Running head: The Dim Lighting Company Case Analysis
The Dim Lighting Company Case Analysis
Julia Cunningham
Baker College
Dim Lighting 2
Abstract
Dim Lighting Company, a subsidiary of a major producer of electrical products is at a crossroads when it confronts a year where operating targets are not realized and profit margins dropped by fifteen percent and what steps should be taken to reverse this trend. A budget meeting with the management group yields differing opinions of where monies should be spent, yet how will that allow for a reversal of the downward trend and show the parent company that profits will indeed return?
Dim Lighting 3
The Dim Lighting Company Case Analysis A problem a company never wants to face is not meeting its operating targets as well as missing profit margins. It necessitates review to decide was this an effect of current economic trends, competitive activity, or is the company’s current portfolio not meeting the needs of their customer base? Macro issues that the company needs to deal with is the miss on their operational targets as well as the potential loss of their R & D Director should corporate elect not to fund a proposal that should it be successful will make them a key player in their industry for years to come. This is further complicated by their management style which has been more reactive rather than renewing and with the case profile not referencing any new products being offered in the past five years make them vulnerable to competitors to come in with new products and cut into their market share. Micro issues that need to be addressed would be the reactive styles exhibited by the accounting and manufacturing managers whose views seem short-sighted. Ideally everyone would like instant gratification however without looking at the big picture it can set up a company for becoming obsolete and eventual failure. A second issue is dealing with the negative sentiments
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