September 5, 2013 Chapter 3 Case Study: The Dim Lighting Co.
I. Problems a. Macro i. Company strategy – they cannot agree on whether they want to be innovative or constantly behind the trend. They are slow to adapt to change, and are reluctant to be ahead of the change. ii. Financing – they are in a bit of a financial squeeze, which hence places reluctance on going ahead with the new project. However, it “takes money to make money” so if they decide to not go through with the project due to lack of financing I foresee financing continuing to be an issue long into their future, and a potential second bad year in a row. b. Micro iii. Spinks leaving – it’s been brought up that if his new project is denied, the Director of Research and Development will leave the company in search of other employment. He left his last job because of a lack of creativity and innovation, so chances are he would leave again if forced to work under the same circumstances. iv. Broken production equipment – the broken production equipment is inhibiting their current operations. If fixed, this would provide an instant, although smaller, source of income. If they go ahead with the new project this broken equipment will be put on the backburner, causing the company to be low on cash for quite some time. II. Causes c. Lack of product development – because of this in the past, the company is low on cash, and if they don’t pursue product development soon they will be low on cash well into the future d. Incongruent hiring – if the company didn’t want to be innovative, they should not have hired someone who left their last job due to lack of innovation. Dim Lighting hiring Spinx but not taking his ideas is like punishing him for what he is good at – completely contradictory. e. Personal/political focus – employees are