5.8 R&D

What is the primary purpose of research and development (R&D) for businesses?

• To increase advertising budgets

• To create new products and processes to meet market needs

• To reduce the number of employees

• To maximize short-term profits

Which of the following is NOT mentioned as an internal force driving R&D?

• Source of improved competitiveness

• First mover advantage

• Cost savings

• Market orientation

Tesla spends approximately how much on R&D per car sold?

• $984

• $1,984

• $2,984

• $3,984

Which industry is known for having particularly long R&D timelines before products can be commercialized?

• Consumer electronics

• Automotive

• Fashion

• Pharmaceutical

Which of the following is NOT listed as an advantage of R&D?

• Improving corporate image

• Guaranteed financial returns

• Creation of premium products

• Prolonging product life cycles

What did James Dyson say about his process of inventing the Dyson vacuum?

• He succeeded on his first try

• He made 5,127 prototypes before getting it right

• He gave up after 100 attempts

• He outsourced the R&D process

Which of these is cited as a potential disadvantage of R&D?

• It always leads to increased profits

• It's a quick process with immediate results

• The failure rate of new products can be significant

• It reduces a company's competitiveness

According to the passage, how does Tesla's approach to advertising differ from traditional carmakers?

• Tesla spends more on advertising than R&D

• Tesla relies on word of mouth and media coverage instead of paid advertising

• Tesla uses the same advertising strategies as other carmakers

• Tesla focuses solely on print advertising

Which of the following best describes the importance of developing products that address customers' unmet needs?

• It guarantees immediate financial success

• It allows companies to maintain the status quo

• It can revolutionize industries and create new markets

• It ensures customer loyalty without further innovation

What is the primary criticism against Airbnb's impact on popular tourist destinations?

• It reduces hotel occupancy rates

• It contributes to overtourism and housing shortages

• It decreases overall tourism revenue

• It promotes cultural exchange