Background: EcoRide Mobility is a growing company specializing in electric bicycles and scooters for urban
commuters. Over the past decade, the company has built a reputation for affordable, eco-friendly transportation
solutions. However, increased competition, rising battery costs, and stricter safety regulations are affecting its
profitability.
Current Situation: EcoRide is considering expanding into electric delivery vehicles for businesses, as demand for lastmile logistics solutions is increasing. However, entering this market requires significant investment, infrastructure
adjustments, and navigating strict regulatory requirements. The company also faces uncertainty about how quickly
businesses will adopt eco-friendly delivery solutions.
The management team at EcoRide must decide whether to invest in the new electric delivery vehicle line, form
partnerships with courier companies to share risks and costs or pause expansion plans and strengthen their core ebike and scooter business.
Questions:
Question 1: Decision-Making Framework
• Part A: Using the six elements of decision quality discussed in Unit 1, evaluate the decision EcoRide is facing.
Identify and explain how each element applies to this case, highlighting any areas where EcoRide may need
to improve its decision-making process.
• Part B: Discuss how EcoRide’s organizational decision-making systems, as explored in Unit 2, might influence
the outcome of this decision. Consider factors such as leadership style, corporate culture, and communication
channels.
Question 2: Problem Structuring
• Part A: Define the problem EcoRide is trying to solve with the expantion into electric delivery vehicles. Discuss
the scope of the problem and identify the key objectives that EcoRide should consider.
• Part B: Propose at least three feasible alternatives EcoRide could pursue in response to this decision
problem. Justify each alternative by explaining how it aligns with the company’s overall goals and market
position.
Question 3: Decision Analysis Tools
• Part A: Explain how EcoRide can use decision trees to analyze the potential outcomes of investing in the new
electric delivery vehicle line versus partnerships or pausing expansion plans.
• Part B: Create a decision tree that outlines these alternatives, including potential risks, rewards, and
probabilities. Clearly label each branch and decisi