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Sure Start Batteries: Innovation Strategy Analysis

Sure Start Batteries, founded in 1994, is expanding into the electric car battery market while continuing its traditional battery production. CEO Charlie Wicker has initiated a new research division for electric batteries, facing employee concerns about financial risks and job security. The company plans to establish manufacturing in Europe and Asia, while addressing challenges in marketing, communication, and cost management amidst rapid expansion.

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0% found this document useful (0 votes)
10 views6 pages

Sure Start Batteries: Innovation Strategy Analysis

Sure Start Batteries, founded in 1994, is expanding into the electric car battery market while continuing its traditional battery production. CEO Charlie Wicker has initiated a new research division for electric batteries, facing employee concerns about financial risks and job security. The company plans to establish manufacturing in Europe and Asia, while addressing challenges in marketing, communication, and cost management amidst rapid expansion.

Uploaded by

jounaahmed54
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Student Name:--------------------------------------------------------------------------------------------------Group:------------------

Major:----------------------------------ID------------------------------------------------------------------------------------

Course: Psychology of Creativity and Innovation


Course Conveyor: Professor Gamal Shehata
Georgia Program Fall 2024/25
Case Study Assignment

Design Thinking and Creative Problem Solving

Sure Start Batteries is a manufacturer of automotive batteries. The business was started in
Wilmington, North Carolina, in 1994 and has focused its business on traditional car batteries
throughout North and South Americas. The corporate headquarters for Sure Start are in and
around Wilmington, where the majority of the battery manufacturing still takes place. However,
when Sure Start expanded to South America in 2011, they also opened a small corporate office
in Buenos Aires to help manage the business throughout the continent. They have no major
contracts with auto manufacturers to have the batteries placed in new cars, but Sure Start
batteries are a commonly found brand for replacement batteries. Although the company has been
mildly profitable since its founding, the Chief Executive Officer, Charlie Wicker, has hoped for
opportunities to grow the company beyond its traditional market.

Charlie recently began a new research division within the company to focus on a
rechargeable battery for use in electric cars. The electric car industry is still fairly new, and there
are many companies still trying to establish themselves as industry leaders. Thus, Charlie feels
there is an opportunity for Sure Start to enter the market at the early stage and become a mass
producer of electric car batteries.

Sure Start is still continuing the production of traditional car batteries, but it does not plan
to invest any more into future research and development. When Charlie first announced the new
research division, there was some pushback from long-term employees and managers who were
concerned about the change in focus. Their main complaint was that the financial investment
required may be too big of a risk considering electric cars still yield such a small percentage of
total automotive sales. They worried that if the new research results in financial losses for the
company, it will ultimately result in a loss of jobs.

The new electric battery completed development late last year and became available to
purchase in January. The battery has been highlighted by several trade publications for its
impressive performance and competitive price. Because of the positive publicity and good
reputation, the firm has been able to sign contracts as a battery supplier for small, electric car
manufacturers in both Europe and Asia. Similar to when Sure Start first expanded into South
America, they will be required to place corporate offices on both continents. Charlie and most of
the senior leadership team are from the United States. They have some concerns about the
expansion into Europe and Asia because of the many variables they may not be prepared for. For
example, they are unsure what to expect for work culture in these new markets. Additionally,

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they recognize that there will have to be significant changes to how the company handles
marketing, sales, and product pricing. Finally, it is expected that new manufacturing facilities
will be established in these new markets because transportation costs of the heavy batteries
would be too high if they continue to handle all manufacturing in North Carolina.

While Charlie wants to focus manufacturing of the electric batteries in Asia, employees
in North Carolina are concerned Sure Start may eventually decide to move all battery
manufacturing there. So far, Charlie has assured employees that they do not have intentions to
move current production out of the United States. Additionally, he believes expansion of the
company will ultimately make Sure Start a more profitable company. He hopes becoming a more
profitable company will make them an even more stable employer long-term. In addition to
helping with these concerns, Charlie also recognizes there will be a large need for effective
hiring and training for the new offices in Europe and Asia.

The current plan is to temporarily relocate the Chief Operations Officer, Carl Spith, to the
Asian headquarters in Vietnam and the Chief of Human Resources, Kim Arkle, to the European
headquarters in Germany. Charlie believes that having these two trusted leaders on location as
they open these new offices will help with hiring decisions and maintaining the corporate visions
as they start with many new employees. Charlie has specifically chosen Carl to be in the
Vietnam office because they plan to focus rechargeable battery manufacturing in Vietnam where
labor costs are low.

Shortly after Kim begins working in the company’s European headquarters, a new trade
policy is enacted that requires electric cars in Germany to contain 75% domestically produced
parts or the automakers will have to pay a 10% ad valorem tariff on parts from other countries.
Kim and Charlie make plans to establish manufacturing operations in Germany within two years.
Before Sure Start is able to establish manufacturing in the country, several electric cars in
Germany are reported to have issues with overheating. The German Transportation Agency
suspects that the batteries are at fault and is investigating the incidents. All of the batteries in the
affected cars were manufactured and imported by Sure Start.

Charlie is tasking the Chief Marketing Officer, Cynthia Troutman, to develop and
communicate a marketing brand and vision that will win over customers with the new electric
battery by communicating its safety while also recognizing the firms’ longevity in traditional car
batteries to help keep existing employees motivated. This will be a challenge because the
marketing strategy must balance the concerns of existing employees and stability of the long-
term business plan with the promising future of a new product offering. Additionally, the
marketing strategy must translate across multiple continents, cultures, and languages.

Because the majority of senior leadership and other employees have been in and around
the same location, there was never a strong emphasis on corporate communications. However,
with four corporate offices spread throughout the world, and a physical separation of senior

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leadership, there must be an effective channel for them to communicate and be unified in their
decision-making. The vision and communication for the company must then extend internally to
employees around the globe to ensure a unified vision and message that builds employee morale.
Finally, communications to suppliers, investors, customers, and communities must be
coordinated to maintain a unified message from the firm and sensitive to the many cultural
practices where they operate.

The Chief Financial Officer, Darris Johnson, wants to be proactive


about managing the cost implications of a significant and rapid
expansion. In an effort to avoid major financial mistakes, Darris
recommends that all current management and all new managers
hired have clearly defined goals for achievement. He believes each
department and division should identify current deficiencies and
methods for improvement as part of their goals. Darris would
additionally like managers to prioritize the goals into short-term and
long-term categories, prioritizing the most important of each
category. Darris hopes that these goals will form the foundation of
financial decision-making if and when resources become more
constrained.
The Chief Financial Officer, Darris Johnson, wants to be proactive about managing the
cost implications of a significant and rapid expansion. In an effort to avoid major financial
mistakes, Darris recommends that all current management and all new managers hired have
clearly defined goals for achievement. He believes each department and division should identify
current deficiencies and methods for improvement as part of their goals. Darris would
additionally like managers to prioritize the goals into short-term and long-term categories,
prioritizing the most important of each category. Darris hopes that these goals will form the
foundation of financial decision-making if and when resources become more constrained.

Questions:-
Question 1

Charlie believes that the company's newly designed battery is unique in a way that will add direct
value to their customers and hopes that this difference will increase sales. What form or types of
innovation is he using?

roduct: Product Innovation is when a change is made to the product


that adds direct value to the customer.
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Question 2

One of the production managers identifies a change in technique that will allow the company to
reduce the number of steps required in production. An indirect benefit of this reduction is lower
cost for the consumer. Which change is being targeted by this new method?

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Question 3

Charlie is working to incorporate design thinking into an expansion of Sure Start. He hopes this
process will help managers approach problems by being attuned to the thoughts and experiences
of customers. Which stage of design thinking is he targeting? Is he being attuned to the
thoughts, feelings, and experiences of others? Yes or No and WHY?

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Question 4

Charlie is currently working with a new battery that Sure Start believes will double the amount
of time between charging. If the new battery works out, Sure Start will rapidly begin mass
production. Does Charlie need to test the prototype before adopting mass production? Yes or
No and WHY? Which stage of design thinking is Charlie using?

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Which stage of design thinking is Charlie using?


Question 5

One of the company designers has conceptually developed a new battery that the company is
trying out with simulations. Which stage of design thinking is the company designer using?

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Good Luck

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