Chapter 1
Introduction
TRUE/FALSE QUESTIONS
1. The reduction of costs and the improvement in quality of products made in lower
wage countries have led to enhanced markets for firms in developed countries
(False; Medium; p. 3; AACSB: Ethical understanding and reasoning ability; LO1)
2. On average, product life cycles have been shortened because more companies are
offering differentiated products.
(True; Medium; p. 3; AACSB: LO1)
3. Microsoft’s Xbox 360 provides an excellent example of a company’s efforts to
develop an innovative new product as part of its overall technology strategy.
(True; Medium; p. 2; AACSB: Reflective thinking skills; LO2)
4. Technology can be effectively defined as the use of zeros and ones in digital form on
computers.
(False; Medium; p. 4; LO1)
5. Invention is the process of using knowledge to solve a problem.
(False; Medium; p. 5; LO1)
6. Technological innovation is the use of knowledge to apply tools, materials,
processes and techniques to come up with new solutions to problems.
, (True; Medium; p. 6; LO2)
7. Michael Dell’s approach to selling personal computers assembled from standard
components direct to customers is an example of technology innovation.
(False; Medium; p. 6; AACSB: Reflective thinking skills; LO2)
8. Technology innovation almost always comes from the knowledge of computer
science.
(False; Medium; p. 6; AACSB: Reflective thinking skills; LO2)
9. Economists have shown that much of the growth in gross domestic product comes
from the use of technology to make more productive use of labor and capital.
(True; Medium; p. 7; AACSB: Reflective thinking skills; LO2)
10. The impact from almost all technology innovation is positive.
(False; Medium; p. 7; AACSB: Reflective thinking skills; LO2)
11. Process development is the anticipation and resolution of problems that arise in the
production of a product
(True; Medium; p. 8; LO3)
,12. A technology strategy is the approach that a firm takes to obtain and use technology
to achieve a new competitive advantage, or to defend an existing technology-
oriented competitive advantage against erosion.
(True; Medium; p. 9; LO3)
13. Technology strategy is different form overall business strategy in that business
strategy involves the use of intellectual property management to capture financial
returns to a much greater degree than technology.
(False; Medium; p. 9; LO4)
14. Technology strategy is different form overall business strategy in that technology
strategy has to deal much more with issues of uncertainty than general business
strategy.
(True; Medium; p. 9; LO4)
15. The study of technology innovation is largely centered in general strategy
principles.
(False; Medium; p. 10; LO4)
16. In the U.S., services now account for more than half the total gross domestic product.
(True; Medium; p. 11; LO5)
17. Technology strategy is basically the same for both large established firms and small
new companies.
(False; Medium; p. 11; LO5)
18. Research and development intensity is much higher for small firms than for large
ones.
(True; Medium; p. 12; AACSB: Reflective thinking skills; LO5)
, 19. Developing an effective technology strategy includes making decisions about how to
organize a company for innovation.
(True; Medium; p. 15; LO2)
MULTIPLE CHOICE
20. Technology innovation has become a crucial part of most firms strategy because:
a. technology innovation generates competitive advantage
b. most firms produce only a few related products
c. companies have been taking longer to introduce new products
d. sales and profits from new products has been decreasing
(a; Medium; p. 3 LO1)
21. Which of the following would not be considered one of the reasons why companies
have recently increased their level of technology innovation?
a. to produce a greater variety of new products
b. to introduce new products to market faster
c. increase profit from established products
d. generate competitive advantage
(c; Medium; p. 3; LO1)
Introduction
TRUE/FALSE QUESTIONS
1. The reduction of costs and the improvement in quality of products made in lower
wage countries have led to enhanced markets for firms in developed countries
(False; Medium; p. 3; AACSB: Ethical understanding and reasoning ability; LO1)
2. On average, product life cycles have been shortened because more companies are
offering differentiated products.
(True; Medium; p. 3; AACSB: LO1)
3. Microsoft’s Xbox 360 provides an excellent example of a company’s efforts to
develop an innovative new product as part of its overall technology strategy.
(True; Medium; p. 2; AACSB: Reflective thinking skills; LO2)
4. Technology can be effectively defined as the use of zeros and ones in digital form on
computers.
(False; Medium; p. 4; LO1)
5. Invention is the process of using knowledge to solve a problem.
(False; Medium; p. 5; LO1)
6. Technological innovation is the use of knowledge to apply tools, materials,
processes and techniques to come up with new solutions to problems.
, (True; Medium; p. 6; LO2)
7. Michael Dell’s approach to selling personal computers assembled from standard
components direct to customers is an example of technology innovation.
(False; Medium; p. 6; AACSB: Reflective thinking skills; LO2)
8. Technology innovation almost always comes from the knowledge of computer
science.
(False; Medium; p. 6; AACSB: Reflective thinking skills; LO2)
9. Economists have shown that much of the growth in gross domestic product comes
from the use of technology to make more productive use of labor and capital.
(True; Medium; p. 7; AACSB: Reflective thinking skills; LO2)
10. The impact from almost all technology innovation is positive.
(False; Medium; p. 7; AACSB: Reflective thinking skills; LO2)
11. Process development is the anticipation and resolution of problems that arise in the
production of a product
(True; Medium; p. 8; LO3)
,12. A technology strategy is the approach that a firm takes to obtain and use technology
to achieve a new competitive advantage, or to defend an existing technology-
oriented competitive advantage against erosion.
(True; Medium; p. 9; LO3)
13. Technology strategy is different form overall business strategy in that business
strategy involves the use of intellectual property management to capture financial
returns to a much greater degree than technology.
(False; Medium; p. 9; LO4)
14. Technology strategy is different form overall business strategy in that technology
strategy has to deal much more with issues of uncertainty than general business
strategy.
(True; Medium; p. 9; LO4)
15. The study of technology innovation is largely centered in general strategy
principles.
(False; Medium; p. 10; LO4)
16. In the U.S., services now account for more than half the total gross domestic product.
(True; Medium; p. 11; LO5)
17. Technology strategy is basically the same for both large established firms and small
new companies.
(False; Medium; p. 11; LO5)
18. Research and development intensity is much higher for small firms than for large
ones.
(True; Medium; p. 12; AACSB: Reflective thinking skills; LO5)
, 19. Developing an effective technology strategy includes making decisions about how to
organize a company for innovation.
(True; Medium; p. 15; LO2)
MULTIPLE CHOICE
20. Technology innovation has become a crucial part of most firms strategy because:
a. technology innovation generates competitive advantage
b. most firms produce only a few related products
c. companies have been taking longer to introduce new products
d. sales and profits from new products has been decreasing
(a; Medium; p. 3 LO1)
21. Which of the following would not be considered one of the reasons why companies
have recently increased their level of technology innovation?
a. to produce a greater variety of new products
b. to introduce new products to market faster
c. increase profit from established products
d. generate competitive advantage
(c; Medium; p. 3; LO1)
