In September 2017, James Dyson announced that he was going to start selling electric vehicles (EVS)...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In September 2017, James Dyson announced that he was going to start selling electric vehicles (EVS) within three or four years' time. What is more, the famous British inventor contributed two billion pounds of his own money to turn his idea into a reality. He went on a hiring spree as well, recruiting 500 top-flight designers, engineers and managers for the project. Moreover, he decided to relocate his business headquarters in Singapore where the EVs would be manufactured. It seems like everyone is joining the EV revolution. It was estimated that over two million EVs would be sold in 2018, a projected 64 per cent increase over EV sales in the previous year. A study of the EV market and one entrepreneur's foray into it represents an excellent introduction to management. The excitement of the EV market is such that Audi, Mercedes-Benz, Porsche and Jaguar Land Rover have recently lined up to participate in the Formula E championship, where EVS race a street circuit of 1.9km to 3.4km. The legendary British brand Jaguar will compete in the Formula E with an EV called the I-PACE, which combines zero vehicle emissions and a stylish design. In 2020, Formula E cars are expected to reach speeds of 186 mph, up from about 174 mph currently. If EVS are indeed the wave of the future, then young managers may be right to believe that this represents an unparalleled opportunity to make their mark in a new industry that is being born. On the other hand, caution must be exercised as well. China is expected to account for more than half of global EV sales, since the Chinese government is doing more than western governments to encourage manufacturers to stop producing internal combustion engine (ICE) vehicles. Two of the major obstacles holding back the growth of the EV market in western countries are the high cost of the EVs and range anxiety, the fear that EVS cannot cover long distances because of battery depletion. In 2007, an Israeli entrepreneur named Shai Agassi launched an EV venture called Better Place, thinking he had the solution to both of these stumbling blocks. His idea was that consumers would buy an EV from a partner in the automotive industry that would sell EVs at a lower price than an ICE vehicle. The price would be lower because the EVs would not come equipped with batteries, the most expensive component in an EV. Better Place would provide the batteries to EV owners, who would pay a monthly subscription fee covering battery costs. Agassi partnered with Renault-Nissan who produced an EV that was $5,000 lower in price than a similar ICE vehicle. Meanwhile Better Place was supposed to build a network of switching stations in pilot markets such as Israel and Denmark where the EV owners could swap depleted batteries for fully charged ones. Between 2007 and 2013, Agassi raised around $850 million from investors for his venture, but only 21 switching stations were ever built in Israel before Better Place was liquidated for less than $3 million in 2013. The bankruptcy of Better Place underscores the uncertainty that young managers face in approaching the EV marketplace as a potential job market. However, momentum is building. Barriers in the EV charging infrastructure are coming down in a way that would make Agassi happy (he has not been heard of since the debacle). In October 2018, France's EDF promised to open 75,000 EV charging stations across Belgium, France, Italy and the UK by 2022, which would give the power utility a 30 per cent market share in EV charging. As for the EV sticker price shock, countries such as Norway have offered generous incentives to purchasers of EV vehicles to improve sales. Dyson was convinced that he could make a successful launch of his EVs in 2021, and that he could overcome the barriers to entry. He also wanted to attract more managers, designers and engineers to join his company. In 2016, he launched his own university called the Dyson Institute of Engineering and Technology, which is located on his R&D campus at Malmesbury, Wiltshire. Dyson believes that the UK is not training enough engineers and will be one million engineers short by 2022. He also thought he had the solution to range anxiety. His solution would have been twofold. First, he thought he could build a longer-lasting battery and second, he thought he could build more efficient motors that would need less energy to operate. Indeed, Dyson committed £1 billion to battery development and another £1 billion to designing the motors for the car. His ideas were based on years of experience in building cordless vacuum cleaners that have longer battery life and digital precision motors. Dyson doubled the battery life of his latest cordless vacuum cleaner, the V10. The vacuum cleaners also come equipped with a miniature digital motor that runs at 125,000 rpm, which is eight times faster than a Formula One engine. In November 2018, Dyson decided that he would build his first EV manufacturing facility in Singapore, ruling out Britain, and in January 2019, he opted to move his HQ to the city-state. Dyson manufactures all products in factories scattered throughout Singapore, Malaysia and the Philippines. He has his largest R&D facilities in the UK employing about 4,000 staff, a smaller R&D centre in Singapore and a much smaller R&D centre in Shanghai with 50 engineers and managers. He chose Singapore because it was the most logical place to build EVs since it would be close to existing suppliers and customers. At the regional level, Asia is the largest market for Dyson. Dyson, of course, was not the only game in town. Most global automakers have recently announced plans to electrify their vehicles or expand their EV models over the next ten years, including VW, Daimler-Benz, BMW, Renault-Nissan and Toyota. With urban air pollution a major concern, the European Union wants to cut car and van carbon dioxide emissions by 35 per cent or more by 2030, which will push buyers and automakers away from diesel and towards EVs. However, in October 2019 Dyson announced that it was cancelling its EV plans despite having built a "fantastic" prototype because it was not commercially viable. Dyson is now going to reallocate the £2 billion meant for EV production towards existing or new product development and hopefully most of the 500 EV engineers will be reassigned internally. 1. What turbulent forces are causing leaders in the automotive sector and government officials to rethink their use of fossil fuels? 2. Which managers - top managers, middle managers or first-line managers would make company-wide decisions about which type of company car to use? 3. Why did Dyson locate its EV production facilities in Singapore? 4. Do you think Dyson had a competitive advantage in EVs? How would you use the PEST analysis (in Chapter 2 The Evolution of Management Thinking) to explain the reasons why the EV project was cancelled? In September 2017, James Dyson announced that he was going to start selling electric vehicles (EVS) within three or four years' time. What is more, the famous British inventor contributed two billion pounds of his own money to turn his idea into a reality. He went on a hiring spree as well, recruiting 500 top-flight designers, engineers and managers for the project. Moreover, he decided to relocate his business headquarters in Singapore where the EVs would be manufactured. It seems like everyone is joining the EV revolution. It was estimated that over two million EVs would be sold in 2018, a projected 64 per cent increase over EV sales in the previous year. A study of the EV market and one entrepreneur's foray into it represents an excellent introduction to management. The excitement of the EV market is such that Audi, Mercedes-Benz, Porsche and Jaguar Land Rover have recently lined up to participate in the Formula E championship, where EVS race a street circuit of 1.9km to 3.4km. The legendary British brand Jaguar will compete in the Formula E with an EV called the I-PACE, which combines zero vehicle emissions and a stylish design. In 2020, Formula E cars are expected to reach speeds of 186 mph, up from about 174 mph currently. If EVS are indeed the wave of the future, then young managers may be right to believe that this represents an unparalleled opportunity to make their mark in a new industry that is being born. On the other hand, caution must be exercised as well. China is expected to account for more than half of global EV sales, since the Chinese government is doing more than western governments to encourage manufacturers to stop producing internal combustion engine (ICE) vehicles. Two of the major obstacles holding back the growth of the EV market in western countries are the high cost of the EVs and range anxiety, the fear that EVS cannot cover long distances because of battery depletion. In 2007, an Israeli entrepreneur named Shai Agassi launched an EV venture called Better Place, thinking he had the solution to both of these stumbling blocks. His idea was that consumers would buy an EV from a partner in the automotive industry that would sell EVs at a lower price than an ICE vehicle. The price would be lower because the EVs would not come equipped with batteries, the most expensive component in an EV. Better Place would provide the batteries to EV owners, who would pay a monthly subscription fee covering battery costs. Agassi partnered with Renault-Nissan who produced an EV that was $5,000 lower in price than a similar ICE vehicle. Meanwhile Better Place was supposed to build a network of switching stations in pilot markets such as Israel and Denmark where the EV owners could swap depleted batteries for fully charged ones. Between 2007 and 2013, Agassi raised around $850 million from investors for his venture, but only 21 switching stations were ever built in Israel before Better Place was liquidated for less than $3 million in 2013. The bankruptcy of Better Place underscores the uncertainty that young managers face in approaching the EV marketplace as a potential job market. However, momentum is building. Barriers in the EV charging infrastructure are coming down in a way that would make Agassi happy (he has not been heard of since the debacle). In October 2018, France's EDF promised to open 75,000 EV charging stations across Belgium, France, Italy and the UK by 2022, which would give the power utility a 30 per cent market share in EV charging. As for the EV sticker price shock, countries such as Norway have offered generous incentives to purchasers of EV vehicles to improve sales. Dyson was convinced that he could make a successful launch of his EVs in 2021, and that he could overcome the barriers to entry. He also wanted to attract more managers, designers and engineers to join his company. In 2016, he launched his own university called the Dyson Institute of Engineering and Technology, which is located on his R&D campus at Malmesbury, Wiltshire. Dyson believes that the UK is not training enough engineers and will be one million engineers short by 2022. He also thought he had the solution to range anxiety. His solution would have been twofold. First, he thought he could build a longer-lasting battery and second, he thought he could build more efficient motors that would need less energy to operate. Indeed, Dyson committed £1 billion to battery development and another £1 billion to designing the motors for the car. His ideas were based on years of experience in building cordless vacuum cleaners that have longer battery life and digital precision motors. Dyson doubled the battery life of his latest cordless vacuum cleaner, the V10. The vacuum cleaners also come equipped with a miniature digital motor that runs at 125,000 rpm, which is eight times faster than a Formula One engine. In November 2018, Dyson decided that he would build his first EV manufacturing facility in Singapore, ruling out Britain, and in January 2019, he opted to move his HQ to the city-state. Dyson manufactures all products in factories scattered throughout Singapore, Malaysia and the Philippines. He has his largest R&D facilities in the UK employing about 4,000 staff, a smaller R&D centre in Singapore and a much smaller R&D centre in Shanghai with 50 engineers and managers. He chose Singapore because it was the most logical place to build EVs since it would be close to existing suppliers and customers. At the regional level, Asia is the largest market for Dyson. Dyson, of course, was not the only game in town. Most global automakers have recently announced plans to electrify their vehicles or expand their EV models over the next ten years, including VW, Daimler-Benz, BMW, Renault-Nissan and Toyota. With urban air pollution a major concern, the European Union wants to cut car and van carbon dioxide emissions by 35 per cent or more by 2030, which will push buyers and automakers away from diesel and towards EVs. However, in October 2019 Dyson announced that it was cancelling its EV plans despite having built a "fantastic" prototype because it was not commercially viable. Dyson is now going to reallocate the £2 billion meant for EV production towards existing or new product development and hopefully most of the 500 EV engineers will be reassigned internally. 1. What turbulent forces are causing leaders in the automotive sector and government officials to rethink their use of fossil fuels? 2. Which managers - top managers, middle managers or first-line managers would make company-wide decisions about which type of company car to use? 3. Why did Dyson locate its EV production facilities in Singapore? 4. Do you think Dyson had a competitive advantage in EVs? How would you use the PEST analysis (in Chapter 2 The Evolution of Management Thinking) to explain the reasons why the EV project was cancelled?
Expert Answer:
Answer rating: 100% (QA)
1 The turbulent forces causing leaders in the automotive sector and government officials to rethink their use of fossil fuels include Environmental concerns The growing awareness and concern about cli... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
Posted Date:
Students also viewed these general management questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Afew years ago, the CEO of one of the world?s largest corporations laid some very tough love on his 500 top managers. Despite having annual revenue of about $300 billion, BP had become, said CEO Tony...
-
Prepare the schedule of year-end deferred tax assets and liabilities for each year. The schedule should separately list the sources of the firms ending deferred tax assets and deferred tax...
-
A biomechanical model of the lumbar region of the human trunk is shown. The forces acting in the four muscle groups consist of FR for the rectus, FO for the oblique, FL for the lumbar latissimus...
-
Is the image formed on the retina of the human eye upright or inverted? Discuss the implications of this for our perception of objects.
-
A contingency table containing observed values has three rows and four columns. The number of degrees of freedom for the chi-square statistic is 7. In Exercises 68, determine whether the statement is...
-
On December 4, 2013, Dan Johnson, delivery truck driver for Farmers Products Inc., ran a stop sign and collided with another vehicle. On January 8, 2014, the driver of the other vehicle filed suit...
-
Table 1 shows information for exchange rates and price indexes for different countries and for the U.S. Country Currency Table 1 Currency per U.S. Price U.S. Dollar Index Country Price Index Bolivia...
-
On January 1, 2024, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below:...
-
what are the advantages and disadvantages of virtual teams ? explain
-
The 8 Carpal Bones Form die Wrist Try making up your own mnemonic for learning the names of the carpal bones Where is the carpal tunnel located? What causes carpal tunnel syndrome?
-
7. On top of spaghetti, all covered with cheese, I lost my poor meatball, when somebody sneezed. It rolled off the table (which was 1.3 m high) and into the floor (making a gnarly meat sauce splatter...
-
Concord Company had 120 units in beginning inventory at a total cost of $14,400. The company purchased 240 units at a total cost of $36,000. At the end of the year, Concord had 70 units in ending...
-
Examine the concept of process prioritization in the context of real-time operating systems. How do real-time processes differ in terms of scheduling, and what mechanisms are used to ensure that...
-
A ) What is the magnitude of the electric force between a proton and an electron when they are at a distance of 3 . 3 9 angstrom from each other? B ) What is the magnitude of the electric force...
-
Harper (19) me Denver at a campus party. Denver gave Harper her phone number before leaving to go to another party with friends. A few days later, Harper invited Denver to join a group of students...
-
What will be the final value of DI after executing the following piece of code? Execute the instructions dependently one after another. CLD MOU CX,OFOH MOU AX.02874H MOU DI,01000H MOU ES, DI SUB...
-
What does the equity- basis balance of the investment account for a subsidiary represent (e.g., cost of the investment, market value of the investment, etc.)?
-
What is a corporate restructuring? How are restructurings accounted for?
-
On December 31, 20X5, KTR Corporation acquired 80% of the outstanding shares of SJC Limited for $ 5,000,000. KTR is a Vancouver- based company, while SJC is based in Las Vegas, in the US. SJCs...
-
Consider the purchases function of a manufacturing company. To overcome a downward profitability trend, management recently instituted a "just-in-time" system of acquiring raw materials for its...
-
Explain how creating a process map and internal threat analysis helps in determining the extent to which substantive testing is to be performed on the accounts associated with the supply chain and...
-
The following are routine procedures for the audit of the purchases process. For each procedure, (1) state whether it is a test of controls or a substantive test of transactions or balances, (2)...
Study smarter with the SolutionInn App