The Recalcitrant Director

Answer 1.

I would have voted YES initially because of a number of advantages that the proposed temporary plant seemed to have. The option of the temporary plant appeared extremely viable because the plant would not require domestic or foreign licensing, would not lead to an increase in the price of products, and the quality control of products would continue to be in the hands of the company. The temporary plant would run for about three years until the establishment of the new plant. This option appeared to be the only alternative that would make the status of Bytes Products Inc. as the industry leader. Therefore, the company would not have a likelihood of losing the current market share for the products it provides.

Answer 2.

It is necessary for the Byte executives to inform the potential employees and administrators that the temporary plant will run for about three years. This is because the closure of the temporary plant will have a significant impact on employees and inhabitants of Plainville and the surrounding areas. Individuals are likely to make long-term investments, whose values will decrease suddenly. Many people will be unemployed suddenly upon the closure of the temporary plant. Informing the potential employees and administrators about the life of the plant will allow them to plan for what to do once the temporary plant closes. This is the utilitarian perspective, which considers that the closure of the temporary plant causes the least cost to many people, including employees and inhabitants of Plainville. Therefore, the company will portray social responsibility, which proposes that companies should consider the welfare of the people in the society and not just be aiming at profit maximization.

Answer 3.

The closure of the temporary plant will have a negative impact on Plainville and the surroundings. Many people in Plainville will lose their jobs, and the values of properties, such as land and houses will decrease drastically. In Plainville, the closure of the temporary plant will affect the customers negatively because they will have no other sources of the Byte products. Therefore, managers must take the responsibility of dealing with the conflicting situations ethically to make a useful strategic plan.

Answer 4.

The byte can handle this situation in a number of ways. The executives can inform the potential employees and town administrators about the closure of the plant, as well as the plans of luring the employees by providing them with several options upon the closure of the plant. For instance, the potential employees can continue with their jobs in the other operational plants of the company. This will attract many employees to the plant irrespective of being temporary. The byte can convince town administrators to make investments in the Plainville community to give support to the potential employees. This will include offering grants to the administrators so that the authorities of the Plainville town can provide the necessary infrastructure. Other ways may include negotiations with the authority and work unions of Plainville to help Byte Products Inc. establish a permanent plant in Plainville.

Answer 5.

If I were Elliot, I would postpone the vote until the next meeting to allow for further discussions regarding the best course of action. It will be necessary for the company to observe social responsibility because all the stakeholders of the company should benefit. If the Executive fails to inform the potential employees and town administrators about the life of the plant, the establishment of the temporary plant will have negative impacts to the entire Plainville. Therefore, it will be necessary for Elliot to wait until the discussion leads to the most viable plan before executing any plan.