CASE 5 : CHRYSLER'S TRANSMISSION PROBLEM Chrysler pioneered its immensely popular mini van in 1984. which quickly became the best selling product the company had ever built. Within ve years, Chrysler held more than 50 percent of the market share for mini vans. In 1989 Chrysler offered a new automatic transmission as an option in some of its top models of mini vans and luxury automobiles. The new transmission immediately ran into trouble when many customers reported serious problems. Claiming that it had made improvement to reduce the initial problem. Chrysler continued to use the transmission. Mean while the Centre for Auto Safety. :1 consumer group that monitors the auto industry charged that Chrysler had not tested the transmission before introducing it. The group's claim was supported by data on owner complaints and frequency of repairs. During the rst years of ownership itself, about 20 percent of the Owners were reporting problems with the new transmission For the 1991 model, Chrysler extensively modied the design of the vehicle but continued to use the same problematic transmission as standard equipment. with most of the larger engines in high demand. As a result, the Chrysler which was placed at the top in the magazine \"Consumer Reports\" for many years, dropped to the bottom of the list in 1991, citing the transmission in particular as well as other signs of deteriorating quality. A new Toyota model captured the top spot that year. Discussion Questions : 1. To what factors might you attribute Chrysler's failure to maintain market leadership. 2. What might Chrysler have done differently? How might a stronger focus on quality have helped? (Source : James R. Evans and William M. Lindsay; \"The Management And Control of Quality\Creative thinking and analytic skills Solving a case study steps points to remember: Identify the type of case open ended or closed ended case (problem, decision, evaluation) 1. Situation Analysis a. Summary of case or synopsis of case not more than one third of word limit of total case 2. Formulation of problem a. central problem describe in one sentence 3. Facts & figures a. It could be turnover of company and figures b. Core competence c. Year of establishment d. Core business 4. Assumptions a. Some theories related to case but not given in case but can be helpful in solving case 5. SWOT Analysis a. SWOT can be given in matrix also Strength(Internal) Weakness(internal) > Prada ste Opportunities(External) Threat(External) b. You need to read the questions after SWOT is done