Beruflich Dokumente
Kultur Dokumente
CASE STUDY
UNDER SUPERVISION OF
GROUP MEMBERS:
ASHRAF KHALIL
MAREY
AHMED BAHER
HANI RAMADAN
SHOUKRY RAMADAN
WAEL BARAKAT
Case Summary
Mr. James Elliot, 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 on line in three years. All on the
Board except one (101) 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 three years.
Case Summary
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 three years before it is fully on line. This means that
Byte cannot meet the anticipated demand for its products.
Alternative courses have been explored - (1) license Byte
products
and
technology
to
other
United
States
manufacturers, and (2) overseas facilities and licensing. Top
management found an existing plant in Plainville, New
England, that would meet the companys immediate
production needs until the new plant will be online in three
years. The Plainville facility had been closed for the last eight
years. It would take about three months to get the Plainville
plant online.
Case Summary
The discussion between Elliott and Williams focuses on
the impact on the town and on the potential 1,200
employees of opening this temporary plant. The town
and the townspeople had gone through a catastrophic
closing eight years ago when the plant in question was
closed. After a lengthy discussion between Elliot and
Williams, a recess in the meeting is called. When the
board meeting is reconvened, a major shift has taken
place. The vote could be 74, or 65 for the proposal,
but Elliott desires a unanimous vote. As the case ends,
Williams is asked if a compromise can be reached. He
responds, respectively, "I have to say no."
Viewpoint:
James M. Elliott, Chief Executive
Officer and Chairman of the Board
Time Context :
Over the past six years
PROBLEM
The companys production
capacity cannot meet the demand
OBJECTIVE
The companys production capacity
SWOT
Strengths:
The company is the largest volume supplier of
specialized electronic components and industry leader
with 32% market share.
Weakness:
The company has only 3 manufacturing facilities and
already operating in full capacity with 3 production shifts
(24hours per day, 7 days a week).
SWOT
Opportunities:
There is increase in demand of electronic components and ease of
new firms entry into the industry.
Threats:
The number of competitors increased due to ease of new firms
entry into the industry.
QUESTIONS
about 3 months.
2- the knowhow will be in Byte hand control so, they will keep
The new plant will keep operated on as our vision to serve a new
era of market in north east US
as ghost town
Unemployment will increase and will to more
poverty in the town
V. CONCLUSION
Decision Criteria
Matrix:
1 good
2 better
3 best
Persons
involved
Time Frame
Hiring of employees
for production
HR
3 - 6 months
Finance
3 - 6 months
Employees
3 - 6 months
top
management
3 - 6 months
Allocation of Budget
and financing
Production of
electronic
components
strategic planning