The Dim Lighting Co. Case Study

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Hollie Adleberg
1/22/13
MGT 311: Case Analysis
THE DIM LIGHTING CO. CASE ANALYSIS
Problems
Macro
1) The Dim Lighting CO has a major decision to make. The facts and the numbers are saying that they are not realizing their operating targets and their profit margins have declined. The first thing that Mr. West should do is to evaluate all the pros and cons of the project. 2) The other side of the problem is that at this moment, they are not in the greatest financial situation. Mr. West knows that his business position is heavily weighed on the financial success of the coming year. Micro

1) Mr. West has to have a profitable year. Two years in a row with poor performance could lead to his dismissal from the company, and will not look good for future career advancements. The director of marketing is stating that new machinery is needed in order for any profit to be made. The downside being that it will take two years to complete, and during those two years, only break-even will be met, no profits until the third year. 2) Mr. Spinks has stated that he left his previous company because they lacked creativity and innovation in research and development. He has the tendency to be impatient if his project does not get approved. There is a threat that Mr. Spinks will leave the company and shatter the whole R&D department. Causes

1) Previous unprofitable year
2) Mr. Spinks history of leaving former company for lack of creativity and innovations 3) The organizational culture seems to be split
a. Some management primarily focus on the ‘bottom line’, while others focus on innovation and competitiveness Systems Affected
1) Structural
a. May not encourage the development of new products and ideas 2) Psychosocial
b. Other departments feel threatened by Mr. Spinks
c. Mr. West feels he is under pressure to improve profit margins

3) Technical:
d. Both the production manager and Mr. Spinks want money...
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