2. The second macroeconomic issue is the recent poor performance of the Dim Lighting Company subsidiary that Jim West manages that is the subject of this case. “last year the division failed to realize its operating targets, and profit margins dropped by 15 percent.” West is not mistaken to believe that this might affect his future with the company. More importantly and more to the point it is a problem for the corporate parent and would be a problem for any manager in any industry.
Interestingly, the microeconomic problems confronting the subsidiary are relatively independent of the macroeconomic issues and focus on human resources issues. In a nutshell, both Jim West and Robert Spinks are small-minded and self-centered. They both need an attitude adjustment.
1. Jim West is not illogical when he worries that his career with the Dim Lighting Company is not affected positively by his subsidiary's poor performance. However, there is nothing personal about that situation. His job is to manage a profitable subsidiary and if it is not doing so he needs to be looking for solutions not obsessing over his personal fortunes.
2. Robert Spinks “is recognized as a talented scientist.” His staff is motivated by his scientific abilities and relevant professional organizations have recognized his abilities and achievements. However, that brilliance clearly does not translate into social intelligence. He left his former job over interpersonal-related issues and is regarded as “autocratic, strong-willed, and impatient” by other Dim Lighting Company managers.
2. The rapid changes in lighting technology are reflective of the overall emergence of the new Green economy. For economic reasons and the emergence of sustainability as a key corporate goal economy-wide are making energy efficiency in all industries essential. That is driving the demand for energy efficient solutions in all elements of the economy.