5.8 Research And Development

Question 1

Research and development (R&D)

Answer 1

• is the process of creating new products (goods and services) and processes (how things are done), in order to meet market needs

Question 2

Adv R&D (3)

Answer 2

• The corporate image may improve, if the business is perceived to be innovative a
  A first mover advantage might be acquired
• The R&D process can lead to the creation of premium products, enabling higher prices can be charged for
• The discovery of more efficient production process can help to cut costs

Question 3

Dis R&D (3)

Answer 3

• The cost of conducting R&D can be extremely high
• It is a very time-consuming process, yet there is no guarantee of any financial return
• The money spent on R&D might have been better spent elsewhere to improve the organization

Question 4

Prototype

Answer 4

• This is a test (or trial) version of the product, to gauge the chances of commercial success before the final development

Question 5

Prototype adv (2)

Answer 5

• Risk reduction - Prototyping allows businesses to identify potential risks and issues early in the product development process
• User feedback - With prototypes, firms can gather valuable feedback from consumers

Question 6

Prototype dis (2)

Answer 6

• Costs of prototyping - Developing and refining or reworking different prototypes can be expensive
• Time consuming - The process of creating and refining them can be very time-consuming

Question 7

Innovation

Answer 7

• can be defined as the commercial of a new idea in order to fulfil existing customer needs or to create an unmet customer wants (desires).

Question 8

• Incremental innovation

Answer 8

• involves adjusting, developing, and improving a product or process that already exists

Question 9

• Disruptive innovation

Answer 9

• refers to innovation that involves creating entirely new products and/or processes

Question 10

Intellectual property (IP) (2)

Answer 10

• refers to the intangible assets of a business through its creativity and capital expenditure
  
  • it is important for businesses to protect their IP.

Question 11

• Intellectual property protection (IPP)

Answer 11

• refers to the legal protection of the intangible assetsof an individual or organization

Question 12

3 categories of intellectual property protection:

Answer 12

1. Copyrights
2. Patents
3. Trademarks

Question 13

The reasons for protecting the IP of a business are: (3)

Answer 13

• To maximize the firm’s return on investment
• To maintain a unique selling point by being the exclusive supplier of a product
• To reduce threat of competition

Question 14

Copyrights

Answer 14

• give the registered owner the legal rights to creative pieces of work

Question 15

Patents (2)

Answer 15

• are used to protect the inventions of a business
• They provide the official rights to the registered business to exploit an invention for commercial purposes

Question 16

Trademarks

Answer 16

• are a form of intellectual property protection that give the owner exclusive commercial use of the registered brands, logos, and/or slogans