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Student’s Name

Professor’s Name

Course Title

Date

Current Events

In Business and Management, staying attuned to current events is paramount for students

to bridge theoretical knowledge with practical applications. One recent current event that

intricately aligns with course material revolves around the global semiconductor chip

shortage, which has significantly impacted various industries, particularly the automobile

sector.

Summary of Current Event: The semiconductor chip shortage has been a prevailing

issue in the global economy, stemming from disruptions in supply chains, increased demand

for electronic devices, and the complexities of semiconductor manufacturing. Major car

manufacturers such as Ford, General Motors, and Volkswagen have faced production delays

and reduced output due to the unavailability of these critical components.

Connection to Course Material: This current event beautifully illustrates the concept of

supply chain management and its pertinence to business operations. We've studied supply

chain management extensively, focusing on risk reduction, supplier diversification, and

production process weaknesses. The semiconductor shortage provides a real-world example

of these principles. It shows how a single constraint in the complex supply chain can affect a

company's operations and finances.

Excerpt from Current Event (Source: The New York Times): "The ongoing

semiconductor chip shortage continues to plague the automotive industry, with major

automakers announcing further production cuts. Ford Motors recently disclosed that it

expects to produce 30% fewer vehicles this quarter due to chip shortages, while General

Motors and Volkswagen have also scaled back production plans. This shortage has exposed
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vulnerabilities in the global supply chain, emphasizing the need for greater supply chain

resilience."

This excerpt emphasizes the issue's gravity and automotive giants' consequences,

demonstrating the practical applications of supply chain management ideas addressed in

class. It shows how business and management constantly evolve and require adaptability and

intelligent strategy.
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Work Cited

Boudette NE. Global chip shortage will slash Ford’s production by about half in the second

quarter. The New York Times. https://www.nytimes.com /2021/04/28/business/ford-profit-

earnings.html. Published April 28, 2021. Accessed September 1, 2023.