Byte Products

            
            
             Byte Products, Inc is a company that produces electronic components that are used in personal computers. They are the leaders in their industry with 32% of the market share. Over the past several years their total sales are approximately $265 million. Now many new firms are coming into the market foreign and domestic. More companies in the industry means more demand, competition, and productivity. Byte Products, Inc is pleased that the market is growing. Unfortunate, Byte Product, Inc only has three manufacturing facilities running 24 hours 7 days a week. .
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             Now since there is a huge demand for their product they can not keep up with three manufacturing facilities. If they can not keep up with their demand then their customers will go else where. The only way Byte can keep up with their demand is to move or build another manufacturing facility. .
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             The long term solution is to build a state of the art manufacturing facility in the southwest of the United States. State of the art building is a great idea, but it will take three years to build and by then the company is out of the race and gone. .
             The short term solution is to move into an old manufacturing facility that use to produce electronic components. The factory has been closed for eight years and it is in a small town called Plainville.
             Analysis.
             Ten of the board members thought moving into the manufacturing facility in Plainville was a good idea. One of the board members that hardly ever speaks out said no about this short term solution. There were other solutions before the idea of moving into the Plainville facility. .
             For example, licensing Byte's product and process technology to other manufacturers in the short run to meet immediate demand was possible. The licensing world be short term or just until the new plant is done. The problem to this solution was no manufacturer would shoulder the fixed costs of producing appropriate components for such a short term.