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NETW 583 Midterm Exam (Version 1 – Multiple Choice & Essay) Page: 1 (Multiple Choice: 6) Question : (TCO A) After Yahoo! was introduced as an easy way to search the World Wide Web, it was follow ... ed by other search engines, some of which had improved or faster ways to search. This is an example of how one innovative idea can Question : (TCO A) Among member countries of the Organization for Economic Cooperation and Development, the majority of R&D funds come from ______. Question : (TCO B) When you buy a product on eBay you can pay for it using an online payment system called PayPal (which accepts credit cards or electronic funds transfers). The payment system is heavily secured using encryption technology. PayPal is offering simplicity, convenience and __________ utility levers according to the Kim and Mauborgne model. Question : (TCO B) One advantage cell phone customers in the European Union (EU) had over U.S. customers early in the adoption of cells phones is that_______________. Question : (TCO C) Which of the following would describe a primary activity according to Michael Porter’s model of the value chain? Question : (TCO D) Discounted cash flow estimates are only accurate if Page: 2 (Essay: 6) Question : (TCO A) Explain how computer-aided design and flexible manufacturing help create small niches in the market place. Provide and example of how a market with different niches might be served. Question : (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. Question : (TCO B) Why is the installed base of users of a technology that requires complementary goods so important to a company’s future success? Question : (TCO B) Joseph had an idea that he could speed up a floor buffing machine by putting a different motor on it. He even tried a lawnmower motor and almost blew himself up with another motor. After about 25 tries, he was able to make a buffer run much faster with a new motor and started his own company. Other companies began making competing products that were similar to Joseph s design, but they were unable to improve their designs as fast as Joseph. Why might this be the case? Question : (TCO C) Recently, three cell phone companies announced the addition of a nationwide walkie-talkie service to supplement their regular cell phone service. Will this be a sustainable competitive advantage? Justify your answer. Question : (TCO D) Johnston Products has gathered data to evaluate the attractiveness of a potential project. It knows the cash flows expected under different scenarios. It has conducted a focus group that ranks various product attributes, and it has the ranking of various marketing techniques provided by a consulting company. What method should Johnston use to evaluate this project? Why is this method the best one to use? [Show More]

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