When evaluating risks in the idea screening phase, if a firm is found to lack the necessary resources or expertise, it should:
A) completely reject the new product idea.
B) not act too hastily in discounting the new product idea.
C) ignore the risks and commercialize the new product idea.
D) not reconsider other alternatives.

Question

Quizplus · Accepted Answer

If a firm lacks the necessary resources or expertise, it should not act too hastily in discounting the new product idea. Instead, it should consider alternative ways to acquire the necessary resources or expertise or partner with other firms to mitigate the risk. Ignoring the risks or completely rejecting the new product idea outright without exploring alternative options may cause the firm to miss out on potentially profitable opportunities. Therefore, the best choice is to not act too hastily in discounting the new product idea.

When Evaluating Risks in the Idea Screening Phase, If a Firm