Assignment on Electric Vehicle Battery Solution

Nature of business of Electric Vehicle Battery Solution

•      This business has its primary focus on revolutionizing how electric vehicles in todays time are powered.

•      The primary activity of the business will be to make batteries which will be recharged not by connecting the car to power source but by replacing the electrolyte liquid inside the batteries at gas stations.

•      The secondary activity of the business will be to provide users of Electric Vehicles a network of facilities though which their vehicles will be fully charged in a few mins (2).

•      The business will also tie-up with the existing gas stations to add a electrolyte liquid sucker and dispensing machine to create and extend its reach to a vast network to cover the full area of service.

•      The business is focused on providing service to the end car users once they receive the delivery of their vehicle. It will provide service in the form of good availability of recharge centers and also promote the switching of electrolyte liquid inside the batteries in existing electric vehicles.

How business idea was created

•      The group was introduced to this topic as we came to a discussion about increasing environmental concerns and fuel consumption.

•      A discussion about increasing pollution and fuel prices lead us to the idea of exploring more about electric vehicles.

•      By coming across the hassles of using and maintaining electric vehicles with problems relating to its limited use due to charge time and range, we decided to take an innovative approach towards solving this issue and converting it into a potential business opportunity.

Where the business opportunity lies

•      The business opportunity lies in the sale of new generation of batteries which are not charged like the traditional ones but are recharged in a new way which provides the ease of powering like a fuel driven vehicle.

•      The business has an opportunity to provide ease of use and availability of recharging stations which can be a part of every gas station where the end users/ vehicle owners can get their vehicles charged.

•      Every vehicle charged at the gas station would generate revenue for the company.

Product/ Service and target market

•      Product- Batteries for electric vehicles

•      Service-  Battery liquid replacement facility

•      Target Market- Electric vehicle manufacturing companies,

                               Gas stations,

                                Electric vehicle owners/users.

Management Team of Electric Vehicle Battery Solution

•Production Team: The production team will involve specialists from the following background.

Electrical Engineer- An electrical engineer is the person who uses his knowledge to design, construct and maintain electrical devices.

Experienced staff who have worked before in a battery production factory.

Maintenance Team-  The maintenance team will monitor the quality and proper functioning of the charging stations and dispose off liquid at the end of its life cycle.

•Distribution Team/Setup team-: This team will play a vital role during the initial setup as it will be responsible to setup the required infrastructure at the partnered gas stations.

Marketing Team: The role of marketing team will be  to promote the business and its products to attract customers. The main role of the marketing team will be to conduct a good market research and identify the potential target audience. They would advertise the company in local newspapers, poster, and through internet means.

•Finance Team: The role of finance team will be to prepare a budget for spending on advertising, market research, raw materials and other variable cost. The team will also monitor the amount of sale taking place on monthly basis or quarterly basis which will help to study the revenue earned. It will also help in determining the various sources of finance to accumulate capital.

•HR & Recruitment Team: The HR & Recruitment team will hire employees for  the company, depending on the skills and qualifications the employees are hired. However if necessary, training might have to be given to some employees to perform the required activity.

•PR Team: Public Relation team will build new contacts as well as build personal contacts with electric vehicle manufacturing companies ,gas station owners and electric vehicle owners.

Projected Profit& Loss A/c for 3 years

•      0-6 months: At the early stage of the business the company will be bearing the losses. However this is because large amount of money will be spent on market research, advertising, raw materials. Design layout, manufacturing team building, equipment's etc.

•      7-12 months: At this stage, the production expenses will begin, and research expenses will be lowered. However there would be an addition of the sampling cost as the battery samples will be distributed to the car manufacturing companies. 

•      The whole year would eventually result in a net loss.

•      13-24 months: During this stage business to business marketing will increase as well as business to customer marketing will begin. However revenue from car manufacturing companies as well as gas stations will begin. However breakeven-point can be calculated.

•      25-36 months: Expansion of business would take place from domestic market to the international market. However international car manufacturers would be targeted and the international chain of gas stations as well. Thus this will lead to an increase in revenue as well as result in net profit.

Organizational structure and ownership

In the first public announcement of the services and business the new organizational structure of Electric vehicles is being provided. The organizational structure reflects a special emphasis on the rapid and accelerating processes to be used in the market place. The structure is developed to accelerate the services. The organizational chart is receiving professional direction to follow the working process for the Electric Hybrid Vehicles.

Below is the organizational structure for the said organization. At the highest authority is the general manager. The vice general manager is responsible to the general manager. All the departmental heads are answerable to the vice general manager. The departmental heads include as given: management department, finance department, public relation department, sales department as well as CS department. All the above said departments are further sub-divided. The organizational structure is given below:

·         The management department is sub-divided to public administration and human resource department.

·         The finance department is sub-divided to accounting department. The accounting department involves the cashiers as a significant part.

·         The public relation department is all about the management of the customer relationships and the associations. For the effective management of the customer relationships there does exist the planning specialists.

·         The sales department includes the management of the Whole sellers through the effective policies. As an important part, there does exist the retailers. The management of the retailers includes the showroom sales as a sub-head.

·         The CS department is all about the spare part of the vehicle. The spare parts collectively make the CS department. It is further sub-divided to the front desk, maintenance shop as well as the customer service centres.

This is how the organizational structure of the organization tends to provide with the clear picture of the organizational departments. It helps to provide with the roles and the responsibilities for all the departments effectively. The more the said departments are managed by the experienced professionals, the better it will help the firm to achieve its long term and the strategic goals & the objectives.

Legal form of organization

Before initiating the business, the legal structure must be developed and it is important to choose the sole partnership, limited liability company (LLC), proprietorship, and corporation. It is important to deal with the legal structure and to seek guidance from the lawyer and accountant. In the electric vehicle company, the grassroots of the business organizers are to follow legal labels. The management members need to select the legal structure by picking up one of the traditional formats such as limited liability, corporation, and non-profit corporation. The legal form of the electric vehicle company will be partnership. All the board of directors will follow policies and strategies under different operations that are direct to the company with the direct course. The partnership in the owners will not separate any individual and legal personality from the business. All the board members in the company will share responsibilities, costs and risks on the equal levels. The partnership contract between members of the party will be associated with the fixed amount.  The electric vehicle battery solution will have a partnership and contract with other well-recognized company that will outline 50 million dollars for each member of the Tesla Inc. The investment will be beneficial for Electric vehicle battery solutions and Tesla Inc.