The DIM Lighting Co. Case Analysis Form Essay

I. ProblemsMacro1. The DIM groundlessing Co. has had a slouch of 15% in get ahead margins over the past year. 2. This accessory is part of a large corporation and operates as a profit center. 3. The company wants to stay competitive and profitable in todays economy. New technologies are being break awayed by the competitors. Micro1. The proposed search project is considered high risk by members of commission. Corporate is supportive of the creative thinker but not ready to commit to the amount of money needed. 2. The sign investment for the Light of the Future is $1.2 million per year for the next deuce years with an additional $500,000 to begin production. 3. Money is needed for new equipment for period product which has an immediate retribution. 4. Management is not sure-footed in the pecuniary figures provided by the accounting department. 5. The company needs to stay competitive plot of ground keeping up with electric current production.II. Causes1. The company has had a 15% decline in profit margins over the past year. 2. The company is trying to develop new products while keeping up with current production. 3. The new Light of the Future is considered a risky investment and management is worried rough the amount of money needed to develop new product. 4. The company is in addition concerned on the amount of time required in the lead payback on new product is feasible. 5. The management team is not confident in the financial figures presented at the meeting.III. Alternatives1. The management team needs to impression confident in the financial numbers presented by accounting. Without the confidence, an accurate determination cannot be made. Accounting needs to review and resubmit numbers to management team. 2. Also company needs total support and capital from corporate. A feasibility review of the project and its financial investmentis needed before proceeding. 3. Research and Development may need to look at other(a) potential projects t hat will have the same profitability but requires littler investment and quicker payback period.IV. Recommendations1. Review current financial records to fool confidence in numbers. 2. Review by R&D to nab if any reductions can be made without sacrificing product quality and profitability. 3. R&D to research additional potential products for future production. 4. Insure that current production is meeting current customer requirements. Also look for live savings in current production to offset 15% decline. 5. erst these items are completed, decision made and presented to corporate for support and capital for investment.