📚 Learning Guide
Performance Impact of Lean Startup
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Which of the following outcomes can be attributed to the adoption of the lean startup methodology in firms? (Select all that apply)

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Choose the Best Answer

A

Increased ability to pivot based on customer feedback

B

Decreased operational flexibility due to rigid processes

C

Enhanced speed to market for new products

D

Improved decision-making through hypothesis-driven testing

E

Higher initial investment costs for product development

Understanding the Answer

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Answer

Adopting the lean startup approach often speeds the time it takes to bring a product to market, because teams test ideas early and discard failures quickly. It also improves product‑market fit, since customer feedback is built into each iteration, leading to higher user satisfaction. Firms typically see better use of resources, cutting waste and lowering development costs. Finally, the continuous learning loop can raise overall profitability by aligning offerings more closely with customer needs. For example, a startup that tests a new app feature with a small group, learns what users actually want, and pivots before full launch, saves both time and money while delivering a product that truly sells.

Detailed Explanation

Lean startup focuses on quick tests and learning from customers. Other options are incorrect because Some think lean forces rigid steps, but it actually gives more freedom; Lean does not need more money upfront.

Key Concepts

Lean Startup Methodology
Firm Performance Improvement
Customer Feedback Integration
Topic

Performance Impact of Lean Startup

Difficulty

medium level question

Cognitive Level

understand

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