MellowVans are South African developed and manufactured electric delivery vehicles that provide low cost and emission-free last-mile transport for e-commerce distribution. For over 7 years these electric vehicles have been through extensive testing and trialling with global industry leaders. They’re now ready to hit the streets and offer premium branding space in high-value environments, along with same-day delivery.
MellowVans offer the following:
• High cargo capacity
● Isolated from the elements
● Less maintenance costs and downtime
● Branding revenue
● Completely silent
● Higher operating efficiency
A cost of 15c per kilometre to operate
MellowVans currently have Takealot, DHL, Spar and many other businesses as their clients.
MelloVans offer leasing agreements with the following considerations for businesses:
• Full IoT System
• Generate data & optimised route planning capabilities
• Increased Geographic Reach
• Access restricted areas like bicycle lanes & city streets
• Bigger Delivery Capacity
• Ten times bigger delivery capacity than a motorcycle
• Higher Operating Efficiency
• Multiple orders in one delivery with lower operating costs per km
• In-House Development
• Support without reliance on third parties
Source: (MellowVans, 2024)
For more information on MellowVans, you are required to do additional research on this industry and refer to their website.
QUESTION ONE [25]
1.1 Discuss the principles of networking and analyse how this relates to MellowVans and their current customers. (15)
1.2 Assume that an African nation would like to make use of MellowVans (the actual vehicle) but does not want to use the same name as it might not be the best for the country’s demographics.
Outline how MellowVans can use licensing to expand internationally. (10)
QUESTION TWO [25]
Assume that MellowVans, is currently only operating in Cape Town, and wants to introduce a franchise model to expand their business to the rest of South Africa.
a. Evaluate the advantages and disadvantages of using a franchising model for MellowVans.
b. Comment on the effectiveness of using a franchising model for MellowVans. Motivate your answer. (25)
QUESTION THREE [20]
3.1 MellowVans has been operating for more than seven (7) years but is relatively unknown in the market. The owners of MellowVans wants to understand the value of their business and has decided that the earnings-based approach is the best way to value their business.
Discuss the earnings-based approach to valuation and analyse its effectiveness for MellowVans. (20)
Answers to Above Questions on MellowVans Case Study:
Expert Answer 1.1: Principle of networking as the name suggests is concerned with establishing trust, building relationships and thereby ensuring the sustainability of the network. There can be several principles of good networking and this can be defined as mutual benefit, communication and engagement, trust and credibility, value creation, learning and innovation, reputation building etc.
In the given scenario of MellowVans, these principles of networking can be applied to understand how they can better explain the activities of MellowVans. As for example, the principle of mutual benefit can be understood from the fact that MellowVans is engaged in providing emission free cost effective delivery to its customers to ensure sustainable performance, and this in turn benefits MellowVans to gain access to high volume of work.
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