preview

The Recalcitrant Director at Byte, Inc.:

Better Essays

The Recalcitrant Director at Byte, Inc.: Corporate Legality Versus Corporate Responsibility I. ABSTRACT Mr. James Elliott, CEO and Chairman of Byte Products, Inc., presents his recommendation to the Board of Directors to purchase an existing plant in Plainville as a temporary plant until the new one is online in 3 years. All on the Board except one (10–1) seem to favor the proposal. What ensues is the discussion between Elliott and Kevin Williams, board member, over the proposal to purchase a plant with the intention of closing it in 3 years. Byte Products has three existing plants operating at full capacity (24 hours a day and 7 days a week). The new plant proposed to be built in the southwestern United States will require 3 years …show more content…

4. It is an excellent case as an individual test case or a written paper. It has also been used as a final exam in class. 5. Have the class list all the corporate stakeholders who will be affected by this decision. List all the alternative solutions and how each group will be affected. • Movie Suggestion! Roger and Me • This shows the impact of closing a plant on Flint, Michigan by General Motors. • It can be rented. VI. DISCUSSION QUESTIONS 1. If you were one of the board members, how would you have initially voted for the proposal? What would your vote be after the recess in the meeting? Why? 2. Should the Byte executives tell the town administrators and potential employees that this is a temporary plant for 3 years? 3. What impact does a plant closing have on a small town like Plainville? What impact does the closing have on the employees? 4. Can you suggest any compromise for the present impasse? 5. If you were Elliott, would you call for a vote on your proposal or postpone the vote until next the meeting? • Students need to remember that the proposal calls for a new plant. Elliott may want to make this a separate proposal and vote now. VII. AUTHORS’ TEACHING NOTE None was available for this case. VIII. STUDENT STRATEGIC AUDIT/STUDENT PAPER A lack of solid planning and forecasting has resulted in Byte’s current facilities shortage.

Get Access