Developing Products In Half The Time Management Essay

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With its head office in Oak Brook, Illinois, fast food giant McDonalds has

ridden the wave of global trends towards eating out and fast food since it

took its modern form in the early 1950's. Outside the USA, customers of

the global chain were not, however, only eating hamburgers- they were

"eating and drinking America". In societies that never had enough meat,

the rapid emergence of fast food chains was linked to the availability at

reasonable prices of hot beef and chicken.

By the 1970s and 1980s, McDonald's and its golden arches logo had

become a global brand. By 1996 McDonald's operated in 100 countries

and was finally earning more revenue than McDonald's International

than McDonald's America. In deed the Big Mac had become so globally

recognizable that it was adopted as a measure of purchasing power

across different markets.

Mc Donald's has packaged itself as a multi-local company, which has a

high level of local ownership through a network of franchise outlets. The

products offered are tailored to meet the needs of the local market, for

example, beer is sold at McDonald's in the Czech Republic and different

chicken sandwich are sold in England as compared to Germany. Sourcing

of products is also global in some cases, sesame seeds come from Mexico

but others are local.

Despite its global dominance McDonalds began to see a slowing of its

growth in the late 1990s. By 1996, it reported a decline in sales in the

USA. In part McDonald's become a victim of its own success in that

instead of generating new customers it just spread its existing customer

over more stores so that they did not increase their market shares. In

response to the lost of it market shares and decline in sales McDonalds

lunched a fierce marketing strategy that included extensive promotion

("I'M Loving' It" campaign) , the introduction of new healthier options

and expansion into new markets such as Hong Kong, Singapore, the

Philippines and Malaysia.

Recently, McDonald's fortunes has changed yet again and in the last

quarter of 2008 they announced an increase in sales and profit in the UK

which they attribute in part to the credit crunch as people are now

looking for cheaper eating out options . In January 2009, announced that

it will be opening 1000 new stories across the UK in order to meet

market demand for the brand. (Business: BBC, 2009).

Business Case for a healthier Menu

In recent years there have been numerous campaign and TV programs

feature McDonalds as an unhealthy fast food option. The movie,

SuperSize Me, altered the public to the danagers of eating McDonalds

and explained exactly how unhealthy the fast food is. Research has

shown that a Big Meal contains approximately 2,400 calories, which

equals the recommended calorie intake for a man and excess the

recommended intake for a woman.

Jaime Oliver, in his Channel Four Program, Jamie's School Dinners

further reiterated the damage being done to our bodies by eating

McDonalds on a regular basis. In fact, his research shows that on

average children who ate junk food, such as McDonalds, where often

lethargic and unable to concentrate and has poor academic performance

as a result. Such programs have led consumers to think about what they

eat and they are seeking healthy options that are affordable.

New EU regulation regarding salt and fat content and the removal of the

use of certain oils and fats from fast food, has reinforced the need for

McDonalds to offer its customers healthier options. Additionally, the UK

government, in its drive to reduce obesity and encourage Britons to be

healthier has used companies such as McDonalds as examples of foods

that should be avoid. In 2009, the UK government, in an attempt to

regulate the fast food industry, has set out guidelines for including

calorie and fat contents on the package of meals so that consumer can

make an informed choice.

McDonalds has also seen a decline in its sales due to socio-cultural

factors such as lifestyle changes. Growing health consciousness together

with social and government pressure to eat healthy and reduce the levels

of obesity in countries like the UK and USA has adversely affect the sales

of McDonalds in these markets. Few years ago people start to change

their eating habit, and start eating healthy and vegetarian food. As a

result McDonalds saw a decline in sales in UK, Germany and Japan.

McDonald's, since some of them were offering healthy and affordable

meals. For example , they has phased out the use of trans fats and now

use a new cooking oil designed to make the food healthier without losing

its taste.

While the recent economic recession has seen an increase in McDonald's

fortunes, studies indicated that customer's whiles regarding McDonalds

as an affordable option still regard them as unhealthy and would rather

pay more to have a healthy meal. McDonald's original forage into healthy

eating, by introducing sales, was unconvincing as it was found that these

has as much calories as a Big Mac.

In light of the changing circumstance, McDonalds needs to focus on

introducing a healthier menu by reducing the fat content of its existing

meals and adding healthier options such as salad, low fat sandwiches and

grilling rather than frying it nuggets, chicken and fish burgers.

Research Methods

This research will be conducted using both primary and secondary data.

Primary Data collection

Primary Research: "It is information that does not exist until you carry

out your own investigation" (EDEXCEL HNC/HND, 2004). The mixed

methods approach will be used combining primary and secondary data.

"One of the benefits of this is that it can overcome one of the main

drawbacks of secondary data, which is that it is often not of direct

relevance to your research objective. By using appropriate primary data

to 'plug the gaps' you should be able to obtain the complete picture. This

might be the case where you are researching an issue within an

organisation" (EDEXCEL HNC/HND Business, 2004)

Advantages of primary data

Allows the researcher to carry out research on a specific topic

Greater control over the type of data collected and the sample size

Efficient way of spending time as the data being research is topic

specific

Disadvantages

Time consuming as questionnaires, interview and surveys have to

designed, samples have to chosen, target audience need to be

identified. Collection and analysis of data can take a very long time

Costly- this include costs such as postage, printing material, and

cost of time to conduct the research.

Research bias- the researcher can impose his or her view on the

research subjects

Questionnaires

These are seen as a logical and easy way of collecting information from

people. The research will design a series of questions related to the

research topic and using a survey hand out the questionnaires to the

potential subjects.

Types of questionnaires

Closed questionnaires- this type of questionnaire gives the subject

a list of possible answers to the questions and which they can make

their choice. Close questionnaires are often bias as they have

predetermined answers and often reflect the researcher's view

point. However, close questionnaires are easy to interpret as data

can be easily quantified as a percentage.

Open questionnaires- this is where the answers are not provide and

the subjects need to offer their opinion. This type of questionnaire

provides more information but can be difficult to interpret and may

lead to inaccurate and incomplete assumptions by the researcher.

Mixed-questionnaires- this type of questionnaire allows for the use

of both closed and open question therefore providing the

researcher with a more rounded view of the subjects opinions.

Justification for using questionnaires

Inexpensive to use

Can be used in either small or large surveys.

Close questionnaires are easily quantifiable

Provide large amounts of data

Secondary data

Is the data have already been collected by elsewhere for someone else

for some other purpose, but which can be used or adapted for the survey

being conducted" (EDEXCEL HNC/HND, 2004) Information will be

collected from websites, journal, newspapers etc in relation to

McDonalds.

Advantages of secondary data

Ease to access and less time consuming than primary research as

the data already exist.

Low cost- secondary data collection is much cheaper that primary

research collection

May help to clarify the research question for example by

conducting a literature review this might help the research obtain a

clearer understand of the topic to be researched.

Disadvantages of secondary data

Inconsistency and inaccuracy of data may hinder the research from

getting a clear understand of the research topic and may lead to

incorrect assumptions.

Information is not specific to the researchers need and means that

the research may need to spend a large amount of time sorting

through irrelevant information.

Secondary data may not be timely, that is information could be out-

of-date.

Literature Review

New product development is a company's lifeblood. Growth and profits

suffer without aggressive product development introducing new

product's and services into the market.

All companies need to find out what their customers/potential customers

want in order to meet any gaps in the market. However, asking your

customers to take the role of R&D personnel to find out what they want

will not always lead to success. The key to successful market research for

new product development comes from an understanding of what

customers value and not simply from asking them to submit their own

solutions.

New product development research is not always about looking at the

product in isolation; the product, the packaging, the advertising and the

pricing strategy are all integral parts of the research. Any new product

launch is inherently risky as it is a venture into the unknown.

Competitive Advantage

Jones and George suggest that competitive advantage can be created by

one or more of the four factors: - (Jones & George, 2007)

Efficiency: this refers to the overall efficiency of the organisation by

comparing total income against total costs. They further stated that

the organisation must consider labour costs, the long term benefits

that may result from introducing new technology; possible increase

in income and reduction in cost by improving quality and long-term

benefits such as employee training. McDonalds have been able to

improve efficiency by providing high quality choices that offer

customers a variety of choices to meet a balance as well as

specialist dietary need. For example, McDonalds offer salads, fruits

and fruit juice among its healthy option range to meet customer

needs. Also they are providing transparency on their products by

make customers aware of the nutritional content of all it products.

In addition, McDonalds is investing in its workforce through

numerous training programs to enable employees to better serve

their customers..

Qaulity-this refers to the quality of output in terms of does the

product meet the customer requirements. This aspect emphasis

quality of design, conformance to quality and reliability. McDonalds

has continued to product high quality products that meet customer

needs.

Innovation: this refers to innovation of product, production or

service provision. McDonalds has continued to offer completely

new ranges of products as well as improving or varying existing

ones. For example, McDonalds has focus on reducing the Trans fat

and salt content of its products without changing taste and have

been successful in their use of new healthier cooking oils.

Customer responsiveness: this refers to the organisation

establishing the needs and wants of the customers, developing

products that satisfy those needs and wants, measure the products

in terms of value, quality and customer satisfaction and exchange

of transactions between the organisation and its customers.

McDonalds has mainly focused on this strategy in order to

reposition itself and has done so in the following ways:-

McDonald's have carried out extensive market research to

establish what products their customer's want and has revised it

menu to meet customer demands. For example, McDonald's

experimented with a range of vegetarian meals and where able to

provide a vegetarian menu within 18 months. Also providing lamb

burgers in India in responsive to their religious needs

A change in lifestyle for instance healthier eating habits has seen

the biggest change in McDonalds. McDonalds now offer health

options such as salads, grilled chicken, flatbreads, breakfast

porridges fruits and fruit juices. They even offer concern parents

the opportunity to replace fries with carrot stick. The firm also

dropped it's supersize portions.

McDonalds also launched a campaign emphasising the firm's fresh

and healthier menu with a slogan "McDonald's but not as you know

it" splashed across close up pictures of fruit and salad. (Crane &

Matten, 2007)

Finally, McDonalds' launched an exercise imitative aimed at young

people. The 'what I eat and what I do' campaign intends to show

that there are two sides to a healthy lifestyle- diet and exercise.

(Crane & Matten, 2007)

Michael Porter (1998) argues that there are five forces that affect

competition. He states that"the five-force framework provides the

structure for analysing effect, while activities and the value chain provide

the structure for examining the competitive advantage effect."

Porter's five forces are useful, because it helps to understand both the

strength of your current competitive position, and the strength of a

position you're looking to move into.

1. Bargaining power of suppliers: in this case it is for suppliers to

drive up prices. It is driven by the number of suppliers of each key

input, the uniqueness of their product or service, their strength and

control. Not to be under suppliers control McDonalds are

producing their own products for example potato and might think

of sourcing different suppliers because of the increasing prices of

food and petrol.

2. Bargaining power of customers: in this case prices are driven by

the number of buyers, the importance of each individual buyer to

McDonalds. Due to the credit crunch buyers are choosing

McDonalds as an eating out option since it will cost them more

switching from McDonald's products to those of someone else.

McDonalds is attracting buyers through quantity, pricing and

promotions.

3. Threat from substitute products:this is affected by the ability of

your customers to find a different way of doing what McDonalds

does - it's true that McDonalds prices are affordable but there is a

large number of competitors for example ready meals, sandwiches ,

Burger king this means they are not supplying a unique product so

buyers have the choice to choose other places, and due to the

credit crunch people may substitute by eating at home and not

paying extra money on their meal which might weakens McDonalds

power.

4. Threat of New Entry:Power is also affected by the ability of others

to enter McDonald's market; it will cost them time and money to

compete effectively. Although fast food industry is growing and

showing an increase in sales at the mean time because of their

affordable prices with the credit crunch, it makes it attractive to

new business, but McDonalds have a strong and durable barrier to

entry by dominating the market with established products and

brand equity, so they can make it unattractive to new comers and

preserve a favourable position and take fair advantage of it.

5. Industry for rivalry among existing competitors:the number and

capability of McDonalds competitors are very important- for

example Burger King and KFC, and they offer equally attractive

products and services, If buyers don't get a good deal from

McDonalds, they'll go elsewhere so they need to be continually

innovative new products at regular intervals to attract and retain

customers, focus on below the line promotion strategies for

example buy one get one free.

Socio-cultural influences on consumer buying behavior

Hofstede (1984) defined culture as the collective programming of the

mind which distinguishes different groups. Hofstede identified five

dimensions that explain different cultures:-

Power Distance Index (PDI) this refers to the extent to which the less

powerful accept and expect that power is distributed unequally. Hosfetde

suggests that the societal inequality is endorsed as much by the less

powerful as it is by the more powerful.

Individualism (IDV) - in some society individual achievement and freedom

is paramount as everyone is expected to look after themselves. However,

other society strives for collectivism and people are integrated into

strong cohesive groups which shape their values and attitudes.

Masculinity (MAS) this refers to the distribution of roles based on

gender. In masculine societies the focus is on achievement and power

while in feminine societies the focus is on values such as caring.

Uncertainty Avoidance Index (UAI) this refers to society level of

tolerance for uncertainty. Uncertainty avoiding cultures try to minimize

uncertainty by strict laws and rules, safety and security measures, and on

the philosophical and religious level by a belief in absolute Truth. People

in uncertainty avoiding countries are also more emotional, and motivated

by inner nervous energy. Uncertainty accepting cultures are more

tolerant and try to have few rules that might restrict individual choice.

New Product Development

According to Johnson and Scholes , strategy development is a dynamic

process which should be carried out on a regaular basis , in order that

strategies and plans can be adjusted can be adopted to changes within

the organization itself and within the wider business environment.

(Johnson & Scholes, 2002) .

Strategy development is important in that is will help McDonalds to

identify their:-

Strengths and weaknesses as well as the opportunities and threats

facing the organizations. These give McDonald's an idea of where

potential opportunities for expansion existing as well as it the

company have the necessary resources in place to meet the

changing organizations needs

Organizational capabilities- McDonalds will be able to address

issues as the availability of resources needed for any new product

development.

Environmental forces- by conducting a PESTLE analysis McDonalds

will be able to identify the environmental forces influencing the

company and they can therefore develop and implement strategies

to meet these needs.

Lancaster and Massingham (1988) identified the stages of New Product

Development as follows:

Idea generation- develop new idea for product through customer

survey and brainstorming sessions

Screening new ideas- this stage allows further analysis of the ideas

addressing areas such as target market, size of growth forecasts,

competitive pressure and feasibility of developing the product.

Business analysis- concerns the financial viability of the product.

Forecasting techniques are used to determine the selling prices as

well profitability and breakeven point based competition and

customer feedback.

Product development - this stage is concerned with the actual

development of the product and includes prototype development.

Test Marketing- involves testing the product using focus groups.

Any necessary changes are made at this stage.

Commercialization- this is the final stage of the development cycle.

At this stage the product is launched, the full marketing mix is

engaged e.g. promotion and distribution

The Fuzzy Front End is the messy "getting started" period of new product

development processes. It is in the front end where the organization

formulates a concept of the product to be developed and decides whether

or not to invest resources in the further development of an idea. It is the

phase between first consideration of an opportunity and when it is judged

ready to enter the structured development process (Kim and Wilemon ,

2002; Koen et al., 2001). It includes all activities from the search for new

opportunities through the formation of a germ of an idea to the

development of a precise concept. The Fuzzy Front End ends when an

organization approves and begins formal development of the concept.

Although the Fuzzy Front End may not be an expensive part of product

development, it can consume 50% of development time (see Chapter 3 of

the Smith and Reinertsen reference below), and it is where major

commitments are typically made involving time, money, and the

product's nature, thus setting the course for the entire project and final

end product. Consequently, this phase should be considered as an

essential part of development rather than something that happens

"before development," and its cycle time should be included in the total

development cycle time.

Koen et al. (2001, pp.47-51) distinguish five different front-end elements

(not necessarily in a particular order):

1. Opportunity Identification

2. Opportunity Analysis

3. Idea Genesis

4. Idea Selection

5. Concept and Technology Development

The first element is the opportunity identification. In this element, large

or incremental business and technological chances are identified in a

more or less structured way. Using the guidelines established here,

resources will eventually be allocated to new projects.... which then lead

to a structured NPPD (New Product & Process Development)strategy.

The second element is the opportunity analysis. It is done to translate the

identified opportunities into implications for the business and technology

specific context of the company. Here extensive efforts may be made to

align ideas to target customer groups and do market studies and/or

technical trials and research. The third element is the idea genesis,

which is described as evolutionary and iterative process progressing

from birth to maturation of the opportunity into a tangible idea. The

process of the idea genesis can be made internally or come from outside

inputs, e.g. a supplier offering a new material/technology, or from a

customer with an unusual request. The fourth element is the idea

selection. Its purpose is to choose whether to pursue an idea by

analyzing its potential business value. The fifth element is the concept

and technology development. During this part of the front-end, the

business case is developed based on estimates of the total available

market, customer needs, investment requirements, competition analysis

and project uncertainty. Some organizations consider this to be the first

stage of the NPPD process (i.e., Stage 0).

The Fuzzy Front End is also described in literature as "Front End of

Innovation", "Phase 0", "Stage 0" or "Pre-Project-Activities".

A universally acceptable definition for Fuzzy Front End or a dominant

framework has not been developed so farIn a glossary of PDMA, it is

mentioned that the Fuzzy Front End generally consists of three tasks:

strategic planning, concept generation, and, especially, pre-technical

evaluation. These activities are often chaotic, unpredictible, and

unstructured. In comparison, the subsequent new product development

process is typically structured, predictable, and formal. The term Fuzzy

Front End was first popularized by Smith and Reinertsen (1991)

R.G.Cooper (1988) describes the early stages of NPPD as a four step

process in which ideas are generated (I),subjected to a preliminary

technical and market assessment(II) and merged to coherent product

concepts(III) which are finally judged for their fit with existing product

strategies and portfolios (IV). In a more recent paper, Cooper and Edgett

(2008) affirm that vital predevelopment activities include: 1)Preliminary

market assessment. 2)Technical assessment. 3)Source-of-supply-

assessment:suppliers and partners or alliances. 4)Market research :

market size and segmentation analysis,VoC (voice of customer) research.

5.Product concept testing 6.Value-to-the customer assessment 7.Product

definition 8.Business and financial analysis. These activities yield vital

information to make a Go/No-Go to Development decision. In the in-depth

study by Khurana and Rosenthal (1998) front-end activities include

product strategy formulation and communication, opportunity

identification and assessment,idea generation,product definition,project

planning,and executive reviews. Economical analysis, benchmarking of

competitive products,and modeling and prototyping are also important

activities during the front-end activities. The outcomes of FFE are the

mission statement,customer needs,details of the selected concept,

product definition and specifications, economic analysis of the

product,the development schedule,project staffing and the budget,and a

business plan aligned with corporate strategy. In a paper by Husig, Kohn

and Huskela (2005) was proposed a conceptual model of Front-End

Process which includes early Phases of Innovation Process. This model is

structured in three phases and three gates: Phase 1: Environmental

screening or opportunity identification stage in which external changes

will be analysed and translated into potential business opportunities.

Phase 2 : Preliminary definition of an idea or concept. Phase 3 : Detailed

product, project or concept definition, and Business planning. The gates

are : 1) Opportunity screening;2)Idea evaluation;3) Go/No-Go for

development. The final gate leads to a dedicated new product

development project . Many professionals and academics consider that

the general features of Fuzzy Front End (fuzziness,,ambiguity, and

uncertainty) make difficult to see the FFE as a structured process,but

rather as a set of interdependent activities ( e.g.Kim and Wilemon ,2002).

However, Husig et al.,2005 [10] argue that front-end not need to be

fuzzy,but can be handled in a structured manner.Peter A.Koen (2004)

argue that in the FFE for incremental,platform and radical projects,three

separate strategies and processes are typically involved. The traditional

Stage Gate (TM) process was designed for incremental product

development,namely for a single product.The FFE for developing a new

platform must start out with a strategic vision of where the company

wants to develop products and this will lead to a family of products.

Projects for breakthrough products start out with a similar strategic

vision,but are associated with technologies which require new

discoveries.It is worth mentioning what are incremental,platform and

breakthrough products. Incremental products are considered to be cost

reductions, improvements to existing product lines,additions to existing

platforms and repositioning of existing products introduced in markets.

Breakthrough products are new to the company or new to the world and

offer a 5-10 times or greater improvement in performance combined with

a 30-50% or greater reduction in costs. Platform products establish a

basic architecture for a next generation product or process and are

substantially larger in scope and resources than incremental projects

(Koen, Peter A., 2004 )

Analysis and Finding

In March 2003, McDonald's added several healthier items to its menu.

These items include a line of premium salads for adults, and 1% fat milk

and fresh apple slices as Happy Meal options for children. McDonald's

has also eliminated its supersize drink and French fries options.

As of November 1, 2004, McDonald's had sold 200 million salads, and

anticipated selling 35 million pounds of apples during 2004. Sales of 1%

fat milk sold in Milk Jugs bottles have more than doubled since their

introduction in 2003. McDonald's efforts to increase healthy menu

options have also increased sales. The company reports new, healthier

products have been profitable for their bottom line.

The company reported a fall in profits - to $471m (£290m) in the

three months to end-June, from $498m a year earlier - but was

encouraged by an 11% jump in sales.

It attributed falling profits to the high costs of restructuring its business,

including the closure of hundreds of restaurants and investment in new

products.

These new products, which are deliberately slanted towards healthy

eating, have sold well, the company insisted.

McDonald's financial performance in recent years has suffered from the

perceived dreariness of its traditional menu.

And investors have become afraid of lawsuits from obese customers,

some of whom blame the chain for their expanding waistlines.

'Only the beginning'

"I'm pleased with the strong customer response to our innovative new

products," said chairman and chief executive Jim Cantalupo.

" But I'm far from satisfied. This upturn reflects only the beginning of our

worldwide revitalisation plan."

Part of this plan is a drive to invest in new products, and to market them

aggressively.

Mr Cantalupo heaped praise on launches such as the "McGriddle"

breakfast concept, and the roll-out of wi-fi internet access in some US

restaurants, both of which, he said, chime with changing lifestyles.

The other part of the recovery plan involves far tighter control of

spending.

The pace of restaurant openings is being reined in: last year, the firm

opened 1,000 more outlets than it closed; in 2003, the net increase will

be just 360. (www.mcdonalds.com, 2009)

Research indicated that 35% of people who currently do not purchase

McDonalds would do so if they had healthier options as they were

cheaper than many other restaurants. Additional, 67% of existing

Customers indicated that they were concerned about their health and

would purchase healthier options if they were available and attractive.

Customers still want to enjoy the eating out experience during the

economic recession and see McDonalds as a viable option. However,

concern over the high fat and calorie content of McDonalds food have

deterred individual who are health conscious and want to eat health.

Introducing more healthy options such as a variety of salads and healthy

kids meal can see a potential increase in McDonalds sales.Introducing

healthier options will allow McDonalds to increase their customer base

and attract new customers so that they can expand through product

development.

Marketing Strategy

Ansoff Matrix

The Ansoff matrix is a tool that helps businesses decides their market

growth strategy and their product. It presents distinct opportunities,

threats, resource requirements, returns and risks. (Hollensen, 2003)

Market penetration strategies

This is the most frequently used strategy and focuses on increase market

shares. This can be done by attracting new customers or increasing sales

to existing customers. For example, the introduction of the adult burger

and redecorating the restaurant to make it more attractive to adults.

Market development strategies

This entails marketing existing products to new customer groups and

regions. This strategy requires the full implementation of the marketing

and focuses on finding new markets, distribution channel and promotion

strategies as well as products specialisation. For example,open in new

market example Singapore and Hong Kong and adapting products to suit

culture needs.

Diversification Strategies.

This concerns the development of new products for new markets. This is

the most risky options, especially when the entry strategy is not based on

core competences of the business. McDonalds has used vertical

integration by purchasing the own potato farm as well as the factory for

production of the own chips.

Marketing Mix

This following marketing mix will be used for McDonalds new Healthier

Menu.

Product: McDonalds, will be offering a wider variety of salads and

fruit options. This will be offered on two scales Salads for adult and

fruits and fruit juice in kid's meals instead of chips and sodas.

Distribution: McDonald's will sell these products throughout it

franchised stores

Price: due to the unique quality of unique of the products

McDonalds will use a premium pricing strategy with salads and

healthy sandwiches. However, they will maintain their value

pricing strategy with regards to the kids meals as fruits and fruits

will be replaces existing foods in the meal package and are not

additionally options. ..

Promotion: McDonalds will market its Healthier menu using a

range of techniques for including advertising, publicity, partnership

and sale promotion. TV, Newspaper and posters will be used to

promote the product. They will also attempt to reform it's strategic

alliance with Disney to help promote the new kids meal by offering

Disney character as part of the meal package.

Resources Needed

Financial resources- The development and introduction of a new menu

will require financial investments. McDonalds will either have to source

money from existing funds or from external investors.

Monitoring and review

Sales:- McDonalds will review its sales at the end of 6months to see if

there have been an increase in the number of healthy foods sold as well

as overall sales. Volume of new menu sales will indicate that the new

products have been successful and management can then decide if to

continue with the products.

Customer feedback: McDonalds will conduct a post-implementation

questionnaire and focus group to determine what customers think about

the healthier menu. This will give the company and indicate as to

whether people like the healthier option. Also it will tell them if they have

attracted new customers and have therefore grown as a result of the new

products

References

1. ^ Ulrich, Karl T. and Eppinger, Steven D (2004) Product Design

and Development, 3rd Edition, McGraw-Hill, New York, 2004

2. ^ Ullman, David G. (2009) The Mechanical Design Process, Mc

Graw-Hill, 4th edition

3. ^ Kim, J. and Wilemon, D. (2002), Sources and assessment of

complexity in NPD projects. R&D Management, 33 (1), pp. 16-30.

4. ^ a b Koen et al. (2001), Providing clarity and a common language

to the 'fuzzy front end'. Research Technology Management, 44 (2),

pp.46-55

5. ^ Smith, Preston G. and Reinertsen, Donald G. (1998) Developing

Products in Half the Time, 2nd Edition, John Wiley and Sons, New

York, 1998.

6. ^ Husig and Kohn (2003), Factors influencing the Front End of the

Innovation Process: A comprehensive Review of Selected empirical

NPD and explorative FFE Studies ,Brusell,Juni 2003,p.14.

7. ^ Smith,Preston G., Reinertsen Donald G.(1991) Developing

products in half the time, Van Nostrand Reinhold,New York

8. ^ Cooper,R.G. Predevelopment activities determine new product

success, in: Industrial Marketing Management,Vol.17 (1988), No

2,pp. 237-248

9. ^ Cooper R.G., Edgett, S.J.(2008), Maximizing productivity in

product innovation, in: Research Technology Management,March

1,2008

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