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Assignment Cover Sheet
Submitted by:
Assignment Title: Functional Analysis of Panther Ltd.
Module Title & Code: IB9FB0 – Business In Practice
Word Count: 3888/4000
Number of Pages: 25 "I declare that I have read the guidance on plagiarism/cheating provided in the Handbook, understand the University regulations and am aware of the potential consequences of committing plagiarism/cheating. This work is entirely my own in accordance with the University's Regulation 11 and the WBS guidelines on plagiarism and collusion. All external references and sources are clearly acknowledged and identified within the contents. No substantial part(s) of the work submitted here has also been submitted by me in other assessments for accredited courses of study, and I acknowledge that if this has been done it may result in me being reported for self-plagiarism and an appropriate reduction in marks may be made when marking this piece of work. I understand that should this piece of work raise concerns requiring investigation in relation to the points above, it is possible that other work I have submitted for assessment will be checked, even if the marking process has been completed. I am aware that the University expects all proofreaders to comply with its policy in this area and I confirm that if I have used a proofreader, the proofreader was made aware of and has compiled with University’s proofreading policy. If this is a revision of a piece of previously submitted work, my Programme Team and tutor are aware of this.”
2.1. INNOVATION DRIVERS AND PERFORMANCE ANALYSIS 7 2.1.1. INNOVATION FOCUS FRAMEWORK 7 2.1.2. SUSTAINABILITY OUTLOOK 8 2.2. INTERDEPENDENCIES 9 2.2.1. CHRONOLOGICAL LAUNCH AND FEATURES OF ELECTRIC CARS IN THE FLEET 9 2.2.2. MARKETING & INNOVATION 9 2.2.3. OPERATIONS AND INNOVATION 9
3. Operations 10
3.1. OPERATION DRIVERS AND PERFORMANCE ANALYSIS 10 3.1.1. 4V MODEL 10 3.1.2. PRODUCTION CAPACITY 11 3.1.3. CAPACITY UTILIZATION 12 3.2. INTERDEPENDENCIES 12 3.2.1. MICRO EXPANSIONS 12 3.2.2. FUNCTIONAL TRANSFORMATION 13 3.2.3. OPERATIONS AND MARKETING 14
4. Marketing 15
4.1. OPERATION DRIVERS AND PERFORMANCE ANALYSIS 15 4.1.1. PREFERENCE MAPPING 15 4.1.2. FEATURES 16 4.1. INTERDEPENDENCIES 17 4.1.1. PRODUCT LIFE CYCLE 17 4.1.2. SEGMENTATION 18 Appendix 19-22 References 23-25
3
List of Figures
Serial Number
Topic Page Number
1. Excerpt from Strategic Blueprint (Risi, 2020) 4
2. Innovation Focus Framework (Montoya, 2020) 7
3.
Composite 4V model with an inclination metric 11
4. 4P Analysis for Panther Ltd. 15
List of Graphs
Serial Number
Topic Page Number
1. Panther Strategy Canvas (Kim and Mauborgne, 2005) 4
2. CO2 Emissions in g/miles for Panther Ltd (2019-2025) 8
The current paper attempts to critically analyze the performance of an automobile
manufacturer, Panther Ltd. and understand the rationale behind key decisions that shaped
the company over the past 7 years. The paper blends in several academic concepts, internal
director meeting notes, data points from the Industry Masters (2020) portal, references from
both academic writings and real-world case scenarios for an in-depth breakdown of the firm
and its choices. The paper has also given recommendations and possibilities that the firm
holds in the coming years.
Panther Ltd. is a high performing business with revenues upwards of $7.5 Billion and the
highest market share in the automobile industries of America, Europe and Asia, predominantly
China, with these countries accounting for over 90% of all global electric vehicle (further, EV)
sales (IEA, 2020). The company currently runs 12 production lines divided equally between
the 3 factories across the geographies and produces all types of vehicles with a strong focus
on research and development and customer value for money.
The growth and limited shortcomings of Panther can be accredited to Innovation,
Operations and Marketing. These functions have been crucial in setting the overall tone of
business, day-to-day running and charting out the path for future. A strong combination and
impending trade-offs created room for clear analysis and underlying dependencies between
these functions. I worked as the Innovations Director of the firm, with an overarching focus on
strategic considerations of the company. This study is an impartial view of the firm’s
performance and my understanding of the inter-functional decisions.
The paper begins with the overlying strategy that is employed at the firm and is relevant
for a corporate and competitive level knowledge of the firm. This strategy is further used in the
functional analysis that is divided into 3 parts, with the first subpart analysing the functional
drivers and the second subpart correlating interdependencies with other functions. This is
followed by a conclusion that uses these drivers and interdependencies to create a coherent
business model used by the company and offering valuable suggestions for a future uptick.
5
1.1. Strategy
Figure 1: Excerpt from Strategic Blueprint (Risi, 2020)
1.1.1. Strategy Canvas
The company and its directors formulated a plan to create a different market based on re-
inventing consumer needs and demands. Kim and Mauborgne (2005) in their paper: “Blue
Ocean Strategy: Theory to Practice”, state that customers scarcely know what they genuinely
want, the idea is that they want ‘more’ of what is already offered at the right prices. The shift
in consumer preferences can be linked in any industry towards radical over incremental
changes, hence the product strategy focused on creating a new market of vehicles that
exceeded all industrial boundaries. This strategy forms the ethos of the company and is further
explained through the graph below.
• Objective
Create a technology driven electric mobility brand that offers value for money and maximizes efficiency, hence, maximising shareholder value.
• Scope
The company aims to be available across various segments, offering a range of, e-mobility equipped innovative mid-range vehiles across America, Asia and Europe while carefully increasing capacity.
• Advantage
Panther Ltd. is creating a new market for consumers with a propensity to experience cutting edge electric technology while offering vehicles significantly ahead of it's time.
Overall Strategy
6
Graph 1: Panther Strategy Canvas (Kim and Mauborgne, 2005)
The graph has been meticulously created based on competitor information and internal
company documents (Industry Masters, 2020). The blue line significantly outperforms the
metrics of its competitors as the Value Added by Panther has been considerably higher than
its competitors and has disrupted the global market (Appendix). The vehicles have been
equipped with the most advanced technology and offered longer-range travel which addresses
the “range anxiety” problem (Noel et al., 2019; Hidrue et. al.,2011; Egbue and Long, 2012).
The second concern is related to the charging infrastructure, in which case the company
strategized maximum in-house development and investment in charging infrastructure
continuously (Neubauer and Wood, 2014). Leapfrogging ensued in the year 2023 and the
company has since held the pole position in all geographic regions in terms of market share.
2. Innovation
The company has undertaken the ‘strategic innovation’ route that allows for a managed
innovation process while using industry foresight to create and satisfy the needs of customers
in the automobile sector. This approach offers a medium to high revenue potential (Palmer
and Kaplan, n.d.). The company set out with high leverage in research and development, such
that electric car deployment is advanced and vehicle charging infrastructure could be
deployed. Prof. Barnes (2020) suggests creating opportunities is contingent on creating a ‘new
fit’. Panther’s innovation strategy is based on creating a new product to serve the existing
market (Ansoff, 1957). In the Ansoff matrix, the company suffers from high risks in the products
level, but the use of blue ocean shifts the market, creating a diversification approach.
The fear of low sales volume had a significant impact on the overall margins. Ideally, the
spend/sales ratio should improve as the product moves from Introduction to Decline. The
0
200
400
600
800
1000
1200
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Valu
es
Cumulative Marketing Spend/Sales
18
average age of the fleet varied throughout the simulation. Case in point is Year 3 when the
average age of the fleet was around 14-16 months, the Spend/Sales ratio increased by almost
200 points, which should have ideally dropped or stayed the same. The company did not
recognize undersupplied segments and, in the race, to compete in oversaturated markets
spent notably high on promotions while also reducing prices. The last 2 years which has high
sales, shows the graph plateau, which allowed for recovery and a higher return on investment
in the future.
4.1.2. Segmentation
A new product launch seemed like an exciting idea and involved effective communication
between Operations and Innovation Departments, along with the Finance Department issuing
the necessary financial resources. Since the product mix included variants that fit segments
in different markets the choices were based on the preference list. As Rudd (2020) stated
while arguing segmentation in a lecture slide that, ‘few products can satisfy all customers’.
The company was able to define global boundaries and maximize sales based on production
and tariff norms. The goal focus remained at securing the highest market share in each
segment of the vehicle, which would give a higher market share in each country.
The company had a not-so-swift transition from a marketing myopia point in the beginning and
middle years, to a customer-focused organization. This is a case of ‘customer informed’ to
‘customer-focused’ marketing, which is against the arguments dispensed by Rudd (2020).
Conclusion
The essay has broadly analysed the performance of individual functions of the organization
using KPIs and competitor analysis. The paper has highlighted the interdependencies that
exist between them using important decisions that created a mature company. These factors
have created the necessary elements to judge how well the company has performed. More
importantly, how each function works in collaboration to formulate a bigger picture.
As isolated functions, the company would find itself in complete disarray and succinct
communication with a strategy agreed between all the directors allowed the company to
succeed. The dynamic response system within Panther Ltd. is weak since all KPIs had fallen
significantly in years 3 and 4. This could have been prevented with a proactive reaction system
in the early quarters of decision making.
The idea of creating a novel product and distinguish a separate market is filled with risks and
that is exactly how the startup ecosystem works. Panther as a startup made significant
19
investments in innovation and launched products, but it failed in the short term. In context,
Skype was a video conferencing service that existed long before Zoom, but the COVID crisis
propelled Zoom and diminished Skype (Stokel-Walker, 2020). Panther is the Skype that will
succeed due to the underlying ethos of creating a technology-focused company with a value
for money proposition.
At the end of Year 6, the company has developed the resources and capabilities necessary
to storm the market. The company needs to increase factory lines to incorporate for the rise
in sales that are being forecasted. The ‘Coupe Autonomous’ offers the first-mover advantage
on both cost and differentiation grounds, thus, mitigating earlier errors and entering the market
at the right time with appropriate configurations.
This study is limited to the three functions and an overall outlook relating to the other functions
of the organization along with external market-related factors must be analyzed to supply a
broader picture. The limitation of text has blocked out the analysis of the key ratios and
financial figures. Overall the analysis will allow any external or internal user to understand the
company and make informed decisions for the future.
Appendix
Data on customer concerns for EV
Biggest concern about EVs Number of responses (%)
Battery range 158 33
Cost 129 27
Charging infrastructure 83 17
Other 58 12
Reliability 47 10
Safety 6 1
Source: (Egbue and Long, 2012)
Strategy Blueprint
20
Revenue
EBIT Margin
21
Return on Net Assets
Return on Sales
Value Added
22
Metadata on Change Calculation (Graph 5, page 14)
Car Type America Europe Asia
Old New Old New Old New Chan
ge
E Suv $72,6
78
$66,5
91
$66,5
91
$71,9
18
$77,5
83
$73,2
50
$5,09
3
2.35
%
E Compact (RV7) $29,0
36
$28,6
08
$26,0
07
$28,6
08
$31,1
81
$26,0
07
$3,00
1
3.48
%
E Compact (City
007))
$41,6
44
$38,9
75
$40,7
81
$36,0
88
$36,0
88
$41,5
01
$1,94
9
1.64
%
E Executive $56,2
17
$51,3
42
$51,3
42
$55,4
49
$60,0
61
$56,4
76
$4,35
3
2.60
%
E Convertible $48,2
00
$52,0
56
$52,0
56
$48,2
00
$53,0
20
$55,4
30
-
$2,41
0
-
1.57
%
23
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