While Crysler’s minivans, pickups,and sport utility vehicles take a big share of the truck market, its cars trail behind those of GM, Ford, Honda, and Toyota. Quality problems include, among other things, water leaks and defective parts. 8. Define the problem statement (The why and the what) in the following situation:

PROBLEM STATEMENT

A problem statement is a short description of the problem that need to be addressed by the problem solving or research team. Defining a problem statement would give direction to the problem solving, which are described using the “5 W”- Who, What, Where, When and Why.

It is a great technique to get relevant information that is required to solve a problem. A problem statement should be solvable. That is, it should take a reasonable amount of time to formulate a strategy to formulate the problem, try and deploy a possible solution.

The given situation is a comparison of business of Crysler’s truck and car market. It is found that Crysler share a leadership position in the truck market with its minivans, pickups and sport utility vehicles, while the car market is left behind the leaders like GM, Ford, Honda and Toyota. The obvious reasons for low market positioning found are the quality problems like water leaks and defective parts.

In this situation the problem statements are

THE WHY

Why is it important for Crysler to improve the sales of car market?

Why is it important to solve the quality problems?

This statement could lead to other questions like “What impact would it have on the growth of Crysler/impact of business/impact on industry/impact on employees/impact on competitors and customers” etc.

THE WHAT

What is the impact of poor performance in the car market on the growth of the company?

What would be possible benefits of improving the business in the car market?

What would happen to the company if this situation continues?

What are the factors that causes poor performance in the market?

What are the strategies that should be adopted to overcome the quality issues?

What are the strategies that should be adopted to outperform the competitors/gain a competitive position in the car market?

 
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