NETW583 Final Exam Week 8 2018 May

Question 1 5 pts

 

(TCO A) While rapid innovation often benefits society, it often makes success for companies

 

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

 

profitable as long as 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 5 pts

 

(TCO A) Which of the following products would be considered novel?

 

A detergent advertises that it can remove spots.

 

A company announces it has produced a recreational hovercraft for sale in toy stores.

 

A cell phone company announces that it now offers text messaging.

 

A college announces it will install artificial turf on its football field.

 

 

 

 

 

Question 3 5 pts

 

(TCO B) Absorptive capacity

 

is the result of effective strategic decisions by a firm's upper management.

 

increases a firm's future ability to assimilate information.

 

is an essential component of a learning organization.

 

is inversely proportionate to the size of the organization.

 

 

 

 

 

Question 4 5 pts

 

(TCO B) To make sure companies do not receive patents in countries where they do not intend on making the invention, some countries have a "working requirement" that

 

if the product does not work, it will not be granted a patent.

 

patents will only be granted to people who have been working in their country for at least one year.

 

the invention must be manufactured in the country where the patent was granted for a specified period of time.

 

the workers who manufacture the product must be from the country where the patent was granted.

 

 

 

 

 

Question 5 5 pts

 

(TCO C) Which of the following would describe a primary activity according to Michael Porter's model of the value chain?

 

The human resource activities of Walmart

 

A Walmart advertising campaign

 

The accounting function at Walmart

 

The development of new scanning equipment at Walmart

 

 

 

 

 

Question 6 5 pts

 

(TCO C) When Susie calculated the Net Present Value (NPV) of a project, the value came out to be -$2,000,0000. If this is the only information she has, Susie should recommend

 

the project be accepted.

 

the project be rejected.

 

the NPV be recalculated using a higher discount rate.

 

the NPV be recalculated using a lower discount rate.

 

 

 

 

 

Question 7 5 pts

 

(TCO C) For several years, Mountain Home University had used IBM computers. Recently, Apple Computers offered them a better machine at lower a price for one of the University's labs; however Mountain Home did not buy them because the _____ costs were too high.

 

transactional

 

opportunity

 

marginal

 

switching

 

 

 

 

 

Question 8 5 pts

 

(TCO D) Schumpeter said that large firms are likely to have

 

a more difficult time raising funds.

 

lower returns with lower sales volumes because fixed costs of R&D are high.

 

better-developed complementary activities that enable them to be more innovative.

 

poorer global reach due to bureaucracy.

 

 

 

 

 

Question 9 5 pts

 

(TCO E) Kate's supervisor called her to talk about her participation in a new product development team. The supervisor told Kate she had been engaging in social loafing. This meant that Kate

 

would work only when she was around other people.

 

would engage in too much socializing while working.

 

would not put much effort into the team's work because it was a large team and she figured her effort would not be needed or recognized.

 

would waste time on social networking sites.

 

 

 

 

 

Question 10 5 pts

 

(TCO E) Even though WordPerfect had a great product that fit customer requirements, it lost critical market share to Word for Windows as it was slow in coming out with its windows-based word processing program. This was probably due to the fact that its

 

expected profit margin was too high.

 

product development cycle time was too long.

 

program was too inferior to the Word program.

 

target market was heterogeneous in nature.

 

 

 

 

 

Question 11 5 pts

 

(TCO F) When Johnson Tanning Products finally developed a superior sun tan lotion, it decided that the best time to introduce it was in the spring. This would help take advantage of

 

seasonal effects.

 

tax refunds.

 

pent up demand.

 

the time value of money.

 

 

 

 

 

Question 12 5 pts

 

(TCO F) Which of the following is an advantage of making a new generation of technology backward compatible?

 

Consumers will have to buy completely new complements.

 

Consumer switching costs may be lower because they anticipate using their existing complements.

 

Competitors will be unable to imitate the company's strategy of making the technology backward compatible.

 

It is typically less expensive to make a new generation of technology backward compatible than to not make it backward compatible.

 

(TCO A) Explain why it is that sometimes the follower and not the first mover of a new technology is more successful in the market place.

 

 

 

 

 

 

 

 

 

 

 

 

 

Question 14 40 pts

 

(TCO B) Fred Stringer has come up with a new computer program to help online sellers manage online auctions at sites such as eBay and others. It is superior to just using a spreadsheet to track auctions. He would like for his program to become the dominant design, but he also wants to earn a profit from all his hard work. What can Fred do to meet both of these objectives?

 

 

 

 

 

 

 

 

 

 

 

 

 

Question 15 40 pts

 

(TCO C) Choose a major company and apply the five forces of Porter’s five force model. Assess the attractiveness of the industry that the firm is in and the firm’s opportunities and threats to its sustainability.

 

 

 

 

 

 

 

 

 

 

 

 

 

Question 16 40 pts

 

(TCO D) GERUSA is a company that uses Photodynamic Therapy to treat cancer and has major divisions in Germany, Russia, and the United States. The scientists in Russia develop cancer treatment methods. The Germans organize treatment clinics. The U.S. division gathers the financing and markets the treatment methods. What type of strategy is this, and what are the advantages and disadvantages of this type of strategy?

 

 

 

 

 

 

 

 

 

 

Question 17 40 pts

 

(TCO E) When John Vegas contacted Dr. House about developing a marketing plan for GERUSA, Dr. House learned the following facts. Mr. Vegas lived in Kentucky. Dr. House was in North Carolina. The marketing expert lived in New Mexico. The medical director lived in Germany, and the scientist who had come up with this cancer treatment lived in Russia. What type of team would work for this far-flung organization? What problems might they encounter?

 

 

 

 

 

 

 

 

 

Question 18 40 pts

 

(TCO F) Gray London is a retired race car driver who helped Dale Earnhardt, Jr. get his start. He is writing a book and making a video about the early days or Dale Earnhardt. He is trying to decide whether to market these items directly over the Internet or to use intermediaries. To make this decision, he needs to know the pros and cons of each route. Provide that information and make a recommendation to him.