The Dim Lighting Company

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Case Analysis: The Dim Lighting Company
Dim Lighting Company needs to review all of the pros and cons of moving forward with this project. The changes of the industry are determining that they cannot sit back and wait for a better time within their company to develop new products that will compete with the competition and possibly lead them above the competition. They have to decide whether they will be proactive and continue forward with the development of new products or if they will be reactive and get the equipment necessary to continue doing what they are doing. Ultimately, they need to look at the future to decide what the best decision for now is. Raising current profits is necessary but without the development of the new products getting through another year or two really does not help with the long-term longevity of the company. Micro

Mr. West is faced with many factors that are going to influence his decision. The biggest issue he is facing is financing. The company is not in the position to spend the capital necessary for the development of the new product. Current production equipment needs to be updated and repaired which would give them an immediate return. The project also is facing a two year development before they start production. The first two years of production only break even. In addition, Robert Spinks may not want to continue with his employment with Dim Lighting if his research and development do not lead to new products being developed, produced and marketed. Causes

One of the biggest concerns that are seen here is that Mr. Spinks has left prior companies for the exact reason that they are currently facing, without the consideration of the budget. The lack of “creativity and innovation” led to his current position, as he left his prior company. The other concern is that the prior year was not profitable and without new product development they will continue to face less profitable years in the future. Systems Affected

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