P320 RA3

Topics: Management, Risk management, Strategy Pages: 5 (752 words) Published: September 19, 2014
P320 AR03
Current situation
Persistent supply shortages in electronics industry continued to hurt sales. The shortage problem lasts for two quarters.
The main cause of the shortage is high demands from customers.

Recommendation:
Implement both a Tactical and Strategic Risk Management Program Support
The shortage is expected to last for the rest of the year.
HTC’s success in coping with shortages.
The high demand causes shortages, but it can also leads to increases in sales for some firms; therefore effective plans can not only avoid the shortage, but also catch the huge demands.

Implementation plan
Tactical plan:
Developing new technologies to reduce material costs.
Using easy-to-find components for products.
Strategic plan:
Ensuring stable stockpile and avoiding shortages.

Risk mitigation
Testing new products’ to guarantee their qualities are not affected by transferring components or cost-saving technologies. Coming up with contracts with suppliers to ensure stable supplies.

Rating the article: 3
Current situation
Persistent supply shortages in electronics industry continued to hurt sales. The shortage problem lasts for two quarters.
The main cause of the shortage is high demands from customers.

Recommendation:
Implement both a Tactical and Strategic Risk Management Program Support
The shortage is expected to last for the rest of the year.
HTC’s success in coping with shortages.
The high demand causes shortages, but it can also leads to increases in sales for some firms; therefore effective plans can not only avoid the shortage, but also catch the huge demands.

Implementation plan
Tactical plan:
Developing new technologies to reduce material costs.
Using easy-to-find components for products.
Strategic plan:
Ensuring stable stockpile and avoiding shortages.

Risk mitigation
Testing new products’ to guarantee their qualities are not affected by transferring components or cost-saving technologies. Coming up with contracts with suppliers to ensure stable supplies.

Rating the article: 3

Current situation
Persistent supply shortages in electronics industry continued to hurt sales. The shortage problem lasts for two quarters.
The main cause of the shortage is high demands from customers.

Recommendation:
Implement both a Tactical and Strategic Risk Management Program Support
The shortage is expected to last for the rest of the year.
HTC’s success in coping with shortages.
The high demand causes shortages, but it can also leads to increases in sales for some firms; therefore effective plans can not only avoid the shortage, but also catch the huge demands.

Implementation plan
Tactical plan:
Developing new technologies to reduce material costs.
Using easy-to-find components for products.
Strategic plan:
Ensuring stable stockpile and avoiding shortages.

Risk mitigation
Testing new products’ to guarantee their qualities are not affected by transferring components or cost-saving technologies. Coming up with contracts with suppliers to ensure stable supplies.

Rating the article: 3
Current situation
Persistent supply shortages in electronics industry continued to hurt sales. The shortage problem lasts for two quarters.
The main cause of the shortage is high demands from customers.

Recommendation:
Implement both a Tactical and Strategic Risk Management Program Support
The shortage is expected to last for the rest of the year.
HTC’s success in coping with shortages.
The high demand causes shortages, but it can also leads to increases in sales for some firms; therefore effective plans can not only avoid the shortage, but also catch the huge demands.

Implementation plan
Tactical plan:
Developing new technologies to reduce material costs.
Using easy-to-find components for products.
Strategic plan:
Ensuring stable stockpile and avoiding shortages.

Risk mitigation
Testing new products’ to guarantee their qualities are not...
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