Radical Innovation Strategies Are Sometimes Referred to as Disruptive Innovation

question 55

Multiple Choice

Radical innovation strategies are sometimes referred to as disruptive innovation because ________.

• A)they disrupt the normal functioning of the activities in the industry value chain
• B)they disrupt the production process, thus reducing the production capability of the firm
• C)companies in the same industry can easily imitate this innovation
• D)rival firms find them so disruptive that they can no longer do business as usual

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Definitions:

Government Agency

An organization under the government that is responsible for the specific area of administration or function according to law.

Simple Payback

A financial metric that calculates the time required to recoup the initial investment in a project or asset through cash inflows or savings.

Cash Flow

The total amount of money being transferred into and out of a business, project, or financial product.

Umbilical Cord

A flexible cordlike structure containing blood vessels, connecting a fetus in the womb to the placenta, and supplying the fetus with oxygen and nutrients while removing waste products.