Problem:
Jon Moore, president of Vortex 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 Vortex's product mix. Jon calls a meeting of all the managers responsible for each of the product lines that Vortex currently manufactures. The group decides that they need to eliminate the complete industrial product line of ice chests, and plan to do so by letting the product decline without any changes in the marketing strategy or product. The group also decides to delete Vortex's line of personal thermal underwear; this product, however, 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 company has conducted several focus groups in which a sample of these consumers has participated. 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. Refer to Scenario 11.2. Vortex management is currently in which stage of?