Week 3 Knowledge Check Study Guide
Concepts

Mastery

Areas in which people are

Score: 20 / 21

Questions

100%

1

2

3

100%

4

5

6

Strategic planning

100%

7

8

9

Levels of planning

67%

10

11

12

The creative process

100%

13

14

15

100%

16

17

18

100%

19

20

21

creative
Ingredients for enhancing innovation at work and approaches to innovation

Obstacles to corporate innovation Barriers to effective decision making

Concept: Areas in which people are creative
Mastery

100%

Questions

1

2

3

1.
Ramona, a member of the innovation team at Buzzer Co., a beer manufacturing company, suggests that the company use the spent grain generated through the process of beer manufacturing to create commercial products. Ramona explains how the wasted grain can be broken down through the process of fermentation to generate biogas and compounds that can be used to make personal care products and clothes. In the context of William Miller's research, into which area is Ramona channeling her creativity?

A.

Organization creativity

B.

Relationship creativity

C.

Event creativity

D.

Material creativity

Correct:
The Correct Answer is: D.
In the context of William Miller's research, Ramona is channeling her creativity into the area of material creativity. Material creativity entails discovering new uses and inventing materials for services, products, or processes.
2.
In the context of William Miller's research, identify an accurate statement about the different areas in which people are creative.

A.

Material creativity entails coming up with a new approach to structuring systems in an organization.

B.

Inner creativity entails finding new uses for materials for products or services.

C.

Coming up with completely new and innovative ideas for products or services make people creative in a relationship context. D.

People who exhibit spontaneous creativity tend to come up with witty responses in meetings and quick, easy ways of settling disputes.

Correct:
The Correct Answer is: D.
People who exhibit spontaneous creativity tend to come up with witty responses in meetings and quick, easy ways of settling disputes. People who are spontaneously creative are likely to act in a spur-of-the-moment fashion.
3.
Which area of creativity do people explore when they change the way they perceive certain things in their own minds?

A.

Inner creativity

B.

Event creativity

C.

Organizational creativity

D.

Material creativity

Correct:
The Correct Answer is: A.
People who exhibit inner creativity are likely to change the way they perceive certain things in their own minds. They are also open to trying out new approaches to doing things and changing their inner selves.

Concept: Ingredients for enhancing innovation at work and approaches to innovation
Mastery

100%

Questions

4

5

6

4.
Which of the following statements is true of closed innovation?

A.

The closed innovation approach involves using resources within the company to generate new ideas and business breakthroughs. B.

Companies using the closed innovation approach often collaborate with external parties to find new and innovative business ideas.

C.

The activities of companies using the closed innovation approach are more transparent to the public eye.

D.

Unlike the companies that use the open innovation approach, companies that use the closed innovation approach cannot protect their intellectual property well.

Correct:
The Correct Answer is: A.
The closed innovation approach involves using resources within the company to generate new ideas and business breakthroughs. Closed innovation remains the dominant paradigm in industries today.
5.
Which approach to innovation lays emphasis on the importance of gaining inputs to innovation from external sources?

A.

Open-source innovation

B.

Closed innovation

C.

In-house innovation

D.

Closed-market innovation

Correct:
The Correct Answer is: A.
Open-source innovation lays emphasis on the importance of gaining inputs from external sources. Companies adopting this type of approach recognize the importance of collaborating with parties outside their boundaries to generate new business ideas.
6.
Altech Corp. hosts an internal competition among its employees to come up with innovative ideas for the packaging of a new product. The company announces that it will monetarily reward the person who comes up with the best design. In the context of the ingredients for enhancing innovation at work, which of the following practices has Altech incorporated that will drive its employees to become more innovative?

A.

Incorporating entrepreneurship development techniques

B.

Providing innovation mentorship

C.

Giving incentives to innovative employees

D.

Instituting deliberate practice

Correct:
The Correct Answer is: C.
In the context of the ingredients for enhancing innovation at work, the given scenario exemplifies the practice of giving incentives to innovative employees. Other techniques of enhancing innovation at work include providing innovation mentorship and instituting deliberate practice.

Concept: Strategic planning
Mastery

100%

Questions

7

8

9

7.
The management of Danla Inc., a breakfast cereal manufacturing company, decides to diversify its business by manufacturing instant noodles. The company puts together a taskforce with representatives from different departments to gather feedback from the

employees about the change that is to be implemented and identify the problems that may interfere with the effective implementation of this new business strategy. In a month's time, the taskforce compiles and interprets the feedback gathered from the employees and presents it to the top management. In the context of strategic planning, which of the following steps of the strategy implementation process has been exemplified in this scenario? A.

Assessing organization capabilities

B.

Defining strategic tasks

C.

Developing an agenda for implementation

D.

Creating an implementation plan

Correct:
The Correct Answer is: A.
The step of the strategy implementation process that has been exemplified in the scenario involves assessing the company's capabilities. This step is immediately followed by the step involving the creation of an agenda for implementation.
8.
Which step of the strategic planning process immediately follows the step of strategy implementation? A.

Putting in place a mission, a vision, and goals for the organization B.

Analyzing the threats and opportunities associated with the external environment

C.

Analyzing the weaknesses and strengths of the important areas of function within the organization

D.

Using a strategic control system to monitor and evaluate the organization's progress

Correct:
The Correct Answer is: D.
The step of the strategic planning process that immediately follows the step of implementing the strategy is using a strategic control system to monitor and evaluate the organization's progress. This step involves evaluating the existing strategy and taking corrective measures.
9.
What is the process of assessing an organization's performance by comparing it with that of its competitors called?

A.

Delegating

B.

Resourcing

C.

Benchmarking

D.

Mind mapping

Correct:
The Correct Answer is: C.
The process of assessing an organization's performance by comparing it with that of its competitors is called benchmarking. This technique, however, only helps a company perform as well as its competitors.

Concept: Levels of planning
Mastery

67%

Questions

10

11

12

10.
At which level of planning does an organization define its long-term objectives?

A.

At the functional level

B.

At the strategic level

C.

At the tactical level

D.

At the operational level

Correct:
The Correct Answer is: B.
At the strategic level of planning, an organization defines its long-term objectives.
Goals involve shorter periods of time and become more specific as they progress from the strategic level to the tactical level.
11.
In the context of the levels of planning, identify an accurate statement about operational plans. A.

Operational plans tend to be highly detailed and are more specific. B.

The time horizon of operational plans often varies from three to seven years.

C.

Once operational plans have been established, managers use them as the foundation for other levels of planning.

D.

Operational plans are defined by the top-level management of an organization.

Incorrect:
The Correct Answer is: A.
Operational plans are highly detailed and tend to be more specific. Such plans are usually identified by frontline managers.
12.

Mario leads a team of market analysts at Volity Consulting Inc. Whenever his team is assigned a new project, Mario is required to plan and prepare a daily routine for every member in his team. In the context of the levels of planning, what can be inferred about
Mario's position in the organization?

A.

Mario is a top-level manager.

B.

Mario is a middle-level manager.

C.

Mario is a frontline manager.

D.

Mario is a senior partner.

Correct:
The Correct Answer is: C.
Based on the information provided in this scenario, it can be inferred that Mario is a frontline manager. The time horizon of the plans and goals identified by Mario is less than a year.

Concept: The creative process
Mastery

100%

Questions

13

14

15

13.
Which phase of the creative process immediately follows the phase of knowledge accumulation, which involves the extensive gathering of information related to an issue under study?

A.

The idea experience

B.

The incubation process

C.

Evaluation

D.

Implementation

Correct:
The Correct Answer is: B.
The phase of the creative process that immediately follows the phase of knowledge accumulation is the incubation process. This process is most likely to occur when an individual is not engaged in an activity related to the issue or subject under study.
14.
Which of the following statements is true of the different phases of the creative process?

A.

It is only during the implementation phase that creative individuals try to make sense of the extensive amounts of information gathered over the preparation phase.

B.

The incubation process only occurs while people are engaged in activities that are related to the subject or issue under study.

C.

Creative individuals can engage in the incubation process even when they are sleeping.

D.

It is during the knowledge accumulation phase that the idea or solution that an individual is seeking is discovered.

Correct:
The Correct Answer is: C.
Creative individuals can engage in the incubation process even when they are sleeping. Sitting back and relaxing, exercising, and meditating are some useful steps to induce incubation.
15.
Patricia, the chief marketing officer of Xaphire Inc., notices that there has been a considerable drop in the company's market share over the last quarter and that Xaphire has lost a large portion of its sales to competition. Patricia realizes that only an improved and innovative marketing strategy can help restore the organization's lost profits. Before trying to formulate such a strategy, she engages in extensive market research by

analyzing primary and secondary data and market trends and engaging in discussions with fellow marketers. She also ensures that her team gathers tremendous amounts of information relating to the topic under study. In which stage of the creative process are
Patricia and her team members most likely engaged?

A.

The idea experience

B.

The incubation process

C.

Knowledge accumulation

D.

Evaluation and implementation

Correct:
The Correct Answer is: C.
Patricia and her team members are engaged in the knowledge accumulation phase of the creative process. Sometimes, this phase involves additional investigation in both related and unrelated fields.

Concept: Obstacles to corporate innovation
Mastery

100%

Questions

16

17

18

16.
In the context of the obstacles to corporate innovation, what is the term used to refer to the fear of anything new or unfamiliar?

A.

Turfism

B.

Neophobia

C.

Neophilism

D.

Sales phobia

Correct:
The Correct Answer is: B.
Neophobia is the term used to describe the fear of anything new or unfamiliar. This fear tends to hinder an employee's ability to come up with new and innovative ideas.
17.
Which of the following is most likely a reason for the failure of corporate innovative activity in companies today?

A.

No company today has reward systems in place for ideas and cost-saving proposals presented through structured suggestion programs.

B.

Companies allow their employees to spend most of their time on coming up with new business ideas rather than on focusing on their normal course of duties.

C.

The sponsors and allies of corporate innovators tend to expose innovators to unnecessary organizational bureaucratic interference.

D.

Departments in companies are less concerned about developing new ideas that will benefit the company than they are about protecting their "domain."

Correct:
The Correct Answer is: D.
Departments in companies are less concerned about developing new ideas that will benefit the company than they are about protecting their "domain." A successful innovator should be open to working beyond the traditional boundaries of his or her job.
18.
Alex, a project manager at a software company, is about to start a challenging new project. Before beginning, he asks Liana, his colleague, if he can use a few of her best team members to help him work on the project. Alex, however, intends on returning them

as soon as the project is complete. In the context of resource acquisition, which of the following strategies for co-optation has been illustrated in this scenario?

A.

Begging

B.

Scavenging

C.

Amplifying

D.

Borrowing

Correct:
The Correct Answer is: D.
This scenario illustrates the strategy of borrowing. Relying on such a strategy to secure resources can help a venture manager avoid securing resources through the process of economic exchange, which is far more expensive.

Concept: Barriers to effective decision making
Mastery

100%

Questions

19

20

21

19.
Select an accurate reason as to why it is hard to be automatically rational while making a decision. A.

Managers tend to define problems in too much detail.

B.

Managers tend to view plans and goals with skepticism.

C.

Managers tend to maximize when making choices.

D.

Managers tend to have biases that interfere with objective rationality. Correct:
The Correct Answer is: D.
Managers tend to have biases that interfere with objective rationality. They tend to be influenced by the illusion of control.
20.
In the context of the barriers to effective decision making, which among the following illustrates the practice of avoidance of short-term costs that leads to negative consequences in the future?

A.

Lee, a market researcher, skips a thorough analysis of potential threats to the firm to submit the report on time.

B.

Zara, a fitness trainer, does not let her clients miss any of the exercise routines even though most of them are professional athletes.

C.

Mark educates his son in one of the nation's best colleges even though the tuition and living expenses are very high.

D.

Johanna stays in her room and prepares for her finals while her friends party at a new club in the city.

Correct:
The Correct Answer is: A.
In this scenario, skipping a thorough analysis of potential threats to the firm to submit the report on time illustrates the practice of avoiding short-term costs, which leads to negative consequences in the future.
21.
In the context of time pressures, what term refers to recent information that is collected without any delay?

A.

Batch-processing data

B.

Revised information

C.

Real-time information

D.

Historical data

Correct:
The Correct Answer is: C.
The term that refers to recent information that is collected without any delay is real-time information. This, however, does not compromise on the quality or the speed of decision making.