Case study on "General Motors: Packard Electric Division"

Sample Solution

   

Part 1: What types of information would you need to identify to conduct the case analysis process?

To conduct the case analysis process on the "General Motors: Packard Electric Division" case from a "problem" case situation, you would need to identify the following types of information:

1. The specific problem(s) that the case study is addressing. This can be done by reading the opening and closing paragraphs of the case study, as well as scanning the headings and reading any sections that specifically mention problems.

Full Answer Section

      The root causes of the problem(s). This can be done by analyzing the case study for information about the history of the problem(s), the factors that contributed to the problem(s), and the consequences of the problem(s). 3. The potential solutions to the problem(s). This can be done by brainstorming potential solutions, as well as by researching solutions that have been used in similar situations. 4. The costs and benefits of each potential solution. This can be done by analyzing the case study for information about the resources that are available to address the problem(s), as well as the potential impact of each solution on the organization. 5. The recommended solution to the problem(s). This can be done by evaluating the costs and benefits of each potential solution, and by selecting the solution that is most likely to be effective and feasible. Part 2: Case Study Assignment 1 Step 3: Develop a solid hypothesis. The case study on General Motors: Packard Electric Division describes a problem situation in which the division is facing declining market share and profitability. The case study identifies a number of factors that have contributed to this problem, including:

• Increased competition from foreign automakers
• Rising labor costs
• Declining quality standards
• A lack of innovation

Hypothesis: The decline in market share and profitability at Packard Electric Division is due to a combination of factors, including increased competition, rising labor costs, declining quality standards, and a lack of innovation. Evidence from the case to support the hypothesis:

• The case study states that foreign automakers have been gaining market share in the United States, and that Packard Electric Division has been losing market share to these competitors.
• The case study also states that labor costs have been rising in the United States, and that this has made it more difficult for Packard Electric Division to compete with foreign automakers.
• The case study also mentions that quality standards at Packard Electric Division have declined in recent years. This has led to customer dissatisfaction and lost sales.
• The case study also states that Packard Electric Division has been slow to innovate. This has made it difficult for the division to compete with foreign automakers, who are constantly developing new products and technologies.

Step 4: Explain what actions are necessary. The following actions are necessary to address the problems at Packard Electric Division:

• Reduce labor costs. This can be done by negotiating lower wages with unions, outsourcing jobs to lower-cost countries, or automating production processes.
• Improve quality standards. This can be done by implementing quality control measures, training employees on quality standards, and investing in new equipment.
• Increase innovation. This can be done by investing in research and development, creating a culture of innovation within the organization, and acquiring companies with new technologies.

Step 5: Defend why your hypothesis is better than the other alternatives. The hypothesis that the decline in market share and profitability at Packard Electric Division is due to a combination of factors, including increased competition, rising labor costs, declining quality standards, and a lack of innovation, is better than other alternatives because it takes into account all of the major factors that are contributing to the problem. Other possible hypotheses include:

• The decline in market share and profitability at Packard Electric Division is due to increased competition from foreign automakers.
• The decline in market share and profitability at Packard Electric Division is due to rising labor costs.
• The decline in market share and profitability at Packard Electric Division is due to declining quality standards.
• The decline in market share and profitability at Packard Electric Division is due to a lack of innovation.

However, these hypotheses are not as comprehensive as the hypothesis that all of these factors are contributing to the problem. Strengths and weaknesses of the hypothesis and alternatives: The strengths of the hypothesis that all of the factors mentioned above are contributing to the problem are that it is comprehensive and that it is supported by evidence from the case study. The weaknesses of the hypothesis are that it is difficult to test and that it does not provide a specific prescription for how to solve the problem. The strengths of the alternative hypotheses are that they are specific and that they are potentially testable. The weaknesses of the alternative hypotheses are that they are not as comprehensive as the hypothesis that all of the factors mentio