ASP NETW383 – Strategic Management Of Tech

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Question 1. 1. (TCO A) Among member countries of the Organization for Economic Cooperation and Development, the majority of R&D funds come from ______. (Points : 4)

government        industry        universities        private nonprofit organizations

Question 2. 2. (TCO A) After Yahoo! was introduced as an easy way to search the World Wide Web, it was followed by other search engines, some of which had improved or faster ways to search. This is an example of how one innovative idea can (Points : 4)

ruin the business of someone else.        slow down obsolescence.        stimulate more innovations and create a new market.        never be truly copied.

Question 3. 3. (TCO B) There are network externalities in the internet access market but neither DSL nor Cable Modems has a clear dominance in technology for broadband Internet connections. Which of the following is most likely to be true? (Points : 4)

there will be great pressure to select a single dominant design by the market.        both platforms might successfully coexist.        customers may face a large degree of ambivalence about the choice among them.        all of the above.

Question 4. 4. (TCO B) Most graphic artists, newspapers, magazines, and other professionals who work intensely with pictures use Photoshop.  To be perceived as a better value, a new graphics program would have to offer more value than Photoshop’s _________________ (Points : 4)

complementary goods        installed base        complementary goods and installed base        technological ability, complementary goods, and installed base

Question 5. 5. (TCO C) Which of the following would describe a primary activity according to Michael Porter’s model of the value chain? (Points : 4)

The human resource activities of Wal-Mart        A Wal-Mart advertising campaign        The accounting function at Wal-Mart        The development of new scanning equipment at Wal-Mart

Question 6. 6. (TCO D) If a firm has the option of investing in R&D, the cost of implementing the technology is the _______. (Points : 4)

exercise price        nature of the option        benefit of exercising the option        the value of the option

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Question 1. 1. (TCO A) Explain how the globalization of markets affects the importance of innovation. (Points : 30)


Question 2. 2. (TCO A) If you were in charge of a Research and Development (R&D) department for a large pharmaceutical company, would you encourage your researchers to do basic research or applied research? Provide the rationale for your answer. (Points : 30)


Question 3. 3. (TCO B) Why is the installed base of users of a technology that requires complementary goods so important to a company’s future success? (Points : 29)


Question 4. 4. (TCO B) Explain why it is that if a company’s technology is adopted by users ahead of other technologies, it might be at a tremendous advantage and competitors will have trouble catching up. (Points : 29)


Question 5. 5. (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 6. 6. (TCO D) Explain why the cash flows (profits minus costs) for a project that are expected to continue for 20 years need to be discounted. Why not simply use the amounts as they are? Would it make a difference if 80% of the profits came in during the first 5 years? (Points : 29)


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