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.
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.
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
James Elliot the CEO of Byte Product, Inc goes in front of the board with the best idea and that is to go to Plainville until the state of the art facility is build in the southwest. It will take three months to get the factory up and running compared to three years. When the southwest building is finished then Byte Products closes down the factory in Plainville. Byte Product, Inc will not fall behind our demand for our products.