1 Executive summary
Suprema Cars has been caused to a financial crisis. 7 options of recommendation have been suggested to Suprema Cars to get out of financial crisis. 3 outstanding options have been chosen in step 1 report to further analyze here. Setting up joint venture is recommended to Suprema Cars.
2 Introduction
Suprema Cars, a manufacturer of a classic English sports car, began to lose sales and market share, and it made a loss in last two years. At the same time Suprema Cars is facing problem with labor force due to the dissatisfaction of wages, working conditions and manager’s insistence of increasing production. As a result, bad effect of the quality of the cars caused. Increase number of Suprema Cars that have broken down.
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4.4 Environmental
On environmental aspect, it is suggested that Suprema Cars choose a right place for setting its factory, otherwise it may due some pollutions to the area where its factory set. Then it may cause reputational problems that environmental groups would keep chasing on Suprema Cars. If Suprema Cars can deal with the pollutions, then it would be considered as low risk with the aspect of environmental.
4.5 Design and construction
With setting up joint venture, expertise and assets are being shared (lewissilkin, 2012). Suprema Cars may improve its design and have a better construction path. On this aspect, it is considered as the low risk in terms of risk level. The level on construction may be as well as in England, but with time in development, this would not be considered as a problem. Also, with the different kind of thinking pattern with staff of different parties, Suprema Cars may also get some brand new ideas.
4.6 Financial
On this aspect, it is considered as very low risk. Firstly, by setting up joint venture, financial input is shared, as well as the risk is also shared. On the other hand, it could be considered as
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