The Dim Lighting Case Analysis

Question 1:

The Dim Lighting Co (Case Study). Complete the case analysis form as part of your assignment. Discuss in detail each of the five (5) questions (headings) on the case analysis form copy.

1. PROBLEMS

Leedy and Ormrod (2014) describe the problem as the heart of the research process or question is that the axis around which the whole research effort revolves. The statement of the problem must first be expressed with the utmost precision; it should then be divided into more manageable sub-problems. Such an approach clarifies the goals and directions of the entire research effort.

According to Carmichael and Stacey (http://www.wbs.ac.za) explains that your research problem statement is the foundation and focus of your research report. It is a clear, stand-alone statement that makes explicit what it is you are aiming to discover or establish. Get this right and you are setting yourself up for success. If your research problem is poorly worded, unfocused or ambiguous, the rest of your research is likely to go off-track very early; you will do a great deal of unnecessary reading and writing, losing sight or the big picture (and probably your mind)

1. 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. 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.

I have identified below mentioned facts:

1. Company strategy: They cannot agree on whether they want to be innovative or constantly behind the trend. They are slow to adapt to change, and are reluctant to be ahead of the change.
2. Financing: The division failed to realize its operating targets, and profit margins dropped by 15%. They are in a bit of a financial squeeze, which hence places reluctance on going ahead with the new project. However, it “takes money to make money” so if they decide to not go through with the project due to lack of financing I foresee financing continuing to be an issue long into their future, and a potential second bad year in a row. 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.

1. Micro

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. 

1. Mr. Spinks’ leaving: It’s been brought up that if his new project is denied, the Director of Research and Development (R&D) will leave the company in search of other employment or resign, which would shatter the R&D department which he had worked so hard to assemble. He left his last job because of a lack of creativity and innovation, so chances are he would leave again if forced to work under the same circumstances.
2. Broken production equipment: The broken production equipment is inhibiting their current operations. If fixed, this would provide an instant, although smaller, source of income. If they go ahead with the new project this broken equipment will be put on the backburner, causing the company to be low on cash for quite some time.

1. CAUSES

1. Lack of product development: Because of this in the past, the company is low on cash, and if they don’t pursue product development soon they will be low on cash well into the future. If the company didn’t want to be innovative, they should not have hired someone who left their last job due to lack of innovation. Dim Lighting hired Spinx but not taking his ideas is like punishing him for what he is good at completely contradictory e.g. personal/political focus.
2. Hesitance to make risky calls when it comes to developing new technology: Mr. Spinks’ idea for the next big thing in the Dim 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 them from coming up with those ideas in the future.
3. Split in the organizational culture: According to Harrison & Stokes (1993) some management primarily focuses on the “bottom line”, while others focus on innovation competitiveness. This creates great conflict when new ideas and change and proposed. Dim Lighting’s culture (with the exception of the R&D department) when the going gets rough, put on the brakes and try to establish equilibrium. However, Dim Lighting cannot afford to simply maintain the status quo.

1. SYSTEMS AFFECTED

1. Structural:

(https://en.wikipedia.org) Defines how activities such as task allocation, coordination and supervision are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment.

• They would have to restructure their current business around the new product development. Manufacturing speeds and locations of current products will change. They will have to find how to do this to maximum efficiency.
• The structure is a traditional functional structure. This may not encourage the development of new products and ideas.
• Organisational Chart on Figure 1 below indicates the structure of Dim Lighting:

[pic 1]

FIGURE 1: The Organisational Chart 

1. Psychological:

(http://www.scielo.org.za) Organisational behavior shows that positive psychological capital (PsyCap) is a construct that enables self-efficacy, optimism, hope and resilience to succeed in the workplace and that employee resistance to change is a key barrier to organisational change in Behavior, OCB served as an index for measuring positive organisational change.