The Recalcitrant Director at Byte Products, Inc.:
Corporate Legality versus Corporate Responsibility
I - STATEMENT OF THE PROBLEM
How the management of Byte Products Inc. meet the demand of Electronic components without affecting its profitability for about three years until new plant come into operation.
II – OBJECTIVE
A. To discuss what the really best action for the management to solve the problem
B. To discuss the effect if the company cannot have a solution.
C. To discuss the possible outcomes if other action are taken.
III - AREAS OF CONSIDERATION
Using the SWOT analysis the management can determine the areas they considered that can affect positively or negatively the solution of the problem.
Internal Factors | Strength * Strong financial condition and industry leader. | Weaknesses * No clear strategy or lack of solid planning and forecasting. | External Factors | Opportunities * New group of customer or expanding into geographic segment. | Threats * Likely entry of new firm due to strong demand of electronic components. |
IV - ALTERNATIVES COURSE OF ACTION
The Byte products Inc. face a major problem that it cannot meet the demand for electronic components. By this they have a long term solution but it takes 3 years for a new plant to come online. Elliott the CEO believes that three year period is far too long and there must be short plan while new plant is under construction. It’s because byte management believe that without any move it will lose market share and attract competitors into the market.
The following are the following actions that a management can have as a short- term solution for the problem until the new plant can be open.
1. One suggestion is the licensing Bytes product and process technology to other manufacturers. This licensing authorization is just short-term solution until the new plan could operate. This action results in higher production cost