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In: Historical Events

Submitted By bitebite
Words 2933
Pages 12
Executive summary Modine Manufacturing is facing some difficulties within their new product development strategies after a major customer pulled out of their agreement with Modine to produce the exhaust- gas recirculation cooler (ERG). From this point, the company has three options to regain their standings in the industry, one is to make the European market the companies focus, the second alternative is to attempt to do some internal re-structuring to bring back the originality of the product development process, and finally streamline internal funding strategies to allow for the company to be specific to a consumer when need be but also have to abilities to cover a range of consumers needs. After further looking into to each alternative we recommend alternative 1, making the European market their main focus, because of the quality of the European market and the proximity it gives with regards to very prominent automobile companies. As well some of Modine’s major finances are already coming from this market and there is a lot of room for growth for Modine in this existing market they are already present in.

Problem Modine Manufacturing was faced with a huge set back in the production of their exhaust-gas recirculation (EGR) cooler when their major customer announced the cancellation of their agreement to produce the EGR cooler just as the project was near completion. The company couldn’t help but blame the violation of the new strategy for product development that was implemented, as well as the decision to commit such sufficient resources towards this project, while leaving all ongoing projects with limited resources and R&D development. When accepting this project, the company was looking at the potential revenue, but may have disregarded the consequences that can arise from devoting a product towards one dominating consumer, employees turned a blind eye...

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