Nick Thomas is the CEO of Auto Concepts, a new division of the one of the larges

Question

Nick Thomas is the CEO of Auto Concepts, a new division of the one of the largest U.S. automobile manufacturers with multiple divisions representing several auto and truck brands.

This company has been slowly losing market share to other competitors. Auto Concepts was created to develop totally new models that are more in tune with today’s changing automobile market. A primary consideration in this development effort is the U.S. Department of Energy’s Clean Cities Initiative that advocates the use of alternative automobile furls such as propane, natural gas, biodiesel, electric, hybrid, and/or ethanol. At the same time, management believes that the Internet of Things (IoT) with its capabilities of safe mobile connections, self- or assisted- driving, infotainment, on-board diagnostics, and more will be a prominent part of future vehicles.

Nick Thomas knows he must come up with some innovations in automobile design and engineering, but he is not certain in which direction he should guide this division. Nick realizes that he needs to find out what consumers’ attitudes are toward fuel prices and global warming. This knowledge will help him determine a direction for the company in terms of automobile design. Nick also needs more data on consumer preferences. Will they want to stay with today’s standard compacts or hybrids, or might they be interested in radically, different models that promise much higher fuel economies?

3. Define the problem of auto concepts.

Explanation / Answer

The problem in this case is the lack of market and consumers insight towards the traditional and new and innovative trends. There is a lack of information to take any informed decision about the company’s future. Due to this Nick is facing difficulty to take decisions. So, the problem of auto concepts is the lack of market and consumer research data.

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