Dim Lighting
The Dim Lighting Company Case Analysis
Mgt 311
May 14, 2013
Abstract
Dim Lighting Company is a subsidiary of a major producer of electrical products. They are in a dilemma with either going ahead with a new product or update the equipment they have now. At the board meeting Mr. Spinks presents his case to go forth with the new idea of micro-miniaturization of lighting source. But after Ms. Preston, the accountant, and Mr. Boswell, the production manager, spoke a heated debate started between those two and Mr. Spinks and Mr. Newell, marketing.
Macro
There are many problems that came about after the proposal was given. One macro problem is that the company needs to decide if they should spend the money on a new idea or if they should just update the equipment they have now. Mr. Newell stated that they need to keep up with the competition or just close down the company. But on the other hand Mr. Boswell says that the equipment they have now needs to updated so they can continued to produce the products they make now, which would increase a higher profit now instead of three years from now. These are two very different problems but one would give a profit now where the other would be better in the long term.
Micro
This also causes problems within the company financially. Last year the division failed to meet the target numbers and profit margins dropped. So Mr. West is faced with what to use the money in the budget for or even if there is enough money in the budget to start the new idea or even update the equipment. With not being profitable last year Mr. West needs a profitable year or it might hurt his long term potential for advancements within the company. Another problem is that if Mr. Spinks does not get the money to start is new idea then he might leave the company. He is known to leave a company if he does not get his way. Plus if he leaves Mr. West is in the position to find a new director during a no profit year.
Causes
There are many causes
Mgt 311
May 14, 2013
Abstract
Dim Lighting Company is a subsidiary of a major producer of electrical products. They are in a dilemma with either going ahead with a new product or update the equipment they have now. At the board meeting Mr. Spinks presents his case to go forth with the new idea of micro-miniaturization of lighting source. But after Ms. Preston, the accountant, and Mr. Boswell, the production manager, spoke a heated debate started between those two and Mr. Spinks and Mr. Newell, marketing.
Macro
There are many problems that came about after the proposal was given. One macro problem is that the company needs to decide if they should spend the money on a new idea or if they should just update the equipment they have now. Mr. Newell stated that they need to keep up with the competition or just close down the company. But on the other hand Mr. Boswell says that the equipment they have now needs to updated so they can continued to produce the products they make now, which would increase a higher profit now instead of three years from now. These are two very different problems but one would give a profit now where the other would be better in the long term.
Micro
This also causes problems within the company financially. Last year the division failed to meet the target numbers and profit margins dropped. So Mr. West is faced with what to use the money in the budget for or even if there is enough money in the budget to start the new idea or even update the equipment. With not being profitable last year Mr. West needs a profitable year or it might hurt his long term potential for advancements within the company. Another problem is that if Mr. Spinks does not get the money to start is new idea then he might leave the company. He is known to leave a company if he does not get his way. Plus if he leaves Mr. West is in the position to find a new director during a no profit year.
Causes
There are many causes