On Tuesday morning, a major international news organization broke a story that the company who
manufactures six critical custom Tesla parts is treating their employees as slave-labor. To compound
problems, a terrorist organization launched an attack in a Middle Eastern country where the back-up
supplier is located. The back-up suppliers factory was badly damaged by a bomb and will be out of
commission for at least 12 months. The good news is that they will sell you one-month of parts at
500% the normal price. The final challenge is that the US government in January 2023 will require
tracking and auditing on manufacturing inputs purchased abroad, which means that Tesla will have
to devote extra company resources to maintaining compliance.
Discuss options for addressing this situation in the short-term and long-term. Put together detailed
strategic recommendations for managing future costs and risks over the next 5 years (Branding;
Production; Sales; etc.)
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