The Recalcitrant Director at Byte Products, Inc.: corporate legality versus corporate responsibility BYTES PRODUCTS, Inc. is an American based company involved in the production of electronic appliances incorporated in personal computers, mostly used for business and engineering applications. The company has three plants at different locations in the U.S.A, totals a current sale of about $265 million and has a market share of approximately 32%, making her the leader in her industry. James M. Elliot is the lucky CEO and Chairman of the Board of this growing company, but meanwhile he notices they are beginning to face a number of crises: -
The company’s national supply is unable to meet the demands of its consumers, although they run the existing three plants 24hours a day and 7 days a week. -
For an increase in production to result, there is need for the creation of a new plant but this will take 3years to be built and go operational. -
There has been an increase in competition in their sector of activities and a three year delay period will be deadly, as they will see their share of the market suffer. -
A license agreement cannot be considered due to potential risks of drop in quality and at the same time the sale of the company’s secret. A price increase neither can be considered as it will drive the consumers into the competitors’ arms. With all of these struggles, the perfect solution still manages to be found. An abandoned plant in Plainville, a small town in the northeast, could be renovated to fit the company’s production at comparatively lowest costs in a period of just 3 months. It could be operated for 3 three years and then close while awaiting the completion of their own building. A dilemma is yet to be experienced by Elliot: should he tell the Plainville community, which had previously been severely devastated by the closure of the company who owned that plant, that their plan is just for 3 years or should he go ahead without saying anything and then...
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