External Capabilities Quiz

What do external capabilities refer to?

• Internal resources and expertise

• Skills and expertise beyond an organization’s boundaries

• A company’s core competencies

• Employee creativity

What is one primary benefit of leveraging external capabilities?

• Increased internal workload

• Access to specialized expertise

• Reduced collaboration opportunities

• Limited market reach

Which type of external capability involves formal agreements with external organizations?

• Open innovation

• Partnerships and collaborations

• Supplier relationships

• Corporate venturing

An example of open innovation is:

• Apple collaborating with Intel

• GE's Ecomagination Challenge

• Toyota and Tesla partnership

• Pfizer conducting clinical trials

What is the main advantage of supplier relationships as external capabilities?

• Enhanced internal research

• Access to specialized components

• Increased direct marketing

• Reduced need for partnerships

A major challenge in external collaborations is:

• Alignment of objectives

• Reducing flexibility

• Limiting innovation speed

• Avoiding market reach

Which company is known for its “Connect + Develop” program to harness external innovation?

• Apple

• IBM

• Procter & Gamble

• Facebook

What is a common risk in leveraging external capabilities?

• Faster innovation cycles

• IP concerns and ownership issues

• Enhanced competitive advantage

• Improved efficiency

Which of the following is an example of corporate venturing?

• Google Ventures investing in start-ups

• Microsoft enhancing software compatibility

• Foxconn manufacturing for Apple

• Clinical trials by pharmaceutical firms

What is the purpose of clear agreements in external collaborations?

• Reducing communication

• Defining roles and responsibilities

• Enhancing informal partnerships

• Avoiding IP protection