Devry NETW583 midterm exam 2016

Question 1. 1. (TCO A) While rapid innovation often benefits society, it often makes success for companies _______. (Points : 4)

more complicated as they strive to keep up with the latest innovations.

profitable if they do not innovate themselves, but rather use innovations of others to their advantage.

easier since innovation always makes things simpler.

less likely because customers will not be willing to pay as much for goods and services.

Question 2. 2. (TCO A) Which of the following is most clearly an example of process innovation? (Points : 4)

a pizza chain is able to develop a method of baking pizza that enables pizzas to be baked in 10 minutes rather than the standard 20 minutes during the late 1980s

a potato chip company introduces a line of its potato chips with a new type of seasoning.

a major motion picture studio releases a new 3D movie.

a tire manufacturer develops a tire that re-inflates itself instantly when it is punctured

Question 3. 3. (TCO B) When both Nintendo and Sega claimed to have over 60 percent market share of the video game console market, both were trying to influence _____________. (Points : 4)

users perceptions and expectations about the installed base.

perceived technical utility.

pre-order demand.

technology bias.

Question 4. 4. (TCO B) When you buy a product on eBay you can pay for it using an online payment system called PayPal (which accepts credit cards or electronic funds transfers). The payment system is heavily secured using encryption technology. PayPal is offering simplicity, convenience and __________ utility levers according to the Kim and Mauborgne model. (Points : 4)

cost

fun and image

environmental friendliness

risk

Question 5. 5. (TCO C) Honda’s core competencies lie in manufacturing and innovation which it has used to create its world renowned engines. These engines are also used in Honda’s portable generators, lawn mowers, motorcycles, automobiles, and several other products. According to the comparison made by Prahalad and Hamel, Honda’s portable generators are ________. (Points : 4)

the fruits.

the trunk of the tree.

the branches.

the roots.

Question 6. 6. (TCO D) Discounted cash flow estimates are only accurate if (Points : 4)

calculations are made correctly.

the original estimates of profits are accurate.

management has instituted sufficient financial control systems.

they are made in a timely fashion.

1. (TCO A) What are the some of the negative impacts of technological innovation on society? How would you answer critics of improved technology who cite these negative impacts? (Points : 30)

Question 2. 2. (TCO A) Explain how computer-aided design and flexible manufacturing help create small niches in the market place. Provide and example of how a market with different niches might be served. (Points : 30)

Question 3. 3. (TCO B) Why is it that after a product has been on the market for a while and is selling very well, the price may go down? (Points : 29)

Question 4. 4. (TCO C) Even though many aerospace manufacturing firms are very profitable, there are very few upcoming firms. Explain the reason using at least one force from Porter’s Model. (Points : 29)

Question 5. 5. (TCO B) Explain what factors affect the technology trajectory and chance of success of a new technology besides its quality and technical advantage. (Points : 29)

Question 6. 6. (TCO D) Johnston Products has gathered data to evaluate the attractiveness of a potential project. It knows the cash flows expected under different scenarios. It has conducted a focus group that ranks various product attributes, and it has the ranking of various marketing techniques provided by a consulting company. What method should Johnston use to evaluate this project? Why is this method the best one to use? (Points : 29)