Chapter CS, Problem 1.1CQ

Do you think electric cars may become a viable alternative to gasoline-powered vehicles? What is the future of the electric car? Explain your answers.

Summary Introduction

Case summary:

The case deals about the movement to use the electricity to power the automobiles and the ability of the company in Country C to become the largest automaker in the world. The issues of managing environmental sustainability and managing the growth of firm were the secondary issues identified in the firm.

The case discusses about the rapid change in automobile industries and the need for innovation in automobile field to survive in the business. Company B is Country C-based automobile company, which would represent additional challenges to the automobile industry of Country A. However, Country A leads the automobile industry with creation and innovation and with its operation strategy.

To determine: Whether electric cars are a feasible alternative to gasoline-powered vehicles.

Explanation of Solution

Determine whether electric cars are a feasible alternative to gasoline-powered vehicles:

Electric cars are a feasible alternative to gasoline-powered vehicles in the near future. However, at present, there are few challenges that electric cars need to overcome. The major problem faced by the electric car is the limited driving distance for a single charge. Electric cars drive only limited distance; frequent recharges are required. When the driving range is limited, electric cars are the best replacement for gasoline-powered vehicles.

However, hybrid vehicles have more advantages at present when compared to electric cars and gasoline-powered vehicles. Hybrid cars have more advantages when compared to electric cars and gasoline-power vehicles. Hybrid cars would run short distance without using gasoline powers and use gasoline power for long distances.

The electric cars would replace gasoline-powered vehicles. However, it will take breakthroughs in infrastructure changes, secure source of raw materials to produce batteries, and battery technology. It will take a lot of time and capital. The firm needs to build recharging stations and battery replacement station throughout the country.