Register to read the introduction…
West is faced with many factors that are going to influence his decision. The biggest issue he is facing is financing. The company is not in the position to spend the capital necessary for the development of the new product. Current production equipment needs to be updated and repaired which would give them an immediate return. The project also is facing a two year development before they start production. The first two years of production only break even. In addition, Robert Spinks may not want to continue with his employment with Dim Lighting if his research and development do not lead to new products being developed, produced and marketed.
Causes
One of the biggest concerns that are seen here is that Mr. Spinks has left prior companies for the exact reason that they are currently facing, without the consideration of the budget. The lack of “creativity and innovation” led to his current position, as he left his prior company. The other concern is that the prior year was not profitable and without new product development they will continue to face less profitable years in the future.
Systems …show more content…
West needs to discuss with headquarters what they think in regards to research and development. Until speaking with them he is going to have a hard time deciding what he should do. Spinks research leads the company to question the future of the industry. Mr. West should be able to convince the parent company to help fund the project, since they would be leading the industry with a new product. Mr. West should work with the accountant to develop projected profit analysis based on what could happen. They should look at all aspects of the development, both good and bad. Working with Mr. Spinks they should look to try and save as much money as they can in the development of the product. Mr. Spinks should be an integral part of this project since it is his ideas that are going to influence the issue. When submitting a proposal for funding, he should include the money necessary for current equipment upgrades. Without those upgrades they may not last long enough for the project to even reach
Causes
One of the biggest concerns that are seen here is that Mr. Spinks has left prior companies for the exact reason that they are currently facing, without the consideration of the budget. The lack of “creativity and innovation” led to his current position, as he left his prior company. The other concern is that the prior year was not profitable and without new product development they will continue to face less profitable years in the future.
Systems …show more content…
West needs to discuss with headquarters what they think in regards to research and development. Until speaking with them he is going to have a hard time deciding what he should do. Spinks research leads the company to question the future of the industry. Mr. West should be able to convince the parent company to help fund the project, since they would be leading the industry with a new product. Mr. West should work with the accountant to develop projected profit analysis based on what could happen. They should look at all aspects of the development, both good and bad. Working with Mr. Spinks they should look to try and save as much money as they can in the development of the product. Mr. Spinks should be an integral part of this project since it is his ideas that are going to influence the issue. When submitting a proposal for funding, he should include the money necessary for current equipment upgrades. Without those upgrades they may not last long enough for the project to even reach