Scenario One Reflection Paper

Scenario One Reflection Paper

The nine-step Problem-Based Learning (PBL) method is very useful for companies to solve problems. This method allows employers to identify and research solutions in order to find a feasible solution to their problem (Carroll, 2005). The scenario explored the problems of two companies, USAuto and AutoMex. The nine-step PBL model was applied to both companies to determine if a feasible solution existed.

Using this problem-solving method on all types of problems will present challenges when using the model on different types of problems in the future. This model may not be suitable for all problems that may face a business (Carroll, 2005). The model may not be as successful if the appropriate team is not assembled in order to outline the nine steps and the team members lack the required knowledge and skills. This would be one of the biggest challenges of using this model in the future. Our group believes that each member of the assembled team must possess a specialized knowledge in order to positively contribute.

We learned during the 9-step problem-solving model, that any problem, big or small, could be examined and explored thoroughly before setting out in search for a solution. The 9-step problem-solving system is helpful because the model requires the use of a systematic approach while the model avoids defining the wrong problem, making false or incorrect assumptions and deters a person from acting too quickly in making a decision. Internal and external factors are considered and the potential challenges are noted. The model allows for realization of opportunities and provides for the optimal end-state goals to be perceived.

The reason the model was effective was that both companies were able to troubleshoot their concerns regarding the impending partnership. USAuto's first concern was to market and build the first hybrid gas-electric engine. USAuto felt that this new technology was a major bargaining chip and any highly desirable auto industry would like to partner with USAuto to access the technology. USAuto's second concern was keeping their new technology from being duplicated and protecting their intellectual property from theft. USAuto's third concern was to have highly efficient workers and low labor cost. The labor cost in USAuto's cars is higher than the labor cost of competitors.

AutoMex also had concerns regarding their company. First, there was a concern for the profit sharing percentages. USAuto felt that profits should first be applied to research and development, and the remaining profit can be shared between the two companies based on the amount invested in the company. USAuto felt because they had spent a great deal of money to develop the engine, they should receive 75% and AutoMex would receive 25%. While on the other hand, AutoMex felt the profits should be split 50/50. AutoMex's second concern was using two plants in two different countries to assemble the automobile, which would have limited their ability to improve the quality of its plants and the knowledge of its workforce.

Both companies had legitimate concerns regarding the hybrid engine and were able to come together with a mutual negotiation. Both were able to build the hybrid engine and use the Mexico plant for manufacturing as well as protect their product under licensing. The licensing documentation will make it administratively and legally more difficult for a third party to profitably use the hybrid technology and would make it easier for USAuto to prove the theft.

Presented with this challenge, our group feels that outside resources will contribute a great deal to overcoming the challenge. Numerous consulting firms exist specializing in equipping industry leaders as well as past industry leaders with gaining or regaining ground that would assist a company in areas of needed growth. Reclaiming the lead in the auto industry is definitely a focus. In order to reclaim the lead, the right people need to be in the right place and in the right areas to enhance the progress toward that goal.

While these consultants may be considered "American", additional consultants may be needed as well. Consultants that understand the Mexican culture should be a part of the team. The Mexico Consulting Group has years of experience in helping corporations do business in Mexico.

Understanding and practicing Mexican business culture is a key factor to success in Mexico. Our professionals will advise you at each stage of your business development. You will soon grasp the Mexican way of doing business and learning to work in the local business idiom and culture (Mexico Consulting Group, 2006).

This key element to doing business in Mexico should be of the utmost concern of upper management at USAuto.

Another challenge to this model is time constraints. A company needs to realize the pending problem in order to have time to apply the model. Many companies do not want to admit a serious problem exists and the internal red-tape will delay proceeding to this method. A company will resort to this methodology if the company is meeting their stated long-term goals.

Overcoming this challenge will be based on complete buy-in from all the upper management of USAuto. Time is of the essence, and long periods of time spent mulling over issues and decisions should be eliminated. While well-informed, well-educated decisions need to be discussed and negotiated. It is imperative that the model be applied in such a way as not to venture away from the model. Full realization of the problem at hand and its long-term effects has to be grasped by the management at USAuto. Individual agendas and silos have to be removed for good progress to be made in a timely fashion.

Like USAuto and AutoMex, health care, insurance, and education institutions are facing financial problems and are having difficulty increasing revenue while attempting to expand their unique markets. The United States health care industry is constantly faced with dilemmas of how to care for the poor and uninsured and what services should be offered to members in order to provide effective care and low cost to the provider. In the 1990's, many organizations started Health Maintenance Organizations (HMO's) and established mandatory requirements of providers to minimize the cost of specialty care. After many lawsuits secondary to unforeseen deaths for refusing to provide required services, many HMO's lost their profitability and now face many of the same financial challenges that State and federal health care organizations face.

Post Hurricane Katrina, many insurance companies are required to pay out catastrophic returns to policy holders. Included, are