Question

Exa is a world class car company. Exa manufactures vehicles in multiple locations. Exa sells thevehicles in 170 countries. Exa is experiencing jammed gas pedals that cause a sudden andunstoppable acceleration in the cars in its latest luxury brand of vehicle After fatalities occurred,regulators ordered Exa to recall over four million vehicles and replace the faulty pedals.Subsequent recalls spread to other Exa brands and pushed the total much higher. The recallswere costly and impacted Exa’s long-term financial future. Another unplanned ''disaster'' hitExa. It was the magnitude nine earthquake and series of hurricanes that struck one of its onlycar manufacturing locations in the same year. The automaking center suffered great damageand loss of life. Exa had to shut down four assembly plants that made vehicles at the foreignlocation. Many of the small suppliers in the region used by Exa had to source parts andcomponents had to close their doors. That put a great strain on Exa's supply chain, which wouldhave to be reconfigured. Exa finances millions of vehicle purchases and stores millions ofcustomers confidential information. Exa automates modern productions with the aid ofpropriety computerized control systems. Each year Exa faces strong competitors from other carcompanies who are working hard to replace Exa as the top car manufacturer. Exa attempted tobuild a governance platform of transparency, however, while responding to questions from thepress, it was evident that the CEO did not know enough about the company to provideadditional details to the press. This frustrated the Senior Managers and Team Supervisors andled to internal bureaucratic issues within the company.

What is your report objective?

Answer 1

The report's objective is to analyze Exa's strategic and operational challenges, including vehicle recalls due to faulty pedals, natural disasters impacting production, supply chain constraints, internal governance issues, and increased market competition. It should provide a plan for reconfiguring the supply chain, improving crisis management and communication skills, and rebuilding stakeholder trust.

Step-by-step explanation:

The objective of the report concerning Exa, a world class car company with manufacturing locations in multiple regions and sales in 170 countries, would be to analyze and address the company's strategic and operational challenges. Exa has faced serious issues such as faulty gas pedals leading to massive vehicle recalls, devastating natural disasters affecting one of its manufacturing centers, supply chain disruptions, internal governance and transparency dilemmas, as well as competitive pressure in the automotive industry. The focus would also be on the strategies that Exa may employ to recover from these setbacks, such as reconfiguring the supply chain, improving crisis management and communication plans, and rebuilding stakeholder trust.

Reconfiguring the Supply Chain

Supply chain resilience is key to Exa's recovery. Exa must identify alternative suppliers and potentially restructure their supply chain network to mitigate the impact of future disruptions. Learning from other vehicle manufacturing companies like those in India, which are expanding rapidly despite global challenges, might provide Exa with useful insights for diversification and innovation in its operations.

Improving Crisis Management and Communication

Exa's crisis management procedures and communication strategy need to be strengthened. The CEO’s lack of knowledge presented to the press highlights the necessity for a more transparent and informed governance platform. Better informed and transparent communication can help alleviate some of the internal bureaucratic issues within the company.

Rebuilding Stakeholder Trust

Regaining the trust of customers, investors, and other stakeholders is critical following the vehicle recalls and natural disasters. This requires a proactive approach in ensuring the safety and reliability of their vehicles, and a commitment to effective and empathetic stakeholder engagement.