Introduction Bytes Products Inc. is one of the largest suppliers of the production of electronics components in the Midwest. The annual sales of these products are at its records high and now it’s becoming hard for the company to keep up with the increased demand. James M Eliot is the CEO and chairman of the board, is trying to address the problem faced by the company to meet the demand of its product. Currently Bytes products dominate the market with a good 32% market share. Mr. Eliot is trying to solve the problem to constantly dominate the market by increase the number of plants they currently have, so they can meet the demand. This way the market domination could continue. If they fail to meet the increasing demand buyers can look for other …show more content…
In order to retain its superiority, they must open a new facility to keep up with the supply of goods. One of the promising solutions suggested by Elliot is to purchase an abandoned facility in Plainville, New England while its new fully functional facility is built in about 3 years’ time period for a short term production. The disadvantage of this proposal is that it could impact corporate’s social governance. The focus of this paper would be to discuss the impact of this new proposal and the impact it would have on the corporate social governance. Since there was just 1 vote not in favor of the proposal and how that could impact the decision. Current Situation: The Current situation of the company is that there is an increase in competition and demand is more than Bytes Products can supply. Due to the lack of meeting consumers’ needs there is a chance that consumers may either look to buy from its competition. There could be an increase in competition and new companies could enter the market and share the market share. One possible solution for Bytes Products is to develop a new short term location facility while the new manufacturing facility is built in 3 years. The main goal for Bytes Product is to provide specified specialized computer products to its customers. From reading the case the objective of the company seems dominates the market and increases its market share. Profit maximization and cost reduction …show more content…
The company is going in great crisis and even the proposal by Elliot for short term plant built over an abandon facility in Plainville wont guarantee market share to increase or even to the point that it can’t guarantee that it could keep up for being the leader of the market. The Manufacturing plant is going to be built in 3 years and it’s a long time period where a lot of things can change including technology and consumer taste. The company should plays it safe and they need to come up with new plan as soon as possible. Small losses are fine as long as it does not impact in the long
Kuiper Leda is a small electronics components manufacturer that specializes in Electronic Control Units (ECU) and sensors for the automotive industry. Kuiper Leda currently produces 250 RFIDs and 1,250 ECUs in one day of production. The company recently received an order from Midland Motors to supply 250,000 Electronic Control Units (ECU) along with 35,000 Radio Frequency Identification Device (RFID) tags. Midland Motors is a large company which maintains a close and long-lasting relationship with their vendors; it would be a devastating decision to turn their order down. The present order is above the existing capacity level of the KL plant to handle. The situation presents KL with the opportunity to develop a plan to strengthen their reputation in the industry by increasing their capacity levels. One of the fundamental responsibilities of operations management is to provide the capability to satisfy the future and current demand.
After recent entering into the new product line, electronic manufacturer Kuiper Leda, Inc. facing a big challenge. Being a smaller manufacturing firm for ten years, company was not expecting to get a large and urgent order from Midland Motors, an American Original Equipment Manufacturer. Executive management team concerns about Kuiper Leda approach to delivering products. Always working with smaller customers, company only has a minimum capacity for producing 1,500 ECU and RFID units, which is very low value for the order requirements.
Windsor, D. (2001). The future of corporate social responsibility. International Journal of Organizational Analysis, 9 (3): 225-256.
The famous scandals facing the corporate world that is Enron and WorldCom brought a lot of disruptions to their operations. This brought about strict government regulations, as a result. This also marked as the reminder for NGOs to begin criticizing MNCs. This brought about ranking that necessitated firms to submit their non-financial performance records alongside their financial performance ones. The media has also become a close checker on companies. This has brought the need for firms to embrace social responsibility in their operations to curb battling with restrictors. Firms have also established good relations with their suppliers both as a prerequisite for effective business and as a social responsibility. (Cetinkaya, 2010)
In this particular paper, the author will attempt to describe how legal issues, ethics, and corporate social responsibility (CSR) impacts the management planning of Whirlpool Corporation.
Since the business computing market is projected to triple within the coming decade, we have decided to capitalize on this trend by conveying the same easy-to-use hardware which made our personal computers an industry staple into this expanding market. To deliver this new line of computers to the market, we plan on dedicating 25% of our production efforts to this new enterprise while we will continue to produce our existing personal computers. This is will allow us enough capital to invest in the manufacturing and marketing of these computers as this undertaking is to be the largest in company history. We plan to have these computers on the market within a year from now after conducting marketing research, product development, manufacturing and product rollout, will require roughly 3-4 months each to carry out. In addition, we plan on marketing these computers to our existing clientele base, by offering our new computers at a discounted price and to smaller, family-owned businesses who may lack the financial resources to afford higher-end versions from our competition. Doing so will allow us to slowly expand our business-to-business sales division as we delve further into this market and our clientele begins to expand through word of mouth from our existing base. After the launch of these computers, we plan
It is important to understand that decisions made by businesses can have either negative or positive implications on the public, which is companies have corporate social responsibility. In order to understand Wal-Mart’s corporate social
In a New York Times Magazine article, Milton Friedman said, “the basic mission of a business is to provide goods and services at a profit and by doing so said business is making its maximum contribution to society and is therefore being socially responsible” (Friedman, 1970). Friedman’s belief is a core concept of the shareholder model of corporate governance. Clearly Company Q’s behavior indicates that it subscribe to Freidman’s principle. Their sole concern is increasing the wealth of their shareholders, and investors with no regard to the negative impact, their actions cause in the community.
It will give the definition of the phrase and identify some of the global factors that require corporate social responsibility. The importance of companies establishing corporate social responsibility projects and the impact they have on society will be discussed. The two companies that will compared are Amazon and Exxon. These businesses are both very similar in their notoriety as well as their success but much different in the aspect of social responsibility. Study of Exxon
With the company facing themselves in the context of globalization, they are increasingly aware that corporate social responsibility can be of direct economic value. Although the company 's primary goal is to create profit, companies can at the same time contribute to social and environmental objectives into their business strategy of corporate social responsibility as a strategic investment.
In general terms, the organizational structure of the Electronic Products Division of Allentown follows the same structure of the other divisions. Under the General Manager there is a controller, a product development manager, a manufacturing manager (with three plants treated as three different profit centers), a sales manager and a marketing manager. The last two may be the major difference regarding the general structure of the company, since sales and marketing are usually combined in one single department. The breakdown in two departments has been made by the general manager, reasoning that the sales division should be concerned about short-term actions, while the marketing one should take care of pricing policies and strategic plan.
Large corporations hold a key role in the development within society and the environment due to the high demand of marketing of products which they offer to meet certain service and product quality standards to their customers. Nevertheless, these corporations also have a responsibility to involve themselves in corporate social responsibility (CSR). The practice of CSR is ever changing and is now beginning a new period, obtaining supplies from developing countries and building supplier relationships in these countries are becoming increasingly important, some might say even an obligation in order to survive in the current market. There is increasing pressure from immediate environments for companies to act as a profitable organisation whilst also engaging themselves in social projects which benefit society and environment.
Global corporations have the responsibility of making successful strategic decisions when developing a new plan for their company. One wrong move and these corporations could negatively impact the shareholders, surrounding communities and the environment, as well. It is imperative that these large global corporations understand how the roles of ethics and social responsibility have an enormous impact on those that are directly invested in them. The decision making process is a delicate process that requires special attention to detail and perhaps even a blueprint on how their decisions should affect society. It is also very important that the corporate executives have a well-rounded and balanced strategy when pursuing shareholders profits. All decisions should always be made using their blueprint of strong ethical code in order to prevent a negative
...oduct pricing and positioning. The decision of allocating more resources in distribution channel 1 was reflecting a good result as services provided and sales approach by dealers in channel 1 best suits our target audience. The goal of the firm is to penetrate the market with continually updated product which constantly meets consumer’s expectation and generate high dollar sales. The strategy of increasing the product features, special commands, error protection, the ease of learning, as well as advertising budget also help increase the profitability of the firm. The company hopes further growth in market share and ultimately profit with the long term marketing strategy adopted by the company. Furthermore, the company also hopes to further understand the selected target market to sustain the growth of the company by satisfying targeted audience’s desire and needs.
We utilize higher growth rates for years 2000-2001 at 24% which will decline all the way down to 5% in 2006. However, these projections cannot be warranted because the technology sector and sub industries are considerably dynamic, highly competitive and characterized by short product life cycles. This could also add up to the motives behind the high volatility nature of the industry profits. A last aspect discouraging us for fully supporting such growth assumption is the high research and development investments imposed upon the industry, Seagate’s vertical integration will entail more process innovation coupled with the already known sustainable product innovation makes up the final driver that to our best sense, would depress this overly enthusiastic growth rate expected by