Light Works Optics Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Light Works Optics Case Solution

Limited Profit rate:

With the decision of the organizational management to initiate high-volume production of the products leading in the manufacturing of complex prototypes and one-of-a-kind devices of optics. The organization can make products with a single product but not for a long period of time.Although, it is one of the good strategy to follow but this strategy was applied by the organizational management in the initial stages of the business development, which turned out to be productive. As the growth of the business had been significant for a period of time it would not be a good move to bring further business growth.

The focus on one kind of products is appreciable,but the organization is not ready to take that risk. The effective teamwork and wide range of varieties and innovation in products manufactured by the organization has made customers to expect innovative. The production of 50 or more units of a single product is quite large, which makes them understand the difference between the culture of efficient manufacturing operation and prototyping of the organization. Therefore, the organization deals with the compromise in the quality of the products if it shift its entire focus towards high – volume production.

Relocation of the Organization:

In order to grab the interest of customers, the organization tried to provide high-volume assembly work at low cost, which was only achieved by driving down the quoted prices. This could only be done when the company has generated their enough profit from the sale of their products and the remaining is to then to be sold out at low prices. The fact that the entire generation of revenue of the organization is based on the sale of its production which has not been delivered by any contract should not drive down the quoted price. It will badly impact the financial state of the organization. Though, each contract required to build overhead costs for a number of things like quality control, business development and administration etc.

The Defense Contractors Auditing Agency required the segregation of both indirect and direct cost which caused the organization to face problems in the structure of pricing. In setting up the new structures of pricing under the rules of DCAA, the organization requires entirely different set up for the manufacturing of its products and needed to shift some other place. As it would not allow the organization to carry the complete front building part.

Recommendation:

The small business of the nation play an imperative part in the economic development of America. The Act of Small Business states that small business is particularly organized to earn profits which is valued in the U.S. because of their contribution in the economy of the state mainly by tax payment. (CRS, 2019)The organization significantly works in the liability of tax payment to the stakeholders which was mainly established to provide benefits to the employees. The culture of the organization followed by the employees has affected the organizational development. The allowance of employees to share their opinions in the meetings creates positive effects and likewise, negative impact of a person can affect the decisions of the organization badly as well which makes handling of the challenges and the process difficult for the organization. Therefore, it is impossible to bring change in the organization without the change in the mindset of employees. (Malhi, 2013)

The on-going operation plan is of about $30 Million with most positive outcomes with additional out-of-state HVPF should be adopted by the organization among all the options proposed. The success of the organization is specifically dependent on how the leader leads the organization. The role of leader in the development of any organization is to influence people/employees, be their inspiration, motivation and direct with the right path to follow. The more effective the leadership is more will be growth of the organization. (Simiyu, 2015)Lastly, the organization should retain its focus in the manufacturing of innovative products rather get back to one-kind-of-program products.

Conclusion:

The organization of optics products was established in late 1990s. It started with the focus on the product manufacturing which began in a garage and has reached to the developed part of building with separate rooms for specific operations in shape of a scientific laboratory. The organization had been working well with increase in their noticeable growth in revenues mainly from defense contracts. Due the decline of these contracts, the organizational management was pressurized and thus took some critical decisions which had not significantly impacted the organization. But it is never too late to shift to the right. The organization just needs to bring changes in the culture of organization followed and be effective leaders for the development of the organization.

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