Recognize the basic concepts and terminology used in Strategic Management.

Taking the Plan to the Board
The quarterly meeting of the board of directors is set to commence at 2:00 p.m. Jim Elliott has
been reviewing his notes and agenda for the meeting most of the morning. The issue of the
temporary plant is clearly the most important agenda item. Reviewing his detailed presentation of this matter, including the associated financial analyses, has occupied much of his time
for several days. All the available information underscores his contention that the temporary
plant in Plainville is the only responsible solution to the demand problems. No other option
offers the same low level of risk and ensures Byte’s status as industry leader.
At the meeting, after the board has dispensed with a number of routine matters, Jim Elliott
turns his attention to the temporary plant. In short order, he advises the 11-member board (himself, 3 additional inside members, and 7 outside members) of his proposal to obtain and refit
the existing plant to ameliorate demand problems in the short run, authorizes the construction
of the new plant (the completion of which is estimated to take some three years), and plans to
switch capacity from the temporary plant to the new one when it is operational. He also briefly
reviews additional details concerning the costs involved, advantages of this proposal versus
domestic or foreign licensing, and so on.
All the board members except one are in favor of the proposal. In fact, they are most
enthusiastic; the overwhelming majority agree that the temporary plant is an excellent—even
inspired—stopgap measure. Ten of the eleven board members seem relieved because the
board was most reluctant to endorse any of the other alternatives that had been mentioned.
The single dissenter—T. Kevin Williams, an outside director—is, however, steadfast
in his objections. He will not, under any circumstances, endorse the notion of the temporary plant and states rather strongly that “I will not be party to this nonsense, not now,
not ever.”
T. Kevin Williams, the senior executive of a major nonprofit organization, is normally
a reserved and really quite agreeable person. This sudden, uncharacteristic burst of emotion
clearly startles the remaining board members into silence. The following excerpt captures the
ensuing, essentially one-on-one conversation between Williams and Elliott:
Williams: How many workers do your people estimate will be employed in the temporary
plant?
Elliott: Roughly 1200, possibly a few more.