Read the following case study and answer the question that follows:

Pegasus Car Company is a successful car manufacturer based in Europe. It has built-up a solid reputation for its excellent car engineering system and safety features.

Since it started operating ten years ago, it has launched at least two new family car models in different international markets every year.

About a year ago, the company began to lose car sales and market shares, and in the last two years it has made a loss.

However, Mr. Patrick Mahoney, the Managing Director, is currently reviewing company policy because of a recent dramatic fall in profits and share performance.

He believes that this is due to poor advertising, staff inefficiency, rising production costs and customer complaints that the newly assembled cars do not meet the required high safety standard.

Recently, problems have arisen within the companys engineering section. The 250 assembly line - workers have been demanding higher wages and better working conditions They are also unhappy because Mr. Mahoney is insisting that they work longer hours in order to increase the number of cars being assembled from 30 units to 50 units per day but the workers think that this move will have a bad effect on their health as well as on the quality of the finished new cars. The workers are threatening to go on strike if the situation does not improve soon.

As the head of the Marketing team for Mr. Patrick Mahoney you have gone through their business profile. Identify all the main problems faced by Pegasus Car Company.

Your answer should be written in a paragraph of approximately 100 words.