Question

value a board of directors may add to the strategic decision making of a company.

After reading Case 1: The Recalcitrant Director at Byte Products, Inc., comment on the value a board of directors may add to the strategic decision making of a company.

Answer 1

Mr. James Elliot, CEO and Chairman of Byte Products, Inc., presents his recommendation to the Board of Directors to purchase an existing plant in Plainville as a temporary plant until the new one is on line in three years. All on the Board except one (10-1) seem to favor the proposal. What ensues is the discussion between Elliott and Kevin Williams, board member, over the proposal to purchase a plant with the intention of closing it in three years.

Byte Products has three existing plants operating at full capacity (24 hours a day and 7 days a week). The new plant proposed to be built in the southwestern U.S. will require three years before it is fully on line. This means that Byte cannot meet the anticipated demand for its products. Alternative courses have been explored - (1) license Byte products and technology to other U.S. manufacturers, and (2)utilize overseas facilities and licensing. Top management found an existing plant in Plainville, New England that would meet the company’s immediate production needs until the new plant comes on-line in three years. The Plainville facility has been closed for the last 8 years. It would take about three months to get the Plainville plant on-line.

The discussion between Elliott and Williams focuses on the impact on the town and on the 1,200 potential employees of opening this temporary plant. The town and the townspeople had gone through a catastrophic closing eight years ago when the plant in question was closed. After a lengthy discussion between Elliot and Williams, a recess in the meeting is called. When the board meeting is reconvened, a major shift has taken place. The vote could be 7-4 or 6-5 for the proposal, but Elliott desires a unanimous vote. As the case ends - Williams is asked whether a compromise can be reached. He responds, "I have to say no.

comments on case1; make the nature related opnening of plants and ecofriendly  projects for saving the employees and the environment.....