Dim Lighting Co. Case Analysis

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THE DIM LIGHTING CO. CASE ANALYSIS Name: I. Problems: A. Macro: 1. The Dim Lighting Co. is facing a major decision. The facts and the numbers are saying that they are not realizing their operating targets, and their profit margins have dropped. The first thing the general manager has to do is evaluate and review all of the pros and cons of this project. In our always changing market, industry and competition if the company wants to be successful, they have to keep up with the changes. If they want to be the leader in the market, they cannot sit around and wait for better times to come. The general manager needs to decide if he is looking to increase profit margins for right now and possibly for the next couple of years, or is he looking for the future of the company in the long run. Is the company able to take this initiative? 2. The other side of this issue is that the company at the moment is not in the best financial position. The general manager knows that his business position is strongly relying on the financial success of the next coming year. The lack of the monetary power is a key factor in making important business decisions. Should they be passive in this project? B. Micro: 1. The general manager needs to have a profitable year. Two years in a row without the desired profit numbers, will not look good for his business advancement and his career. According to the director of marketing they need new machinery for their current production line, and by doing that they will have a very direct and immediate payback. Meanwhile the project has a two year development before they start production, and also the first two years of production only break even. 2. The R&D director has said that he left his former company because they lacked creativity and innovation in research and development. Mr. Spinks is autocratic and
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