Aspects Associated With the Electric Car †Myassignmenthelp.Com

Question: Discuss About the Aspects Associated With the Electric Car? Answer: Introducation It has been observed that there has been an increasing concern on the part of the individuals towards the environment and recent studies have shown that knowledge in context to the environmental issues and the problems is on the rise among the population (Hacker et al., 2009). Moreover, the population has become highly conscious in context to what is good and what is bad for the environment. These aspects have evolved over time and it has been observed that businesses, governments and non-profit organizations have been making efforts in order to make significant changes in the lifestyle of the individuals that can have a positive impact on the environment (Sierzchula et al., 2012). Thus, it can be said that in the recent times, the customers and the general population demand the business organizations to go green and there are also evidences that the individuals give credit to the organizations who practice activities and offers products and services that helps in reducing their carb on footprint and the negative impact of their activities on the business organizations. Thus, taking into consideration the above concerns of the population about the environment, it has become important on the part of the business organizations to take into consideration the concern of the customers and innovate and modify their production process and business activities to reduce the negative impact on the environment. So, on the basis of the above aspects, the business case has been developed in context to the automotive industry where the organizations operating within the industry depend mainly upon the fossil fuels leading to large amount of carbon emission leading to negative environmental impacts by causing air pollution. Thus, since the negative impacts and cost of fossil fuels are better understood not only by the people but also by the business organizations and are also widely accepted that is leading significant transformation in the global automotive industry (Kley et al., 2011). Moreover, string consumer preferences and the regulatory changes are emphasizing pressure upon the automotive manufacturers for making more efficient and environmentally friendly vehicles. Thus, taking into consideration the above business problem in the automotive industry, the business case has been developed for Toyota Motor Corporation. In order to deal with the identified issue, the innovation that can prove to be beneficial is the manufacturing and production of electric cars that are environmental friendly and thus the negative impact of fossil fuels can be reduced. Business Case The problem the innovation can solve In the recent times, it has been observed that transport makes significant contributions to around 13% of the global man made carbon dioxide emissions and the number of cars on the road is expected to get double from one billion by the end of the year 2035. Thus, the need for new and more sustainable transport technologies is apparent increasingly. Electric cars which are available in the market do not come with a long battery life and their market price is much higher as compared to the conventional cars which run on petrol. Toyota needs to find an effective solution to this problem by developing a car which needs less frequent charging (long battery life) and which also does not burn a hole in the pockets of the customers. This is one aspect which Toyota needs to look into and come up with an effective solution. By addressing these problems associated with electric cars, Toyota will be able to position their brand of electric cars in the market and this will enable them to attract more consumers from the market for their electric cars. The innovative electrical cars can also solve the problem of economy as the most of the people in the country belongs to middle income people and they look forward to save their money and that is possible when they adopt the electric cars from Toyota. There is no cost for fuel that is to be spent by the customers on the electric cars and the electric cars can run once they are charged over night (Moons and De Pelsmacker, 2012). This will help the economy of the country by saving more money and increasing the gross domestic profit of the country. The electric cars can impact most on the weaker economies and help those economies to cope with the problems of money that they face. Also, sometimes individuals who have cars at home faces problem of maintenance and also the maintenance of fuel operated cars are very high and for that reason, the innovative Electric cars from Toyota can help the individuals solve this problem as the electric operated cars are very low in maintenance. Thus, the innovation in the form of producing electric cars can be considered to be an emergent technology that would prove to be beneficial on the part of the business organizations like Toyota to meet the changing needs and demands of the customers and the environment (Dijk and Yarime, 2010). Thus, electric cars with long range battery power can lead to pollution free environment and it is also only way in which the carbon emissions due to transport can be controlled. Benefits of Innovation The innovation in the form of producing the electric cars in Toyota would have multiple benefits in the form of benefiting the customers of the organization and will also have economical benefit (Van Vliet et al., 2011). The electric cars from Toyota which will be a result of innovative technology will help the organization to deal with the economic challenges that the people face while buying fossil fuel cars. The fossil fuel cars are costly to the customers from the medium income group and thus the customers can afford the new technology which is available for fewer prices and also will have to save the money on the fuel as the car will run in electric. There will be more savings in terms of money of the customers and thus it can also help the gross Domestic Profit of the country to take a leap which is another benefit of the innovation (Turrentine et al., 2011). Also, the main benefit of the innovation is that, the electric car from Toyota can help the environment of the country and will reduce the air pollution of the environment. The adaption of the electric cars by the customers of the organization can help reducing the greenhouse gases in the air (Notter et al., 2010). The electric cars also come with improved safety for the passengers riding in the car and thus there are multiple amounts of benefit that the customers can get from the Toyota Electric Cars. The electric operated cars can also benefit the customers in terms of lower maintenance and individuals who own electric cars can easily invest their time in other activities as there is very less maintenance required in electric cars. The only maintenance required for electric cars are servicing from time to time and cleaning and washing. Thus from the above discussion it is clear that the electric cars have multiple benefits to the society and the electric cars can be viewed as a replacement plan for fuel cars which have various disadvantages. Strategic response or plan A strategic response plan is the planning that is related to the implementation of the plan in the market. For the strategy that has been made regarding the innovation and launch of new Toyota Electric Cars, the strategy that needs to be implemented in the market is the strategy response or plan. There are various elements that will be required for designing the strategic response plan and they are mentioned below: Human resource: Human resource is the main requirement in any kind of industry and human resource is required as employee in Toyota in order to cope with the plan. There are various departments in which the human resource is required and for the implementation of the plan in the market, the human resource will play a significant role (Pryor et al., 2007). Various departments in which human resource is required are financial department in order to cope with the costs that will be required for the innovative project and also human resource which will be required in the sales department in order to convince the customers about the product so that the customers buy the product. Financial Resource: The financial resource is also another requirement on the part of the company (Pinto, 2007). Any organization will require finance in order to implement a plan and this Toyota also requires finance huge finance for the manufacture of the products in the market and also for transporting the electric cars in different countries. Finance is also required for the purpose of hiring the employees in order to make them work for the company. Materials: For the production of the cars in the market, materials is also required on the part of the company in order to turn the car into a finished product and for that reason, suppliers are required who would supply the required materials to the car manufacturer, i.e. Toyota and it is also to be ensured that the materials that are supplied are of very high quality so that the customers can be satisfied with the quality of the product. It is also to be decided at first by Toyota that whether they would use the materials supplied by the suppliers or they will use the materials manufactured by their own plants. In order to reduce the cost of their electric car the organisation needs to reduce the cost associated with the interior decoration and design. The car is mainly going to be targeted among the urban middle class population and this is this is the main reason why the organisation can reduce the cost of designing the car by incorporating a more economic design which will be pocket friend ly for the average middle class customer. Project options analysis There are various methods with the help of which a project can be analysed and the best method of project analysis is the cost benefit analysis which can be used in case of Toyota to make sure that the project provides positive result for the company. The cost benefit analysis can help the company to determine whether the project is beneficial for the company or not and this can help the company to solve the problems regarding the project (Boardman and Boardman, 2008). With the help of the cost benefit analysis, the profit that the company can get in the future time period can be analysed by taking help of Net Present Value or NPV method or taking the use of the Internal Rate of Return or IRR method. With the help of selecting the cost benefit technique, Toyota can get the result that is desired more by the company. Cost benefit technique is highly analytical and also one of the most appropriate technique that can be used by the company. Apart from cost benefit technique, cost effective analysis can also be conducted in order to understand the benefit of the project. The cost effective technique can help Toyota to understand the alternatives that they can use in order to get the desired result (Graham-Rowe et al., 2011). The cost effective can be calculated by Toyota with the help of using the following formula: Cost Effectiveness Ratio = Total Cost / Units of effectiveness. Apart from that Toyota can also make use of the Multi Criteria Analysis which can help the company solve the problem that is related to the decision making of the company. From the above discussion, it can be said that Toyota can make use of three analyses for the new and innovative electric car manufacturing project, but the best option that can be used by Toyota is cost benefit analysis. Delivery of the recommended solution: In order to deliver the project to the customers, there are various things that are required to be maintained. The controlling of the activities and monitoring them is very significant in a project. The plan has been prepared for 2 years below: Human resource cost: Human resource that will be hired for the new innovative project of Toyota needs to be paid for 2 years for the plan and that is the cost that which is associated with the new salesman hiring, financial analyst hiring, hiring the engineers and so on for the innovative project that has been undertaken by Toyota. Cost of transport: In order to deliver the cars up to the customers, the company will also undergo some costs associated with the transport of the raw materials and also the transporting of the cars up to the warehouse (Kerzner, 2013). Warehousing cost: There will also be cost of warehousing that will be associated with car and warehouse will mainly be used by Toyota in order to store the cars that will be manufactured in order to handle it to the customers later on. Warehouses should be located near the stores in order to avoid further cost of transportation associated with the car. Showroom cost: Showroom is also to be hired or bought by Toyota in order to keep the cars which will be showcased to the customers. All the models of Electric cars that will be manufactured by Toyota will be showcased to the customers so that of the customers do not like one model, they can go for another model present in the showroom. Service delivery: The service delivery will require effective communication from the part of the sales team that will be hired by Toyota and with the help of the effective communication; the sales team should be able to manipulate the customers attitude towards the electric cars (Meredith et al., 2011). References: Hacker, F., Harthan, R., Matthes, F. and Zimmer, W., 2009. Environmental impacts and impact on the electricity market of a large scale introduction of electric cars in Europe-Critical Review of Literature. ETC/ACC technical paper, 4, pp.56-90. Sierzchula, W., Bakker, S., Maat, K. and Van Wee, B., 2012. 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