The Recalcitrant Director at Byte, Inc.:
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 before it is fully online. 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 U.S. manufacturers, and (2) 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 3 years. The Plainville facility had been closed for the last 8 years. It would take about 3 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 needed in opening this temporary plant. The town and the townspeople had gone through a catastrophic closing 8 years ago when the plant in question was closed. After a lengthy discussion between Elliott 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 7–4, or 6—5 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:
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 before it is fully online. 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 U.S. manufacturers, and (2) 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 3 years. The Plainville facility had been closed for the last 8 years. It would take about 3 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 needed in opening this temporary plant. The town and the townspeople had gone through a catastrophic closing 8 years ago when the plant in question was closed. After a lengthy discussion between Elliott 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 7–4, or 6—5 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: