The Recalcitrant Director at Byte Products, Incorporated Corporate Legality Versus Corporate Responsibility

Abison, Lenneth                                                                   Lua, Steven Philip

Dela Cruz, Justin Von Fred                                                  Nicolas, John Paul

Delos Santos, Mhel Joy                                                         Palmejar, Von Aljohn

The Recalcitrant Director at Byte Products, Incorporated

Corporate Legality versus Corporate Responsibility

Synopsis of the Case:

Byte Products, Inc. is the producer of electronic components that are used in personal computers. However, Byte products are mostly found in computers used for complicated business and industrial applications. The sales of the Byte products had increased every year, and it is regarded as the largest-volume suppliers of specialized components and is the industry leader with the market share of 32%. Similar to other products, there are many new competitors both in domestic and foreign have entered into the industry and share the sales.

Unfortunately, with the dramatic surge in demand and limited production capacity of Byte Products, Byte cannot the demand to serve their increased customers' demand. Currently, the business has three manufacturing facilities in a variety of locations throughout the United States in which the capacity is fully run at 100%. James M. Elliot, the Chief Executive Officer and Chairman of the Board of the business, recognizes the significance of the dilemma. He knows that the customers will go and seek for other manufacturers, and the company will eventually lose their market share.

Relevant Factual Information about the Problem or Decisions the Organization Faced:

1. Byte Products, Inc. cannot meet the increased demands of their customers for the electronic components.
2. The current operations of the organization include a full capacity with three (3) manufacturing facilities throughout the USA. Each plant operates three production shifts, 24 hours per day, seven days per week.
3. Without supplementary manufacturing plant, Byte cannot boost its production of components to meet the increased demands of their customers. And without increase in manufacturing plant, there is a strong opportunity of new entry of new competitors from domestic and foreign into the market.
4. Board of Directors has commonly approved construction of a new, state of the art manufacturing facility in southwest USA. It is estimated that the new plant will require three years to complete the construction and bring it online.
5. The instability of the market and the pressure to maintain leader status are two factors pressing the CEO and Chairman of the Board for a more immediate solution.

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

Recommendations:

Starting a new temporary plant may be a perfect solution to the lack of facility, but the New England as a location is far from ideal. Elliott must consider the problems related with the new plant alongside the benefits of increased capacity. If all forecasts confirm the need for the increased capacity before the new state-of-the-art facility opens in three years, then perhaps Elliott should find for an alternative location. Since the new plant will be located in the Southwest, perhaps temporary space can be found there.