Strategic Innovation: Building and Sustaining Innovative Organizations Quiz Answers

Strategic Innovation: Building and Sustaining Innovative Organizations Week 01 Quiz Answers

Orientation Quiz

Q1. This course includes ___ modules.

• 2
• 3
• 4
• 5

Q2. I am required to purchase a textbook for this course.

• True
• False

Q3. Which of the following activities is NOT required in each module? (Mark all that apply)

• Watch the lecture videos
• Complete the practice quizzes
• Complete the module quizzes
• Complete the peer-reviewed assignments

Q4. The following tool(s) will help me use the discussion forums:

• Upvoting posts
• Reporting inappropriate posts
• Following a thread
• All of the other options are correct.

Q5. If I have a problem in the course I should:

• Email the instructor
• Call the instructor
• Drop the class
• Report it to the Learner Help Center (if the problem is technical) or to the Content Issues forum (if the problem is an error in the course materials)

Quiz : Finding Your Innovation Sweet Spot: Crafting a Great Value Proposition

Q1. Netflix became successful as a company by __________.

• Tweaking an existing video rental business model in order to create a new offering
• Recombining an existing product (DVD) with mail order service to create value
• Acquiring companies to build core competencies
• None of the above

Q2. The example of Arvind Eye Hospitals in India demonstrates the use of recombinant innovation to:

• Reduce price at the cost of operational performance
• Achieve operational excellence in order to reduce costs and thereby pass on the savings to patients
• Increase price and improve performance
• None of the above

Q3. Which of the following is NOT true of the prospect theory?

• Any alternative to the left of the reference point is referred to as a loss.
• People evaluate alternatives on the basis of absolute outcomes.
• Any alternative to the right of the reference point is referred to as a gain.
• Reference points serve as points of comparison for decision making.

Q4. Which of the following is NOT an implication of prospect theory?

• Psychological value associated with loss in more intense than that of gain.
• People’s perception is dependant on how a situation is framed.
• Losses loom larger than gains.
• People take greater risks when there is more to gain.

Q5. Kodak developed a digital camera in the mid-1970s but did not pursue its commercialization. Why?

• Digital cameras would not provide the high margins that their consumables provided.
• They were not confident of the product’s functionality.
• They were wary of cannibalizing Kodak’s photographic film business.
• They were moving the company’s focus away from photography.

Q6. What are the implications of the endowment effect with regards a new product offering?

A. Consumers implicitly overvalue existing products that they use over new products.

B. Companies overvalue their new products due to the developer’s curse.

C. To a consumer, switching to a new product with better features than a comparative old product is viewed as a gain.

• A & B only
• A & C only
• A, B, & C
• None of the above

Q7. Focusing on customers’ needs and benefits is the best long-term strategy for a company because:

• Customers’ needs keep evolving with time.
• Customers’ wants remain constant with time.
• Customers’ needs are consistent over time.
• None of the above

Q8. Which of the following is an example of a company that demonstrates excellence in operational excellence?

• Southwest Airlines
• Intel
• P&G
• Apple

Q9. Why did VHS survive in the long run in comparison to Betamax?

• VHS offered better product features than Betamax.
• Betamax had to file for bankruptcy.
• VHS was able to better align consumers and content providers.
• None of the above

Q10. Innovative market opportunities can be recognized by understanding

• The homogeneity of needs of the consumer
• The heterogeneity of needs of the consumer
• Targeting the mass market to fulfill needs of all consumers
• All of the above

Q11. Black and Decker could not succeed in the trade segment because of inferior quality of products for this segment

• True
• False

Strategic Innovation: Building and Sustaining Innovative Organizations Week 02 Quiz Answers

Quiz : There Is More to a Product Than Just Function: Assessing Industry Trends

Q1. The tipping point or takeoff for a product can be based on ________ and ____________.

• Number of firms, number of products
• Product, service attributes
• Sales, number of firms
• Innovators, early adopters

Q2. Which of the following innovations had the fastest diffusion in the industry over the past century, with an almost linear product life cycle curve?

• Car
• Microwave
• Internet
• Refrigerator

Q3. Which of the following is NOT an example of a product in the mature phase of its life cycle?

• Typewriters
• Color television
• Microwave
• Personal computers

Q4. The sales takeoff point of a new product signifies:

• The transition of the product from the innovators to being adopted by “early adopters”
• The transition of the product from being in the niche market to the mass market
• The transition of the product from “early majority” to being adopted by “late majority”
• None of the above

Q5. When a new product innovation is launched, until there is firm takeoff, the industry faces:

• High demand uncertainty
• High technology uncertainty
• High volume of sales
• All of the above

Q6. When a new product innovation is launched, until there is sales takeoff, the industry faces:

• High demand uncertainty
• High technology uncertainty
• High volume of sales
• All of the above

Q7. Sales takeoff for a product innovation is generally observed to occur prior to firm takeoff in the market.

• True
• False

Q8. What is the problem with overshooting?

• It enhances costs for the company that passes on these costs to the consumers.
• It creates “feature bloat” for products.
• Marginal benefits from the “over-shot” product may not be worth the increased costs for customers.
• All of the above.

Q9. If the performance trajectories of two or more competing products overshoot the customer demand trajectory, it can lead to ____________ if one of the firms decides to compete on price.

• Commoditization
• Coordination
• Complementarity
• Cooperation

Q10. IBM’s success in the PC industry disproves all of the following except:

• The first- or the second-mover advantage in the market is crucial to success.
• Collaboration across firms is not advantageous in the nascent stage of the industry to keep the market expanding.
• Competition in the nascent stages of the industry is not conducive to survival of the industry.
• Multiple firms together form a viable industry for a new product innovation.

Strategic Innovation: Building and Sustaining Innovative Organizations Week 03 Quiz Answers

Quiz : Developing Winning Products: Sometimes Less Is More

Q1. The “beachhead” segment can be referred to as the:

• Mainstream segment for which the product is cheap and reliable
• Mass market segment for which the product is a perfect fit
• Early adopter segment that is willing to experiment with new product features
• Niche segment for which the product is a perfect fit

Q2. The sales takeoff in a product life cycle curve happens when the __________ segment accepts the product.

• Innovator
• Early majority
• Early adopter
• Laggard

Q3. To successfully develop a new-to-the-world innovation that can reach the mass market, the ideal process to be followed is in what order?

A. Generate volumes and harness cost advantages in order to develop reliable and affordable products for the mass market

B. Develop features of a less-than-advanced product that can undergo alpha and/or beta testing

C. Focus on process innovation for enhancing efficiencies and develop incremental innovations in order to prevent commoditization

D. Achieve the perfect product-market fit with a nearly perfect product for a specific niche segment

• C, D, B, A
• C, B, D, A
• B, A, D, C
• B, D, A, C

Q4. A well-defined customer journey map not only helps in understanding the customer’s needs but also helps to:

• Provide unique value proposition to the customer
• Ensure the right product mix for the target customer
• Identify opportunities for cross-selling complementary products
• All of the above

Q5. Which of the following is not true for Wikipedia’s product configuration map?

• Reduction of sales expenses
• Perfection in product features & attributes
• Real-time updation of content
• Division of labor for content

Q6. Balancing the demand-side and supply-side factors helps a company to:

• Understand customers’ gain and pain points with reference to the product
• Develop better understanding of the supplier ecosystem
• Perform detailed competitor analysis
• All of the above

Q7. Converting a three-blade shaving cartridge to a five-blade shaving cartridge is an example of ______ in a product configuration map.

• Add
• Subtract
• Balance
• Divide

Q8. The modular razor with detachable razor blades utilizes which of the following advantages of modularity?

• Product variety
• Differential rates of consumption for varying components
• Differential rates of obsolescence for different components
• All of the above

Q9. Which of the following is NOT a component of a product configuration map?

• Divide
• Add
• Imbalance
• Subtract

Q10. Wikipedia utilized the customer journey map for its competitor Encyclopedia Britannica by identifying the pain points for its customers in order to innovate and build a new product.

• True
• False

Strategic Innovation: Building and Sustaining Innovative Organizations Week 04 Quiz Answers

Quiz : Executing Innovative Business Models: The Whole Is Bigger Than the Sum of Its Parts

Q1. Apple iPod differentiated itself from competition in the following ways except:

• Provided a product that was superior in design
• Alleviated a customer’s pain points by providing a complementary product, i.e., iTunes for a seamless experience
• Provided an inexpensive product that focused on costs
• None of the above

Q2. As an established small business owner in the gourmet bakery industry, Frank is interested in increasing his revenues. He has developed a long-term strategy to expand his business through innovative growth opportunities. Which of the following steps should he begin with?

• Raise prices for the existing products in his store.
• Reduce his operating costs by changing suppliers.
• Re-evaluate his business tactics with respect to his competition.
• Analyze the business model to identify new and alternative opportunities.

Q3. In IKEA’s example of value innovation, which of the following is not true?

• It produced stylish products.
• It offered greater variety of products at affordable prices.
• It focused on small volumes and hence targeted niche markets.
• It offered unprecedented convenience to the customers.

Q4. YouTube’s relationship with its customers can be categorized as

• High touch engagement
• Social community
• Co-creation
• Low touch engagement

Q5. Which of the following is NOT a component of a business model?

• Resources
• Revenues and costs
• Basis of competition
• Customer value proposition

Q6. The value chain is a set of activities that an organization carries out by utilizing resources in order to transform inputs into outputs by processes, thereby creating value for its consumers.

• True
• False

Q7. Which of the following is NOT a type of resource?

• Intangible
• Physical
• Human talent
• Processes

Q8. Selling of high-margin Apple iPods with the combination of music on iTunes is an example of

• The razor-blade model
• The reverse razor-blade model
• Fractional product
• None of the above

Q9. The most important step in the design phase of the business model innovation is:

• Develop a pilot test
• Assess product-market fit
• Obtain market feedback to incorporate into the model
• All of the above

Q10. Amazon’s Kindle Unlimited program is an example of the following stage of the business model development:

• Question
• Resources
• Basis of competition
• Revenues and costs

Q11. Airbnb is an example of a company that innovated their business model by:

• Offering a subscription-based model
• Becoming asset-heavy in an industry that was primarily asset-light
• Becoming service-oriented instead of product-oriented
• Becoming asset-light in an industry that was primarily asset-heavy

Q12. Newspapers are a bundle of the following business models:

• Content and images
• News and advertisements
• Advertisements and coupons
• None of the above

Conclusion:

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