1.AmEx has announced plans to harness the power of Big Data by transitioning many of its traditional processes from legacy mainframes to Big Data processing environments. The firm hopes this system upgrade will result in dramatic improvements in speed and performance. Which term best describes this change?

a.An invention

b.A radical innovation

c.An incremental innovation

d.A technological breakthrough

2.Due to recent declines in the firm's performance, AmEx has recognized a need for innovation. What is the best first step the firm should take to make an environment that will foster this kind of thinking?

a.Hold a brainstorming retreat for all top-level managers and board members

b.Incentivize customer service representatives to imagine new product ideas

c.Ask the marketing department to conduct market research

d.Organize cross-functional product teams

3.AmEx's performance is steadily declining, and the firm needs to turn things around quickly. Which of the following is the firm's best option for achieving its short-term goals?

a.Invent a new product or service that fills an unmet need

b.Determine ways to innovate on its existing processes, products, and services

c.Imitate appropriate innovations exhibited by competitors

d.Expand into a new international market

4.Despite significant setbacks in recent years, American Express still enjoys a strong reputation as a respected brand. If the company's leaders believed that declining performance could be reversed through the combined impact of many incremental innovations from within, how could they make an environment that would foster those innovations?

a.Engage in induced strategic behavior

b.Engage in autonomous strategic behavior

c.Adopt an attitude of strategic entrepreneurship

d.Study how their competitors have achieved this goal

5.AmEx has been in business for more than 100 years and employs 50,000+ people. Given recent declines in the firm's performance due to a lack of innovation, does AmEx stand a chance of surviving?

a.Yes, as long as it continues to support its traditional values.

b.Yes, if it can change and adopt an entrepreneurial mind-set.

c.No, by nature, large, well-established firms are incapable of strategic entrepreneurship.

d.No, innovative entrepreneurs who have the right mind-set do not want to work in older, well-established firms.