Byte Case

I. Current Situation

A. Current performance

1. Total sales of approximately $ 265 million

2.32% of the Industry market share

3. New Entrance to the Market

4. Byte canÐŽ¦t meet the demand of the current market

B. Strategies postures

1. Mission

To be a market leader in electronic component industry

2. Objectives

1. To increase its production in order to meet the market demand

2. Beat Competition especially with all these foreign and domestic entrance to the market

3. Strategies

1. For Byte one of its main strategies is to keep its manufacturing domestically (must be domestic)

2. Control patent

3. Keep high product quality

II. Strategic managers

A. Board of Directors

1. Eleven members ÐŽV seven are outsiders

2. Actively participate and suggest future directions and have an effect on managementÐŽ¦s proposals

B. Top Management

1. James M. Elliot, Chief Executive officer and chairman of the Board

2. Responsible for current situation

3. Have a strong proposal for the dilemma that byte faces now

III. Summary of major facts

„X Byte is considered one of the largest volume suppliers of specialized electronic components

„X Byte is market leader with 32% of market share

„X Byte operates three manufacturing facilities in various locations in the US and they constitute the companyÐŽ¦s production capacity

„X Byte cannot meet the Demand for its electronic components for the market

„X Without an additional manufacturing plant, Byte simply cannot increase its output for components

„X New Domestic and foreign companies are entering the market easily

„X ByteÐŽ¦s board authorized the construction of new manufacturing plant, this new plant need a three years period to stat working

„X Licensing and overseas facilities was not a solution in Byte managements point of view

„X A plan by the CEO of Byte was suggested to acquire a plant that was used for the manufacturing of electronic components which in his point to of view considered a good deal because it is inexpensive and could solve the problem until Byte finish its new plant ( that are suppose to be finished after three years )

„X The proposal was rejected by one member of the board of directors because he sees that it will be wrong step to do and it will affect the image and the market share for byte and will jeopardize the social and economic situation of the society that it will be working in

IV. Major Problems

A. Strategic problems

1. Byte didnÐŽ¦t realize that it is working in a technological industry and this industry is changing dramatically and it must be strong enough to keep along with this industry

2. Byte doesnÐŽ¦t have future plans to increase the demand for its products and the decision to start a new plant was taken very Late

3. Byte had a strategy of keeping its manufacturing facilities Domestic

B. Organizational Problems

1. Contradiction in the point of view for CEO and Board of directors , Legality and social responsibility

2. The CEO suggest to acquire a manufacturing plant that was using eight years ago in the manufacturing of electronic components which is offered in a very good price and use it in Byte production until the new plant be ready to work, in the other hand one of the board directors who is an outsider sees that this solution is not accepted because as he says that this solution will creates a huge problem for the community that it works in because and will