Answer:
A transformational process is a process by which we achieve lower costs, increased efficiency or level of output, higher quality of product, anything that brings competitive advantages over rivals.
So this means that Transformational process doesn't includes lowering product quality and efficiency or output.
Option 1 is incorrect because it talks about increasing production by decreasing product quality.
Option 3 is also incorrect because it talks about increasing inefficiency. Remember: Efficiency is increasing output at a set level of input.
Option 4 is also incorrect because transformational process doesn't includes the selling of inputs. Inputs are raw material, labor hours, overhead cost, etc these are not sold by any companies. However their is a possibility that semi finished goods are sold to other companies like Apple purchased Mobile displays from Samsung to meet its customer demand.
But its impossible to sell its labor, raw material which is readily available in the market.
Option 5 is also incorrect because corrective actions are taken when there is something going wrong. When the level of output is increasing from the desired output level it means its an achievement. So this is not correct option.
Option 2 is correct because conversion of inputs into ideas or products will result in competitive advantage. For example, Mercedes first time in the history introduced two door car. This helped Mercedes to lower its material cost sufficiently and Price of the car as well. As a result this increased its sales due to lower prices charged.
Transformational Processes includes activities of converting your resources into more efficient assets which is reflected in this option.
