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according to this case study and the questions below based on this case study Mr. James Elliott, CEO and Chairman of Byte Products, Inc., presents
according to this case study and the questions below
based on this case study
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 three years. AlI 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. Byte Products has three existing plants operating at full capacity (twenty-four hours a day and seven days a week). The new plant proposed to be built in the southwestern United States will require three years before it is fully online. This means that Byte cannot meet the anticipated demand for its products. Alternative courses have been explored: (1) Iicense Byte products and technology to other U.S. manufacturers and (2) overseas facilities and licensing. Top management found an existing plant in Plainville, New Enqland that would meet overseas facilities and licensing. Top management found an existing plant in Plainville, New England that would meet the company's 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. 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." Decision Date: No Date Sales: $265,000,000 ANSWER ALL OF THE FOLLOWING QUESTIONS IN YOUR FIRST DISCUSSION POST. BE SURE REPLY TO TWO PEOPLE FOR FULL POINTS: 200 Words and 75 for responses 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 administration and potential employees that this is a temporary plant for three 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? 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 administration and potential employees that this is a temporary plant for three 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 Step by Step Solution
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