5 Flashcards
Technological advancement and government policy are important factors in both SWOT and 5 forces analysis concerning electric car industry?
True
The Electric vehicles are older than the ICE vehicle.
True
Electric Vehicles where not subjected by the plate lottery/auction.
True
Pollution in main Chinese cities like Beijing or Shanghai were not a key factor in the development of Chinese EV environment.
False
BYD completely stopped the production of gasoline cars in 2020.
True
New energy vehicles mean electric cars.
False
New energy vehicles (NEVs) refer to a category of vehicles that are powered by alternative energy sources, rather than traditional gasoline or diesel engines. While electric vehicles (EVs), which are powered solely by batteries and electric motors, are a type of new energy vehicle)
Profitability will be affected by the debt-to-asset ratio.
True
The higher the debt, the more interest you pay relative to the earnings from your assets which lowers profitability.
Both Europe and the United States have committed to 100% reduce CO2 emissions from new cars sold.
False
BYD has high ROE and high ROI, especially compared with Tesla.
False.
Its ROE and ROI are lower compared with Tesla.
EV batteries have been accused of potential sustainability issues.
True
In the electric car market, Tesla’s competitive advantage is primarily attributed to its innovation in areas such as battery technologies, solar energy, and self-driving research.
True
In BYD’s case, its vertical integration and self-sufficiency in most components of its cars result in a strong bargaining power of suppliers.
False
As China’s new energy vehicle production has evolved from being policy-driven to market-driven, individual consumers in this market have strong bargaining power due to the wide range of choices, warranty options, and pricing flexibility.
True
The government policies are very important in the development of the Chinese EV industry.
True
The battery of a Hybrid Vehicle needs to be recharged by plugging it in.
False
Which of the following features belong to BYD except for
A. sophisticated battery manufacturing process
B. vertical integration
C. the ability to make glass and tires
D. the ability to make engines
E. having a number of foreign bases
(Answer is C. Although BYD is famous for its vertical integration, it still relies on outside suppliers to make glass and tires)
All of the following statements about the EV industry in China are FALSE but one:
A. The competition within the market is not strong;
B. The Chinese government is gradually stopping to give subsidies;
C. Tesla is not a major player in the market;
D. BYD is not the main Chinese player in the market;
E. In China there are more EVs than gasoline fuel car vehicles
(Answer is B. Actually from the initial 18.000 RMB, governmental subsidies decreased to near 8000 RMB now)
All of the sentences below are TRUE, but one:
A. Plug-in Hybryd Electric Vehicle rely only on electricity for its propulsion
B. Hydrogen cars are zero emission
C. Hybrid cars don’t need to be recharged
D. Electric cars are usually associated with the idea of Future, but actually they are a old idea
E. Car software and innovative design are important for the new groups of consumers.
(Answer is A. It is true that plug-in cars can go for some range in full electric, but they still rely mostly on the ICE engine)
All the following sentences are TRUE, but one:
A. Chinese car market is the biggest in the world, both by size and revenues.
B. China is deeply committed in the fight to reduce climate change.
C. China decided to bet on EV industry because the Government wanted to be less dependent from oil importation.
D. The development of oil industry in the US was a key factor in the decline of the first EV market
E. Electric vehicles always had an important share in the automobile market.
(Answer is E. It was true only in the very beginning of the industry, after the 1930 fuel cars are the most dominant)
Which of the following factors is NOT related to BYD’s low profitability rate before 2015?
A. The product prices were generally not high, competing mainly on a low-cost advantage.
B. Cost advantages brought about by vertical integration.
C. Not enough technological innovation was integrated into the products.
D. High operating costs due to the presence of too many business units.
E. By adopting an imitation strategy, their product lacks a unique competitive design edge.
(Answer is B. Because it’s usually a cost advantage to make your own parts and won’t result in a low profit margin.)
Which of the following legal issues is NOT relevant for new energy vehicle companies?
A. ESG disclosure obligations.
B. Data compliance.
C. Intellectual property.
D. Regulation of medical institutions.
E. Tax compliance.
(Answer is D. New energy vehicle companies has nothing to do with medical institutions.)
Why has BYD been able to achieve technological innovation results? (This question is wrong and should include a NOT)
A. The corporate culture emphasizes technology and talent.
B. The process of its past battery production has accumulated some technologies.
C. BYD is adept at imitating Tesla.
D. Massive continuous technological investments.
E. Adopted a technology-oriented development strategy.
(Answer is C. BYD did not emphasize imitating Tesla.)
Which one of the following is BYD’s least prominent strength:
A. Attractive price
B. Self-developed blade battery
C. Vertical integration
D. High brand prestige
E. High-quality labors
(Answer is D. Although BYD’s brand prestige is getting much better in China, it still needs improvement abroad.)
What is special about BYD’s blade battery?
A. It is the most efficient lead–acid battery.
B. It stores more electricity in the same volume compared with traditional batteries used widely by other EVs.
C. BYD purchased the battery’s patent from Tesla but is able to manufacture the batteries all on its own.
D. Although it charges slowly, it has high volumetric cell-to-pack ratio.
E. BYD is not known for the blade battery.
(Answer is B. It has a high volumetric cell-to-pack ratio.)
Which one of the following is wrong about the international EV market?
A. It is a growing market.
B. China is now the largest market for EVs.
C. Many countries have adopted policies to boost the EV market.
D. It has high competition in China.
E. It is monopolized.
(Answer is E. There are MANY brands in the international EV market.)
What is the main purpose of the 5 Forces Analysis?
A. To assess the profitability of a company
B. To evaluate the competitive situation in an industry
C. To calculate market share
D. To determine consumer preferences
E. To predict economic trends
(Answer is B. The main purpose of the 5 Forces Analysis is to evaluate the competitive situation in an industry)
According to the 5 Forces Model, what effect does a higher number of competitors typically have on the intensity of competition in an industry?
A. It reduces competition and increases profit margins
B. It increases competition and decreases profit margins
C. It has no impact on competition or profit margins
D. It leads to product standardization
E. It decreases the need for product differentiation
(Answer is B. More competitors in the market, stronger competition in the market and lower profit margins.)
In the Chinese electric car industry, which factor plays a most significant role in determining success among competitors?
A. Government policy support
B. Supply chain efficiency
C. Market size
D. Loyalty to the brand
E. Traditional marketing
(Answer is A. Supportive government policy will help a lot in EV industry or destroy a EV company in the industry)
All of the following statements are TRUE, but one
A. More than a third of American cars before 1930 were EV
B. Technology advancement was not a key factor about the downfall of the first EV industry
C. The model T by Henry Ford was the first step toward the affirmation of the petrol cars in the automobile industry
D. The maintenance and the purchase of an EV is far more expensive than a ICE (internal combustion engine) vehicle.
E. the government policies is very important in the develop of Chinese EV industry
(Answer is B. It was more about price with the discovery of inexpensive oil than technology)
Which of the following is wrong about BYD’s vertical integration?
A. BYD can manufacture all components of an EV on its own.
B. It helps BYD to keep the manufacturing costs low.
C. It has been established since 2012.
D. It brings problems of component quality control.
E. It makes BYD’s debt-to-asset ratio skyrocket.
(Answer is A. BYD cannot manufacture components like glass and tires, and for some other components BYD can only manufacture them partly on their own.)
