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Modine Manufacturing
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Modine Manufacturing operates primarily in a single product category consisting of the manufacture and sale of heat transfer equipment. A major customer announced the cancellation of an agreement with Modine to develop a key engine component, which was needed by automotive companies in order to make their engines comply with new emissions guidelines set to take effect in several years. However, the expectation that the government would relax emissions guidelines was believed to have led to the cancellation of the project. Would other customers do the same? Considerable resources were spent on this project, causing projects that would be handled by the new product development area to be developed outside of this unit. The vice-president of technical services must analyse the company's new product strategy to determine its effectiveness in developing new products and what model the company should use for product development.