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Dim Lighting Case

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Carl Vitale
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Case Analysis: The Dim Lighting Co.

I. Problems a. Macro – the problems for this organization on a large scale are pretty easy to see from the case. The company failed to meet its operating targets. This has caused them to decline financially, but also limits their ability to take risks that would help them to research and design new technology to get them back into the market. That means that when Mr. Spinks has an idea that would normally be a great opportunity for the company to jump out in front of its competitors, instead of immediately jumping into that project, they must first consider all options. Their situation makes the endeavor, and ones like it, far more risky than they should be. b. Micro – on a smaller scale, the companies head of R&D, Mr. Spinks, faces a problem of his own when he comes up with an idea for a new type of lamp that he believes could be the next step up from LED lighting. This is obviously a huge idea, and a big risk to any company. This company however, also happens to be struggling, making it necessary for the organization to discuss all possible risks before agreeing that it is the right idea. This is a typical high-risk, high-reward situation. If Dim Lighting decided to take a risk and put money into developing and producing this new product, they have to be confident that it will in fact be the next big thing. If not, the organization could lose all the money they had put into the project, which at this point would be devastating. II. Causes – the major cause of the organizations problems might be their hesitance to make somewhat risky calls when it comes to developing new technology. Mr. Spinks’ idea for the next big thing in lighting is a good example of this. Management’s unwillingness to put faith in the R&D department when they come to them with a big idea could discourage

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