Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ff1.1 Discuss any SIX (6) factors motivating Tesla Inc.'s internationalisation of its operations to Germany. Your discussion must include an appropriate introduction and conclusion. (8

image text in transcribedimage text in transcribedimage text in transcribed
\f\f1.1 Discuss any SIX (6) factors motivating Tesla Inc.'s internationalisation of its operations to Germany. Your discussion must include an appropriate introduction and conclusion. (8 Marks) 1.2 Use the SWOT framework to undertake a detailed 360-degree analysis of Tesla's Berlin Gigafactory. Your discussion should include an appropriate introduction and conclusion. (12 Marks) 1.3 Before the final location decision in favour of Gruenheide which is near Berlin, Germany, more than ten European countries had campaigned to have the factory located within their jurisdictions (Galeon, 2016). The Netherlands, France, Finland, Poland, Hungary, the Czech Republic were at various points considered as potential sites of the plant. Suppose that the final three locations considered by Tesla Inc. were Berlin (Germany), Prague (Czech Republic) and Vaasa (Finland). Assume that Tesla Inc. used the following data associated with the production of Model Y for the final locational analysis regarding the three locations: Location Berlin, Germany Prague, Czech Vaasa, Finland Republic Total fixed costs :30 million #8 million $14 million Direct material cost per unit E 1 500 $ 6 000 E 3 500 Direct labour cost per unit E 7 000 E 3 000 E 6 000 Variable overhead per unit E 1 800 $ 4 000 E 2 500 A target capacity of 10 000 Vehicles (Model Y) per week is projected for the Gigafactory. Assume that the expected average selling price for a unit of the Tesla Model Y is 647 000. 1.3.1 Discuss the three steps involved in locational break-even analysis. (2 Marks) 1.3.2 On the basis of the data provided above, use a locational cost-volume analysis to determine the most suitable location for the Tesla's European Gigafactory. As part of the analysis, plot the cost curve for each of the three locations on the same graph, determine the total cost for each location, and the expected profit for each location. For the plots, use units from 0 to 15 000 at intervals of 1 000. (8 Marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

OM operations management

Authors: David Alan Collier, James R. Evans

5th edition

1285451376, 978-1285451374

More Books

Students also viewed these General Management questions