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Ford Case Study: Ford Plans to Manufacture Its Own Batteries for Electric Vehicles

https://www.wsj.com/articles/ford-plans-to-manufacture-its-own-batteries-for-electric-vehicles-11619542051?reflink=desktopwebshare_permalink (Links to an external site.)

Read the article and watch the video within the article: How Lithium became a Hot Commodity

Case Study Questions

1. President Biden ordered a review of domestic supply chains for critical products. What four products did the president view as critical?

1. The President stated that the four products were “Essential to protecting the strength of American competitiveness.” President Biden is speaking to the competitiveness within the world market, he does not want the United States to be solely dependent on foreign nations to keep U.S. supply chains functional. Identify 3 forces within Porter’s 5 forces that could apply to Biden’s reasoning.

1. What quadrant of Kraljic’s Matrix does the raw material Lithium fit into for Ford’s new $185 million battery-development center and why?

1. List 2 advantages and 2 disadvantages to Ford manufacturing its own batteries vs. simply purchasing them from a 3rd party the way they currently do.

1. What are 5 purchases Ford will need to make as it enters into the battery-making space? List the “Purchase Type” for each item you select.