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.
5. What, if anything, could the foremen have done differently to help the group's conflict management and decision-making process?
Clarkson Lumber Company’s biggest problem by far is the fact that Mr. Clarkson had agreed to buy out Mr. Holtz for $200,000 with semi-annual installments of $50,000. It wasn’t necessarily a bad idea for Mr. Clarkson to buy out Mr. Holtz altogether, but the $100,000/year of payments is an unrealistic amount for Clarkson Lumber at this point in time. Between 1993 and 1995, there hasn’t been a year where they have realized more than $77,000 in net income, so the payment of $100,000/year is clearly unrealistic and a sure problem for the company. Another problem, which isn’t nearly as important as the former, is that net income is growing
1. Do you feel that the Bearington plant has the right equipment and technology to do the job? Why?
3. Evaluate Gordon Biersch's efforts to raise outside capital. What would you have done differently?
1. Do you feel that the Bearington plant has the right equipment and technology to do the job? Why?
1. From a strategic management standpoint, why do you think that corporate management at Alcoa delayed taking action for five years as the plant continued to lose money and deteriorate in other operational measures?
b. It’s useful when students want to do a compare and contrast to the theory they are studying. It gives students various perspectives to view an issue.
Due to this realization, the next thing he did was to talk to the plant’s accountants to determine how the company can make money. The company will have money if the net profit increased along with the return on
1. The Sales Rep. A sales representative for a struggling computer supply firm has a chance to close a multimillion-dollar deal for an office system to be installed over a two-year period. The machines for the first delivery are in the company’s warehouse, but the remainder would have to be ordered from the manufacturer. Because the manufacturer is having difficulty meeting the heavy demand for the popular model, the sales representative is not sure that the subsequent deliveries can be made on time. Any delay in converting to the new system would be costly to the customer; however, the blame could be placed on the manufacturer. Should the sales representative close the deal without advising the customer
This case can be used in several ways. In the introductory course, the case can be used as the basic structure for a lecture or as a written assignment in conjunction with lecture and text material. In our more advanced courses, which usually have smaller enrollments,
The only thing I would have done a bit differently was spend a considerable amount of time with the plant manager to try and get a grasp on how his authoritative demeanor affects his staff. I would have also viewed the company records to find out what the turnover rate is like as well as absenteeism and the lack of or presences of an incentive program. The reason why I would look for these measurements is because it can make or bring down a company. With that being said, in my opinion Jack Lawler did an outstanding job with the manner in which he gathered the information he needed to access the situation at the plant. It started with the proposal phone call from Mr. Bowman. During the conversation Lawler took the time to inquire if the plant manager was supportive of the course idea. He then suggested that he should meet with Bowman and Richardson at the plant. While there he got a rundown of the situation at the plant and he was also able to get a tour. Lawler followed up his visit with a letter outlining his thoughts going forward. There was another visit six
3. What would you have done if you had been the controller and had made recommendations to disclose the reversal of the reserves?
4. Why did the assistant plant manager offer his suggested change? Does it have any merit?
1. The Sales Rep. A sales representative for a struggling computer supply firm has a chance to close a multimillion-dollar deal for an office system to be installed over a two-year period. The machines for the first delivery are in the company’s warehouse, but the remainder would have to be ordered from the manufacturer. Because the manufacturer is having difficulty meeting the heavy demand for the popular model, the sales representative is not sure that the subsequent deliveries can be made on time. Any delay in converting to the new system would be costly to the customer; however, the blame could be placed on the manufacturer. Should the sales representative close the deal without advising the customer