Posted: December 26th, 2022

Critical Thinking The Chinese company BYD is pursuing electric cars and hopes to

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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 few years 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 EV there is no internal combustion engine, muffler, gasoline tank, air and fuel filters,
and other parts needed to run a gasoline 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. (5 Marks)
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.
(5 Marks)
3. How electric car will be useful in Saudi Arabia’s Neom city project to achieve
Kingdom’s vision?

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