You were just hired to manage the new-product development process at a consumer products company. In your first meeting with the CEO since being hired, she recounted to you the numerous times in the past when the company launched products it thought would be successful. However, it later came to realize the products had a detrimental impact on the company's overall costs and profits mix. She wants you to revamp the company's new product development process to prevent this from happening in the future.
Which of the following steps in the new-product development process should you overhaul in order to address the CEO's concerns?
A) Concept testing
B) Product development
C) Idea generation
D) Test marketing
E) Business analysis

Question

Quizplus · Accepted Answer

The CEO's concern is related to the impact of new products on the company's costs and profits mix. Therefore, the step of business analysis should be overhauled to ensure that potential new products are thoroughly evaluated from a financial perspective before they are developed and launched. This could include evaluating projected sales volumes, costs, pricing strategies, and potential profitability. By improving the accuracy and rigor of business analysis, the company can reduce the risk of launching products that ultimately harm its bottom line.

You Were Just Hired to Manage the New-Product Development Process