Use the Following to Answer Questions

question 138

Multiple Choice

Use the following to answer questions
Jonathan Moore, president of Polar Manufacturing Company, has just reviewed the performance reports for the previous year and sees that there are some areas in which the company needs to improve.He specifically feels they could do a better job in managing Polar's product mix.Jonathan calls a meeting of all the managers responsible for each of the product lines that Polar currently manufactures.The group decides that they need to eliminate the complete industrial product line of ice chests; they plan to do so by letting the product decline without any changes in the marketing strategy or product.The group also decides to delete Polar's line of thermal underwear, but this product is to be discontinued within the week due to its unprofitability.While discussing these strategies, the group has also uncovered several customer groups for which new products could be developed.The managers decide to assemble a group of people from all functional areas of the company and give them the responsibility for all aspects of the new-product development.
-Polar's management is currently in which stage of new-product development?

• A)Idea generation
• B)Screening
• C)Concept testing
• D)Product development
• E)Test marketing

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Definitions:

Market Rate

The current price or rate at which a good or service can be bought or sold in a given market.

Compound Interest

Interest on a loan or deposit calculated based on both the initial principal and the accrued interest from previous periods.

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a pre-specified price.

Fiscal Year

A one-year period used for financial reporting and budgeting, which may not necessarily align with the calendar year.