Reference no: EM133059103

Critical Thinking

The Chinese company BYD is pursuing electric cars and hopes to become the world's largest car company.With the financial support of American Warren Buffett, the company, which has only been in existence for a fewyears mostly making batteries, has caught the attention of not only Mr. Buffett but also many in the auto industry.

ELECTRIC AND HYBRID CARS

Electric cars (also known as electric vehicles or EVs) rely exclusively on battery power. With an all-electric EVthere is no internal combustion engine, muffler, gasoline tank, air and fuel filters, and other parts needed to run agasoline powered system. The vehicle itself also produces no tailpipe emissions, and by getting its power from an efficient utility company, overall, it produces fewer greenhouse gases. This is especially true if the electricity is produced with nuclear power, clean coal, or natural gas. EVs are also less expensive to fuel on a per mile basis. Electric cars, however, have a shorter driving range and are difficult to operate with long distance travel.

There are also some safety concerns associated with using a lithium-ion battery, as lithium is a highly reactive material prone to explosion

1. Do you think electric cars may become a viable alternative to gasoline-powered vehicles? What is the future of the electric car? Explain your answer especially in the context of KSA as Saudi Arabia is moving towards carbon free economy.

2. Given a business strategy of being the word leader in manufacturing electric cars with innovative technology, what operations and supply chain strategy do you think BYD should pursue? Identify what operations and supply chain should do to help BYD compete including a mission, objectives, distinctive competence, and key decisions.