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Flashcards in Research And Development (Quick Revision) Deck (7)
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1
Q

Define: Research And Development (R&D)

A

Research and development is the process of inventing and producing new products and processes

2
Q

State three factors that might influence the amount spent on research and development.

A
  • The need to innovate
  • The spending of competitors
  • The funds available
3
Q

State two ways in which R&D might help a firm’s competitiveness.

A
  • May provide a unique selling point (proposition)

* May reduce the costs of producing

4
Q

State two problems in budgeting for R&D.

A
  • May have to wait long term for rewards.

* Uncertain whether it will succeed.

5
Q

State four reasons why a new product may fail.

A
  • Poor marketing
  • Reaction of competitors
  • Poor market research
  • Difficulties with a new production process
6
Q

What is the Examiner’s note for Research and Development (R&D)?

A

R&D is not the same as market research. Market research focuses on finding out what customers want, while R&D develops ideas.

7
Q

What is the Evaluation point for Research and Development (R&D)?

A

The importance of research and development depends on the rate of change in the industry and the need for new products and processes.