Zmc Case Studies

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  • Topic: ZENN Motor Company, Marketing, City
  • Pages : 1 (351 words )
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  • Published : December 7, 2011
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Zenn Motor Company – Chapter 2
1. Describe ZMC’s mission. The text notes that a clear mission statement acts as an invisible hand that guides people in the organization. Give reasons why you believe ZMC’s mission is effective or ineffective in accomplishing this task. The mission statement is as follows: “To make the world a better place while giving drivers a quality urban transportation solution that would positively impact the environment and reduce vehicle operating costs.” The mission statement is effective because it immediately shows value to the customer. The company does this by giving customers a viable urban transportation solution and saving them money on vehicle operating costs, all while being environmentally friendly. 2. Use Figure 2.2 to describe ZMC’s business units.

ZMC has three distinct business units, the ZENN LSV, City ZENN, and ZENNergy Drive Systems. The first of the three, the ZENN LSV is the companies “cash cow” because it has already grown into the market and established itself with consumers. There is little room for this business unit to grow because consumers need a vehicle to travel in rural areas as well as urban areas. Many consumers that travel strictly in urban areas already have or are buying this product. Both City ZENN and ZENNergy Drive Systems are question marks because of the uncertainty of the EEStor technology and whether it is a viable means of powering vehicles. These business units will require large investments from ZMC to hold and eventually grow their market share. If this technology is successful there is potential for huge market growth, however if the EEStor technology does not work out ZMC will have to consider abandoning this business unit. 3. How can the concepts illustrated in Figure 2.3 help ZMC formulate its plans as it moves its strategy forward? ZMC started with a diversification concept by going to the Canadian International Automotive Show and building a market for their new product concept....
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