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Give Responsibility for Disruptive Technologies to Organizations Whose Customers Need Them

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Questions

Question 1

What theory, described as 'somewhat controversial' in Chapter 5, posits that a company's customers and investors effectively control what it can and cannot do?

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Question 2

According to the resource dependence theory as presented in Chapter 5, what is the primary reason organizations will survive and prosper?

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Question 3

Chapter 5 presents two options for managers facing a disruptive technology that their current customers don't want. What is the second, and more successful, option?

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Question 4

What is the 'mechanism' that Chapter 5 identifies as the means through which customers control a firm's investments?

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Question 5

In the case of Quantum Corporation, what percentage of ownership did its executives retain in the spinoff venture, Plus Development Corporation?

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Question 6

What was the fate of Quantum Corporation's original 8-inch drive business by the late 1980s?

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Question 7

How did Control Data Corporation (CDC) attempt to enter the 5.25-inch disk drive market?

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Question 8

Despite being late to the market, what peak market share did Control Data Corporation's (CDC) 5.25-inch drives command in the higher-capacity segment?

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Question 9

Which company, among the early disk drive leaders, was the only one to successfully transition to a disruptive platform without using a spin-out strategy?

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Question 10

How did Micropolis's CEO, Stuart Mabon, ensure adequate resources for the disruptive 5.25-inch program?

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Question 11

In what year did Micropolis finally introduce a 3.5-inch product, illustrating the difficulty of keeping up with successive disruptive waves?

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Question 12

According to the analogy on page 125, what did the successful managers at Quantum and Control Data do regarding the 'forces of resource dependence'?

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Question 13

What was IBM's successful strategy for entering the disruptive personal computer market, as described in Chapter 5?

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Question 14

Why did Digital Equipment Corporation (DEC) fail in its four attempts between 1983 and 1995 to build a profitable business in personal computers?

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Question 15

What was the fundamental difference in the business model between discount retailing and traditional department stores, as explained in Chapter 5?

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Question 16

According to Table 5.1, 'Different Pathways to Profits', what were the typical gross margins for discount retailers like Kmart?

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Question 17

According to Table 5.1, how many times per year did discount retailers typically turn their inventory?

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Question 18

What was the difference in the calculated Return on Inventory Investment between department stores and discount retailers, as shown in Table 5.1?

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Question 19

Which two retailers, starting from similar positions as variety store chains, had dramatically different outcomes in their ventures into discount retailing?

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Question 20

What was Kresge's commitment strategy when launching its Kmart discount venture?

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Question 21

What was Woolworth's strategy for its Woolco discount venture in relation to its core variety store business?

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Question 22

What happened to Woolco's gross margins within a year of its consolidation with the F. W. Woolworth division?

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Question 23

According to Figure 5.3, what was the approximate gross margin for Woolco as a separate entity in 1962?

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Question 24

In what year did Woolworth's venture into discount retailing ultimately fail with the closure of its last Woolco store?

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Question 25

How is Hewlett-Packard's strategy of spinning out its ink-jet printer business described in the chapter?

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Question 26

In the mid-1980s, HP's laser jet was a discontinuous improvement over what previously dominant technology?

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Question 27

Which characteristics made the ink-jet printer a 'classic disruptive product' compared to the laser jet?

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Question 28

Where did HP create the autonomous organizational unit responsible for making the ink-jet printer a success?

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Question 29

What was the strategic behavior of HP's laser jet division in response to the ink-jet division, as shown in Figure 5.4?

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Question 30

What does the chapter predict would have happened if HP had NOT set up its ink-jet business as a separate organization?

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Question 31

According to resource dependence theory, why do managers in well-adapted companies often find their attempts to change direction rejected?

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Question 32

The chapter notes on page 119 that the patterns of innovation in a company will mirror the patterns in which what is allocated?

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Question 33

Who does the chapter state exerts a profound influence on the patterns of innovation through the resource allocation process?

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Question 34

What did Quantum do with Plus Development Corporation after its own 8-inch drive sales evaporated and Plus's 'Hardcard' revenues grew?

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Question 35

The experience of which company is used as an example of succeeding in a disruptive technology through 'managerial force'?

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Question 36

What did IBM do with its autonomous personal computer division that the author suggests was an important factor in its later difficulties in that market?

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Question 37

What conclusion does the chapter draw about a single organization's ability to simultaneously pursue disruptive and mainstream technologies?

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Question 38

What was the name of the first discount store mentioned in the chapter, which began operating in the mid-1950s?

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Question 39

In what year did Kresge hire a new CEO, Harry Cunningham, with the sole mission to convert the company into a discounting powerhouse?

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Question 40

In what year did both Kresge (Kmart) and Woolworth (Woolco) open their first discount stores, within three months of each other?

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Question 41

A decade after launching, how did the sales of Kmart compare to those of Woolco?

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Question 42

What term did Woolworth drop from all its advertising in 1967, as depicted in Figure 5.3?

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Question 43

According to the chapter, why were the career trajectories of individual managers a powerful factor influencing resource allocation away from disruptive projects?

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Question 44

What was the primary reason the Minneapolis facility of Control Data Corporation (CDC) kept pulling engineers off the 8-inch disk drive program?

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Question 45

The chapter likens Digital Equipment Corporation's (DEC) attempt to enter the desktop PC market to straddling what?

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Question 46

In the discount retailing case, which company recognized and harnessed the forces of resource dependence by creating a focused, independent organization?

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Question 47

Which company's organizational strategy for succeeding in disruptive discount retailing was compared to Digital Equipment Corporation's (DEC) strategy for launching its personal computer business?

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Question 48

According to Figure 5.4, 'Speed Improvement in Inkjet and Laserjet Printers', which printer technology showed a steeper rate of speed improvement over time?

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Question 49

What was the primary reason the CEO of Micropolis, Stuart Mabon, described the experience of forcing the transition to 5.25-inch drives as 'the most exhausting of his life'?

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Question 50

Based on the successful case studies in Chapter 5 (Quantum, IBM, Kresge, HP), what is the most consistently effective strategy for an established company to commercialize a disruptive technology?

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