Question

Seth Goldman makes clear that innovation is essential for a small company to break into the packaged beverage market. In what ways can a company foster innovation? Check all that apply. Establish a cross-functional team with members from research, manufacturing, and marketing departments to guide a new product’s development from beginning to end. Make sure technical employees are aware of the latest technological innovations and engage in cross-functional discussion about how they could be used to achieve competitive advantage. Organize the company with a centralized structure using functional departments and reward short-term results. Have employees in marketing communicate customer feedback to employees in research so that people in research work to solve customers’ problems.

Answer 1

Answer:

The correct alternatives are:

- Establish a cross-functional team with members from research, manufacturing, and marketing departments to guide a new product’s development from beginning to end.

- Make sure technical employees are aware of the latest technological innovations and engage in cross-functional discussion about how they could be used to achieve competitive advantage.

- Have employees in marketing communicate customer feedback to employees in research so that people in research work to solve customers’ problems.

Explanation:

All alternatives are correct and are effective for the innovation process in a company. The only wrong alternative is to organize the company with a centralized structure using functional departments and reward short-term results. This is incorrect because centralization in an organization is related to centralized decision making at the top of hierarchical functions.