What are the types of new products that a firm can introduce? What are the problems associated with introducing a truly innovative product? What are the necessary conditions to create a radically innovative product?
What will be an ideal response?
New products range from new-to-the-world products that create an entirely new market to minor improvements or revisions of existing products. Most new-product activity is devoted to improving existing products. Truly innovative and new-to-the-world products incur the greatest cost and risk. Although radical innovations can hurt the company's bottom line in the short run, if they succeed they can create a greater sustainable competitive advantage than ordinary products and produce significant financial rewards as a result. Companies typically must create a strong R&D and marketing partnership to pull off a radical innovation. The right corporate culture is another crucial determinant; the firm must prepare to cannibalize existing products, tolerate risk, and maintain a future market orientation. Few reliable techniques exist for estimating demand for radical innovations.
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Explain Tuckman and Jensen’s stages of team development model. What are its strengths and weaknesses, and what other models of team development are available?
What will be an ideal response?
Which of the following should be followed when organizing the content for a presentation?
A) ?A presenter should not begin with an outline of the presentation contents. B) A presenter should either write a script or work from a report.? C) ?A presenter should understand that presentations are not different from written messages. D) ?A presenter should start planning as if he or she was developing an entirely new message.
Nichols Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the cost of capital or negative, in both cases it will be rejected. Year0 1 2 3 4 5 Cash flows?$1,250 $325 $325 $325 $325 $325
A. 9.43% B. 9.91% C. 10.40% D. 10.92% E. 11.47%
Zinc Corp. is planning to purchase a new machine. The initial investment outlay is expected to be $40,000, and the annual supplemental operating cash flows that the machine is expected to generate during its three-year life are $11,000, $15,000, and $18,000, respectively. The company's required rate of return is 9 percent. Which of the following statements is correct about the machine's net present value (NPV) and the decision of Zinc Corp. should make?
A. Accept the project because NPV = $4,000 B. Reject the project because NPV = -$3,384 C. Accept the project because NPV = -$4,382 D. Reject the project because NPV = $16,981 E. Accept the project because NPV = $76,616