IMSCO began manufacturing and distributing electrical brooms to industrial customers 43 years ago. Mr. Bretting, president of IMSCO, has been toying with the idea of using IMSCO’s manufacturing and distribution expertise to begin making and selling consumer products. He has already decided that he cannot sell any of his current products to consumers. Also, if IMSCO is going to go to the trouble of developing consumer markets, Mr. Bretting feels very strongly that their first product should be something new and innovative that will help establish their reputation.
He thinks that the expertise required to develop a new product exists within the company, but no one has any real experience in organizing or managing such a project. Fortunately, Mr. Bretting is familiar with a local consulting firm that has a good reputation and track record of leading companies through projects such as this, so he contacted them.
Three months into the project, Mr. Bretting contacted the program manager consultant and mentioned that he was worried about the amount of risk involved in trying to introduce such an innovative consumer product with his current organization. He was worried that the project was oriented too strongly toward R
