benefits gained by being the first to innovate, like experience
curves, supplier lock-in, and switching costs: first-mover advantage
24. What is the risk of being a first mover?: competitors can learn from your mistakes and enter
with improved products
25. What are the 4 types of innovation?: 1. Architectural
2. Disruptive
3. Incremental
4. Radical
26. this innovation leverages existing technology into new markets; reconfig-
ures existing tech in new ways to serve new markets: architectural
27. leverages new technologies in existing markets; uses new tech to enter and
eventually dominate existing markets: disruptive
28. this innovation builds on an established knowledge base and usually results
from steady improvements: incremental
29. Why do incumbent firms focus on incremental innovation?: Due to economic incen-
tives, organizational inertia, and the constraints of the existing innovation ecosystem
, MAN4720 Final exam UCF
Study online at https://quizlet.com/_hq9zn3
30. this innovation draws on novel methods & materials and is designed to
target new markets with new technology; novel methods/materials creating
entirely new markets; often leads to creative destruction: radical
31. Sum of innovations in market, tech form:: - radical (new,new)
- incremental (old, old)
- architectural (new, old)
- disruptive (old, new)
32. Necessity is the...: mother of innovation
33. Invention is the discovery of new ideas, but innovation is the: commercialization of
invention
34. the process of taking economic risks to innovate, resulting in new products,
processes or organizations: Entrepreneurship
35. The use of strategic management principles in entrepreneurship to gain a
competitive advantage: strategic entrepreneurship
36. What is the difference between an entrepreneur and a strategic one?: Entre-
preneurs focus on creating new ventures; strategic ones apply strategy to innovation for long-term advantage
37. Entrepreneurship focused on achieving social goals, measured by the
triple-bottom-line; economic, social, and environmental impact: Social Entrepreneur-
ship
38. Legal protection for inventions; can attract competitors and signal where
innovation is headed: patents
39. a network of suppliers, buyers, and complements that support and influence
a firm's innovation: innovation ecosystem
40. What does Schumpeter's "Gale of creative destruction" refer to?: The process
through which innovation causes old industries or products to be replaced by new ones, fueling economic progress
41. a phenomenon where a product or service becomes more valuable as more
people use it: network effect
42. The resistance to change due to existing processes, structures, and routines
in established firms: organizational inertia
43. What is fair market appropriate salary in the context of social entrepre-
neurship?: paying team members reasonable wages in line with their skills and market norms while prioritizing
mission-driven goals
