The Recalcitrant Director at Byte Products, Inc. Corporate Legality versus Corporate Responsibility PDF

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Summary

A Research Paper that was done in my previous semester...

Description

Introduction Byte Products, Inc., was a private firm located in the Midwestern United States is regarded primarily as one of the largest-volume production of electronic components that are used in personal computers, but are most frequently in computers used for sophisticated business and engineering applications. Annual sales of these products have been steadily increasing over the past several years. Byte Products, Inc.; currently has total sales of approximately $265 million. Many new firms domestic and foreign have entered the industry. A dramatic surge in demand, high profitability, and the relative ease of a new firm’s entry into the industry explain in part the increased number of competing firms, to which Byte Products, Inc. faced a major problem in meeting the demands of components. The Board of Directors planned for the construction of a plant that would be completed in three (3) years. On the contrary, they are reluctant with the given short-term solutions. Statement of the Problem How would the company achieve success in the high demands and expectations of their product in the business market?

Analysis of the areas to be considered

1. Lack of Production to meet demand Even when the company currently operates three manufacturing facilities in various locations throughout the United States. Each of these plants operates three production shifts (24 hours per day), 7 days a week. This activity constitutes virtually all

of the company’s production capacity. Without an additional manufacturing plant, Byte simply cannot increase its output of components.

2. Growth of Existing Competitors The dramatic increase in demand has allowed many new firms – domestic and foreign, to enter into the industry and have caused an increased number of competing firms.

Recommendations

1. The idea of a construction of a new manufacturing plant will allow the firm to produce more, but with the drawback that this might take some time but guaranteed that it can keep up and reach the demand. Also licensing of the product and technology to other manufactures that would help in the increased level of production, and this will be for the short term or until the new facility is completed. 2. The importance of product development in situations where an organization can develop new products for an existing market, Blythe Products, Inc., should exploit the strength of its relationship with customers and using its experience and creative ability to develop new products suited to their needs. The company must also consider where to concentrate its efforts unto.

Conclusion

Concerning my previous answer on a long-term solution, agreeing with the construction of the manufacturing plant to save the entire Byte Products. Asides from its drawback, There would be no need to license Byte’s product and process technology to other manufacturers, either domestic or foreign ones. Also, another good reason to do so is to keep the production of quality control in the company's hands. Launching the plant for three years would also enable the company to keep the steady prices on their products, i.e. the company will keep its share of the market. Small towns, like Plainville, greatly depend on the major businesses, like Byte in this case. Such businesses supply the local people with a place to work. Also, they allow for infrastructure development. Minor financial investments vouch for the local communities' steady development. In case such a business decides to shut down its plant in 3 years, the impact on such towns as Plainville might be devastating. The compromise could be reached by launching the production in Plainville, and not closing it in 3 years In regards to meeting the demands and expectations of consumer Byte Products, Inc., should also exploit the strength of its relationship with customers and using its experience and creative ability to develop new products suited to their needs. With that said the company should consider the use of conducting an effective SWOT Analysis to help in their business objectives that can generate employment and livelihood in the surrounding community and if all goes well with company expansion, the company can increase goods production at a lower price....