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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.

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DIM LIGHTING CO.

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  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

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