1 BYD company Limited I confirm that this assignment is my own work. Where I have referred to academic sources, I have provided in-text citations and included the sources in the final reference list. Signed：ShangKun Liu Date: 30 / 3 / 2022 2 Table of Contents Introduction ................................................................................................................................ 3 Purpose of the Report ................................................................................................................ 3 The Problem or Challenge ......................................................................................................... 3 Evidence .................................................................................................................................... 4 Cause of the problem of Challenge ............................................................................................ 4 Impact of the Challenge on BYD ................................................................................................ 5 Evaluation & Recommendations ................................................................................................ 6 References List .......................................................................................................................... 8 3 Case Study: Practical Analysis Introduction BYD limited is a Chinese Auto manufacturer mostly engaged in the manufacture of electric motor vehicles fully reliant on rechargeable batteries, solar panels, as well as components from mobile phones (BYD, 2022). BYD currently employs at least 180,000 people globally and is also publicly traded and listed at the Hong Kong as well as Shenzhen securities exchanges. BYD is one of the major automakers in China and is headquartered in Shenzhen, Guadong province. It was founded in 1995 as a battery maker but later ventured in auto manufacture in 2003 (BYD, 2022). BYD Auto has so far diversified into numerous other sectors of manufacturing including solar cell and cellphone assembly (NIKKEI Asia, 2020). BYD’s experience in batter manufacturing was crucial in its venture into the manufacture of electric and hybrid motor vehicles. Purpose of the Report The purpose of this report is to provide an analysis and evaluation of a problem or challenge faced by BYD Limited Company. The climate change menace has been a major challenge to the whole world as developed and developing nations grapple with containing its wanton effects. The Problem or Challenge Indeed, the world’s advanced economies have particularly been challenged in their attempts to solve the global climate challenge that is threatening to go out of hand (Ogan & Chen, 2016). Since EV are now a reality in the international market, the government of China has invested heavily towards the development through provision of subsidies. BYD has taken this as a challenge and taken measures towards 4 specializing in the manufacture of EV (Masiero, Ogasavara, Jussani & Risso 2016). Indeed, China has responded strongly in the climate change problem by promising to massively cut down on carbon dioxide emissions by the year 2030. Thus, the carbon emission is a challenge by many countries and manufacturing players. In fact, China has targeted to raise its level of non-fossil fuel to 20% from 10% by the year 2030. This is an ambitious target and a major challenge to attain (Clifford, 2016). BYD Ltd has been successful in curbing the environmental pollution of the major cities of China through its provision of electric buses. Evidence There have been major gains in terms of stock prices for companies specializing in the manufacture of EV in the recent past. This has seen some stock gains of more than 436% within one year for EV companies (Mehta, 2021). The pursuit for green energy especially in motor vehicles has created a challenge for many global manufacturing giants. The desire to be innovative and come up with high quality batteries at the lowest possible costs in comparison to global competitors created an avenue for BYD to further venture into the manufacture of electric vehicles (Rarick, Angriawan, & Firlej, 2017). The progressive growth of BYD can be traced through the move from a cellphone manufacturer into one of the leading manufacturer of electric vehicles. The trend in the global market is to move from diesel powered engines into electric motor vehicles. Cause of the problem of Challenge Since BYD is already among the pioneers in the electric vehicle manufacturing sector, it is faced with the challenge of meeting the growing demand in the near future (Mehta, 2021). BYD being one of the world’s biggest EV manufacturer, it has faced intense 5 competition from other emerging firms eyeing the sector. They include Tesla, Xpeng, NIO, AND Li Auto. BYD has thus been fighting to further extend its market share to avoid being overtaken by the new entrants into the EV manufacturing sector (An, 2020) A recent proprietary arrangement with LFP blade battery is envisaged to help BYD regain the market share by reducing the cost of the battery for its EV (Mehta, 2021). BYD has enjoyed major advantages in the EV manufacturing due to its experience in the battery manufacturing, a fact that sets the company in a position to control the market for a long time in the future. This is a major challenge for the company as it provides an opportunity to scale up the provision of electric vehicles across global cities to help solve the biting climate change and intensified pollution. There are looming supply challenges to be faced by BYD in its quest to provide electric vehicles in large quantities over the coming years occasioned by increasing demand (Rarick, Angriawan, & Firlej, 2017). This challenge will force BYD to go back to the drawing board to find a lasting solution. Impact of the Challenge on BYD BYD has registered growth in market share in the EV manufacturing sector over the recent past owing to the increasing uptake of electric vehicles by consumers (Mehta, 2021). The government of China has also put in place numerous subsidies to encourage manufactures and consumers to accept electric vehicles. Taking an example of the electric buses and several cars being used in major cities in China, it is evident that BYD has benefitted from the challenge massively. The other impact of the pollution challenge in BYD’s perspective has been the fact that electric vehicles have led to reductions in pollution levels in most China cities (Ogan & Chen, 2016). 6 Evaluation & Recommendations BYD has been successful in leading the EV manufacturing sector due to the history of battery manufacturing. BYD has established its corporate vision towards addressing the challenge of leading in the EV manufacturing to address pollution through green energy in motor vehicles (BYD, 2019). Furthermore, company has persistently executed its vision regardless of the emerging challenges. Looking at BYD’s case for success, the firm has an elaborately advanced technology especially in the battery manufacturing that allows it to easily venture into the electric vehicle manufacturing. In addition, price advantage plays an integral role in BYD’s success in the market. The subsidies by the China government have enabled the company sell EV at a low price in comparison to global competitors (Yu, 2016). BYD has successfully utilized the theory of competitive advantage to take up a huge chunk of the electric vehicle market. Furthermore, market segmentation and diversification of marketing channels have favorably worked to BYD’s advantage. The company has at least 1,200 distribution channels which has enabled BYD to refine its operations towards the creation of brand awareness. BYD has thus developed an outstanding brand as a result of its early adoption of green energy in its manufacture of electric vehicles (Gao, 2021). It has widely diversified its products and taken advantage of the favorable microenvironment in China that promotes greener energy and manufacture of electric vehicles that eliminate environmental pollution. In view of the successful transition from battery manufacture to electric vehicle manufacture, it is recommended for BYD to: 7 I. Undertake product differentiation and market leadership in its electric vehicle manufacturing to protect itself from the threat of competitors, II. More aggressively address the patent challenges and resolve disputes arising from the same promptly to avoid being derailed in its pursuit for market dominance in the electric vehicle segment. 8 References List An, T 2020. The strategic group analysis of BYD new energy vehicles from the perspective of value chain. Advances in Social Science, Education and Humanities Research, vol. 517, 735-740. BYD Motors. (2022). Breakthroughs in BYD Motors. Retrieved on Saturday, April 9, 2022 from https://en.byd.com/bus/bus-byd-motors/. BYD. (2018). BYD CSR Report. Retrieved on Saturday, April 9, 2022 from chromeextension://efaidnbmnnnibpcajpcglclefindmkaj/viewer.html?pdfurl=https%3A%2F %2Fen.byd.com%2Fwpcontent%2Fuploads%2F2021%2F06%2FBYD_CSR_2018.pdf&clen=4306140&c hunk=true. BYD. (2019). BYD CSR Report. Retrieved on Saturday, April 9, 2022 from chromeextension://efaidnbmnnnibpcajpcglclefindmkaj/viewer.html?pdfurl=https%3A%2F %2Fen.byd.com%2Fwpcontent%2Fuploads%2F2021%2F06%2FBYD_CSR_2019.pdf&clen=8346337&c hunk=true. Chen, H. (2019). Environmental analysis of new energy vehicles based on PEST analysis——A Case Study of BYD Company Limited. Liaoning Economy, (05), 38-39. Clifford, M. (2016). Chinese government subsidies play major part in electric car maker BYD’s rise. Forbes, July 26. 9 Gao, Y. (2021). Analysis of BYD’s business model and future development prospects. Advances in Economics, Business and Management Research, 203. Proceedings of the 2021 3rd ICEMCI 2021. Masiero, G, Ogasavara, MH, Jussani, AC, & Risso, LM 2016. Electric vehicles in China: BYD strategies and government subsidies. RAI Revista de Administracao e Inovacao, vol. 13: 3-11. Masiero, G., Ogasavara, M.H., Jussani, A.C., & Risso, M.L. (2016). Electric Vehicles in China: BYD strategies and government subsidies. Revista de Administracao e Inovacao, 13(1), 1-21. NIKKEI Asia (2020). BYD Company Limited. Retrieved on Saturday, April 9, 2022 from https://asia.nikkei.com/Companies/BYD-Co.-Ltd. Ogan, T.L. & Chen, X. (2016). The rise of Shenzhen and BYD – How a Chinese corporate pioneer is eading greener and more sustainable urban transportation and development. The European Financial Review, 32-39. Rarick, C.A., Angriawan, A., & Firlej, K. (2017). BYD of China: An automotive company on the road to global dominance? Journal of Applied Business and Economics, 19(6), 27-36. Yu, R. (2016). Chinese government subsidies play major part in electric car maker BYD’s rise. Forbes, July 20. Assessment Task Information (In-College & Remote delivery) Key details: Assessment title: Portfolio Element 3 – Marketing Mix Module Name: Organisational Management Module Code: PM614 Tutor’s Name: Phil Gray, A. Mearns, B. Weiss Assessment will be set on: Week 16 Feedback opportunities: Feedback from class tutor before submission deadline. Assessment is due on: Tuesday 29th March 2022 by 12.00pm UK time Assessment weighting: 0.33 x 50% Assessment Instructions What do you need to do for this assessment? In the final part of your portfolio, you must continue to focus on your chosen company Your case study organisation is considering further expansion into a foreign market. Using the results of your PESTLE analysis, you are required to submit as set of strategy recommendations for your company’s market entry to the country you researched. Your recommendations should be structured using the marketing mix model, and identify the extent of strategy Please note: This is an individual assessment so you should not work with any other student. Your tutor will also ask for a draft copy of your report and provide feedback. Before you submit this assessment, your tutor will arrange a time for you to share and discuss your progress with your classmates. You do not have to act on their feedback, but you may find it useful to enhance your final submission. Structure: Your recommendations should be structured within the marketing mix model. You may include a summary introduction and conclusion. You must include a full list of references Theory and/or task resources required for the assessment: You should try to use evidence from your PESTLE analysis to support your conclusions. You should provide references for any theory used. Referencing style: You must include a Harvard style reference list at the end of your report. | Kaplan International Pathways | 1 | kaplanpathways.com Expected word count: You are expected to write 1000 words, following the specific structure outlined above. Learning Outcomes Assessed: • Based on clear evidence of relevant environmental factors, develop practical strategies both for entering a foreign market; and for localising / standardising organisational activities. • Describe how formal theories and models of management can be used to analyse and improve organisational effectiveness Submission Requirements: You must include the following paragraph on your title page: I confirm that this assignment is my own work. Where I have referred to academic sources, I have provided in-text citations and included the sources in the final reference list. You must type your assessment in Arial font 12, with single spacing. You must submit the assessment electronically via the VLE module page. Please ensure you submit it via Turnitin. Assessments submitted after the submission deadline may incur penalties or may not be accepted. Addition submission information – check you have done the following: Formatting Consistent font, spacing, page numbers, formatting and subheadings Citations Correct format and location throughout the report Referencing Harvard referencing system used correctly in the reference list Summarising Summarising the results of research Paraphrasing Paraphrasing the contents of research findings Spell check Spell check the report Proof-reading Proof-reading completed Grammar Grammarly has been used to check the report How will this assessment be marked? The assessment will be marked using four marking criteria: - Accurate use of the marketing mix model (20%) Presentation of practical, evidence-based recommendations (50%) Clear analysis of level of standardisation / adaptation required (20%) Structure, academic expression and presentation – How clearly and appropriately you express your ideas, and whether you formatted your analysis and references appropriately (10%) How will you get feedback? Your tutor will mark the assessment and provide you with a written feedback sheet. You can use this | Kaplan International Pathways | 2 | kaplanpathways.com feedback to guide your further learning on the module. | Kaplan International Pathways | 3 | kaplanpathways.com NAME OF COMPANY I confirm that this assignment is my own work. Where I have referred to academic sources, I have provided in-text citations and included the sources in the final reference list. Signed Date 1 CONTENTS Page Number Introduction and Purpose of the Report Political Analysis Economic Analysis Socio Cultural Analysis Technological Analysis Legal Analysis Ecological Analysis Conclusion Reference List 2 Introduction and Purpose of the Report (approx.125 words) (In this section you should give a brief overview of the company you are researching. You can use the company website for the citation. Briefly explain what the report will do. You could include a definition of PESTLE.) Political Analysis (In this section you should identify political factors that affect your organisation. Explain how the factor(s) affect the company. You should also comment on whether the factor presents an opportunity or threat for the company. You may identify more than one factor, but they must be relevant and important to your chosen organisation You must provide citations to support the points you make.) 3 Economic Analysis: (In this section you should identify economic factors that affect your organisation. Explain how the factor(s) affect the company. You should also comment on whether the factor presents an opportunity or threat for the company. You may identify more than one factor, but they must be relevant and important to your chosen organisation .You must provide citations to support the points you make.) Socio-cultural Analysis (In this section you should identify socio-cultural factors that affect your organisation. Explain how the factor(s) affect the company. You should also comment on whether the factor presents an opportunity or threat for the company. You may identify more than one factor, but they must be relevant and important to your chosen organisation. You must provide citations to support the points you make.) Technological Analysis: (In this section you should identify technological factors that affect your organisation. Explain how the factor(s) affect the company. You should also comment on whether the factor presents an opportunity or threat for the company. You may identify more than one factor, but they must be relevant and important to your chosen organisation. You must provide citations to support the points you make.) Legal Analysis: (In this section you should identify legal factors that affect your organisation. Explain how the factor(s) affect the company. You should also comment on whether the factor presents an opportunity or threat for the company. You may identify more than one factor, but they must be relevant and important to your chosen organisation You must provide citations to support the points you make.) Ecological Analysis: (In this section you should identify ecological factors that affect your organisation. Explain how the factor(s) affect the company. You should also comment on whether the factor presents an opportunity or threat for the company. You may identify more than one factor, but they must be relevant and important to your chosen organisation You must provide citations to support the points you make.) 4 Conclusion (approx.100 words) (In this section you should briefly summarise the main points and make a judgment as to the overall level of risk/opportunity the macro environment of the specified country presents for your chosen company) Reference List (Harvard Referencing to be used Please ensure your Reference List is on a separate page.) 5 
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