Recalcitrant Director at Byte Products, Inc
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Read "The Recalcitrant Director at Byte Products, Inc.: Corporate Legality Versus Corporate Responsibility," Case 1 in your text (pages 1-1 through 1-7, Appendix 15a, page 365).
1. What is the most important problem facing the Byte Products, Inc.?
2. What recommendation(s) would you make to Mr. Elliot, and in what order of priorities?
3. How do you balance between your commitment to shareholders and your commitment to the community?
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1. What is the most important problem facing the Byte Products, Inc.?
Byte Products, Inc. is the manufacturer of electronic components that are used in personal computers. However, Byte products are mostly found in computers used for sophisticated business and engineering applications. The sales of the Byte products had increased every year, and it is regarded as the largest-volume suppliers of specialized components and is the industry leader with the market share of 32%. Similar to other products, there are many new competitors both in domestic and foreign have entered into the industry and share the sales.
Unfortunately, with the dramatic surge in demand and limited production capacity of Byte Products, Byte cannot the demand to serve their increased customers' demand. Currently, the company has three manufacturing facilities in various locations throughout the United States in which the capacity is fully run at 100%.
James M. Elliot, Chief Executive Officer and Chairman of the Board, recognizes the gravity of the problem. He knows that the customers will go and seek for other manufacturers, and the company will eventually lose their market share.
"The Recalcitrant Director at Byte Products, Inc.: Corporate Legality Versus Corporate Responsibility," ...
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