SECTION A [40 Marks] Study the article below and answer the questions that follow. Panasonic Scouts U.S. Sites for New Tesla Battery Factory - Company eyes locations in Oklahoma, Kansas; talks ongoing - Plant to tum out '4680' cells for Tesla, potentially others. By Edward Ludlow, River Davis, and Gabrielle Coppola March 14, 2022 Panasonic Corp. is engaged in talks over the site for a new U.S. factory that would supply Tesla Inc. and potentially other electric-vehicle manufacturers with next-generation lithium-ion batteries, people familiar with the matter said. The long-time Tesla supplier is looking at several locations for the multibillion-dollar factory, including one in Oklahoma and another in Kansas, the people said, asking not to be identified because the discussions are confidential. The plant could begin operating as soon as 2024 , they said. Though still at an early stage, the plans represent a bold step for Panasonic. Even as it has faced high demand for batteries from Tesla, Panasonic has been slower to build scale compared with rival suppliers LG Energy Solution of South Korea and China's Contemporary Amperex Technology Co. Tesla partnered with Contemporary Amperex Technology Limited ("CATL").] a battery maker in China. CATL aims to become the world's largest supplier of electric vehicle (EV) batteries. There are also plans to rapidly expand its partnership with Tesla in China and become its largest battery supplier. China is the largest auto market in the world. A senior source at the Chinese company said last summer that CA In December, CATL began Phase 1 production at its new EV battery factory in China. Once completed, the plant will be the largest EV battery factory in the world with an annual output of 120GWh. It will be more than three times the size of Tesla's Gigafactory in Nevada. CATL is investing 17 billion yuan (US\$2.6 billion) in the plant and has said it will create about 10,000 jobs once fully operational. Phase I of operations will have an annual capacity of 60GWh and an additional 60GWh for Phase 2. Annual output of 120GWh is enough to power about 1.2 million EVs. In the new U.S. plant, Panasonic plans to make a newly developed, bigger and more powerful "4680" battery, one of the people said. Panasonic may install lines for other batteries at the new facility, as well, though that will depend on customer demand. The new battery design, known as the "4680" format, was unveiled by Panasonic in October 2021 at a media event. The numerical appearance of the oattery is based on its dimensions of 46 millimeters (mm) wide and 80mm long. Panasonic says the new and improved nickel-cobalt-aluminum 4680 cell will store more energy, reduce battery costs by 50% and increase battery production by 100 times by 2030. d!s. 6u07 QUESTION 1 (20 marks) By drawing on the relevant theory, and evidence extracted from the article, answer the following questions: According to the article: "...Panasonic was looking at sites in Oklahoma and Kansas to build its new plant. The locations would benefit from being close to the new factory that Tesla is bringing online in Texas, where it recently established its headquarters. A committee in Oklahoma's Mayes County has been studying a proposal to "entice a business" to set up operations, according to a public document posted earlier this month, though it didn'tidentify the party." 1.1 Critically discuss the cost considerations or factors that would influence Panasonic's choice of a location for its new U.S factory, provide evidence from the article to buttress, your discussion. (10 marks) 1.2 The article indicates that Panasonic's new U.S, factory will employ a competitive strategy that combines the strategy options of differentiation, low-cost leadership and response. By extracting evidence from the article, discuss each of these strategy options in relations to Panasonic's new U.S. factory (10 marks)