The second solution called for overseas licensing and facilities. This option was also rejected by the board of directors and Jim Elliot. The founders of Byte Products, Inc., has always believed that the company’s manufacturing facilities will all reside as domestic and that this strategy has served the company well in the past. The other concern that top management had with this solution was that it did not want to release any technologies to any foreign manufacturer and Byte would have a difficult time in properly controlling the patents. Top management also was concern about foreign licensing because it would give them proprietary information about how Byte operates its efficient production line. The rejection of both solutions was also due to the fact that top management believes the quality of the products will be poor due to the fact that it was produced by someone else and that would hurt the image of the company.