Byte Products, Inc., is primarily involved in the production of electronic components that are used in personal computers. Although such components might be found in a few computers in home use, Byte product are found most frequently in computers used for sophisticated business and engineering application. Annual sales of these products have been steadily increasing over the past several years. Byte Product, Inc., currently has total sales of approximately $265 million.
Over the past 6 years increases in yearly revenues have consistently reached 12%. Byte Products, Inc., headquartered in Midwestern United States, is regarded as one of the largest volume suppliers of ...view middle of the document...
, one of the largest volume suppliers for the production of electronic components used in personal computers.
* Quality Products: Quality products proportioned with a reasonable price
* Employee relationships: Employee relationships may be difficult to manage. The strong union presence would require complex negotiations and labor contracts
* Efficient management planning: A lack of solid planning and forecasting has resulted in Byte’s current facilities shortage.
* Cannot identify the unpredictable moves of its competitors.
* Market growth: The need to expand in order to meet high demand.
* Market environment: both domestic and international
* High demand of products: due to the increase in market range
* Company Expansion: It can increase goods production with lower price
* Increasing competition: due to expansion, there will be an increase in numbers in terms of competitors
* Black market products and under-the-table transactions
* Surging demand and shortage of inventory
VI. Alternative Courses of Action
A. Byte Products Inc. must rehabilitate the abandoned plant in Plainville. They must buy new machines for the manufacturing process.
Advantage: It may be expensive, but it can operate and last longer. The maintenance of the old machines will cost too much. That is why it is more efficient to buy new machines. Machines may help also to decrease man-labor in the manufacturing process. There is no need to hire more workers because it will just add expenses to the company.
B. Byte Products Inc. can license their products and process technology to other manufacturers, both domestic and international, since it would only run for a short- term. While waiting for a new plant to finish, the company can take this option since the proposed plant can be made for an estimate of three years. There would be no gaps in their operation since they are making products to other...