Assessment Ocean Blue

Case Study : Ocean Blue

(This is a fictitious company)

Background

Ocean Blue having been developing an electric autonomous pure electric vehicle and entered into the market with high levels of success and interest, due to their reduced battery consumption and long times between charging. The company was a spin off from a Berlin University research project into zero emission vehicles operating within secure non-public facilities such as airports, ports and manufacturing locations. The company started in 2012, with private financial backing from three investors, who equally own 1/3 of the company.

Currently their customers are based mainly in Germany and France, but there are interesting sales enquiries from other parts of the world including North America and China. The CEO needs to increase the business and enter into these markets, but faces major problems with the manufacturing and supply chain into the new markets.

Ocean Blue’s core competence is engineering and technology, with a strong research and simulation team constantly improving the battery life and autonomous driving capabilities. As the company has evolved the manufacturing and supply chain have slowly built up, with parts being out-sourced to different companies and a mix of different components suppliers.

Due to the restriction of finance, stock of high cost items such as batteries and chassis have been limited to weekly builds and several items for manufacturing have run out of parts causing a delay in delivery of the vehicle to the end customer. These delays are now affecting the image of the company and the CEO knows this is a major risk for the company moving forward with future orders and new customers.

There are no preferred suppliers selected for manufacturing and often change every time a vehicle is built, with parts arriving at random times, wrong parts, sub-standard parts and constant changes of parts (e.g battery cells). One recent incident was that the side door collapsed due to poor quality components, which required the vehicle to be returned to the base for repair. This incident caused a lot of embarrassment to the company and financial loss, which the CEO would like to avoid in the future.

As the company wants to expand it needs to raise financial backing and the feedback from suitable investors is the need to resolve and establish a supply chain with suppliers and current and future customer base.

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