Honda Canada (A): Tsunami and Communications
(7 pages of text)
Honda Canada was coping with a communications and supply chain crisis after a triple disaster — an earthquake followed by a tsunami and a nuclear meltdown — that hit Japan in March 2011. Honda’s worldwide supply chain was characterized by a just-in-time, single-source approach, wherein the supplier for each component provided the best quality at the lowest price. The approach normally ensured economies of scale but now, in an abnormal time, Honda’s supply chain was vulnerable. In the short term, Honda Canada had to manage the chaos through effective communication with its stakeholders. In the long term, it had to ensure checks and balances in its supply chain. See supplemental case 9B16D005
In a core operations management course, this case could be included in a supply management module. The case could also be used as part of a global purchasing course. For a communications course, this case would fit nicely after an introduction to cross-cultural communications, as part of a module on stakeholder communications, or as part of a module on public relations/media relations. The case has the following learning objectives:
- To illustrate the strategic principles that a company should keep in mind while developing its tactical approach to crisis management.
- To identify the conceptual approaches a company can examine when revisiting its supply chain.
- To examine single sourcing versus diversified supply networks, as well as contingency planning in dealing with supply chain disruptions.
Canada, Japan, Large, 2011
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download