Decision Making in a Complex Environment at Mitsubishi Motors

Mitsubishi Motors faces the decision to expand market share with the launch of the i-MiEV electric car amidst uncertainties in future demand. This case study explores alternatives, benefits, opportunities, costs, and risks associated with investing more in electric cars or maintaining the current strategy. The BOCR model prioritizes costs while synthesized results indicate a preference for further investment in electric cars.

• Mitsubishi Motors
• Decision Making
• Electric Cars
• Market Expansion
• Business Strategy

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Uploaded on Mar 14, 2025 | 0 Views

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Presentation Transcript

1. MITSUBISHI MOTORS Decision Making in a Complex Environment Banu Tagal Chia-Chun Chen Wen-Jung Chen

2. Background Plan to expand its market share Launch the electric-car, i-MiEV Limitation of usage and expensive retail price Unpredictable future demand

3. Alternatives Invest more on electric-car Remaining in the current strategy Strategic Criteria Existing Product Synergies Manufacturing Impact Market attractiveness

4. Benefits Benefits Economic Market Brand image Industry competition status Market share Financial After sales service cost Tax incentives Environmental Pollution Carbon emission Noise Resources Electricity price Fuel price Operational Engineering Advanced technologies Design simplicity Manufacturing Capacity utilization Ease of manufacturing

5. Opportunities Opportunities Economic Financial Economics of scales Stock price Market Market trend New market Environmental Social Corporate image Increase in population Eco-friendly Increase in environmental consciousness Increase in fuel price

6. Costs Costs Financial Manufacturing Component Labor Marketing Advertisement Promotion activities Operational Manufacturing Manufacturing technology level Production capacity Quality control Marketing Customer service Distribution channel

7. Risks Risks Corporation External Increase in tax Restriction in regulations Internal Internal objection Technical barriers Industry Economic Fluctuation in interest rate Fluctuation in material price Market Increase in competition Overcapacity

8. BOCR Model Priority Costs highest priority at 28.85% Risks lowest priority at 18.39%

9. Synthesized Results-Benefits Invest more on electric cars 61.9% Remain the current strategy 38.1%

10. Synthesized Results-Opportunity Remain the current strategy 62.7% Invest more on electric cars 37.3%

11. Synthesized Results-Cost Invest more on electric cars 82.2% Remain the current strategy 17.8%

12. Synthesized Results-Risk Remain the current strategy 53.7% Invest more on electric cars 46.3%

13. Overall Synthesized Result Remain the current strategy is the best decision Cost is the crucial factor of all

14. Overall Synthesized Result Long term

15. Sensitivity (Benefit & Opportunity)

16. Sensitivity (Cost & Risk)

17. Questions?