The Recalcitrant Director at Byte Products, Inc

Corporate Legality versus Corporate Responsibility What is the most important problem facing the Byte Products, Inc.? What recommendation(s) would you make to Mr. Elliot, and in what order of priorities? How do you balance between your commitment to shareholders and your commitment to the community? PART I: STATEMENT OF THE PROBLEM In this case analysis, the authors aim to answer the following questions: 1. How will the company meet the high demand and expectations of the market on their products? The authors would like to add some related problems in-line with the statement of the problem. The following back-up problems are: 1. Will the Board of Directors approve or disapprove the short-term solutions such as: a. Licensing authorization b. Overseas facilities and licensing 2. Will the Board approved a lease contract of an abandoned plant in Plainville, USA? 3. Assuming that the lease contract will expire and the new facility is done, what would be the main effect of the abandonment of the lease property to the town of Plainville, USA? PART II: OBJECTIVES The objectives of this case analysis are the following: Short-Term Objectives: 1. To choose the best alternative solution not only for the company but also to the stakeholders. 2. To analyze the given situation through environmental scanning. 3. To evaluate the pros and cons of the given alternative solutions. Long-Term Objectives: 1. To determine how would the company cope up with the demand of the market. 2. To give conclusions and recommendations after analyzing and evaluating the given information about the study. 3. To give a strategy and implementation plan as well as an evaluation and control program for the company. PART III: CASE FACTS The company is involved in the production of electronic components that are used in personal

computers, but their products are frequently found in computers used for sophisticated business and engineering applications. A market leader in electronic components for the past six (6) years with 32% as market share. Over the past years, the company has been consistently increasing its sales that amounted to $265 Million.

 With the drastic increase of demand in the market, the Board of Directors planned for the

construction of a plant that would be completed in three (3) years time. On the contrary, they are reluctant with the given short-term solutions. The CEO was convinced to set a lease contract of a plant at Plainville, USA. The plant will be used temporarily to meet the consumer demands. The said proposal on the construction of a new plant facility has won ten (10) votes out of the eleven (11) - man Board of Directors. T Kevin Williams, the senior executive of a non-profit organization, has rejected the proposal. He envisions certain events would affect the companys name and put them in extreme jeopardy. He also believed that this proposal constitutes gross irresponsibility.
PART IV: ENVIRONMENTAL SCANNING SWOT Analysis

STRENGTHS The company has established its name in the market. Market Leader in the industry. (32% market share) Currently has a total sale of approximately $265 Million. Quality products proportioned with a reasonable price. WEAKNESSES Cannot identify the unpredictable moves of its competitors. Sudden gap between the company and its consumers. OPPORTUNITIES It can generate employment and livelihood in the surrounding community. With company expansion, it can increase goods production with lower price. THREATS New players in the market. (Domestic and Foreign) Black market products and under-the-table transactions. Surging demand and shortage of inventory.