The Recalcitrant Director at Byte products, Inc.
1 What are the issues? Problems?
Demand increase, versus current plant productivity.
2 What is the Solution? Alternatives? a Short Term : reopening an old plant in a village in England b Long Term: opening new plant
Main Issues rose after agreeing on the short term solution: Corporate social responsibility issue, Local Community Strategic Alternatives, Board of Directors’ Role Communications, Corporate Stakeholders Ethics and Values, Opening and Closing of Strategic Decision Making, Plants Impact on Town & on Employees.
Recommended Solutions:
Opening a new temporary plant may be an ideal answer to solve a current problem, but the New England location is far from ideal, but to avoid bad reputation that may raise against the company should reveal that this plant will open for a temporary use only, and then after they can make use of this plant in a new product line.
Since the new plant will be located in the Southwest, perhaps temporary space can be found there. Another alternative would be to plan production of the new plant to open in stages. Perhaps that would forestall some of the demand requirements. A third alternative would be to try to locate manufacturing space nearby one of the existing Byte facilities. When the temporary plant would close, job opportunities could be found in the permanent facilities. Production efficiency might increase production at the existing facilities. If no other alternative is available, then Byte should be up front about the temporary nature of the work. Byte might have to offer assistance to workers in the form of housing or credit. Byte might also guarantee jobs in the new Southwestern plant to any worker willing to relocate. Byte must see the opening of the temporary plant as a means to stop the erosion of the market share, but not as a way to increase profit margins. Understanding that the facility would never boost the bottom line is necessary. Sacrifices