Final answer:
The business analysis stage includes market analysis to ensure a new product aligns with a company's existing product mix and assesses the market structure to plan production, pricing, and labor needs.
Step-by-step explanation:
True. The business analysis stage of new-product development involves exploring how well the new product fits with the firm's existing product mix. During this stage, a firm will conduct a market analysis to understand the market structure, which includes assessing market power, product similarity with competitors, and barriers to entry for new firms. This analysis is crucial as it determines production processes, output levels, product pricing, and labor requirements. It helps to identify how a product will complement or compete within the existing portfolio, ensuring strategic alignment and market competitiveness.