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NEW QUESTION # 24
"Top-down" and "bottom-up" are ways to think about:
- A. Linking strategy and the product portfolio
- B. Connecting customers with the orgasation
- C. Leadership
- D. Forecasting
Answer: A
Explanation:
"Top-down" and "bottom-up" are ways to think about linking strategy and the product portfolio. In a top-down approach, strategic decisions are made at the highest level and then cascaded down to influence the product portfolio and project selection. In contrast, a bottom-up approach involves gathering input from lower levels of the organization, including insights from product teams and market feedback, to inform strategic decisions. Both approaches are used to ensure alignment between the company's overall strategy and its product development efforts, fostering coherence and strategic alignment (Ansoff, 1987; Mintzberg,
1994).
NEW QUESTION # 25
Strategic platform and/or driving decisions, usually under the control of the new product marketing manager, include which of the following?
- A. Determining whether to outsource manufacturing
- B. Determining what issues to track in a launch management system
- C. Determining what customer acceptance measures to use to define success
- D. Determining how to position the product versus the competition
Answer: D
Explanation:
Strategic platform and driving decisions, typically under the control of the new product marketing manager, focus on market-facing aspects of the product. One of the key responsibilities is determining how to position the product versus the competition. This involves identifying unique selling propositions, understanding competitive strengths and weaknesses, and crafting a positioning statement that highlights the product's value to customers in a way that differentiates it from alternatives. This strategic decision is critical to the product's market success and aligns with the marketing manager's role. References: Kotler, P., & Keller, K. L. (2016).
Marketing Management. Pearson.
NEW QUESTION # 26
According to a study by Wheelwright & Clark, what is the optimal number of development projects for an engineer?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: C
Explanation:
According to a study by Wheelwright & Clark, the optimal number of development projects for an engineer to handle simultaneously is typically found to be two. This allows engineers to remain focused and productive, balancing their workload effectively without becoming overburdened, which can lead to diminished quality and slower progress.
Thus, the correct answer is B: 2.
References:
Wheelwright, S. C., & Clark, K. B. (1992). Revolutionizing Product Development: Quantum Leaps in Speed, Efficiency, and Quality. Free Press.
NEW QUESTION # 27
A corporate vision is ____.
- A. A philosphy statement about the beliefs of the company
- B. A picture of some desired future state that the orgnization hopes to obtain
- C. A NPD project goal
- D. A set of values
Answer: B
Explanation:
A corporate vision is a statement that defines the long-term aspirations of an organization. It provides a picture of the desired future state that the organization aims to achieve. This vision serves as a guiding star for the organization, helping to align efforts and strategies towards achieving that future state. Unlike goals or values, which are more specific and actionable, a vision is broad and inspirational, focusing on what the organization ultimately wants to become or accomplish. This is supported by various business and management sources, which emphasize that a vision is about long-term direction and aspirational goals (Collins & Porras, 1996; Kotter, 1996).
NEW QUESTION # 28
In considering your portfolio in terms of market risk and technology risk, which combination is usually most desirable?
- A. High market risk, low technology risk
- B. Low market risk, high technology risk
- C. Low market risk, low technology risk
- D. High market risk, high technology risk
Answer: C
Explanation:
When considering a portfolio in terms of market risk and technology risk, the most desirable combination is usually low market risk and low technology risk. This combination indicates that the product is based on well-established technology and addresses a market with proven demand, reducing the overall risk associated with product development and commercialization.
References:
Cooper, R. G., Edgett, S. J., & Kleinschmidt, E. J. (2001). Portfolio Management for New Products.
Basic Books.
Kahn, K. B. (2012). The PDMA Handbook of New Product Development. John Wiley & Sons.
NEW QUESTION # 29
Mary works as a product development engineer at an automotice parts supplier. Her boss has been complaining about the long lead time in getting new products to market. He belives that the iterative changes, inherent in most of the new products, could be carried out much more efficiently. What type of product development process would you suggest that Mary recommend to her boss to reduce time to market?
- A. Waterfall
- B. Integrated
- C. Stage-Gate
- D. Agile
Answer: D
Explanation:
Mary should recommend the Agile product development process to reduce time to market. Agile methodologies emphasize iterative development, collaboration, and flexibility, allowing teams to make incremental changes and improvements throughout the development cycle. This approach helps in quickly addressing issues and adapting to changes, which can significantly reduce lead times and improve efficiency.
Agile is particularly effective for projects with evolving requirements and where iterative changes are necessary, making it a suitable choice for automotive parts development (Schwaber & Beedle, 2002; Highsmith, 2004).
NEW QUESTION # 30
Regarding senior management's involvement in new product development, which of the following statements is most appropriate?
- A. Senior management should not have any involvement in a new product's development because this is not a good use of their time
- B. Senior management should hold off on getting involved until late in a new product's development so that they don't waste their time
- C. Senior management should get involved early in a new product's development when they can most effectively impact outcome
- D. Senior management should be heavily involved in a new product's development from start to finish because they should not expect the project leaders to be effective
Answer: C
Explanation:
Senior management's early involvement in new product development is crucial for setting the strategic direction, securing resources, and providing guidance. Early involvement allows senior management to influence key decisions and ensure alignment with the organization's overall goals. Waiting until later stages can result in missed opportunities to shape the product effectively and may lead to resource misallocation or strategic misalignment.
References:
Cooper, R. G. (2011). Winning at New Products: Creating Value Through Innovation (4th ed.). Basic Books.
Crawford, C. M., & Di Benedetto, C. A. (2008). New Products Management (9th ed.).
McGraw-Hill/Irwin.
NEW QUESTION # 31
Which of the following are benefits of having a Business Strategy?
I. Business strategy directs choices about how to deploy resources
II. Business strategy directs how you will copy competitors
III. Business strategy helps a company sidestep competitive convergence IV. Business strategy drives product strategy
- A. I, II, III, IV
- B. II, III, IV
- C. I, III, IV
- D. I, II, III
Answer: C
Explanation:
A well-defined business strategy provides several critical benefits:
I. Business strategy directs choices about how to deploy resources: It helps in making informed decisions on the allocation of resources to various projects and initiatives. III. Business strategy helps a company sidestep competitive convergence: It ensures that the company differentiates itself from competitors and avoids becoming indistinguishable in the market. IV. Business strategy drives product strategy: It provides the overarching direction that guides product development efforts, ensuring that products align with the company's goals and market positioning.
Copying competitors is generally not recommended as a strategic approach, as it can lead to a lack of differentiation and competitive disadvantage.
Thus, the correct answer is B: I, III, IV.
References:
Porter, M. E. (1996). What is Strategy? Harvard Business Review.
Hamel, G., & Prahalad, C. K. (1994). Competing for the Future. Harvard Business Review Press.
NEW QUESTION # 32
Lean manufacturing is aimed at the elimination of waste in every area of production below except
- A. Supplier networks and factory management
- B. Packaging design
- C. Customer relations
- D. Product design
Answer: B
Explanation:
Lean manufacturing is a systematic method aimed at minimizing waste without sacrificing productivity. It focuses on optimizing efficiency and eliminating waste in various areas of production. Here are the areas it typically targets:
A. Customer relations: Improving interactions and satisfaction with customers. B. Supplier networks and factory management: Enhancing efficiency in the supply chain and within factory operations. C. Packaging design: While packaging can be optimized, it is not a primary focus area of lean manufacturing. D. Product design: Streamlining design processes to reduce waste and improve functionality and manufacturability.
Therefore, the correct answer is C: Packaging design.
References:
Womack, J. P., & Jones, D. T. (2003). Lean Thinking: Banish Waste and Create Wealth in Your Corporation. Free Press.
Liker, J. K. (2004). The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. McGraw-Hill.
NEW QUESTION # 33
Which of the following is the best answer regarding the use of financial analysis to evaluate new products?
- A. You can and should generate a sales history for forecasting and financial analysis for a new product
- B. The same type of forecasts and financial analyses should be used for all project types: new to the world, new to the company, product improvements, platforms, etc. because this consistency results in more accurate analysis
- C. Forecasts and financial analysis should be viewed as a living thing - it evolves and is revised as we learn more about the new product/concept
- D. Financial analysis is easy and straightforward for new products - just generate a forecast and calculate an ROI
Answer: C
Explanation:
Financial analysis for evaluating new products is inherently complex and should be approached as an iterative and evolving process. Forecasts and financial analyses are based on assumptions that can change as more information about the product and market becomes available. Treating these analyses as "living" documents allows companies to refine their projections and make more informed decisions throughout the development process. In contrast, viewing financial analysis as straightforward or applying a one-size-fits-all approach to different types of projects can lead to inaccurate and potentially misleading conclusions.
Thus, the correct answer is B: Forecasts and financial analysis should be viewed as a living thing - it evolves and is revised as we learn more about the new product/concept.
References:
Cooper, R. G. (2011). Winning at New Products: Creating Value Through Innovation. Basic Books.
Wheelwright, S. C., & Clark, K. B. (1992). Revolutionizing Product Development: Quantum Leaps in Speed, Efficiency, and Quality. Free Press.
NEW QUESTION # 34
Company A has recently implemented a range of new product development practices. As s first stage, it has used a range of ideation tools to generate a number of potential new product ideas. It is now seeking to evaluate and prioritize th 150 product ideas for further evalutaion and development. What technique would you recomend for the first stage of evaluating the 150 new product ideas?
- A. Detailed scoring of each idea against strategic criteria
- B. Ask boss to do it
- C. Pass/fail evaluation
- D. Financial analysis
Answer: C
Explanation:
For the initial stage of evaluating 150 new product ideas, a "Pass/fail evaluation" technique is recommended.
This method is efficient for quickly narrowing down a large number of ideas to a manageable few by applying basic criteria to determine whether an idea is worth further consideration. It helps in filtering out non-viable ideas early in the process before investing significant time and resources into detailed analysis.
NEW QUESTION # 35
The purpose of the Development Stage is to design the product.
- A. False
- B. True
Answer: A
Explanation:
The purpose of the Development Stage in the new product development process goes beyond just designing the product. This stage involves detailed engineering of the product, development of prototypes, testing, and validation to ensure that the product meets all required specifications and customer needs. It also includes planning for production and refining the business case based on more accurate cost and time estimates.
Designing the product is a critical component, but the development stage encompasses a broader scope, including addressing manufacturability, reliability, and preparing for market launch. References: Cooper, R.
G. (2001). Winning at New Products: Accelerating the Process from Idea to Launch. Basic Books.
NEW QUESTION # 36
Ensuring, over time, that a product (or group of products) or services meets the needs of customers by continuosly monitoring and modifying elements of the marketing mix is generally the role of a ....:
- A. Project manager
- B. Product manager
- C. Marketing manager
- D. General manager
Answer: B
Explanation:
A product manager is responsible for ensuring that a product or group of products meets the needs of customers over time. This role involves continuously monitoring and modifying elements of the marketing mix (product, price, place, promotion) to adapt to market changes, customer feedback, and competitive pressures. The product manager's duties include product strategy, roadmap development, feature prioritization, and cross-functional coordination to ensure the product's success in the market. Reference:
"Product Management in Practice" by Matt LeMay provides an in-depth look at the responsibilities and functions of a product manager.
NEW QUESTION # 37
In the concept generation phase of the new product process, which of the following statements below is correct?
- A. None of the above are correct
- B. Generate as few new product concepts as possible for a new product opportunity because this process takes time and speed to market is of the essence
- C. Generate as many new product concepts as possible for a new product opportunity, because the more concepts that are generated, the higher the probability of a successful concept.
- D. Only generate one new product concept for a new product opportunity and stick with it
Answer: C
Explanation:
In the concept generation phase, it's crucial to explore a wide range of potential product ideas. Generating a large number of concepts increases the likelihood of finding a successful and innovative solution. This approach encourages creativity and allows for the selection of the most promising ideas for further development. Limiting the number of concepts too early can result in missed opportunities and stifle innovation. References: Ulrich, K. T., & Eppinger, S. D. (2015). Product Design and Development.
McGraw-Hill Education; Cooper, R. G. (2001). Winning at New Products: Accelerating the Process from Idea to Launch. Basic Books.
NEW QUESTION # 38
You are CEO of company A. Your company has grown organically through lots of acquisitions and you have a wide range of products that have been launched into a variety of markets, and your product teams have ideas to develop new products. You need to opimiize the investment across all of these existing and new products. What would you do?
- A. Approve proects that cost less than $500K to develop
- B. Tell the reams no to develop any new products
- C. Establish a portfolio management process
- D. Give each team the same amount of money and ask them to proceed with development
Answer: C
Explanation:
As the CEO of a company with a wide range of products and new product ideas, the best course of action is to establish a portfolio management process. This process involves evaluating, selecting, and prioritizing projects based on their potential returns, strategic alignment, risk, and resource requirements. By implementing a portfolio management process, you can ensure that investments are optimized across existing and new products, focusing resources on the most promising and strategically significant projects. This approach helps balance risk and reward, ensuring sustainable growth and efficient use of resources (Cooper, Edgett, & Kleinschmidt, 2001; PMI, 2013).
NEW QUESTION # 39
Which of the following is the best description of a mission statement?
- A. It's an inspirational statement that pulls employees together
- B. It's a precise statement of what the organization does
- C. It's a product innovation charter
- D. It's the product strategy
Answer: A
Explanation:
A mission statement is designed to inspire and unify employees by articulating the organization's purpose, values, and overarching goals. It serves as a guiding star for the company's strategic direction and helps align the efforts of all employees towards a common objective. This inspirational nature distinguishes it from more specific and tactical documents like a product innovation charter or product strategy. References: Kotler, P.,
& Keller, K. L. (2016). Marketing Management. Pearson.
NEW QUESTION # 40
Which of the following are good sources for new product concepts?
- A. Internal sources from R&D, Marketing and/or operations
- B. All of the above are good sources for new product concepts
- C. External sources from customers, including lead users
- D. External sources from educational institutions, inventors and other companies focused on pure research
Answer: B
Explanation:
New product concepts can originate from a variety of sources, both internal and external. Internal sources include R&D, marketing, and operations teams who can leverage their knowledge and experience within the company to generate new ideas. External sources encompass educational institutions, inventors, and other companies engaged in pure research, providing a wealth of innovative ideas and technological advancements.
Customers, particularly lead users, are also valuable sources of new product concepts as they often provide insights into unmet needs and emerging trends.
References:
Ulrich, K. T., & Eppinger, S. D. (2015). Product Design and Development. McGraw-Hill Education.
Von Hippel, E. (1986). Lead Users: A Source of Novel Product Concepts. Management Science.
NEW QUESTION # 41
Most product development activity is focused on _______.
- A. Derivatives and product improvement
- B. New to world products
- C. Line extensions
- D. New brands
Answer: A
Explanation:
Most product development activity is focused on derivatives and product improvement. This involves enhancing existing products, making incremental changes, or developing variations of current products to meet specific customer needs or to enter new market segments. These activities tend to have lower risk and can leverage existing brand equity and customer loyalty.
References:
Wheelwright, S. C., & Clark, K. B. (1992). Revolutionizing Product Development: Quantum Leaps in Speed, Efficiency, and Quality. Free Press.
Ulrich, K. T., & Eppinger, S. D. (2015). Product Design and Development. McGraw-Hill Education.
NEW QUESTION # 42
Mary is a product manager for ACE Electronics. Sha has been asked by the senior management executive to prepare a list of criteria as a basis for evaluation of new opportunities to be included in the new products portfolio. She presents the following list: potential market share, potentil contribution to company profitability, availbility of product development resources. MAry has omitted the moist important criterion form her list. What it is?
- A. Support from the chief executive
- B. Sufficient marketing budget
- C. Sufficient manufacturing capability
- D. Alignment with the company's new product strategy
Answer: D
Explanation:
The most important criterion that Mary has omitted is "Alignment with the company's new product strategy." Ensuring that new opportunities align with the strategic direction of the company is crucial for maintaining coherence in product development efforts and maximizing the strategic impact of new products. Without alignment, even potentially profitable and resource-feasible projects might not contribute effectively to the company's long-term goals and vision.
NEW QUESTION # 43
Cash cows are mature market opportunities. The market is still growing and the huge market share usually means terrific profits.
- A. False
- B. True
Answer: A
Explanation:
"Cash cows" refer to products or business units with a high market share in a mature, slow-growing industry.
These entities generate consistent cash flow and profit due to their dominant market position and established customer base. However, the market for cash cows is typically not still growing significantly; it's mature, which means limited growth opportunities. Thus, saying that the market is still growing contradicts the definition of a cash cow. References: Kotler, P., & Keller, K. L. (2016). Marketing Management. Pearson.
Top of Form
Bottom of Form
NEW QUESTION # 44
Which of the following is not a common participant (individual who supports a team) of a team:
- A. Captain
- B. Sponsor
- C. Facilitator
- D. Champion
Answer: A
Explanation:
Common participants who support an NPD team include:
Champion: An advocate for the project who supports and drives it forward within the organization.
Facilitator: Helps the team with processes, communication, and overcoming obstacles.
Sponsor: Provides resources, support, and executive backing for the project.
"Captain" is not a common term used to describe a participant in the context of NPD teams. Instead, the roles of champion, facilitator, and sponsor are widely recognized and crucial for the success of NPD projects.
References: Cooper, R. G. (2001). Winning at New Products: Accelerating the Process from Idea to Launch.
Basic Books.
NEW QUESTION # 45
In project management, Monitoring/Control reports and reviews deal with which of the following:
I. Scope/Performance
II. Business/Financial Impact
III. Schedule/Time
IV. Budget/Cost
- A. I, III
- B. I, II, IV
- C. I, II, III, IV
- D. II, IV
Answer: C
Explanation:
Monitoring/Control reports and reviews in project management deal with several critical aspects to ensure the project remains on track:
I. Scope/Performance: Ensuring that the project meets its defined objectives and deliverables.
II. Business/Financial Impact: Assessing the financial viability and business impact of the project.
III. Schedule/Time: Tracking project timelines and milestones to ensure timely completion.
IV. Budget/Cost: Monitoring project costs to stay within the allocated budget.
These elements are essential for comprehensive project management and ensuring project success.
References: Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK Guide). Project Management Institute.
NEW QUESTION # 46
Who is responsible for the strategic results of a new product development process in an organization?
- A. Stage-Gate manager
- B. Scrum manager
- C. Process owner
- D. Chief executive
Answer: C
Explanation:
The process owner is responsible for the strategic results of a new product development process in an organization. The process owner oversees the entire product development process, ensuring it aligns with the company's strategic goals, manages resources, and monitors progress to achieve desired outcomes. This role is crucial for maintaining accountability and driving continuous improvement in the product development process.
References:
Wheelwright, S. C., & Clark, K. B. (1992). "Revolutionizing Product Development: Quantum Leaps in Speed, Efficiency, and Quality". Free Press.
Cooper, R. G., Edgett, S. J., & Kleinschmidt, E. J. (2004). "Benchmarking Best NPD Practices".
Research-Technology Management.
NEW QUESTION # 47
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