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Management Question

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‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

Department of Business Administration

College of Administrative and Financial Sciences

Assignment 3
Introduction to operations Management (MGT 311)
Due Date: 30th November 2024 @ 23:59

Course Name: Introduction to
Operations Management

Student’s Name:

Course Code: MGT311

Student’s ID Number: 16378

Semester: FIRST

CRN:
Academic Year: 2024-25

For Instructor’s Use only
Instructor’s Name: Dr. Abdullah Bubshait
Students’ Grade: Marks Obtained/Out Level of Marks: High/Middle/Low
of
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via
allocated folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the
cover page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.

• Avoid plagiarism, the work should be in your own words, copying from students
or other resources without proper referencing will result in ZERO marks. No
exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced)
font. No pictures containing text will be accepted and will be considered
plagiarism).
Submissions without this cover page will NOT be accepted
• Place of Submission is Blackboard.
• Weight 10 Marks

Learning Outcomes:
• To understand the concept of transformation and invention of the
Product. (CLO 1)
• To manage the level of Inventory. (CLO 2)
• To take the decision of new product Development. (CLO 5)

Critical Thinking
The Chinese company BYD is pursuing electric cars and hopes to become the world’s largest
car company. With the financial support of American Warren Buffett, the company, which
has only been in existence for a few years mostly making batteries, has caught the attention
of not only Mr. Buffett but also many in the auto industry.
ELECTRIC AND HYBRID CARS
Electric cars (also known as electric vehicles or EVs) rely exclusively on battery power. With
an all-electric EV there is no internal combustion engine, muffler, gasoline tank, air and fuel
filters, and other parts needed to run a gasoline powered system. The vehicle itself also
produces no tailpipe emissions, and by getting its power from an efficient utility company,
overall, it produces fewer greenhouse gases. This is especially true if the electricity is
produced with nuclear power, clean coal, or natural gas. EVs are also less expensive to fuel
on a per mile basis. Electric cars, however, have a shorter driving range and are difficult to
operate with long distance travel.
There is also some safety concerns associated with using a lithium-ion battery, as lithium is a
highly reactive material prone to explosion

1. Do you think electric cars may become a viable alternative to gasoline-powered
vehicles? What is the future of the electric car? Explain your answer especially in the
context of KSA as Saudi Arabia is moving towards carbon free economy. (3 Marks)
2. Given a business strategy of being the word leader in manufacturing electric cars with
innovative technology, what operations and supply chain strategy do you think BYD
should pursue? Identify what operations and supply chain should do to help BYD
compete including a mission, objectives, distinctive competence, and key decisions.
(4 Marks)
3. How electric car will be useful in Saudi Arabia’s Neom city project to achieve
Kingdom’s vision? (3 Marks)

Note: Go to the company website and answer the above questions. This is just an advice.
You may surf net, company report, Saudi vision 2030 to answer the questions. Each answer
should lie between 250 to 400 hundred words.

Answers:
1.
2.
3.

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

Department of Business Administration

College of Administrative and Financial Sciences

Assignment 3
Introduction to operations Management (MGT 311)
Due Date: 30th November 2024 @ 23:59

Course Name: Introduction to
Operations Management

Student’s Name: SEU ELITE

Course Code: MGT311

Student’s ID Number:

Semester: FIRST

CRN:
Academic Year: 2024-25

For Instructor’s Use only
Instructor’s Name:

Dr.Mansour Alsharman
Students’ Grade: Marks Obtained/Out Level of Marks: High/Middle/Low
of
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via
allocated folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the
cover page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.

• Avoid plagiarism, the work should be in your own words, copying from students
or other resources without proper referencing will result in ZERO marks. No
exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced)
font. No pictures containing text will be accepted and will be considered
plagiarism).
Submissions without this cover page will NOT be accepted
• Place of Submission is Blackboard.
• Weight 10 Marks

Learning Outcomes:
• To understand the concept of transformation and invention of the
Product. (CLO 1)
• To manage the level of Inventory. (CLO 2)
• To take the decision of new product Development. (CLO 5)

Critical Thinking
The Chinese company BYD is pursuing electric cars and hopes to become the world’s largest
car company. With the financial support of American Warren Buffett, the company, which
has only been in existence for a few years mostly making batteries, has caught the attention
of not only Mr. Buffett but also many in the auto industry.
ELECTRIC AND HYBRID CARS
Electric cars (also known as electric vehicles or EVs) rely exclusively on battery power. With
an all-electric EV there is no internal combustion engine, muffler, gasoline tank, air and fuel
filters, and other parts needed to run a gasoline powered system. The vehicle itself also
produces no tailpipe emissions, and by getting its power from an efficient utility company,
overall, it produces fewer greenhouse gases. This is especially true if the electricity is
produced with nuclear power, clean coal, or natural gas. EVs are also less expensive to fuel
on a per mile basis. Electric cars, however, have a shorter driving range and are difficult to
operate with long distance travel.
There is also some safety concerns associated with using a lithium-ion battery, as lithium is a
highly reactive material prone to explosion

1. Do you think electric cars may become a viable alternative to gasoline-powered
vehicles? What is the future of the electric car? Explain your answer especially in the
context of KSA as Saudi Arabia is moving towards carbon free economy. (3 Marks)
2. Given a business strategy of being the word leader in manufacturing electric cars with
innovative technology, what operations and supply chain strategy do you think BYD
should pursue? Identify what operations and supply chain should do to help BYD
compete including a mission, objectives, distinctive competence, and key decisions.
(4 Marks)
3. How electric car will be useful in Saudi Arabia’s Neom city project to achieve
Kingdom’s vision? (3 Marks)

Note: Go to the company website and answer the above questions. This is just an advice.
You may surf net, company report, Saudi vision 2030 to answer the questions. Each answer
should lie between 250 to 400 hundred words.

Answers:
1.

The existence of an electric automobile in the future may become a
practical alternative to gasoline-powered vehicles since unpredictable fluctuation
of supply and demand for oils nowadays is common particularly in Saudi Arabia.
The prices of oils cannot also be forecasted and are unavoidable. Furthermore,
electric-powered vehicles are nature friendly which contributes to no air pollution
that is good for the environment. While electric cars’ sole moving part is the
motor, gasoline-powered cars contain hundreds of parts that allow them to
function well. Moreover, an electric-powered car is less costly compared to a
gasoline-powered one whereas, it needs frequent oil changes and repairs (Cuffari,
2019).
In this generation, electric cars are now known as many industries are
currently pushing for the improvement and manufacturing of electric vehicles.
The future appears promising since energy is now available in all countries and
appears to be created continuously from different sources. Saudi Arabia as the
world’s largest oil producer country vowed that by the year 2030, at least 30% of
its auto capital would be electric (Nereim, 2021).

2.

Due to the many well-known manufacturers that produce electric vehicles,
consumers are not surprised by the existence of an electric automobile. It is a
great alternative for gasoline-powered vehicles which is costlier for the common
consumers. People nowadays want to control and reduce their expenses so
consumers who owned gasoline-powered cars tend to spend more on fuels and
other maintenance repairs. Electric automobiles were built as nature-friendly
vehicles which only require natural resources to function efficiently. BYD should
continue producing electric automobiles because it has high demand nowadays
(Schroeder & Goldstein, 2018, p. 414).
One strategy that BYD should consider is using the cost-leader approach.
By being the cost- leader, BYD should try to lower its price level by lowering its

costs but continue to maintain high- quality production. In this way, BYD can
create a good foundation and strong relationship with its consumers. Another
strategy is to maintain a good relationship with the people within the organization.
Good leadership can lead to the better success of the company. In this way, BYD
can achieve its mission and objectives.

3.
Electric cars are anticipated to play a crucial role in Saudi Arabia’s Neom
city project, aligning with the Kingdom’s Vision 2030 initiative. Vision 2030
seeks to diversify Saudi Arabia’s economy, reduce dependency on oil, and
enhance environmental sustainability. Neom, a futuristic, zero-emission city, is
being designed to be powered entirely by renewable energy sources, primarily
wind and solar (Nereim & Browning, 2021). In this setting, electric cars are
expected to offer substantial benefits by reducing carbon emissions and
supporting a clean, technologically advanced transportation network that fits with
Neom’s vision of a sustainable and innovative urban environment.
The adoption of electric vehicles (EVs) in Neom will also likely reduce
dependence on traditional fossil fuels, in line with global trends towards
sustainability and green technology (Sallam et al., 2022). EVs, when charged
through renewable energy sources, contribute to significantly lower greenhouse
gas emissions compared to conventional vehicles. In addition, electric cars align
with the vision for a smart city infrastructure in Neom, where advanced
technology will enhance transportation efficiency and reduce traffic congestion
through autonomous and electric-powered mobility (Arab News, 2023).

References
Cuffari, B. (2019, May 22). Are Electric Cars finally a viable option? AZoCleantech.com.
Retrieved from
Elshurafa, A. M., & Peerbocus, N. (2020). Electric vehicle deployment and carbon emissions
in Saudi Arabia: A power system perspective. The Electricity Journal, 33(6), 106774.

Nereim, V. (2021, October 23). Bloomberg – Are you a robot? www.bloomberg.com.

Schroeder, R. G., & Goldstein, S. M. (2018). Operations Management in the Supply Chain:
Decisions and Cases (7th ed., pp. 20-33). McGraw-Hill Higher Education
Arab News. (2023, June 17). How Neom’s green initiatives are paving the way for a
sustainable future. Retrieved from
Sallam, A., Hassan, S., & AlShahrani, H. (2022). Electric vehicle adoption in Saudi Arabia:
Opportunities and challenges for the Vision 2030. Renewable Energy Journal, 189, 168-179.

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