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Name: Class: Date:
Chapter 07: Innovation and Change

1. In contrast to change forces, resistance forces support the status quo, that is, the existing conditions in an organization.
a. True
b. False
ANSWER: True
2. Nearly all technology cycles follow a typical S-curve pattern of innovation.

a. True
b. False
ANSWER: True
3. Bankruptcy or dissolution is likely to occur in the crisis stage unless a company completely reorganizes the way it does
business.
a. True
b. False
ANSWER: True
4. Work group encouragement occurs when group members have diverse experience, education, and backgrounds and the
group fosters mutual openness to ideas; positive, constructive challenge to ideas; and shared commitment to ideas.
a. True
b. False
ANSWER: True
5. Organizational development takes a short-range approach to change, and it assumes that top-management support is
necessary for the change to succeed.
a. True
b. False
ANSWER: False
6. In the context of managing resistance to change, an error in the refreezing stage is not systematically planning for and
creating short-term wins.
a. True
b. False
ANSWER: False
7. Dominant technological designs can also emerge through independent standards bodies.
a. True
b. False
ANSWER: True
8. The compression approach to innovation assumes that innovation is occurring within a highly uncertain environment
and that the key to fast product innovation is to use intuition, flexible options, and hands-on experience to reduce
uncertainty and accelerate learning and understanding.
a. True
b. False
ANSWER: False
Copyright Cengage Learning. Powered by Cognero. Page 1

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9. More companies are likely to go out of business during an economic recession or slowdown than in a time of
discontinuous change and changing standards.
a. True
b. False
ANSWER: False
10. In terms of change tools and techniques, the General Electric workout is a special kind of results-driven change.
a. True
b. False
ANSWER: True
11. Waltert, a cell phone manufacturer, has been the market leader in the country of Besmagia ever since cell phones were
introduced in the country. None of the other domestic or foreign cell phone brands have been able to match the high
quality and low price that Waltert's products offer. In the context of innovation streams, Waltert most likely has a _____.
a. fixed working capital
b. distinctive competence
c. fiduciary responsibility
d. matrix organization structure
ANSWER: b
12. Glaler, a large-scale cell phone manufacturer, has a robot in each of its outlets that studies a customer's usage history
and suggests a model of Glaler's cell phone that is most likely to suit the customer. This scenario best illustrates _____.
a. organizational innovation
b. corporate entropy
c. reverse engineering
d. agile development
ANSWER: a
13. Mozbert is a company that manufactures and supplies wireless headsets. It started an online advertising campaign that
explains the advantages and ease of using wireless headsets over wired headsets. As a mitigation plan, Beloway, a wired
headset manufacturer, launched new offers and discounts to retain its customers. In the context of innovation streams,
which of the following concepts does this scenario best illustrate?
a. Design competition
b. Technological lockout
c. Technological substitution
d. Design iteration
ANSWER: a
14. Wenayton, a company that manufactures and supplies ceramic kitchenware, uses broken and rejected pieces of
ceramics to design its office interiors. It also uses novel ways to utilize solar energy for interior lighting. This scenario
best illustrates _____.

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ANSWER: a
15. In the context of resistance to change, _____ is the use of formal power and authority to force others to change.
a. refreezing
b. unfreezing
c. coercion
d. negotiation
ANSWER: c
16. The chefs at Lorifusion, a continental restaurant, are given the freedom to try out new ways of presenting their dishes.
This helps them avoid monotony and encourages them to innovate. The employees believe that this challenges their skills
and keeps them interested and motivated. In the context of managing sources of innovation, which of the following
concepts does this scenario best illustrate?
a. A creative work environment
b. Generational change
c. Technological lockout
d. A compression approach to innovation
ANSWER: a
17. In the context of organizational decline, which of the following is true of the crisis stage?
a. Key managers fail to recognize the internal or external changes that will harm their organizations.
b. Management recognizes the need to change but still takes no action.
c. Companies lack the resources to fully change how they run their businesses.
d. Management announces belt-tightening plans designed to cut costs and restore profits.
ANSWER: c
18. __________is a cycle of repetition in which a company tests a prototype of a new product or service, improves on the
design, and then builds and tests the improved product or service prototype.
a. Unrelated diversification
b. Design iteration
c. Discontinuous change
d. Technological lockout
ANSWER: b
19. Which of the following best defines an incremental change?

a. It is the competition between old and new technologies to establish a new technological standard or dominant
design.
b. It is the purchase of new technologies to replace older ones.
c. It is a phase in which companies innovate by lowering the cost and improving the functioning and
performance of a dominant design.
d. It is a phase of a technology cycle characterized by technological substitution and design competition.
ANSWER: c
20. The standalone scanners and printers at Indentom, a law firm, have been replaced with all-in-one printers that perform
the functions of printing, scanning, and photocopying. In the context of innovation streams, which of the following
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a. Technological singularity
d. Technological determinism
ANSWER: c
21. __________is a change that occurs when incremental improvements are made to a dominant technological design
such that the improved version of the technology is fully backward compatible with the older version.
a. Results-driven change
c. Discontinuous change
d. Incremental change
ANSWER: b
22. Which of the following best defines the General Electric workout?
a. It is based on incremental improvements to a dominant technological design such that the improved
technology is fully backward compatible with the older technology.
b. It is an approach to innovation that assumes that incremental innovation can be planned using a series of steps
and that compressing those steps can speed innovation.
c. It is a three-day meeting in which managers and employees from different levels and parts of an organization
quickly generate and act on solutions to specific business problems.
d. It is a philosophy and collection of planned change interventions designed to improve an organization's long-
term health and performance.
ANSWER: c
23. Which of the following statements is true of resistance to change?

a. Employees are more likely to resist change if they have to participate in planning and implementing the
change process.
b. Employees are more likely to resist change if they are asked to focus on short-term wins, rather than long-term
goals.
c. It decreases when change efforts receive significant managerial support.
d. It is used to manage innovation in more certain environments during periods of incremental change.
ANSWER: c
24. In the context of organizational development, the purpose of large-system interventions is to:
a. assess how a group functions and help it work more effectively to accomplish its goals.
b. increase interpersonal effectiveness by helping people to become aware of their attitudes.
c. change the character and performance of an organization, business unit, or department.
d. help a work group establish short- and long-term goals.
ANSWER: c
25. _____ are workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged.
a. Creative work environments
b. Design iterations
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c. Functional groups
d. Core change coalitions
ANSWER: a
26. Kappawn, a cell phone manufacturer, observes that its customers have started purchasing only touchscreen cell
phones. It hence stops manufacturing traditional cell phones and switches to the manufacture of touchscreen cell phones.
In the context of innovation streams, which of the following concepts does this scenario best illustrate?
ANSWER: c
27. __________is the phase of an innovation stream in which a scientific advance or unique combination of existing
technologies creates a significant breakthrough in performance or function.
a. Technological discontinuity
b. Technological substitution
d. Technological singularity
ANSWER: a
28. In the context of managing resistance to change, which of the following is an error that managers make in the change
phase?
a. They overlook victory after the first large-scale success.
b. They do not create a powerful enough coalition.
c. They do not establish a great enough sense of urgency.
d. They undercommunicate the vision by a factor of ten.
ANSWER: d
29. The manual computer entry system for calculating employee attendance at Kartufly, an apparel retail store, has been
replaced with a biometric system. In the context of innovation streams, which of the following concepts does this scenario
best illustrate?
ANSWER: c
30. Arthumt's carpool service application gained popularity among its customers within a few months of its release.
However, the customers eventually discovered that the application caused the phone battery to heat up to abnormal levels.
This made them switch to a newer and efficient application. In the context of innovation streams, which of the following
b. The compression approach to innovation
c. The experiential approach to innovation
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ANSWER: d
31. Which of the following best defines technological discontinuity?

a. It is the phase of a technology cycle in which companies innovate by lowering costs and improving the
functioning and performance of a dominant technological design.
b. It is the inability of a company to competitively sell its products because it relies on old technology or a
nondominant design.
c. It is the phase of an innovation stream in which a scientific advance or unique combination of existing
technologies creates a significant breakthrough in performance or function.
d. It is an approach to innovation that assumes a highly uncertain environment and uses intuition and hands-on
experience to reduce uncertainty and accelerate learning and understanding.
ANSWER: c
32. Which of the following is true of the S-curve pattern of innovation of a product?
a. A flat slope indicates that increased effort brings only small improvements in technological performance.
b. A flat slope indicates that small amounts of effort will result in significant increases in technological
performance.
c. A steep slope at the midpoint of the curve indicates that further efforts to develop this particular technology
will result in only small increases in performance.
d. A steep slope near the endpoint of the curve indicates that the performance limits of that particular technology
are being reached.
ANSWER: a
33. When a few domestic manufacturers of solar water heaters gained popularity in the country Likambea, solar water
heaters replaced the old models of water heaters and became the accepted market standard for heaters. In the context of
innovation streams, this scenario best illustrates _____.
a. a dominant design
b. the compression approach to innovation
c. the experiential approach to innovation
d. a design iteration
ANSWER: a
34. When Pocdio, an application development software, was released, it was widely accepted by customers. However, a
few months after its release, users began experiencing a lag in its user interface. Customers eventually stopped using this
software and started to use newer and better alternatives. In the context of innovation streams, which of the following
ANSWER: d
35. Cinebravos, a television manufacturer in Ashtemston, observes that its customers have stopped purchasing its CRT
television sets and that they have begun purchasing its LED and LCD television sets. It hence stops manufacturing CRT
television sets entirely. In the context of innovation streams, which of the following concepts does this scenario best
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illustrate?
a. Technological substitution
c. Technological singularity
ANSWER: a
36. In the context of organizational development, the purpose of small-group interventions is to:
d. help people acquire new skills and knowledge.
ANSWER: a
37. Technological substitution occurs when:

a. customers establish a new technological standard or dominant design.
b. customers purchase new products to replace older technologies.
c. a new dominant design prevents a company from competitively selling its products.
d. a new technological design or process becomes the accepted market standard.
ANSWER: b
38. __________is a philosophy and collection of planned change interventions designed to improve an organization's
long-term health and performance.
a. Supervisory encouragement
b. Organizational development
c. Organizational structure
d. Functional departmentalization
ANSWER: b
39. Cleanreef, a chain of stores that provides dry-cleaning services, has been the market leader in the country of
Gregoramas for the past 20 years. None of its competitors have been able to match Cleanreef's technology, logistics, and
pricing. In the context of innovation streams, Cleanreef most likely has a _____.
a. fixed working capital
b. distinctive competence
c. fiduciary responsibility
d. matrix organization structure
ANSWER: b
40. Russeng, a travel agency, had a huge setback in its business as customers started to book travel tickets online and
make their own itineraries using the information available on the Internet. It failed to take the necessary corrective
measures to address this issue, and this led to an overall decrease in the company's performance. Which of the following
a. Organizational decline
b. Design iteration
c. Technological discontinuity
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d. Generational change
ANSWER: a
41. Sun Technologies changed the operating system of their phones and insisted that all its current users switch to the new
one. They started listing out the benefits of the new system in the update log in an attempt to make its users believe that
the change was for the better. In the process of managing organizational change, Sun Technologies is in
the__________phase.
a. refreezing
b. coercion
c. unfreezing
d. innovation
ANSWER: c
42. Which of the following statements is true of technological lockout?

a. It occurs when customers purchase new technologies to replace older technologies.
b. It occurs when a new dominant design prevents a company from competitively selling its products.
c. It occurs when companies innovate by improving the functioning and performance of the dominant design.
d. It occurs when new technologies compete to establish a new technological standard.
ANSWER: b
43. In the__________of organizational decline, as organizational performance problems become more visible,
management may recognize the need to change but still take no action.
a. blinded stage
b. inaction stage
c. faulty action stage
d. crisis stage
ANSWER: b
44. During design competition, _____.

a. the patterns of innovation over time create sustainable competitive advantage
b. an older technology usually improves significantly in response to the competitive threat from the new
technologies
c. a scientific advance of existing technologies creates a significant breakthrough in performance or function
d. a new dominant design prevents a company from competitively selling its products or makes it difficult to do
so
ANSWER: b
45. When Dalemend Inc. started manufacturing gaming consoles, it had difficulties with performance growth. Over time,
the consoles began performing well, and the company's growth rate became rapid. However, after this period of rapid
growth, the performance growth rate began to drop again. In the context of technology cycles, this scenario best illustrates
_____.
a. a compression approach to innovation
b. resistance to change
c. technological lockout
d. the S-curve pattern of innovation
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ANSWER: d
46. In the context of organizational decline, which of the following is true of the dissolution stage?
a. Cutbacks and layoffs will have reduced the level of talent among employees.
b. Key managers fail to recognize the threats due to an inability to understand their significance.
c. The managers may be waiting to see if the problems will correct themselves.
d. The company is dissolved through bankruptcy proceedings.
ANSWER: d
47. When Nathanil Inc., a network service provider, introduced 4G data plans, it observed that most of its customers
completely stopped using 2G and 3G data plans and switched to 4G. In the context of innovation streams, which of the
following concepts does this scenario best illustrate?
ANSWER: c
48. The employees of Carlofen, a cell phone manufacturer, raised a concern to their management about their poor pay and
excess workload. However, the management failed to address their issue, so a majority of them resigned at once. As a
result, the company's sales began to fall and its overall performance began to deteriorate. Which of the following concepts
does this scenario best illustrate?
a. Organizational decline
b. Design iteration
c. Technological discontinuity
d. Generational change
ANSWER: a
49. Arthills is a retail store that sells paintings. The entire store of Arthills is energy efficient and uses a glass ceiling to
naturally light the room during the day and sensors to automatically turn the internal lighting system on during the night.
This scenario best illustrates _____.
ANSWER: a
50. Large investments in old technology and incompatiblility of new and old technologies with each other are the main
reasons companies and consumers are reluctant to switch to a different technology during a(n)__________.
a. innovation stream
b. design competition
c. design iteration
d. change intervention
ANSWER: b

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51. In the context of organizational development, the purpose of person-focused interventions is to:
d. help a work group establish short- and long-term goals.
ANSWER: b
52. When LED televisions started becoming popular in the city of Jazetta, all the electronic stores in the city stopped
selling CRT televisions. Following this, LED televisions dominated the market and became the accepted market standard
for televisions in the city. In the context of innovation streams, this scenario best illustrates _____.
ANSWER: a
53. Pagent, a company that manufactures watches, introduces a new range of watches with a safety application
programmed into it. This application is designed especially for women and helps them alert people in case of danger. In
the context of innovation streams, which of the following concepts does this scenario best illustrate?
a. A technological discontinuity
d. A technological barrier
ANSWER: a
54. The employees of Antrobe, a leading daily newspaper, believe that their managers encourage them to voice their ideas
and opinions. They also believe that they are given challenging tasks that interest and motivate them. In the context of
managing sources of innovation, which of the following concepts does this scenario best illustrate?
ANSWER: a
55. Carolint, a watch manufacturer, has installed custom smart lighting and ventilation systems in employees' workspaces.
These enable employees to set their preferences, and the system automatically senses their presence and modifies the
temperature and light settings. This scenario best illustrates _____.
a. corporate entropy
b. organizational innovation
ANSWER: b
56. _____ is the process used to get workers and managers to change their behaviors and work practices.
a. Unfreezing
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b. Change intervention
c. Refreezing
d. Change remediation
ANSWER: b
57. When cell phones were introduced, most customers stopped using landline telephones. Eventually, cell phones almost
entirely replaced landline telephones and became the accepted market standard for phones. In the context of innovation
streams, this scenario best illustrates _____.
ANSWER: a
58. Ebdino, a company that manufactures tires, observes that the sales of its traditional tires have declined drastically and
that the sales of tubeless tires have increased. Ebdino hence decides to stop manufacturing traditional tires and replace
them with tubeless tires. In the context of innovation streams, which of the following concepts does this scenario best
illustrate?
a. Technological substitution
ANSWER: a
59. Which of the following is an error that managers make in the refreezing phase?
a. They do not create a powerful enough coalition.
b. They undercommunicate the vision by a factor of ten.
c. They declare victory too soon.
d. They lack a vision for change.
ANSWER: c
60. _____ are forces that produce differences in the form, quality, or condition of an organization over time.
a. Change forces
b. Resistance forces
c. Effort forces
d. Defiance forces
ANSWER: a
61. Irolt, a company that supplies fast-moving consumer durables, recruits only graduates from top business schools as
management trainees in its marketing department. The company ensures that its employees are always given challenging
tasks that interest them, and the employees believe that the management welcomes innovative ideas and thoughts. In the
context of managing sources of innovation, which of the following concepts does this scenario best illustrate?
Name: Class: Date:

ANSWER: a
62. _____ is a change based on incremental improvements to a dominant technological design such that the improved
a. Results-driven change
b. Discontinuous change
c. Generational change
d. Incremental change
ANSWER: c
63. Which of the following is a difference between experiential and compression approaches to innovation?
a. Experiential approach is used in fast-growing environments, whereas compression approach is used in highly
uncertain environments.
b. Experiential approach is used in periods of incremental change, whereas compression approach is used in
periods of discontinuous change.
c. Experiential approach is used to establish a new dominant design, whereas compression approach is used to
improve the function of an existing dominant design.
d. Experiential approach is used to shorten the time of individual steps in the innovation process, whereas
compression approach is used to test the improved product or service prototype.
ANSWER: c
64. Keniey, a company that manufactures and supplies home appliances, launches a fully automatic advanced food
processor that performs the functions of slicing, chopping, grinding, shredding, grating, pureeing, kneading, mixing, and
blending. The product is priced lower than semi-automatic food processors sold by other brands. In the context of
innovation streams, which of the following concepts does this scenario best illustrate?
a. Change intervention
b. Unfreezing
c. Incremental change
d. Refreezing
ANSWER: c
65. In the context of managing resistance to change,__________is supporting and reinforcing the new changes so that
they stick.
a. unfreezing
b. refreezing
c. resistance force
d. change force
ANSWER: b
66. Maxsigma, a software company, released a text processing application. This application was user-friendly and widely
accepted by its customers. However, a few months later, users found that it was susceptible to virus, and they switched to
newer and more efficient text processing applications. In the context of innovation streams, which of the following
Name: Class: Date:

ANSWER: d
67. The customers of Curtofan, a gaming console manufacturer, stopped purchasing its traditional hand-held gaming
device after it introduced a real-time, high-end gaming device. In the context of innovation streams, which of the
ANSWER: c
68. When USB flash drives started becoming popular, customers stopped purchasing CDs. As a result, USB flash drives
almost completely replaced CDs in the market and became the accepted market standard for storage devices. In the
context of innovation streams, this scenario best illustrates _____.
ANSWER: a
69. In an attempt to eliminate spectacles from the market, Lensamt, a company that manufactures and supplies contact
lenses, launched an advertising campaign to popularize its products. To counter this and stay in the market, the spectacle
manufacturers introduced new offers and discounts on spectacles. In the context of innovation streams, which of the
d. Design iteration
ANSWER: a
70. Seaneng, a company that has been manufacturing printers for computers for the past 20 years, initially specialized in
dot matrix printers. However, dot matrix printers were inefficient in color printing. To overcome this disadvantage, it
developed and started selling inkjet and laser printers. In the context of innovation streams, which of the following
ANSWER: a
71. In the context of organizational decline, which of the following is true of the blinded stage?
a. Key managers fail to recognize the internal or external changes that will harm their organizations.
b. Management recognizes the need to change but still takes no action.

Name: Class: Date:
c. Companies plan to cut costs and restore profits rather than recognizing the need for fundamental changes.
d. Companies lack the resources to fully change how they run their businesses.
ANSWER: a
72. Zavacomp, a company that manufactures sports accessories, earlier manufactured and sold fitness shoes and activity
tracking watches as separate units. It observed that customers frequently bought these two accessories together and hence
created a new integrated product with a tracking device embedded in its sports shoes. In the context of innovation streams,
which of the following concepts does this scenario best illustrate?
ANSWER: a
73. Bluewood, a paper manufacturing company, has redecorated the interiors of its headquarters using waste materials
from tree barks that get rejected after extracting wood pulp. This scenario best illustrates _____.
ANSWER: a
74. Brandack is a leading manufacturer of storage devices. During a span of every five years, it produces one high-
performance storage device. At the beginning of the five-year period, the device's performance improvement is slow.
However, the improvement becomes rapid over time, and toward the end of the five-year period, it gradually begins to
drop. In the context of technology cycles, this scenario best illustrates _____.
ANSWER: d
75. When Rebopy, a network service provider, started providing 4G data services, it attracted a large number of customers
because of the high speed and cost effectiveness of Rebopy's services. However, after few months of using the service, the
customers found that it had poor connectivity and hence switched to more efficient data services. In the context of
innovation streams, which of the following concepts does this scenario best illustrate?
ANSWER: d
76. _____ is a new technological design or process that becomes the accepted market standard.
a. Dominant design
b. Design competition

Name: Class: Date:
ANSWER: a
77. In the context of managing resistance to change, which of the following is an error that managers make during the
unfreezing stage?
a. They do not establish a great enough sense of urgency.
b. They lack a vision for change.
c. They undercommunicate the vision by a factor of ten.
d. They do not systematically plan for short-term wins.
ANSWER: a
78. Which of the following best defines results-driven change?

a. It is the change created quickly by focusing on the measurement and improvement of outcomes.
b. It is the change based on incremental improvements to a dominant technological design such that the improved
c. It is the phase of a technology cycle characterized by technological substitution and design competition.
d. It is the phase of a technology cycle in which companies innovate by lowering costs and improving the
functioning and performance of the dominant technological design.
ANSWER: a
79. Musccanic Inc., a company that manufactures microprocessors, updates the technology used in its microprocessors
once every four years. A study conducted by the R&D team of the company revealed that the microprocessors' growth
rate is initially slow, then becomes rapid, and eventually becomes slow again toward the end of the four-year cycle. In the
context of technology cycles, this scenario best illustrates _____.
ANSWER: d
80. Solylin, a company that manufactures electronic goods, has introduced solar chargers that are compatible with all
brands and models of cell phones in the market. These chargers help save costs because they work on solar power, and
they are sold at a lower price than traditional chargers. In the context of innovation streams, which of the following does
this scenario best illustrate?
b. Unfreezing
d. Refreezing
ANSWER: c
81. Lemsey Corp. specializes in creating computer software. It has been working on an antivirus software that doesn't
need regular updates and has the most comprehensive virus database in the market. This software is being tested for
design, function, and reliability. In the context of the experiential approach to innovation, the antivirus is a _____.
a. product prototype

Name: Class: Date:
b. low-feasibility product
c. customized product
d. dominant design
ANSWER: a
82. To attract the right customers, Wedroom, a wedding planning firm, has its office redecorated in various wedding
themes. It also has smart sensors in its workspaces that sense temperature and brightness and adjust to the environment
accordingly. This scenario best illustrates _____.
a. reverse engineering
c. organizational innovation
ANSWER: c
83. __________are patterns of innovation over time that can create sustainable competitive advantage.
a. Change interventions
b. Technological lockouts
c. Discontinuous changes
d. Innovation streams
ANSWER: d
84. In the context of managing resistance to change,__________is the process used to get workers and managers to
change their behaviors and work practices.
a. unfreezing
b. refreezing
c. change intervention
d. change remediation
ANSWER: c
85. Curtab, a company that manufactures digital watches, implements marketing strategies to attempt to eliminate analog
watches from the market and thereby increase the market share of the company. To counter this, analog watch
manufacturers introduce new advertising campaigns. In the context of innovation streams, which of the following
d. Design iteration
ANSWER: a
86. Whilph, an automobile manufacturer, launched its new compact car. The car provides the highest mileage and has the
lowest price in its market segment. In the context of innovation streams, which of the following concepts does this
scenario best illustrate?
b. Unfreezing
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d. Refreezing
ANSWER: c
87. Celvokay, a company that manufactures cell phones and cell phone accessories, has launched a new cell phone that
comes along with a new model of earphones with the noise-cancellation feature. These earphones are designed such that
they can also be used with the older models of Celvokay's phones. Which of the following concepts does this scenario best
illustrate?
a. Unfreezing
c. Refreezing
ANSWER: b
88. When Sewsavor developed a food delivery application, a majority of people started using and recommending the
application. However, they eventually found that the application uses more RAM than usual, and they switched to more
efficient food delivery applications. In the context of innovation streams, which of the following concepts does this
scenario best illustrate?
ANSWER: d
89. _____ is a psychological state of effortlessness, in which you become completely absorbed in what you are doing and
time seems to pass quickly.
a. The Id
b. The superego
c. Flow
d. Refreezing
ANSWER: c
90. The products manufactured by Answeronn, a manufacturer of answering machines, initially showed a slow progress
rate, but the performance of the products eventually began improving rapidly. However, the progress rate began to drop
again. All these changes took place during a three-year period. In the context of technology cycles, this scenario best
illustrates _____.
c. the S-curve pattern of innovation
d. technological lockout
ANSWER: c
91. As touchscreen laptops gained popularity in the country of Desapotam, the import of older models of laptops was
stopped. Subsequently, touchscreen laptops became the accepted market standard for laptops in the country. In the context
of innovation streams, this scenario best illustrates _____.
Name: Class: Date:

ANSWER: a
92. Which of the following statements is true of the experiential approach to innovation?
a. It aims to continue improving an existing technology as rapidly as possible.
b. It is used to manage innovation in more certain environments during periods of incremental change.
c. It assumes that incremental innovation can be planned using a series of steps.
d. It uses intuition and hands-on experience to reduce uncertainty and accelerate learning.
ANSWER: d
93. To compete with other organizations in the industry and to boost employee morale, Mangosanta, a fashion designing
company, installs touchscreen sketching boards on the walls of meeting rooms. These sketches are automatically mailed
to all the participants once the meeting is completed. This scenario best illustrates _____.
ANSWER: a
94. Organizational encouragement of creativity occurs when:

a. management encourages risk taking and new ideas.
b. supervisors provide clear goals.
c. work group members foster mutual openness to ideas.
d. open interaction with subordinates is encouraged.
ANSWER: a
95. Elotrik, a company that manufactures and supplies epilators, implements a marketing strategy to popularize its
epilators and replace razors in the market. To counter this and stay in the market, the razor manufacturers introduce new
offers and discounts. In the context of innovation streams, which of the following concepts does this scenario best
illustrate?
d. Design iteration
ANSWER: a
96. Gamapro, a company that manufactures gaming devices, has launched a new gaming console along with a new set of
games for the new version of the console. However, the games designed for the previous versions of the consoles can also
be used on the new console because of backward compatibility. Which of the following concepts does this scenario best
illustrate?
a. Unfreezing
c. Refreezing
Name: Class: Date:
ANSWER: b
97. Boardburgh, a cordless telephone manufacturer, launched advertising campaigns to market its products and eliminate
wired telephone sets from the market. To counter this, Telepram Inc., a wired telephone manufacturer, has launched an
advertising campaign to detail the disadvantages of cordless telephones. In the context of innovation streams, which of the
d. Design iteration
ANSWER: a
98. Kathym, a company that sells women's handbags, gives all its junior designers the opportunity to come up with their
own original designs. The managers believe that providing them with challenging tasks keeps the designers interested and
helps them innovate. In the context of managing sources of innovation, which of the following concepts does this scenario
best illustrate?
ANSWER: a
99. The product developers at Travimext, a company that manufactures computer parts, have specialized tablet screens at
their desks that display 3-dimensional representations of prototypes they create along with all the specifications of the
prototypes. This scenario best illustrates _____.
ANSWER: a
100. The compression approach to innovation management is used in:

a. highly uncertain environments.
b. periods of incremental change.
c. periods of discontinuous change.
d. fast-growing environments.
ANSWER: b

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Chapter 07: Innovation and Change

2. Nearly all technology cycles follow a typical S-curve pattern of innovation.

Copyright Cengage Learning. Powered by Cognero. Page 1

Chapter 07: Innovation and Change

Copyright Cengage Learning. Powered by Cognero. Page 2

Chapter 07: Innovation and Change

19. Which of the following best defines an incremental change?

Chapter 07: Innovation and Change

23. Which of the following statements is true of resistance to change?

Chapter 07: Innovation and Change

Chapter 07: Innovation and Change

31. Which of the following best defines technological discontinuity?

Chapter 07: Innovation and Change

37. Technological substitution occurs when:

Chapter 07: Innovation and Change

42. Which of the following statements is true of technological lockout?

44. During design competition, _____.

Chapter 07: Innovation and Change

Copyright Cengage Learning. Powered by Cognero. Page 9

Chapter 07: Innovation and Change

Chapter 07: Innovation and Change

Chapter 07: Innovation and Change

d. A compression approach to innovation

Chapter 07: Innovation and Change

c. The experiential approach to innovation

Copyright Cengage Learning. Powered by Cognero. Page 13

Chapter 07: Innovation and Change

Copyright Cengage Learning. Powered by Cognero. Page 14

Chapter 07: Innovation and Change

78. Which of the following best defines results-driven change?

Copyright Cengage Learning. Powered by Cognero. Page 15

Chapter 07: Innovation and Change

Chapter 07: Innovation and Change

Chapter 07: Innovation and Change

c. the experiential approach to innovation

94. Organizational encouragement of creativity occurs when:

Chapter 07: Innovation and Change

100. The compression approach to innovation management is used in:

Copyright Cengage Learning. Powered by Cognero. Page 19

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