The DIM Lighting Co. Case Analysis Form Essay

I. ProblemsMacro1. The DIM dizzying Co. has had a regrets of 15% in profit margins over the by year. 2. This subsidiary is part of a large quite a little and operates as a profit center. 3. The company wants to stay competitive and profitable in todays economy. New technologies are being developed by the competitors. Micro1. The proposed look for project is considered high put on the line by members of management. Corporate is supportive of the idea but not ready to commit to the amount of coin unavoidable. 2. The initial investment for the Light of the Future is $1.2 million per year for the next two years with an special $500,000 to begin production. 3. Money is needed for new equipment for current product which has an immediate retribution. 4. Management is not footsure in the pecuniary figures provided by the accounting department. 5. The company needs to stay competitive while tutelage up with current production.II. Causes1. The company has had a 15% decline in pro fit 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 about the amount of money needed to develop new product. 4. The company is also concerned on the amount of time required earlier 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 feel confident in the financial numbers presented by accounting. Without the confidence, an accurate decision cannot be made. Accounting needs to review and resubmit numbers to management team. 2. in any case 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 former(a) potential projects that will have the same profitability but requires smaller investment and quicker payback period.IV. Recommendations1. Review current financial records to gain confidence in numbers. 2. Review by R&D to see 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. alike look for cost savings in current production to offset 15% decline. 5. Once these items are completed, decision made and presented to corporate for support and capital for investment.