If a Company Wishes to Be a Technological Follower and Also

question 73

Multiple Choice

If a company wishes to be a technological follower and also pursue a differentiation strategy,the appropriate R&D strategy would be to

• A) adapt the product or delivery system more closely to buyer needs by learning from the leader's experience.
• B) value activities by learning from the leader's experience.
• C) avoid R&D costs through imitation.
• D) create low-cost ways of performing value activities.
• E) innovate in other activities to increase buyer value.

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Definitions:

Time Value of Money

The concept that money available now is worth more than the same amount in the future due to its potential earning capacity.

Payback Period

The length of time it takes for an investment to generate cash flows sufficient to recover the initial investment cost.

Project's Liquidity

An assessment of a project's ability to convert its assets to cash quickly without significant loss in value, to meet short-term obligations.

WACC

Weighted Average Cost of Capital (WACC) is the average rate of return a company is expected to pay its security holders to finance its assets.