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Explain the processes involved in the development of products and services and the levels of customer integration.
P2 Apply these processes in application to the development of a specific organisational product or service.
M1 Consistently demonstrate a justified application of subject knowledge and understanding to the processes of product or service development.

LO2 Assess the life-cycle stage of the products or services in a company’s portfolio and evaluate whether innovation, adaptation or renovation are needed for the individual products or services.
P3 Assess the life-cycle stage of the products or services in a company’s portfolio.
P4 Evaluate which appropriate product line management choices are required for individual products or services.
M2 Provide a coherent and justified evaluation that is supported by material synthesised from a range of validated sources.

LO4 Demonstrate an ability to critically reflect on the skills of team working, creative development and presentation.

New product development processes

LO1 Explain and demonstrate processes involved in new product or service development.

For the new development of the product, it is important to gather the different ideas which are evaluated based on the options of product. It includes the contributions from the different inside and outside of the organization (Armstrong et al., 2015). The use of research techniques like surveys is to get the idea to encourage the customer comments and the suggestions through website forms etc. For a proper product development analysis, there is a need to focus on:

  1. The generation of an idea which is mainly through conducting a proper research to find the needs of customers and then inviting different suggestions from them. The brainstorming suggestions are needed for the new product areas with national and international markets to get a better feedback from the agents or the dealers about the services which are offered mainly by the different competitors.
  2. The idea screening is depending upon the necessity which is depending upon the new product break even. The marketing network and the existing plant and the machinery tend to produce the new product which helps in proper selections and avoiding the failures.
  3. The concept testing is depending on whether the consumers are able to understand the product with examining the need and their acceptance (Stark, 2015).
  4. The business analysis is important for the product development to analyze the cost, demands, and the competitors of the new product. It helps in matching with the profitability of the system.
  5. The product development for the company is set at the different stage in the market. It includes the distribution of the new product with plans and for handling the finance to introduce the new product details. This is done through the small-scale measures for the test marketing.
  6. The testing market is to define and introduce about the small-scale market. Here, the new products are found successful wherein if the product fails, then the company tends to find the reasons for its failure (Tukker & Tischner, 2017).
  7. The commercialization is important for testing the success of the product. The company introduces the new products on the different large scales in the countries. They are able to make the larger investment in the new product which helps in producing and distributing the new product on the huge scale. The advertisements are done in the mass media like the TV, Radio etc.
  8. The reviewing of the marketing performance is to determine about whether the products are accepted by the consumers. It is important to analyze the demands, sales, and the higher profits (Wiesner et al., 2015). The customer satisfaction with the after-sales service is matched with the marketing staff to make them happy with the income for the new product. The competitors introduce the new and similar new product in the market.

The new product development in McDonald's is through indicating the adoption of the new innovation strategy which includes the business internationalization. The approach is viewed through local units which have added the different and new product items that are a major sign of the shift to a better and a healthier lifestyle. In Europe, the units of McDonald's are now adding to the Salad Plus menus which includes the fresh fruit bags, salad choices and the meal size salad choice. In Canada, McDonald's has been able to include the Toasted Deli Sandwiches which are mainly set on the wheat roll or the rye roll. In Hong Kong, the menu includes the salads and the yogurt of fruits. There are different carrots slices which have been added to the customers. On a large scale, there are 20 countries who are serving the apple whole with the other foods as well (Gmellin & Seuring, 2014). There has been a major expansion which includes McDonalds Happy Meal choices that include the choice of the sandwich and the beverages. The innovation strategy has been adopted by McDonald with focus on allowing the dynamism and then offering a better capacity to change with the circumstances. The design of the new product is the result of the market analysis which has been done in the world towards the trend of the healthy lifestyle. The idea of development originates mainly from the research in the market where there is a need to identify the areas set for the customers. As per the careful analysis and the discovery, McDonald's customers have healthy foods like salads where the teams have also made it a clear-cut path for establishing the healthy products within the niche. Considering the idea of economic cost, there is a need to focus on specifying the specific needs which involve the innovation and the applications of information (Tukker, 2015). For this, the innovation comes from the applications of the different scientific and the technical ideas. Here, the joint venturing, flexible hours of working and the power to create better purchasing power helps in improving the company products.

McDonald's case study

LO2 Assess the life-cycle stage of the products or services in a company’s portfolio and evaluate whether innovation, adaptation or renovation are needed for the individual products or services.

  1. Introduction: The product innovation includes how McDonald's has been through the different changes which are set at different times, mainly concerning about the products, with the price, place and the promotions. The place is important where the company started doing its franchising with 700 restaurants in the US. The promotions are done through Golden Arches and Ronald McDonald where the product is decided to create a proper menu for handling the hamburgers, cheeseburgers, French fries, shakes etc. The price of the organization is always important for the customer where there is a need to include the psychological value as well (Chang et al., 2014). If the product is priced at a lower value, then the customer perspectives are set towards the product mainly because customers jump into conclusion. It includes the low pricing and quality. The promotion covers the marketing communication which includes the display, telemarketing with use of methods and creating better results. When the customer arrived at McDonald's, then there is an in-store promotion to make people try the product with using the collectible promotions to keep the products buying. The place is important for organizations with nature of business or services, where the elements of marketing mix places are not only for the physical place or location to bring products to end consumer.
  2. Growth: The stage for McDonald company is most important. Here, the stage is set with major changes that happened to turn out McDonald's from infamous to the worldwide company (Lasi et al., 2014). The major changes include the market research which indicates about the quick breakfast which is welcomed by the consumers. The drive is to serve the customers in 50 seconds or less. The growth is defined by setting the marketing strategies which includes the collection of incomprehensible bits and pieces. The marketing plan is planned application for better objectives and to promote the better and clear understanding in the organization. The entire line of ability to access the resources, positioning strategy, customers and competitors are based on formulation and evaluation of effective planning and management (Vezzoli et al., 2015).
  3. Maturity: The stage organizations work for different ways to make their products more appealing so that the consumer is able to maintain and increase the marketing share. McDonald's has been able to mature a lot through the different times. Here, the items of the menu are considered for the different variety where, when they just opened, they had just hamburgers, milkshakes and fries. Here, one can get soft drinks, wraps, ice-cream etc. One needs to show the competitors about the introduction of new products for satisfying their customers. After the growth stage, the product is mature enough to meet the market conditions and enjoy the share with cashing the brand name. The low investments required for the advertisements and the promotions are mainly for the people to know about their products and then advertisements for a better exposure and support. This helps in sustaining the positions and not only to make more sales (Joore & Brezet, 2015).  
  4. Decline: The major factor for the sales to decline is the massive dive which is mainly after the movie release of Super-Size Me. The movie tried to sue McDonald's for health conditions and the McDonalds then responded that there is not enough proof for supporting their arguments. In this stage, there is no major requirement to invest more money on the product. The technology can easily be changed with a major good product as compared to the changes to the customer and their preferences with the shift to other products.

The decision stage is to add the health and the organic products in the menu where one tends to introduce the salads, milkshakes and the other burgers etc (Reim et al., 2015). The release of the "Go Active" campaign, with changing the environment of the customers by painting bright colors to attract the customers. McDonald's started giving better toys with the meals for kids with less of oily food like snack wrap. One can also stop selling the super-size portions in different restaurants. One can arrange the place for the children to run and play. The children get attracted towards the playground so that the parents can bring them to McDonald's. The process has been mainly to overcome all the negative effects and move on their reputation. With the success made in the reputation better with the increased sales at different times. In 2008, it was seen that the sales of McDonald's tends to increase by 6.9% where the revenue in 2008 was 23.5 billion dollars (Bakker et al., 2014). 

LO4 Demonstrate an ability to critically reflect on the systems of team working, creative development and presentation

With the teamwork, there come responsibilities to focus on working cooperatively and contribute to the groups with different ideas, suggestions and the efforts which are important in the sense of responsibility. The major ability is to participate in group decision making where the employers have to look for workers who can contribute their own ideas and create better projects and plans. The employees work together for the accomplishment of goals, with focusing on the benefits of people (Keiser et al., 2017). With this, team members tend to focus on workplace planning and cooperatively assign the tasks, with assessing the progress and proper delivery on time. There are certain professional discussions which help in getting the job done with limited complaints under the spirit of teamwork and to set the overall goals in mind. The activities tend to seek for teaching participants about teamwork with workplace success and to meet the specific goals of each individual (Kurilova et al., 2015). The activities are defined to seek and teach participants about teamwork with workplace success and to achieve positive behavior where one can have their impact on the team. With teamwork, one can express the ways to expertise, innovation with creative thinking skills. The approach is laid down under creativity which tends to obtain pleasure, satisfaction, and passion for the personal interests. The external environmental factors are based on influencing the creativity and identifying the workgroup engagement, freedom and autonomy and the organizational encouragement. This is important for matching with different resources, pressures and the impediments of the organisation.

Assessing the life-cycle stage of products

The creative development includes the understanding of difference where the new ideas are reflected to generate value with reduced operational costs, increased income and then converting the idea to a successful business. For this, the challenge is to define the imaginative positions with the possibilities to look forward to different ways of improvement. The creativity is the ability and attitude are the continuous processes (Chartr & Tischner, 2017). The organization can work towards confronting the challenges with identifying the assumptions behind ideas, proposals, problems, and beliefs. The ability is to suspend the judgments and criticism with mainly focusing on recognition, diversity, and openness. One needs to allow and ensure that the people are able to contribute and engage in the innovation efforts. The customers, partners are involving in establishing an end-to-end process for innovation which includes the scope, ideation, screening, decision making and defining the business cases.

For the creative development and presentation, the concepts affect the organizational behavior with an innovative approach to learning, knowledge management and the investments done in the intellectual capital (Matsas et al., 2017). For a better innovative approach, there is a need to properly manage the database, the creativity is defined through tangible in the organizational thought process which includes the learning to measure success and devise a proper development within the organizations. The study is about the subsequent adjustment in functions or structure which includes the comparison between the high and low innovation organizations. The organizations with the highly innovative standards provide the amount of funding to research and develop plans and channelize the resources towards the channel innovation. The requirements of are mainly to seek opportunities and create a new process that will include the mobilization of the technological skills along with providing the products or better service experience.

The concerns are related to the absence of the identity of the team, and the lack of commitment and effort. Here, the conflicts are between the team goals and the member goals or poor collaboration. For this, there comes a major difficulty to make the decisions and the team members are rigid to adhere to the positions to make decisions or make any repeated argument. The poor communication may interrupt with allusions to the problems and the inability to resolve the conflicts or lack of participation. The team members tend to fail to complete assignments with poor attendance at team meetings or low energy at the time of meetings. The group thinking and the ineffective leadership of the leaders could lead to the failure of the team by not defining the compelling vision, and not delegating or not representing multiple constituencies.

Critical reflection on the systems of team working, creative development, and presentation

For the improvements in the organization, the entity is defined under the approach to encourage and facilitate the learning the development of people, values which could transform itself to maintain a major and enduring competitive advantage (Rezaei et al., 2016). The learning organizations are skilled at creating, acquiring and properly or easily transferring the knowledge and insights. This requires the skills in terms of the problem solving, with experimentation done with new approaches and learning from the past experiences. The transfer of knowledge is done effectively through the organization to create a collective environment.


Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.

Bakker, C., Wang, F., Huisman, J. and den Hollander, M., 2014. Products that go round: exploring product life extension through design. Journal of Cleaner Production, 69, pp.10-16.

Chang, D., Lee, C.K.M. and Chen, C.H., 2014. Review of life cycle assessment towards sustainable product development. Journal of cleaner production, 83, pp.48-60.

Charter, M. and Tischner, U. eds., 2017. Sustainable solutions: developing products and services for the future. Routledge.

Gmelin, H. and Seuring, S., 2014. Determinants of a sustainable new product development. Journal of Cleaner production, 69, pp.1-9.

Joore, P. and Brezet, H., 2015. A Multilevel Design Model: the mutual relationship between product-service system development and societal change processes. Journal of Cleaner Production, 97, pp.92-105.

Keiser, S., Garner, M.B. and Vandermar, D., 2017. Beyond design: The synergy of apparel product development. Bloomsbury Publishing USA.

Kurilova-Palisaitiene, J., Lindkvist, L. and Sundin, E., 2015. Towards facilitating circular product life-cycle information flow via remanufacturing. Procedia Cirp, 29, pp.780-785.

Lasi, H., Fettke, P., Kemper, H.G., Feld, T. and Hoffmann, M., 2014. Industry 4.0. Business & Information Systems Engineering, 6(4), pp.239-242.

Matsas, M., Pintzos, G., Kapnia, A. and Mourtzis, D., 2017. An integrated collaborative platform for managing product-service across their life cycle. Procedia CIRP, 59, pp.220-226.

Reim, W., Parida, V. and Örtqvist, D., 2015. Product–Service Systems (PSS) business models and tactics–a systematic literature review. Journal of Cleaner Production, 97, pp.61-75.

Rezaei, J., Nispeling, T., Sarkis, J. and Tavasszy, L., 2016. A supplier selection life cycle approach integrating traditional and environmental criteria using the best worst method. Journal of Cleaner Production, 135, pp.577-588.

Stark, J., 2015. Product lifecycle management. In Product Lifecycle Management (Volume 1) (pp. 1-29). Springer, Cham.

Tukker, A. and Tischner, U. eds., 2017. New business for old Europe: product-service development, competitiveness and sustainability. Routledge.

Tukker, A., 2015. Product services for a resource-efficient and circular economy–a review. Journal of cleaner production, 97, pp.76-91.

Vezzoli, C., Ceschin, F., Diehl, J.C. and Kohtala, C., 2015. New design challenges to widely implement ‘Sustainable Product–Service Systems’. Journal of Cleaner Production, 97, pp.1-12.

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