Case: the Dim Lighting Co.

Running head: CASE ANALYSIS: THE DIM LIGHTING COMPANY

Case Analysis: The Dim Lighting Company

Case Analysis: The Dim Lighting Company

The Dim Lighting Company is a subsidiary of a major electronic product producer, operates as a profit center and reports to regional, groups and product vice president at the corporate office. The Dim Lighting Company has run into a hurdle with the 15 percent drop in last year’s profit margin. Dim Lighting has been successful for the past five years; however the division has failed to realize its operating goals. The management team, consisting of Jim West, Dr. Robert Spinks, Pete Newell, Bill Boswell and Carol Preston has met and Dr. Spinks has presented a proposal for “The Lamp of the Future”.

Proposal

The proposal of “The Lamp of the Future” is to research a micro-miniaturization of lighting sources to significantly reduce energy requirements. A budget request submitted for the proposal requirement is $1.2 million for the first two years with an additional $500,000 for start-up costs. Spinks analyzed and believes that the project has 70 percent success rate. The general manager, West, contacted the corporate office immediately following the meeting; upper management at corporate was interested in the proposal; however, they were hesitant about the initial costs of the project.

Other members of the team presented information regarding current issues, such as the uncertainty of the research, needing a new machine to produce the products they are already selling and the uncertainty of adding a new product to the line with the delay in seeing a profit on the new product.

Problem

Macro

Macro issues are that Dim Lighting Company needs to deal with their operational targets. Another issue would be the purchase of new machinery.

Micro

Micro issues are West is concerned of how long he will be with the company should they not show profit in the near future and the possibility of losing their research and development director,...