Question 1

The R&D department of Meredith Inc., a tire manufacturer, discovers a new material to be used as an alternative to rubber that brings down the manufacturing costs. This allows the company to offer its products at a price lower than the market price. The newly discovered material is the company's

Accepted Answer

The newly discovered material is a competitive advantage for the company as it allows them to offer their products at a lower price than their competitors. A disruptive innovation would involve a significant shift in the industry and market, which is not the case here. Natural capital and environmental capital refer to natural resources and the environment, respectively, and are not applicable in this scenario. Competitive environment refers to the market and industry conditions and not the company's specific advantage.

Question 2

Cufflinks, an outstanding house for tailored suits, has always had satisfied customers owing to their ingenuity in facilitating top fashion trends. It is innovative in adapting to changing vogues and demands of its customers. Through which of the following ways does Cufflinks gain a competitive advantage?

Accepted Answer

Cufflinks gains a competitive advantage through flexibility, as they are able to adapt to changing fashion trends and the evolving demands of their customers.

Question 3

___ is the process of turning new ideas into products or processes that can increase profits through greater sales or reduced costs.

Accepted Answer

Commercializing innovation involves turning new ideas into actual products, services, or processes that can be sold to customers or used internally to reduce costs. This process involves different stages such as research and development, prototype creation, testing, and launch. Its ultimate goal is to increase profits through greater sales or reduced costs. Product development, marketing research, supply chain management, and process value analysis are all important components of commercializing innovation, but they are not synonymous with the overall process.

Question 4

Which of the following illustrates a firm that has achieved competitive advantage through flexibility?

Accepted Answer

A firm that creates customized products based on each of its customer's preferences has achieved competitive advantage through flexibility as it is able to adapt to each individual customer's needs and preferences, giving them an edge over competitors who may offer less customization.

Question 5

Apple's iPod is an example of what type of innovation?

Accepted Answer

The answer of Apple's iPod is an example of what...

Question 6

The Oomph Factor, an online retail firm, owns a patented technology that ensures that its goods and services reach customers on time. The firm also has the ability to develop timely new products. The firm has gained competitive advantage through ___.

Accepted Answer

The Oomph Factor has gained competitive advantage through delivery, as they own a patented technology that ensures their goods and services reach customers on time.

Question 7

Which of the following is true of environmental uncertainty?

Accepted Answer

Environmental uncertainty can be analyzed by assessing the degree of complexity and rate of change. A high degree of complexity and a high rate of change indicate high environmental uncertainty, while low complexity and low rate of change indicate a more stable environment. The other options are incorrect; the more uncertain the environment, the harder it is to analyze environmental conditions and predict the future state of affairs, and high-uncertainty environments require increased flexibility and agility in organizational designs and work practices. People also need to be able to make decisions quickly in high uncertainty environments instead of gradually.

Question 8

Innovation refers to the

Accepted Answer

Innovation refers to the process of taking a new idea and putting it into practice. It involves creating something new or making improvements to something that already exists.

Question 9

What is the best way to describe a product that is a disruptive innovation?

Accepted Answer

A disruptive innovation is a new product or service that completely changes the typical way of doing things and requires customers to adopt new behaviors for its effective use. The product may not necessarily be the best quality or occupy a majority of the market share initially, but it disrupts the industry and ultimately leads to significant changes in the market. The other options may describe a good product, a dominant product in the market, an incompatible product, or a product that makes customers uneasy, but these do not necessarily qualify as a disruptive innovation.

Question 10

The ___ step of the product development process involves the commercialization of a new product for sale to customers or clients.

Accepted Answer

The final step in the product development process is the commercialization of the new product. This involves launching it to the market for sale to customers. Options B, C, D, and E are all earlier steps in the product development process, involved in ideation and development of the product concept.

Question 11

Apple's iTunes is an example of what type of innovation?

Accepted Answer

iTunes introduced a breakthrough innovation in the music industry by offering customers the ability to download individual songs rather than full albums, changing the way music was purchased and consumed.

Question 12

___ is the stage of the product development process in which ideas are shared with others and prototypes are tested.

Accepted Answer

During the initial experimentation stage, ideas are shared with others and prototypes are tested to determine their feasibility and effectiveness. This stage is critical in the product development process as it allows for early feedback and identification of any issues with the product.

Question 13

Brazen Inc. introduced a new line of deodorized clothes produced with natural ingredients such as flowers and fruits, to reduce the impact of the environmental hazards caused by the production of deodorants. This implies that Brazen Inc. was engaging in ___.

Accepted Answer

Brazen Inc. introduced a new line of deodorized clothes, which is a new product innovation.

Question 14

Which of the following is an example of a product innovation?

Accepted Answer

A new flavor in an existing range of candies represents a tangible change or enhancement in the product's attributes, qualifying as a product innovation.

Question 15

Which of the following examples displays a firm with a competitive advantage achieved through quality?

Accepted Answer

The organization that is famous for its durable products displays a competitive advantage achieved through quality, as their products are known to be reliable and long-lasting.

Question 16

Footlore Inc. introduced a sophisticated new range of shoes that prevents any type of injury to the wearer's feet. This is an example of a

Accepted Answer

Footlore's new range of shoes is a product innovation as it introduces a new product in the market with unique features and benefits (preventing injury).

Question 17

Competitive advantage can be achieved through ___ by finding ways and using technology to adjust and tailor products and services to fit customer needs in ways that are difficult for one's competitor to match.

Accepted Answer

Flexibility allows a company to adjust and tailor products and services to fit customer needs, which makes it difficult for competitors to match. This creates a competitive advantage. Quality, costs, delivery, and durability can also contribute to a competitive advantage, but they are not directly related to adjusting and tailoring products and services.

Question 18

Which of the following forms of innovation focuses on better ways of doing things?

Accepted Answer

Process innovation focuses on developing better ways of doing things, such as improving efficiency or reducing costs. Product innovation involves creating new products or improving existing ones, business model innovation changes the way a company creates and captures value, social business innovation addresses social or environmental challenges, and paradigm innovation changes fundamental assumptions or beliefs.

Question 19

Discovering a potential product or a way to modify an existing product involves the ___ step of the product development process.

Accepted Answer

The idea creation step involves generating potential product ideas or modifications to existing products.

Question 20

Which of the following illustrates a firm that has achieved competitive advantage through delivery?

Accepted Answer

Competitive advantage through delivery often involves the ability to bring new products to market quickly and efficiently. Choice B, a firm that develops timely new products, directly illustrates this capability by emphasizing the speed and timeliness of product development, which can set a firm apart from its competitors.

Quiz 4: Environment, Innovation, and Sustainability