Answer to Question 1
The primary way that companies make changes is by offering new and improved goods and services to customers. Companies seek to improve their current products for numerous, overlapping reasons: a simple point of corporate pride, to be consistent with an image as being innovative, as an effort to better satisfy current customers or attract new customers, or to stave off competition. With new product introductions, the company has achieved some success with its existing portfolio.
Answer to Question 2
b