.Renesas Electronics And The Automotive Microcontroller Supply Chain Harvard Case Solution & Analysis

Renesas Electronics And The Automotive Microcontroller Supply Chain Case Solution

Problem Statement

After the 2011 Earthquake, the Renesas Electronics Corporation had two main issues. One of which was how it should respond to the disaster and its effects in the long-term.

Situation Analysis

There was not much destruction in other plants of Renesas Electronic Corporation other than the plant, Naka. Although Naka did not report any loss of human life, it did face severe power shorages. President of Renesas, Ichii Takahashi came to know that the fab faced intense damage due to power off. Naka was the sole manufacturer of microcontroller chips for the two automaker companies of Japan. Thus, it could be an adverse impact on the performance of the automotive companies.

Risk Management Process

Identify Risk

Renesas developed with the merger of Hitachi and the Mitsubishi Electric Corporation in 2003. It dealt with the microcontroller chips. The large companies in Japan’s automotive industry are the major customers of the Renesas. The earthquake interrupted the manufacturing of microcontroller chips in Naka. Hence, it was a threat for the companies in both the short-term the long-term.

Assess Risk

The earthquake caused a dreadful risk for the Renesas due to the earthquake. It needed to take urgent actions in order to fulfill the orders of the automotive companies, Company A and Company B. The president had to take severe actions in order to resume the power of Naka.

Renesas Electronics and the Automotive Microcontroller Supply Chain Case Solution

Control Risk

In order to resume its productivity, he had to do the analysis of the situation created by the Earthquake. He could analyze the power system arrangements in the area or specifically, in the plant. Moreover, the company’s production can recommence through artificial electricity generators and through sourcing or supplying it from the nearby region.

Review Risk

Renesas need to take severe actions against the problem. Since Japan is in a region that is prone to natural disasters.. Therefore, the organization needs to be proactive in order to prevent the natural disasters from damaging their operations.

Recommendations

For preventing such destructive events, Renesas can become proactive through two major options. An option to cater to the situation can be producing more inventories, and another option is to diversify geographically. Following is the evaluation of the alternatives through pros and cons.

Increase in Production

Pros

With the increase in production, Renesas will be able to follow the demand of different companies in the adverse occasions too.................

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