Complacency-Not Asking Questions

question 13

Essay

Complacency-Not asking questions. See Table 3.3 for additional information. Also, students should provide an appropriate example for each conceptual block.
Mini-Case: The Minivan Story. In the May 30, 1994, edition of Fortune magazine, the story of the minivan was told. In the earlier years of the passenger vans, only hippies seemed to appreciate the attributes of the van. However, in the 1970s, all three U.S. automakers began to study ways to modernize and broaden the appeal of their vans. Listening to customers helped Chrysler avoid two crucial design errors: (1) it rejected the long, wedge-shaped nose design and (2) it rejected the design that placed the engine under a hump in the floor (blocking passage from front to back seats). Also, while Chrysler continued to push for front-wheel drive, both Ford and GM handed responsibility of the minivan to the truck divisions, which continued to focus on rear-wheel drive. GM's problems were compounded by the fact that in 1985 station wagons were a significant part of its sales. In the 1990s, both GM and Ford developed front-wheel drive minivans and neither were housed in the truck division. Learning from their mistakes, both GM and Ford devised a new-product development process.
-Explain specific techniques related to defining problems and generating alternatives that can enhance the creative problem-solving process.

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Definitions:

EPS

A rephrased definition: The portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company’s financial health.

Press Release

An official statement issued to media outlets providing information on a particular matter or event associated with an organization.

Required Rate

The minimum return an investor expects to achieve for the risk associated with a particular investment.

Annual Dividend

The total dividend payment a company distributes to its shareholders annually, usually derived from its profits.