The Recalcitrant Director at Byte Products, Inc.: Corporate Legality Versus Corporate Responsibility

Case 1:  The Recalcitrant Director at Byte Products, Inc.: Corporate Legality versus Corporate Responsibility (Executive Leadership)

Lauren McLuckie

MG495

October 28, 2018

Dr Henry Roehrich

Case 1:  The Recalcitrant Director at Byte Products, Inc.: Corporate Legality versus Corporate Responsibility (Executive Leadership)

Executive Summary

This summary analyzes the insufficient planning of Byte Inc. resulting in a facility shortage/ deficiency.  

Synopsis of the Case

Byte Inc. is currently the industry leader in the production of specialized electronic components.  Due to a surge in demand, Byte is in need of another facility to be able to meet this demand.  Byte currently consists of three separate facilities that run seven days a week, twenty-four hours a day.  A fourth facility is estimated to take three years to complete however; Byte cannot afford to postpone its increase in production.  Postponing production allows newer firms the opportunity to threaten Byte’s current production leadership status.

Explanation of Relevant Concepts, Theories and Applications Derived from Course Materials

     Threats for these types of products is high in the market.  Byte Inc. is not able to meet the customer demand and when there is increase in demand, and there is a chance for the new entrants to enter into the market and occupy the shares in the market. This is exactly what the problem which Byte Inc. is facing due the market and high demand of the products.  The profits which the company is making is that the max, as the company production unit is operating in a 24/7 environment with all the available shifts.  So, the company is lacking the option to increase the production to meet the demand.  Threats of new entrants refers to, the competition which the new firm has with the existing firm within the same industry.  In general, the industry with more profit will attract new entrants.  There is a threat of new entrants for the following reasons: the profitability is high and the products cannot be differentiated.

Recommendations

     Construction of a new plant will allow the firm to produce more so that it can keep up and reach the demand.  But, the drawback with this option is this might take some time.  Focus has to be made on other facilities that would help alleviate the problem.

Alternative Recommendations

     Licensing of the product and technology to other manufactures that would help to increase the level of production.  Another option would be to explore options of overseas facilities and licensing that would also increase the production.