FINAL EXAM - NETW583 Strategic Management Of Tech DUE in 2hrs

Question 2. 2. (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. (Points : 30)

Question 3. 3. (TCO B) Why is the installed base of users of a technology that requires complementary goods so important to a company’s future success? (Points : 29)

Question 4. 4. (TCO B) Explain why it is that if a company's technology is adopted by users ahead of other technologies, it might be at a tremendous advantage and competitors will have trouble catching up. (Points : 29)

Question 5. 5. (TCO C) Even though many aerospace manufacturing firms are very profitable, there are very few upcoming firms. Explain the reason using at least one force from Porter’s Model. (Points : 29)

Question 6. 6. (TCO D) Explain why the cash flows (profits minus costs) for a project that are expected to continue for 20 years need to be discounted. Why not simply use the amounts as they are? Would it make a difference if 80% of the profits came in during the first 5 years? (Points : 29)