NORTON UNIVERSITY MASTER IN DEVELOPMENT MANAGEMENT INSTITUTIONAL DEVELOPMENT

NORTON UNIVERSITY MASTER IN DEVELOPMENT MANAGEMENT INSTITUTIONAL DEVELOPMENT CASE ANALYSIS DIM LIGHTING CO. Group 3: Presentation Submitted to: Dr. Renato M. Lee

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

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 which they are used

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 1 Conduct the research on microminiaturization 2 Purchase new machine 3 Both 1 and 2

1 Conduct the research on micro-miniaturization � 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

2 Purchase new machine �ADVANTAGES: Quick productivity Easy to manage Very direct payback �DISADVANTAGES: High cost (1, 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.

3 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 Difficult to manage Maintaining cost Social and global environment affected

Recomendation 1 Optionthe research on micro. Conduct miniaturization 1 2 Conduct the research on micro. Purchase new machine miniaturization 3 Both 1 beand 2 Would strongly recommended!