the dim lamps co circumstance analysis type essay


I. Complications:


1 . The DARKISH Lighting Company. has had a decline of 15% in profit margins in the last year.

2 . This subsidiary can be part of a large corporation and operates like a profit center. 3. The business wants to stay competitive and profitable in today’s economy. New technologies will be being manufactured by the competition. Micro:

1 ) The recommended research project is recognized as “high risk” by associates of managing. Corporate is supportive with the idea although not ready to invest in the amount of money needed.

2 . The initial investment pertaining to the “Light of the Future” is $1. 2 , 000, 000 per year for two years with an additional $500, 000 to start production. a few. Money is required for new products for current product that has an immediate payback. 4. Supervision is not really confident in the financial characters provided by the accounting division. 5. The company needs to stay competitive although keeping up with current production.

2. Causes

1 ) The company has had a 15% decline in profit margins within the last year. 2 . The company is attempting to develop new items while keeping up with current creation. 3. The newest “Light in the Future” is known as a high-risk investment and management can be worried about how much money needed to develop new product. four. The company is usually concerned for the amount of time needed before payback on new product is possible. 5. The management crew is not really confident inside the financial numbers presented with the meeting.

3. Alternatives

1 ) The supervision team needs to feel confident in the monetary numbers presented by accounting. Without the assurance, an accurate decision cannot be built. Accounting must review and resubmit figures to managing team. installment payments on your Also company needs total support and capital by corporate. A feasibility review of the project and its economical investment is necessary before proceeding. 3. Research and Development may need to check out other potential projects which will have the same profitability but needs smaller expense and more rapidly payback period.

IV. Advice

1 . Review current economical records to achieve confidence in numbers. installment payments on your Review simply by R&D to see if any reductions can be manufactured without sacrificing item quality and profitability. a few. R&D to analyze additional potential products intended for future production. 4. Guarantee that current production can be meeting current customer requirements. Also try to find cost savings in current development to counteract 15% drop. 5. Once these items happen to be completed, decision made and presented to corporate for support and capital pertaining to investment.


  • Category: finance
  • Words: 434
  • Pages: 2
  • Project Type: Essay