The Dim Lighting Company Case Analysis

Topics: Management, Profit, Profit margin Pages: 3 (893 words) Published: March 27, 2013

The Dim Lighting is a subsidiary of a major producer of electrical products and specializes in electric lamps. Each subsidiary operates as a profit center and reports to regional, group, and product vice president at corporate headquarters. In total, it employs about 2,000 workers. Jim West is the general manager and has been successfully running the subsidiary for the past five years. However, the division has experienced a 15 percent drop in profit margins last year as well as failing to meet its operating targets (Brown, 2011, p. 81). Jim is eager to advance with the organization is feeling the pressure to turn the year around and start increasing the profit. The macro issues that the subsidiary is facing are the fact that the division failed to realize its operating targets and profits dropped by 15%. Additionally, the potential resignation of Robert Spinks (director of R&D) would be a huge loss for the organization. Spinks has been on board with the subsidiary for three years, he is very technical, and well respected. Spinks is a key player that the organization needs to take them to the next level. Micro issues that the Dim Lighting faces are the lack of team work from its managers. They seem to be focusing on the now versus the future and don’t seem to see eye to eye. Spink submitted a budget request for a major research project, the micro-miniaturization of lighting sources so as to greatly reduce energy requirements. He sees this as the Lamp of the Future, and if successful, it would be the successor to LED lights (Brown, 2011, p. 81). Spinks has a lot of faith on this product and has even given it a seventy percent chance of success. Unfortunately the request was received with reluctance from headquarters and internal managers alike. One of the main reasons that Dim Lighting failed to realize its operating targets, and profit margin dropped by 15% is that...
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