Learning outcome(s) assessed by this assignment:

All learning outcomes were assessed.

At the postgraduate level you are expected to:

 show evidence of assignment planning

 have a high standard of presentation, structure, layout, and design

 demonstrate appropriate coverage, critical appreciation, and evaluation of relevant literature

 demonstrate a critical understanding of key concepts and the application of theory to practical solutions

 show evidence of originality of thought and approach, and creative problem-solving ability

The mark awarded for this piece of work remains provisional until ratified by the Assessment Board.

Assignment brief:

Background & History:

Guangzhou Xiaopeng Motors Technology Co., Ltd., operating as XPeng Motors, has rapidly emerged as a significant player in the electric vehicle (EV) market since its establishment. XPeng's journey  from  start-up  to  its  current  status  reflects  a  broader  trend  in  China's automotive industry toward electrification and smart mobility solutions.

Foundation and Early Development

●     Founded in 2014: XPeng Motors was established in Guangzhou, China, with a vision to develop smart electric vehicles that integrate advanced technology and connectivity (CNEVPost, 2021).

●     Initial  Funding: XPeng secured early  investments from major investors, including Ucar Capital, Alibaba, Foxconn, IDG Capital, and founders He Xiaopeng and Lei Jun (CNEVPost, 2021).

Product Launches and Milestones

●     First Vehicle - G3: XPeng launched its first smart electric SUV, the G3, on December 12, 2018. The G3 was designed to appeal to tech-savvy consumers with its innovative features and competitive pricing (CNEVPost, 2021).

●     P7 Sedan Introduction: In May 2020, XPeng began deliveries of its second model, the P7 sports sedan, which quickly gained popularity due to its competitive pricing, advanced technology and performance (CNEVPost, 2021).

Public Listing

●     IPO on NYSE: XPeng Motors went public on August 27, 2020, on the New York Stock Exchange (NYSE) under the ticker symbol "XPEV." The successful IPO valued the company at approximately $14.96 billion (XPeng, 2020).

Technological Advancements

●    XPILOT System: XPeng  has developed  its  proprietary autonomous driving system known as XPILOT. The company rolled out XPILOT 3.0 in January 2021, enhancing automated driving capabilities. The P5 model, launched in September 2021, became notable  for  being  one  of  the   first  mass-produced  EVs  equipped  with   LIDAR technology (XPeng Inc., 2021; CNEVPost, 2021).

●     Continued  Innovation:  Xpeng  is  committed  to  continuous  product  development, unveiling new models and planning further releases to expand its portfolio.

Challenges Faced

Despite early successes, XPeng encountered several challenges that impacted its growth trajectory. In 2022, the company faced its biggest crisis since its founding, experiencing only a 23% increase in annual vehicle shipments compared to previous years when growth rates were as high as 263% (Business Times, 2023). This stagnation was attributed to a problematic sales culture, weak supply chain management, and external factors such as declining demand and an intensifying price war in the EV market. The launch of the G9 SUV in late 2022 did not meet expectations, leading to further scrutiny of XPeng's marketing strategies and production costs  (Business  Times,  2023).  The  company's   management   recognized  the   need  for significant restructuring to improve efficiency and streamline operations.

Recent Developments

In 2023, XPeng began to recover from its setbacks by implementing strategic changes within  its corporate structure. The company focused on enhancing supply chain management and  reducing production costs (Business Times, 2023). However, rather than shortening payment  terms with suppliers, the company was reported to be taking longer to fulfill its obligations, with  payment durations increasing to 221 days by the end of 2023, up from 179 days in 2021  (Caixin Global, 2024). This delay highlights the stress in China's competitive auto market,  exacerbated by reduced demand and intense price wars (South China Morning Post, 2024).  The introduction of the Mona M03 model on August 27, 2024, marked a turning point for XPeng, with over 10,000 orders placed within the first hour after launch (CNEVPost, 2024). However,  it  is  likely  that  managing  this  surge  in  demand  would  posed  new  challenges  related  to  production capacity and supply chain logistics.

As of late 2024, XPeng Motors continues to grow within the competitive EV landscape. The company focuses on mid-to-high-end electric vehicles priced between RMB 150,000 and RMB 400,000, targeting a growing base of middle-class consumers in China (CNEVPost, 2024). In July 2024, XPeng reported delivering 11,145 vehicles, marking its fifth consecutive month of growth and a total of 63,173 vehicles delivered in the first seven months of the year, a 20% increase from the previous year (XPeng Inc., 2024) . With ongoing investments in technology and infrastructure, XPeng is clearly positioning itself to compete with established players like Tesla and other emerging EV manufacturers in both China and overseas markets.

References

Business Times. (2023). How China EV maker XPeng got back into gear after stalling in 2022. Available    at:    https://www.businesstimes.com.sg/international/global/how-china-ev-maker- xpeng-got-back-gear-after-stalling-2022 [Accessed 19 Nov. 2024]

Caixin  Global.  (2024).  China's  EV  makers  taking  longer  to  pay  bills  amid  rising  stress. Available   at:    https://www.caixinglobal.com/2024-05-20/chinas-ev-makers-taking-longer-to- pay-bills-amid-rising-stress-102198173.html [Accessed 19 Nov. 2024].

CNEVPost. (2021). Meet The Xpeng P5: World's First Production EV With LIDAR. Available at:  https://insideevs.com/news/537039/xpeng-p5-lidar-video/  [Accessed:  November   19th, 2024].

CNEVPost.    (2024).    Xpeng    gears    up    for    Mona     M03    deliveries.    Available    at: https://cnevpost.com/2024/08/29/xpeng-readies-mona-m03-deliveries/  [Accessed   19   Nov. 2024].

South China Morning Post. (2024). Chinese EV makers delay payments to vendors as they feel  the  heat  from  slowing  sales.  Available  at:  https://www.scmp.com/business/china- business/article/3263341/chinese-ev-makers-delay-payments-vendors-they-feel-heat-

slowing-sales-price-cuts [Accessed 19 Nov. 2024].

XPeng  Inc.  (2020).  XPeng  Announces   Pricing   of  Initial  Public  Offering.  Available   at: https://ir.xiaopeng.com/news-releases/news-release-details/xpeng-announces-pricing-initial-  public-offering [Accessed 19 Nov. 2024].

XPeng  Inc.  (2021).  XPeng  New  LiDAR-Equipped  P5  a  Game-Changer  for  Smart  EVs. Available   at:    https://ir.xiaopeng.com/news-releases/news-release-details/xpeng-new-lidar- equipped-p5-game-changer-smart-evs [Accessed: November 19th, 2024].

XPeng Inc. (2024). XPENG Announces Vehicle Delivery Results for July 2024. Available at: https://ir.xiaopeng.com/news-releases/news-release-details/xpeng-announces-vehicle-

delivery-results-july-2024 [Accessed 19 Nov. 2024].

REQUIRED

1.   In early 2025, you joined XPeng as a management trainee. As part of your employee orientation, you are required to submit a report addressing specific questions related to XPeng.

2.  Your report should evaluate XPeng’s current supply chain design, strategies, and operations management setup.

Your report should cover the following supply chain and operations management concepts:

●    Strengths of the Supply Chain Design and Operations Management:

●     Efficiency/Cost

●     Dependability

●    Quality

●     Innovation

●     Flexibility

●    Weaknesses of the Supply Chain Design and Operations Management:

●     Efficiency/Cost

●     Dependability

●    Quality

●     Innovation

●     Flexibility

Evaluate   and    discuss   XPeng’s    supply    chain   management    and    operations management using the following concepts:

●     Integration of Global Supply Chain Management:

●     Global sourcing strategy and local responsiveness

●     Contract manufacturing

●    Vertical integration

●     Managing supplier relationships

●     Exporting and transportation

●    Trade protectionism: impact on supply chain design

●     Location Strategies:

●     Dimensions and features

●     Factors affecting location decisions

●     Compatibility of the foreign-based manufacturing base

●     Operation hubs and industrial clusters

●     Managing Uncertainties vs. Sustainable Supply Chain Strategy

●     Risk Assessment and Management:

●    Technology:  Supply Chain Visibility & Data-Driven Decision Making

●     Reverse logistics (Circular Economy)

●     Sustainable Procurement Practices

3.   Conduct thorough research, including real company examples from XPeng or related EV manufacturers, to support your discussions effectively.

4.   Based on your findings, include a section on recommendations for enhancing XPeng's supply chain design and operational efficiency. Make actionable recommendations to help XPeng improve its supply chain and operations management, thereby expanding sales in both China and the European market. Compile your findings into a report titled “XPENG:     Supply    Chain    and     Operations     Management     -    Strategic Recommendations.”

5.   In your report, you will demonstrate the learning outcomes by drawing evidence from a broad range of recently published academic literature, research papers, and reports from leading industry publications in operations and supply chain management. You are required to analyze, discuss, and propose viable strategies or alternatives. You must utilize at least ten (10) published academic research papers    and leading industry publications.

Format - further guidance:

●    Assignment Cover Sheet

o Module Name

o Assessment Title

o Word Count

o Student ID number

o Report Title: XPENG: Supply Chain and Operations Management - Strategic Recommendations

●    You are expected to structure the writing of your report as follow:

   Introduction

   Findings

   Discussion

   Conclusion

   Recommendations

●    You will include a correctly formatted reference list and in-text citations using UoS Harvard referencing format. Refer to

http://libguides.uos.ac.uk/friendly.php?s=academicskills/referencing.

●    Your work should be presented in a report format, using headings and including a content page and page numbers.

●    Please choose a clear font (either Arial or Calibri) using size 12.

●    Please ensure your work is 1.5 spacing.

●    Your total word limit is approximately 3,500 words (+/-10%).

Employability Skills

This module will  provide students with opportunities to acquire and demonstrate the following employability skills: independent learning; research; critical thinking and analysis; problem- solving; interpersonal skills and communication skills (written and oral).

Assessment Criteria (part 1/2):

The assessment guidelines below offer guidance on marking criteria and outline expectations in this module regarding word limit, presentation time, referencing, and consequences for non- compliance. Submissions exceeding the word count by more than 10% will be penalized. Presentations  exceeding  the  allotted  time will  lose  marks.  Claims  without  proper  in-text citations and referencing will result in automatic failure.

Review guidelines carefully and consult library referencing guidance to avoid penalties.

Referencing:

Ensure that all submissions are appropriately referenced and adhere to academic integrity guidelines. All claims and facts in your academic submission must be supported by references in Harvard style. Any work submitted without in-text citations and a reference list will result in an automatic refer. Simply listing references at the end without using them as in-text citations throughout your work will also result in a refer. Refer to library guidance on the proper use of in-text citations and referencing.

http://libguides.uos.ac.uk/friendly.php?s=academicskills/referencing

Wordcount:

Written  submissions  within   (+/-   10%)  of  the  stated  word   limit  will   not   be  penalized. Submissions exceeding the word count by more than 10% will be penalized by deducting 10% from the overall marks. Any content exceeding the maximum word count by over 10% will neither be read nor contribute toward assignment marks. Word count excludes references and executive summary.

Presentation Length:

Presentations must be within the allotted time. Presentations will be stopped at the end of the allotted time. 5% will be deducted from the total marks for presentations which go over the allotted presentation time.

Using AI: On this module, you may use AI appropriately in your assessments, such as Grammarly for grammar corrections or ChatGPT for generating ideas. However, AI should not be used to generate the final text—whether written, verbal, or in video format— submitted for assessment. All work must be expressed in your own words, developed and constructed by you. If there are concerns about inappropriate AI use, you may be required to have a conversation with your module leader(s) to discuss your approach to the assessment.

Rubric Criteria:

The table below shows you how your grade will be calculated. Each criteria reflects module learning outcomes and reflects the University’s expectations of students at your level of study - understanding of the basic underlying concepts and principles, cognitive and intellectual skills, application of theory to practice, referencing, and attention to your  presentation, style, and structure.