Company is not in a position to spend the capital necessary to fund the project. The potential resignation of Robert Spinks if the project is not funded. If the project were to be funded, the extended time for development and the 30% chance that it might not be a success.
Organizational culture is not consistent throughout all the departments. Accounting and manufacturing departments focus on increasing profits while R&D and marketing departments are open to new innovation and growth. Management is reactive rather than proactive. The company has not produced a new product in the past to capture the market. The history of Robert Spinks leaving companies due to the lack of creativity.
3. System affected
The structural system is affected by not being encouraging towards innovation. The psychosocial system is affected by other departments being intimidated by Robert Spinks. Jim West is under pressure to improve profits.
The technical system is affected because the technology of the Micro-miniaturization of lighting sources could bring about major innovation.
Ignore the concerns of the accounting and manufacturing departments and go ahead with the micro-miniaturization of lighting sources project. Discard the micro-miniaturization of lighting sources project and invest on the improvements of the current equipment.
Invest capital on the new micro-miniaturization of light sources project. Although there is a considerable amount of time until the benefits can be reaped, such an innovation will be helpful to defeat the competition and capture the market. If Robert Spinks leaves the company and takes this technology to a competitor, Din Lighting Co. will be seriously affected.