Electric cars run partially on electricity unlike the conventional automobiles, which run on gas. Electric cars have been equipped with an electric motor that is powered by electricity. However, not all electric vehicles operate in a similar manner. For instance, the plug-in-hybrids are able to offer an electric motor and a gasoline engine. Still, most electric vehicles forego the gas and operate entirely on electricity. The vehicles are also emission free as they are charged with renewable electricity like wind or solar. The paper will lay emphasis on the strategies of launching the company that would produce electric cars for families. The paper will focus on supply chain strategy, sustainability strategy, and global strategy.
Supply Chain Strategy
A supply chain strategy should be based on the factors that are driving the electric car business. Similarly, the operations of a business have an impact on the productivity and efficiency of other businesses, as well as the supply chain strategies. In this regard, the strategy is an imperative aspect of business operations. In the design of electric cars for families, the supply chain strategy will evaluate the cost-benefit trade-offs, as well as the operational components of the business. For a successful launch of the business, the supply chain strategy will entail a scoping study, situation analysis and feedback to the senior management (Dima, 2015).
The situation analysis will incorporate strategy, customer, supply chain, and inhibitor reviews and alignment analysis. In designing electric cars for families, the essence of the scoping study will be having a better comprehension of the business and supply chain context. It also ensures that the strategy takes into consideration both customers and shareholders interests (Dima, 2015). The scoping study might take two weeks utmost with a project team of not more than three people. In its turn, the essence of the situation analysis is to identify alignment gaps and devising how the gaps can be closed. This is a paramount stage in the supply chain strategy that explains why it is resource intensive.
The duration of this process can be between six and eight weeks. The essence of the feedback and conceptual design is closing the alignment gaps that have been selected and defined. This gives the senior management a platform to select improvement projects based on the findings of the situation analysis. This process should not take more than four weeks. It is always important to ensure that the customer review is completed prior to the commencement of the supply chain review. The use of such a supply chain management is important in the electric car business because it serves as an art of management that provides the right products at the right time, at the right place and at the convenience of the customer.
Moreover, the effectiveness of the strategic management will determine the revenue recognition and the profitability of the electric car business. Additionally, supply chain operations can significantly improve product availability, as well as operational efficiency (Dima, 2015). The electric car company lays more emphasis on the supply chain strategies because they are the backbone of business organizations by ensuring effective market coverage.
Supply chain strategy pertains to the most suitable approach that ensures a business becomes relevant in the long run. Additionally, the business should also uphold its social, cultural and economic environment at the same time (Dima, 2015). Ethical corporate practices should also be up to par. The essence of sustainability strategy is ensuring the electric cars do not compete in the market only on the grounds of presentation and superior image. The sustainability strategy of the electric car company is maintaining transparency, stake holder engagement and innovation. Transparency is of the essence because major business operations need to be performed in an open environment that promotes employee involvement. Environmental needs must be fulfilled under this strategy, which ensures the companys operations do not inflict a negative impact on the community.
The company will also maintain high levels of accuracy, as well as information disclosure. In regards to stakeholder engagement, the management should have an understanding of any concerns raised by the stakeholders. In this respect, stakeholders is a general term that is connected with customers, employees, suppliers, directors and everybody who transacts with the company. The electric car company will need a sustainability strategy because of the changing needs of customers expectations. Moreover, the design cannot be rigid because the company will have to pay attention to emerging technologies and innovations. This will ensure that the products become relevant on the market or the customers might consider diverting to more suitable alternatives.
The critical aspect to acknowledge in a sustainability strategy is that it does not only revolve around the improvement of the manufactured electric cars, but also inventing better ones (Dima, 2015). The company will also look forward to improving peoples lives by leveraging sustainability and taking advantage of emerging innovation opportunities. The bottom line is that innovation should be the growth engine, which is a measure of appropriate sustainability strategies. The company can also consider hiring a professional to ensure the sustainability strategy operates smoothly and lives up to the companys expectations. In fact, companies that lay emphasis on sustainability strategies consider appointing chief sustainability officers who are accorded the prerogative of leading the department and the application of reliable sustainable strategies (Dima, 2015).
A global strategy is a conglomerate of international and multinational strategies. Its objectives are paramount in ensuring that a company attains its international expansion aims (Dima, 2015). The global strategy for the electric car company is expanding its perspective and using varying models to generate different plans at different places. However, the electric company will first conduct a PESTEL analysis to observe the competition levels and the expenses of different regions. For instance, tariffs might be higher in a foreign country whereas the citizens might not be willing to pay a high price for the electric cars. In such a case, it might not be prudent to venture in such a market in the name of global expansion. The company will also orchestrate a cost-benefit analysis prior to determining the countries that have the best business and profit potential.
A global strategy is important for the company because it will provide a platform for new sales and profits (Dima, 2015). The profits can be a major source of income for the company, especially when the home market does not conform to the companys expectations. A global expansion can also aid in securing resources, seeking efficiency and the acquisition of foreign companies that can enhance market position. The company will also benefit from extra savings because the high volume production will reduce some unit costs.
Companies need strategies that act as blueprints of what the company needs to achieve within a predetermined period of time. The strategies can also be used as benchmarks to measure progress, which determines whether it is on the right track. The strategies embraced by a company are a function of its ulterior objectives. The major strategies include supply chain strategy, global strategy and sustainability strategy. For the company launching electric cars for families, the supply chain strategy governs the relationship between the company and the consumers. The global strategy pertains to universal expansion, while sustainability strategies revolve around the long-run operations of the company.