USA World Bank (UWB) enjoys an international and domestic presence in the banking arena. They are a major player in the industry and have U.S. and overseas branches. In able to stay competitive, UWB must launch successful products each year to its customers. Their customer base is a mix of consumer and business clients. They also tend to launch their new products in the United States market.
The President of New Product Development, Brian Allen, is ultimately responsible for the success or failure of the launch of the product. Brian works with the Vice President (VP) of New Product Development, Mary Monroe, and the Vice President of Marketing Development, Jim Wilson, to recommend a new product to the board for approval. Mary plays a big role in his decision. She is responsible for hiring an outside firm to conduct research on the new product. The research collects information from consumers.
This information is used to make a decision on whether the new product is likely to be successful. Once Brian, Mary, and Jim have a product that is likely to be a hit, they present the idea to the Board for a final decision. The catch is that only one product can be presented to the board each year. Mary and Jim both have a product that they want to see approved. Mary is recommending a product targeted for consumers and Jim is recommending a product targeted for business clients.
On the advice of Mary, Brian has selected to present a new product that offers rewards or lower interest rates for using their credit card. Jim is obviously concerned about the decision and is worried that his business customers will leave UWB for other banks that offer different products. Brian presented the idea to the board. When...