What are the differences between product and process innovation? What are the strategic implications of each approach to innovation?
What will be an ideal response?
Product innovation refers to efforts to create product designs and applications of technology to develop new products for end users. Product innovations tend to be more common during the earlier stages of an industry's life cycle and are commonly associated with a differentiation strategy. Firms that differentiate by providing customers with new products or services that offer unique features or quality enhancements often engage in product innovation.
Process innovation, by contrast, is typically associated with improving the efficiency of an organizational process, especially manufacturing systems and operations. By drawing on new technologies and an organization's accumulated experience, firms can often improve materials use, shorten cycle time, and increase quality. Process innovations are more likely to occur in the later stages of an industry's life cycle as companies seek ways to remain viable in markets where demand has flattened out and competition is more intense. As a result, process innovations are often associated with overall cost leader strategies because the aim of many process improvements is to lower the costs of operations.
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Which of the following would constitute a copyright violation?
A) manufacturing and selling illegal videocassette copies of "Spiderman 2" B) manufacturing and selling illegal copies of Levi "501" jeans C) printing and selling illegal copies of Harry Potter books D) A, B, and C are copyright violations. E) A and B are copyright violations.
As a firm progresses through the decline life-cycle stage, what type of flexible account will it be more likely to use to balance the balance sheet?
a. issued debt. b. growth related assets. c. issued equity. d. stock buy-backs.
To achieve large inventory savings, you need ______.
A. an annual replenishment system B. large shipments of purchased materials and components C. frequent shipments of purchased materials and components D. a smaller number of units to be produced and sold
Which of the following is the purpose of the Federal Unemployment Tax Act?
A) The Act creates a state system that provides unemployment compensation to qualified employees who lose their jobs. B) The Act creates a state system through which any employee who has lost his or her job can receive compensation. C) The Act creates a federal system to provide unemployment compensation to employees who had resigned because they felt that they were underpaid. D) The Act creates a federal system through which any employee who has lost his or her job can receive compensation.