NORTON UNIVERSITY

MASTER IN DEVELOPMENT MANAGEMENT

INSTITUTIONAL DEVELOPMENT

CASE ANALYSIS

DIM LIGHTING CO.

Group 3: Presentation

Submitted to: Dr. Renato M.

Lee

Group Members
Mr. Nhim Dalen
Mr. Mao Piseth
Mr. Saman Dimara
Mr. Hak Sopagnha
Ms Lim Lina
Mr. Keo Sovan Chanborey
7. Mr. Chhoeng Sangha
8. Mr. Horn Pisith
9. Mr. Hut Chenda
1.
2.
3.
4.
5.
6.

Outline of the
presentation
Overview
Problem
Macro
Micro

Causes
Proposed options/Alternatives
Recommendation

Overview

The Dim Lighting Company is a subsidiary of a major

producer of electronic products.

The Dim Lighting Company subsidiary produces

electric lamps and employs about 2,000 workers.

This subsidiary successfully for the past five years,

however, last year the division failed to realized its
operating targets, and profit margin dropped by 15
percent.

Spinks has submitted a budget request for a major

research project, the micro-miniaturization The Lamp
of the Future of lighting source which could greatly
reduce energy requirement.
micro-miniaturization: production and application of very small
semiconductor components and the circuits and equipment in

Problem
MACRO
The division failed to realize its operating

targets, and profit margins dropped by

15%.
MICRO
Dr. Robert Spinks, director of R&D would

resign, which would shatter the R&D

department he had worked so hard to
assemble.

Causes
MACRO
The DIM Lighting Company failed to

move into new technologies, the firm

would be competitively obsolete.
MICRO
The company not accept new creativity

and innovation in Research and

Development

System Affected
Structure
Group Vice
President

General
Manager
JIM WEST

Director R&D
Dr. SPINKS

Director
Marketing
P. NEWELL

Director Mtg
B. BOSWELL

Director
Accounting
C. PRESTON

Proposed
Options/Alternatives

Conduct the research on

micro-miniaturization

Purchase new machine

Both 1 and 2

Conduct the research

on microminiaturization

ADVANTAGES:
Low cost (250,000/year for two years)
New technology found that greatly reduce energy

requirements
Competitive advantages
Long-term benefits
Avoid global redundancy
DISADVANTAGES:
Low productivities
Uncertain results
High risk
Length of time

Purchase new
machine

ADVANTAGES:
Quick productivity
Easy to manage
Very direct payback

DISADVANTAGES:
High cost (1,000,000 USD)
Reduce workforce and making global redundancy
Maintaining cost
Social and global environment affected (pollution)
failed to move into new technologies, the firm would

be competitively obsolete.

Both option 1 and 2

ADVANTAGES:
Quick productivities / high productions
Future expansion of market
Address to the need of clients
Both short and longer term perspective

DISADVANTAGES:
Very high cost XXX XXX
Difficult to manage
Maintaining cost
Social and global environment affected

Recomendation

Option
Conduct the research on
micro-miniaturization

Conduct the research on microPurchase new machine

miniaturization

Both
1 and
Would
be2strongly
recommended!