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Question
Explain how the real options method using stock options. Are there any drawbacks to this method?
Answer
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Related questions
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BioMark Lifesystems wanted to enhance the adoption of its new diagnostic substances by medical laboratories. It made an agreement with the dominant producer of syringes and test tubes to have its diagnostic substances sold to laboratories in a package along with the syringes and tubes. This arrangement is known as:
a. sponsorship.
b. product modularity.
c. a bundling relationship.
d. disintermediation.
Q:
Super Alarm Inc. makes customized door security systems which it sells under its own brand name. These security systems require installation, extensive customer education, and regular services. _____ will be the most appropriate selling method for Super Alarm Inc.
a. Employing a direct sales force
b. Creating an online ordering system
c. Using a mail-order catalog system
d. Using a cannibalization strategy
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The Rocketingbusiness.com Web site offers large volumes of business research information for free. If the user is interested in more comprehensive information and business consultation, the site offers these services for a premium fee. This is typically an example of _____ pricing model.
a. penetration
b. market skimming
c. survival
d. freemium
Q:
Viral marketing is based on the fact that people are more receptive to, or have greater faith in, information that comes through personal contacts.
Q:
In crafting an advertising message, firms must focus more on making the advertisements entertaining and memorable rather than on providing a significant quantity of informative content.
Q:
Bundling products together can offer firms the advantage of switching costs.
Q:
If a firm willingly cannibalizes its existing products with more advanced products, the firm can make it very easy for other firms to achieve a technological lead large enough to prove persuasive to customers.
Q:
Firms should always be racing to launch their products as early as possible.
Q:
John was serving in an autonomous team and was asked to sign a document honoring the project plan and pledging to work towards the goals specified. This document, which defined in detail the basic plan to achieve the goals of the project, is called a:
a. vision statement.
b. code of ethics.
c. mission statement.
d. contract book.
Q:
Which of the following is a disadvantage associated with autonomous teams?
a. The project manager of an autonomous team does not have any control over resources contributed from different functional departments.
b. The autonomous team structure does not accommodate cross-functional integration.
c. It is hard for autonomous teams to fold back into the parent organization when a project is completed.
d. Autonomous teams do not have a project manager because of which they face a lot of coordination problems.
Q:
Albert has put together a new product development team based on the functional team structure. Which of the following is most likely to be true about this team?
a. Team members will spend up to 50% of their time on team-related activities.
b. The team will typically require dedicated liaison personnel.
c. The team will have a high degree of cross-functional integration.
d. The team structure will be straightforward to implement.
Q:
The Vice President of Sunflower Computers is trying to decide on the composition of a new product development team. If he chooses members who are from different backgrounds, he can reap the benefits of:
a. a broader knowledge base.
b. lesser cross-fertilization of ideas.
c. homophily.
d. social loafing.
Q:
Which of the following is an advantage typically associated with cross-functional teams?
a. A cross-functional interface ensures that cross-fertilization of ideas is reduced.
b. Cross-functional teams allow a project to draw on a wider mix of information sources in the environment.
c. Cross-functional teams usually reduce coordination and communication costs.
d. Cross-functional teams are most efficient in eradicating the problems related to homophily.
Q:
In the forming of virtual teams, it is important to select personnel who have strong interpersonal skills.
Q:
Project managers of heavyweight teams are typically junior managers.
Q:
Managers of lightweight teams are normally junior or middle management employees.
Q:
Which of the following is true of innovators and early adopters?
a. They are unwilling to take risks and to pay high prices.
b. They may demand considerable customization and technical support.
c. They are more likely to respond to marketing that communicates the products completeness.
d. For this market segment, detailed technical information is not as important as using market channels with high reach and high credibility.
Q:
Homogeneous teams should possess more information, on average, than heterogeneous groups.
Q:
A lack of cross-functional communication can lead to a poor fit between product attributes and customer requirements.
Q:
Explain the value of the stage-gate process in new product development.
Q:
Jupiter Tech Inc. conducted a failure modes and effects analysis of a digital identification system that it had developed. The scores are as follows:
Severity = 4
Likelihood of occurrence = 2
Inability of controls to detect it = 3
What is the risk priority number of the digital identification system?
a. 24
b. 6
c. 2.67
d. 9
Q:
Alpha Cleaning Equipment Co. has started the actual design and development of a new floor buffing machine. It also has the details of manufacturing, marketing, and operations of the new product. According to the stage-gate process, what is the next stage of the project?
a. Launch the product by producing it commercially and selling it.
b. Verify and validate the new product, its marketing, and production.
c. Form a focus group to make sure the product meets user expectations.
d. Build a business case to justify the project.
Q:
Matrix Technologies Inc. has recently developed a new personal digital assistant (PDA). The marketing director of the firm says that the firm should not use a large sample of customers to test the market for its new PDA. Instead, it should focus on the inputs of _____, because they have the same general needs as the marketplace, but are likely to face them earlier than the bulk of the market.
a. focus groups
b. lead users
c. antichampions
d. laggard customers
Q:
Josh is the executive vice president of a bank. Recently the president of the bank asked Josh to use his influence to ensure that the online banking project was developed and implemented. Paul is being asked to be a:
a. devils advocate.
b. project champion.
c. entrepreneur.
d. mentor.
Q:
Trekker Inc. has developed a product with a very short product development cycle. Which of the following results can it typically expect?
a. Its sales will be slow as consumers will already be committed to other products.
b. It will be able to provide complementary goods to enhance the attractiveness of its product.
c. It will be unable to fully amortize the fixed costs of development before the product becomes obsolete.
d. It will not be able to upgrade its product.
Q:
A strategic stakeholder analysis emphasizes the stakeholder management issues the firm ought to attend to due to their ethical or moral implications.
Q:
If a firms product is undifferentiated, buyers will typically experience lesser bargaining power.
Q:
Ammunition can be considered a complement for firearms.
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Since SmartShoe Inc. is the market leader in the gliding shoe market, it enjoys an excellent reputation. It was the pioneer of this new market and currently holds 40 percent market share. Now SmartShoe wants to introduce a new range of orthopedic shoes. Discuss how its reputation might affect its acceptance among distributors and consumers.
Q:
There are more chances for a technology to be underdeveloped and its fit with customer needs unknown in the _____ market stage.
a. very early
b. late
c. maturity
d. mass