Chapter 11, Problem 13CSQ

Explanation of Solution

Challenges posed by self-driving car technology:

Nowadays, automated self-driving cars and the related technology are being considered by all major automobile manufacturers. Of course, there are significant challenges posed in their development.

Management challenges:

The management and their decision making are impacted by the following issues:

• Initial investment is high as well as resources required are of much higher cost than that of the actual vehicle.
• Development of the self-driving model as well as its maintenance is another challenge.
• Business model and working structure for self-driving cars is difficult to understand.
• Similarly, constraints like public traffic, on road safety, time, and money pose important challenges for a product’s success.

Organisational challenges:

The organisations to develop a supply chain and effective business structure, need to overcome these challenges:

• Establishing efficient communication and collaboration with related companies...