Renesas Electronic and the Automotive Microcontroller Supply Chain Number

RenesasElectronic and the Automotive Microcontroller Supply Chain


RenesasElectronic, the Automotive Microcontroller, and supply chain

RenesasElectronic and the Automotive Microcontroller Supply Chain, is thecase study that entailed the impacts of an earthquake in Japan in theyear 2011 (InCiravegna, 2012).The company was a key player in the manufacture and supply of themicrocontroller chips, which were in demand by the automobileindustries. The company products accounted for 40% of themicrocontroller chips produced worldwide, and hence the impact of thequake was widely felt by the automobile industries all over (Pierson&amp Shih, 2012).

Theprinciple decision problem/issue

Inreference to the case given, the key issue raised is the breakdown ofthe supply chain of the microcontroller Naka’s production wasaffected and hence inability to meet its customers` demands of thechips (InCiravegna, 2012).

Themain players and their roles in the case

RenesasCompany is the key organization in the case. Others are Naka plant,Japans automobile industries, (Pierson&amp Shih, 2012).

Alternativesand constraints

Theautomobile industries needed have a different microcontroller chipsupplying company in case of such a disaster (InCiravegna, 2012).Diversify the company’s production in terms of geographicallocations, in order to maintain the supply of the chips. Constrainsincludes competition from other microcontroller chip manufacturingindustries as well as the financial burden of setting up othersimilar plants (Pierson&amp Shih, 2012).

Measuresto reduce the menace

Fortificationof the companies (microcontroller) supply chains, and also enactingeffective disaster response teams, which would help in such cases asthe earthquake.


Pierson,M., &amp Shih, W. (2012). Renesas Electronics and the AutomotiveMicrocontroller Supply

Chain(A).&nbspHarvard Business School Cases, 1

InCiravegna, L. (2012).&nbspSustainingindustrial competitiveness after the crisis: Lessons from the