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Byte Products, Inc.

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Overview The names of the organization, individuals, location and financial information for this case analysis have been substituted to preserve the original organization’s desire to be anonymous. Since this is a fictitious company there were no information available for research, all information is based on the case study. Byte Products, Inc., headquartered in the midwestern United States, is regarded as one of the largest volume supplier for the production of electronic components used in personal computers. Byte Products, Inc., was a privately owned firm that has now entered to be a publicly traded company. The majority of the stockholders are the initial owners of Byte, when it was still privately owned. The products that Byte …show more content…

For these reasons Byte would loose market share and would drive away customers to other competitors. The second solution called for overseas licensing and facilities. This option was also rejected by the board of directors and Jim Elliot. The founders of Byte Products, Inc., has always believed that the company’s manufacturing facilities will all reside as domestic and that this strategy has served the company well in the past. The other concern that top management had with this solution was that it did not want to release any technologies to any foreign manufacturer and Byte would have a difficult time in properly controlling the patents. Top management also was concern about foreign licensing because it would give them proprietary information about how Byte operates its efficient production line. The rejection of both solutions was also due to the fact that top management believes the quality of the products will be poor due to the fact that it was produced by someone else and that would hurt the image of the company. The third solution was to take over an abandoned facility for three years and refit it to be able to produce the products to meet the increased demands. The facility, located in Plainville, was primarily used to produce electronic components before it closed eight years ago. The facility can be leased immediately and for a reasonable price. Even though this solution

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