E Ventures

Jackie Daytona is the founder and CEO of E Ventures, a manufacturer of electric sports utility
vehicles (SUV) in the United States. Large, sports utility vehicles (SUV ) designed for off-road
adventures are very popular in the United States. Petrol and diesel SUVs contribute up to 40%
more pollution than ordinary cars.

Timeline of Growth

2012 – E Ventures began operations as a private limited company financed by Jackie and a
group of venture capitalists

2013 – E-Ventures factory opens in the United States

2014 – First E-Ventures vehicle, the E-SUV1 launched. Demand is high, many customers join a
waiting list for the new vehicles.

2018 - Launch of E-SUV2, a larger family-sized vehicle.

2019 – E-Ventures becomes a public limited company.

2022 –Corporate Objective Reset

2023 – Scheduled launch of Electric Delivery Vehicle (EDV)

Mission and Aims

Mission

Accelerate the global transition to clean electric vehicles

Corporate Objectives Set in 2023 (to be achieved within three years)

- market share of 40% for electric delivery vehicles in the United States
- 200% increase in total annual sales volume
- Expansion into further 10 countries with the highest potential sales of electric vehicles
- Increase profits to $500 million annually

Appendix 1: Current Marketing Strategy

- Focus on word-of-mouth advertising, and referrals

- E Ventures customers feel part of a community and are very loyal to the brand.
- Brand identity of innovation and high quality, premium pricing.
- 100% of sales in the United States through the company’s own website reducing costs
compared to competitors’ distribution channels.
- E Ventures exports vehicles to 17 countries in Europe and Asia using agents based in
those countries.

Paper 4 Case Study E-Ventures

 - China is the biggest market for SUV’s in the world. However, E Ventures only gained a
6% share of the electric car market, with sales of 10 000 vehicles in the 12 months to
July 2022. China imposes a 25% tax on all vehicle imports.

Appendix 2: E-Ventures Market Research Report March 2021

- 23% growth in the global electric delivery vehicle market expected in 2022
- Sustained growth predicted in electric vehicle market as many governments around
the world will ban sales of petrol and diesel vehicles by 2030
- Established petrol and diesel car manufacturers planning to switch to electric vehicles
- Economic activity is increasing in the United States. Unemployment has decreased to
3.8% and economic growth is forecast to average 5% per year in the next three years.
- Electric vehicles are currently 10% of all car sales worldwide. This is predicted to rise to
40% by 2030

Appendix 3 –Operations Report

- Capacity at the current factory is 85%

- Worldwide shortage of semi-conductor microchips essential for electric vehicle
production
- Shortage of skilled labour in the United States and minimum wage will rise 10% in 2023
- 150% additional capacity required to meet corporate objectives of a 200% increase in
sales volume

Appendix 1 Financial Data

Dec Dec
2021 2022
Number of issued ordinary shares 45m 50m
Total Equity $1.5bn $2bn
Non-current liabilities $2bn $2.3bn
Revenue (for the year ending) $1.8 bn $3.7bn
Cost of sales (for the year ending) $1.5 bn $2.8bn
Operating profit (for the year ending) $(300m) 80
Profit for the year $(320m) 42
Total dividends (proposed) $5m $10m
Market share price $80 $90
Current Ratio 1.4 1.25
Net Cash Flow from operating activities (for the year ending) $(60m) $(90m)
Gearing Ratio 57% 47%

Paper 4 Case Study E-Ventures