Renesas Electronics and the Automotive Microcontroller Supply Chain
Name of Student:
Name of Instructor:
Subject Name:
Date:

Contents Problem Statement 2 Analysis 2 Recommendation 3 Implementation 3

Problem Statement
In the earthquake of 2011, Naka, a plant of Renesas had a significant on its power supply. Naka was a sole supplier of microcontroller chips in the industry. It had two major customers that were the large companies of the automotive industry in Japan. Thus, it was the threat for both Renesas and the automotive company A and the Company B as the production of Naka were interrupted by the earthquake.
Analysis
Below is the analysis through which risk associated to the problem can be identified and give the future aspects to resolve it.
Risk Management
Risk management is use to identify the threats that are inherited with the present situation. It also provides the solution of the problem.
Risk Identification
The first procedure of handling the threat is its appropriate determination of it. In the current situation, the risk to Renesas was the earthquake in 2011 that had interrupted the production of Naka. Naka is the manufacturer of microcontroller chips. Two major companies of the automotive industry of Japan were the dominant buyers of the Renesas that used to buy microcontroller chips for their automotive business. Thus, it became very difficult for the Renesas to continue its production due to earthquake destruction.
Risk Assessment
Renesas were not able to produce microcontrollers as per the demand of companies A and B. Thus, the company A and company B were at risk of getting short of their products due to unavailability of microcontroller chips. Thus, it can be analyzed that the business associated with Renesas would also get the decline.
Risk Controlling
There were different options with which Renesas can overcome the