ASIMCO Technologies: 2005 Harvard Case Solution & Analysis

Analyses of Specific Problem Areas

Right now the company is facing problems due toanti-emission act policy in china due to which they are highly concernedabout their sales of auto components that would decline after the implementation of that policy.

The company wants to deal with anti-emission act permanently, for which it is planning to invest huge amount on the development of new technology.In this way the company wants to pursue a technological drift in it.The automobile industry has also faced recessionary area after 2004, although the exports are performing well, but the increased oil price brought a chain reaction in an increase of other related items of life.

Generating Of Alternative Solutions for Each Problem Area

The Chinese government has passed this law for supplying radiation free auto parts in the market to preserve their environmental health; however, changing or upgrading machinery is not the only solution to stop the deterioration of environment through car engine smoke. The Company can also go for Alternative Fuel Option that would be less harmful form the perspective of injurious radiation released through old engines.

The company needs to focus on the alternative fuel vehicles that run on a fuel other than petroleum, such as biodiesel, ethanol, which will positively affect the environmental health.

For the long term prevention of emission-free vehicles the company is planning to drive new technology which will shift its manufacturing procedures.In this way the company must allow it to merge with other international auto components maker so that the exchange of technologies will provide a better option to develop a technology that is a mixture of new and old vehiclessuch as the innovation of Hybrid Cars which actually runs on petroleum and other common fuels but with the help of advanced technology used in it,it uses those fuels in a highly effective and efficient ways.

ASIMCO must keep themselves well aware of the government rules and regulations and the air pollution and high oil prices which are the two main pillars that drastically effect the sales of the automobile industry as well as the automobile parts manufacturer, that’s from grass root level to the strategic rank no one is safe from the effect of these two major factors in the auto industry.For  this the company should highly invest on the Research And Development of cheaper fuel options that are less costly and less injurious for human and environmental health. ASIMCO must also allocate a proper team whose sole responsibility is to conduct external evaluation of the company and to make ASIMCO well aware of its external threats.This team will also work on the market’s lope hole to identify and analyze the gap which ASIMCO could use as an opportunity.

Evaluation of Action Alternative

Alternative Fuel Option:

Pros

Although it is an expensive move for the company to build biodiesel stations, but if the company wants to have a standing point of time in the market till it develops a permanent technology for its auto parts. This option would be less costly and will provide the company an amount of time in which it will go to adopt a more suitable solution for its already manufactured material. Instead of calling the entire supplied auto component or even a few of them this option of introducing fuel other than petroleum and diesel would provide the company with better result at the very instant.

Cons

To implement this option the company requires a lot of awareness campaign to make the user able to educate about the handling procedures of the fuel station.

This situation has also arisen a threat for the company from the consumer's perspective that although people had purchased automobiles manufactured with certain technologies that does not help to stop fuel emission, but it offers another way for which the consumers need to make themselves aware.This also creates an uncertain situation for ASIMCO that the customers might refuse to adopt this alternative fuel option and might stick with the traditional ways of getting fuel from the petrol pumps with an engine that would itself manage the air pollution.

Hybrid Cars

Pros

This option would permanently pull the company out of this fuel emission regulation nightmare policy. This will also increase ASIMCO’s market share and profitability by many folds because of their innovative move in Chinese market. Internationally the companies are strong, technological and to be a part of them will strengthen ASIMCO in every organizational aspect.................................

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