1 / 12

DIM LIGHTING CO.

This presentation discusses the problems faced by Dim Lighting Company, including the failure to meet operating targets and a decrease in profit margins. It explores the causes of these issues at both the macro and micro levels and proposes options for improvement, such as conducting research on micro-miniaturization and purchasing new machinery. The recommendation is to prioritize the research on micro-miniaturization as it offers long-term benefits and competitive advantages.

rchilson
Download Presentation

DIM LIGHTING CO.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. NORTON UNIVERSITY MASTER IN DEVELOPMENT MANAGEMENT INSTITUTIONAL DEVELOPMENT CASE ANALYSIS DIM LIGHTING CO. Group 3: Presentation Submitted to: Dr. Renato M. Lee

  2. Group Members • Mr. Nhim Dalen • Mr. Mao Piseth • Mr. SamanDimara • Mr. HakSopagnha • Ms Lim Lina • Mr. Keo SovanChanborey • Mr. ChhoengSangha • Mr. Horn Pisith • Mr. Hut Chenda

  3. Outline of the presentation • Overview • Problem • Macro • Micro • Causes • Proposed options/Alternatives • Recommendation

  4. Overview • The Dim Lighting Company is a subsidiary of a major producer of electronic products. • The Dim Lighting Company subsidiary produces electric lamps and employs about 2,000 workers. • This subsidiary successfully for the past five years, however, last year the division failed to realized its operating targets, and profit margin dropped by 15 percent. • Spinks has submitted a budget request for a major research project, the micro-miniaturization “The Lamp of the Future” of lighting source which could greatly reduce energy requirement. micro-miniaturization: production and application of very small semiconductor components and the circuits and equipment in which they are used

  5. Problem • MACRO • The division failed to realize its operating targets, and profit margins dropped by 15%. • MICRO • Dr. Robert Spinks, director of R&D would resign, which would shatter the R&D department he had worked so hard to assemble.

  6. Causes • MACRO • The DIM Lighting Company failed to move into new technologies, the firm would be competitively obsolete. • MICRO • The company not accept new creativity and innovation in Research and Development

  7. System Affected • Structure Group Vice President General Manager JIM WEST Director R&D Dr. SPINKS Director Marketing P. NEWELL Director Mtg B. BOSWELL Director Accounting C. PRESTON

  8. Proposed Options/Alternatives 1 Conduct the research on micro-miniaturization 2 • Purchase new machine 3 • Both 1 and 2

  9. 1 Conduct the research on micro-miniaturization • ADVANTAGES: • Low cost (250,000/year for two years) • New technology found that greatly reduce energy requirements • Competitive advantages • Long-term benefits • Avoid global redundancy • DISADVANTAGES: • Low productivities • Uncertain results • High risk • Length of time

  10. 2 Purchase new machine • ADVANTAGES: • Quick productivity • Easy to manage • Very direct payback • DISADVANTAGES: • High cost (1,000,000 USD) • Reduce workforce and making global redundancy • Maintaining cost • Social and global environment affected (pollution) • failed to move into new technologies, the firm would be competitively obsolete.

  11. 3 Both option 1 and 2 • ADVANTAGES: • Quick productivities / high productions • Future expansion of market • Address to the need of clients • Both short and longer term perspective • DISADVANTAGES: • Very high cost XXX XXX • Difficult to manage • Maintaining cost • Social and global environment affected

  12. Recomendation Option Conduct the research on micro-miniaturization Would be strongly recommended! 1 1 Conduct the research on micro-miniaturization 2 • Purchase new machine 3 • Both 1 and 2

More Related