You Have Just Been Assigned the Task of Developing an Innovative

question 115

Multiple Choice

You have just been assigned the task of developing an innovative new product, using people from engineering, marketing, purchasing, and one or two other departments in the organization. To help the group to be as creative as possible, you would:

• A)give the team a very tight deadline to come up with a creative idea.
• B)encourage competition among team members as to who has the best job performance.
• C)move these employees out of their departments and into a common area where they can continuously communicate with each other.
• D)threaten to fire any team member who suggests a silly idea that wastes time in the product-development process.
• E)apply all of these activities.

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Definitions:

Capital Requirements

The total amount of capital needed for a business to carry out its operations, including costs for assets, staffing, and day-to-day expenses.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Undifferentiated Products

Goods or services that are viewed as interchangeable with others in the market, lacking distinct features to stand out from competitors.

High Switching Costs

High switching costs are barriers that prevent customers from changing products or services, due to financial, emotional, time-related, or effort-based factors.