Final answer:
The ability to generate innovative alternatives in decision-making is known as creativity, characterized by divergent thinking and the generation of numerous unique solutions.
Step-by-step explanation:
From a decision-making perspective, being able to generate alternatives that are innovative or different from what has been used before is called creativity. Creativity involves engaging in divergent thinking, which allows an individual to think 'outside the box' and develop unique, multiple solutions to a problem. This contrasts with convergent thinking, which focuses on finding correct or established answers. Through creativity, one might brainstorm various alternative solutions, explore possibilities, and even pursue innovative improvements that can lead to a temporary competitive advantage and potentially higher profits for a business.
For instance, a firm might achieve higher profits by producing products more cost-effectively or by designing products with desirable characteristics for consumers, as emphasized by business leaders like Gregory Lee of Samsung. The relentless pursuit of innovation is thus pivotal in business, as it opens a world of possibilities and often results in above-normal profits until competitors manage to catch up.