Eastern Company faces major competition and challenge from a global aluminum market and from foreign manufacturers...

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General Management

Eastern Company faces major competition and challenge from aglobal aluminum market and from foreign manufacturers who regularly"dump" aluminum into western markets at very low prices. Thus thereis continuous risk in the business from forces out of the controlof internal company and project management. To address the risksinherent in its business, Eastern prepared a risk-based strategicplan. Eastern faces eight risks and has developed eight strategicgoals to address them. 1. Risk I. Required electric power will notbe available at an affordable price. • Strategy I. Secureeconomically priced power to reduce the risk of power shortage. 2.Risk 2. Cost increase in aluminum manufacturing will increasefaster than margin. • Strategy 2. Secure other resources atreasonable costs to offset the risk of cost escalation. 3. Risk 3.Customers will not be satisfied with Eastern's products. • Strategy3. Cultivate customer awareness and promote customer satisfac- tionto avoid customer satisfaction risk. 4. Risk 4. Eastern's workingenvironment will prove to be unsafe and the company will experiencesubstantial loss of workforce and finance as a result. • Strategy4. Create a safe working environment to control the risk of workerinjury and associated costs. 5. Risk 5. The Eastern workforce willnot grow with the technology available for continuous improvement.• Strategy 5. Build a responsible and knowledgeable workforce toavoid the risk of workforce instability. 6. Risk6. Eastern will notact to improve the technology of manufacturing in time to keepahead of competitors. • Strategy 6. Improve technology and plantequipment to produce products more efficiently to controlproductivity risk. 7. Risk 7. Pollution from Eastern facilitieswill lead to noncompliance with government environmentalrequirements. • Strategy 7. Improve Eastern's impact on theenvironment to avoid the cost - ~ of pollution and noncompliance.8. Risk 8. Increasing waste in the manufacturing process andworkforce will lead to uncontrolled costs. • Strategy 8. Reducewaste and non-value-added costs to control the risk of wastedeffort. Create another risk that Eastern Company might be facingand develop a strategic goal to address your new risk. Providebackground that illustrates why this risk is important andspecifically how the strategic goal will address the new risk.

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3.8 Ratings (437 Votes)
Risk 9 Controlling input costs to keep product prices low in a highly competitive market with foreign players to improve and safeguard market share Strategy 9 To control input costs raw material procurement has to be closely monitored and controlled either by identifying more competitive pricing more viable options such as imports or doing    See Answer
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