...DRAFT STRATEGY FOR THE DEVELOPMENT OF THE FURNITURE INDUSTRY NOVEMBER 2008 Contents Abbreviations and Acronyms……………………………………………………....iv Executive Summary……………………………………………………………….1 1. Introduction and Definition………………………………………………3 1.1 Background………………………………………………………….3 1.2 Definition……………………………………………………………..3 2. The Wood Furniture Value Chain……………………………………….4 3. Global Overview of Furniture Industry………………………………...6 4. Domestic Furniture Industry…………………………………………….8 4.1 Challenges facing South African furniture industry………………9 4.2 Rationale for producing furniture in South Africa………………..12 4.3 SWOT Analysis……………………………………………………..13 5. Vision………………………………………………………………………..17 6. Key Action Programmes………………………………………………...17 6.1 SMME Development Programme………………………………...18 6.2 Sourcing of Raw Materials…………………………………………21 6.3 Furniture Centre of Excellence…………………………………….23 6.4 Skills Development…………………………………………………25 6.5 Manufacturing Excellence Program (MEP)………………………27 7. Logical Framework………………………………………………………..29 8. Economic Impact of the strategy……………………………………….33 9. Conclusion and Way Forward…………………………………………..34 10. References………………………………………………………………….36 ii Tables Table 1 HS Codes for furniture………………........................................4 Table 2 Top 10 furniture exporters………………………………………...6 Table 3 SADC forest cover and annual change of forest...
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...Insight to Furniture Industry in Mirpur | SMEs in Bangladesh | | Prepared For:Sheikh Morshed JahanAssociate ProfessorPrepared By:Group 1, Section B, BBA 20thMushreka Afroze Khan RH 68Adnan Faiaz Mahmud ZR 73Rezwan Arefin ZR 75S.M. Samiuzzaman ZR 77Wasif A. Khoda Rubab ZR 104Mehnaz Fatima Khan RH 107Ayman Ahmed ZR 108Sadia Afrin RH 117Ryan Fardin Sakib ZR 119Zahin Azad Moslem ZR 121Md. Samiul Hossain ZR 125Institute of Business Administration, University of DhakaApril 27, 2014 | | Contents Introduction 3 Industry Overview 3 Furniture Industry in Mirpur 3 A Brief Introduction to SMEs 4 The Entrepreneurs 5 Current Scenario 6 Factors affecting Industry 6 Factors affecting company 6 Perception of Entrepreneurs 7 Triple Triangle Framework Analysis 8 Firm Level Factors 8 Industry Level Factors 10 Firm Level Industry 10 Sustainable Market Enterprise Competitiveness Framework 12 Grid of Institutional Mandate 14 SWOT Analysis 15 So what? 18 Conclusion 19 | Introduction Industry Overview Traditionally furniture industry in Bangladesh developed as cottage based industry. It is in the 90’s when the furniture industry in Bangladesh transited from cottage based industry to mechanized mass production oriented industries. The main varieties of products are wood, processed wood & Medium Density Fibre board (MDF), and laminated board, particleboard, rattan/bamboo and wrought iron furniture. Around 70% production of furniture sector of...
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...concentrated in the business and institutional market. Herman Miller is one of the leading players in the US office furniture industry with a 12% market share. Over the last several years, the entire industry has experienced significant declines in sales due to poor macroeconomic conditions. However, Herman Miller has managed to outperform most of its competitors in terms of profitability, illustrated through strong operating margins and return on sales. Herman Miller has a strong reputation for high quality, innovative products, strong customer service, high customization, and reliability. This strong brand equity enables the company to leverage its brand strength across different market segments, leading to extended customer reach. We have analyzed the company and the industry, and we have chosen the best strategy to expand customer reach, expand Herman Miller’s healthcare market, and increase sales revenue. We have chosen a three-year implementation plan that will bolster sales revenue in the healthcare industry and expand the company’s customer base. Industry Analysis As part of our analysis of Herman Miller, we have analyzed the five forces that affect the office furniture and healthcare industries. The five forces include competitive rivalry, threat of new entrants, threat of substitutes, bargaining power of suppliers and bargaining power of buyers. Competitive Rivalry Herman Miller operates in a highly competitive market. In the US, the company competes with Steelcase...
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...A. Cover Letter G-wellery Sdn.Bhd. Lot 12, Jalan Krubong 5, Taman Krubong Jaya, 71250 Krubong, Melaka. ------------------------------------------------- Tel: 09-6578543 October 19, 2011 Dear Investors, I am pleased to submit this proposal from the G-wellery Sdn.Bhd. requesting an investment of RM50,000 per year to support our company’s operation. G-wellery Sdn. Bhd. has founded in 1988.It has successfully established itself as one of the pioneers in the manufacturing of high technology furniture in Malaysia under its own reputable brand name “ G-wellery”. Since its early beginnings, G-wellery has been operating as a wood-based panel system office furniture manufacturer. In 2011, we upgraded our production facilities to produce a series of “ High Technology Wardrobe” home furniture to meet the ever changing demands of the room space with people as the center of our consideration – best quality and competitive price. I appreciate your consideration of this proposal. Please feel free to call me if you have questions or would like us to arrange a site visit. I look forward to meeting with you soon. Sincerely, AMANDa (Amanda July) Secretary of G-wellery company B. Cover Page Business Plan Make your life easy, with G-wellery 19 October 2010 G-wellery Sdn.Bhd. Lot 12, Jalan Krubong 5, Taman Krubong Jaya, 71250 Krubong, Melaka Tel: 09-6578543 C. Executive Summary/ Abstract G-wellery has been riding...
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...Wild Wood Faculty Farahan Habib Zinnia 4/12/2015 Group project principles of marketing Spring 2015 Team Fantastic 5 ------------------------------------------------- WILDWood Furniture Group project Principles of Marketing MKT202, Section: 14 Faculty FARHANA HABIB ZINNIA (FHZ) FANTASTIC 5 The team members NAME ID Fuad Bin Saif 1411722630 Hossain Ahmed Shuvo 1420947030 Mithila Israt Amey 1411488630 Sohel Rana 1420318030 Ipshita Tasneem Fariha 1410155630 ACKNOWLEDGEMENT The most pleasant part of submitting the report is to get the opportunity. We would like to thank those who have contributed to it a lot. Unfortunately, the list of expression of thanks- no matter how extensive is always incomplete and inadequate. These acknowledgements are no exception. First and foremost we would like to thank almighty Allah for bestowing us the patience and courage to finish this huge task within its deadline. Thanks must go to the team members, whose unflagging patience and astounding capacity...
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...by: Summary: Fred Filmore established Filmore Furniture Ltd. in 1970, this particular company designs, manufactures, and sells colonial maple furniture to small retail stores and major chain stores. In 1983 Phil Filmore took ownership of this company and further enhanced it through modernizing the plant, as well as introducing aggressive management skills, new marketing strategies, and merchandising ideas, causing an increase of $3.8 million in sales income within a ten year time frame. The business was very successful, however its profits and cash flow was not adequate to afford paying for modernization programs, which resulted in selling 31% of the company shares to 5 investors. In 1999, Phil Filmore died in a car accident leaving his debt, and 63% of the company’s shares, to his wife Lucinda, who faced with 3 decisions: to retain the ownership of the company, merge with another company within the industry or simply sell it. Statement of Problem & Objective: Mrs. Filmore has to make a decision regarding this company that will release her from the entire debit left behind, as well as maintaining her financial needs and high quality standard of living. To achieve this, Mrs. Filmore has to choose 1 of the following options: * to retain the ownership of the company, * merge with another company within the industry * Sell it. SWOT: Strengths * Modernized manufacturing facilities enable output of furniture at a much lower cost than before. * Currently...
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...Suwaris-SUSND11 Sharleen Suwaris Executive Summary The following is an analysis of the IKEA case study found in the Strategic Management Text book. This analyses the strategies used by IKEA to gain competitive advantage in markets outside its original area. The report begins by providing a background into IKEA. It studies International Business Level Strategy and the three international corporate level strategies. The case study goes into informing its target market and pricing strategy, which is already discussed. This case study further says how different people in different parts of the world thinks about IKEA, how elegant their designs are and how affordable for them to purchase IKEA products. Some of IKEA’s main markets are in three of the fastest growing markets such as Russia, US and China. IKEA store bring out products such as furniture to small product like a scented candle. IKEA has over 1300 suppliers in about 53 countries. They further have 12 full time in- house designers with 80 free lancers and other production workers to identify the correct raw materials and produce products efficiently and cost effectively. Primarily, IKEA produced standardized products however; this international strategy did not work for one of its vital markets that is, US. Therefore, they had to emphasize on taking corrective actions. The report also analyses the entry methods used by IKEA and its sustainability. IKEA Case Study 2 MAN3503-Strategic Management Table...
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... 2015 Mentor Name: Aslihan Cakmak Table of Contents Table of Contents 2 Introduction 3 Mission Statement 3 The Product & Support of Mission Statement 3 Target Market 4 Competitive Situation Analysis 4 SWOT Analysis 6 Market Objectives 8 Marketing Strategies 8 Explanation of Strategies 10 Tactics and Action Plan 10 Monitoring Procedures 11 References 12 Introduction Company G is a world-renowned electronics company whose core mission is to improve the quality and convenience of its customers’ lives. Concentrating on this mission, Company G will soon be introducing to market a new series of furniture products with built-in inductive, wireless charging of mobile devices, beginning with a set of night stands that can also double as end tables. The tables will also have the ability to power lamps and other devices that are compatible with inductive power transfer. Mission Statement “We enable consumers to improve the quality and convenience of their lives by providing high-quality, innovative electronic solutions.” The Product & Support of Mission Statement A next-generation bedside table that can easily double as a living space end table, these pieces will include built-in inductive/wireless charging. These sharply designed, high-quality pieces of furniture will be able to charge most cell phones and tablets simply by placing them on the table top. Once plugged into an electrical outlet, the tables will also have the ability to power...
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...Filmore Furniture Ltd Company Background * Incorporated in 1970 by Fred Filmore, a sole proprietor. * In 1983, Phil obtained his father’s furniture business and acquired the management of the business. * In 10 years the sales income increased to $5,100,000 and employed 58 full-time employees. * He is an aggressive manager and strategist. * During 1986 to 1993, Filmore Furniture modernized its manufacturing facilities. * Phil owned 63% of the share, 31% the five investors and the rest is retained by the employees of the company. Problem She is having a tough time choosing between whether she should sell the business, or manage the business herself. Objectives Choose the best option that will favor in Mrs. Lucinda Filmore, and provide her with an income that would benefit her financial situation. Also, an income to assist her to have a good standard of living for her and her children for the years to come, with the lowest short- and long term debt possible. Situation Analysis PEST Analysis Political:- * Canada-US Free Trade Agreement (1989) brought increased import competitors from larger American companies. * Opportunity to export in large US market Economical:- * During recession, additional fixed cost may be risky * The furniture industry is very competitive Social:- * Innovations resulted in good reputation, and goodwill in the furniture industry * Relationship with financial institutions; Customer...
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...designer furniture at lower costs. * IKEA enjoys economies of scale. * Highly focussed on quality. * IKEA’s flat packaging reduces costs and makes it easier for customers to transport * The company culture matches its external image of cost saving. * Strong in-store experience – unique, experiential, “modern theme parks”. Weakness * IKEA was trying to sell Scanvadian designs which were initially not accepted in U.S. * Lower level of customer service * Niche market * Too much emphasis on cost-saving. * Product and style selection is limited. Opportunities * International expansion: IKEA are moving from International to global status through the development of Asia and Eastern European models. * E-commerce: Will reduce pressure from stores to a certain degree and hence will improve service quality. * Traditional product for IKEA has been within value, low price high volume product however the movement into mid and higher price points with more stylish image opens up a new segment for IKEA. * The budget shopper market is growing, especially among college students and in metropolitan areas Threats * Within growing competitive retail markets mainstream retailers are beginning to mirror the model of low cost value flat packed furniture which will impact on the buoyancy of IKEA. * After sub prime crisis in US there is an economic concern which can be a threat to IKEA’s performance. * Plenty of competition. The furniture retail segment...
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...ith an unorganized and fragmented furniture market, India offers immense opportunities to domestic and international players. The demand for furniture is growing in the country on account of increasing purchasing power of the consumers, changing lifestyle, increasing urbanization and widespread availability in tier II and III cities. The domestic furniture market in India is highly unorganized with regional players offering a stiff competition to leading furniture companies, which form the organized sector in the Indian furniture market. In order to increase the product availability, organized furniture manufacturers are also entering into tie-ups with E-commerce retailers. Moreover, the furniture retail chains are also focusing on increasing their presence in tier II & III cities. Major furniture manufacturers in India include Godrej Interio, Nilkamal, Durian and Wipro. According to “India Furniture Market Forecast & Opportunities, 2019”, the country’s furniture market is projected to grow at a CAGR of around 26% during 2014-19. Home furniture segment is the leading contributor, followed by office and institutional segment. Western region is expected to be the highest revenue contributor in India furniture market, followed by southern region due to the presence of large number of industrial hubs and upcoming infrastructure developments in these regions. Over the next five years, the Indian furniture market is expected to witness increasing consolidation due to growing entry...
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...FILMORE FURNITURE LTD Filmore Furniture Ltd. manufactures colonial maple furniture. The company was incorporated in 1970 by Fred Filmore, who had been the sole proprietor prior to that. In 1983, Fred Filmore retired and sold his business to his only son Phil, age 38, for a small sum. That year, annual sales totalled $1,300,000. Phil Filmore was an aggressive manager and strategist. He modernized the plant, introduced new product designs and accessories such as mirrors and lamps, and implemented new marketing strategies and merchandising ideas. These innovations were quite successful, and helped the company to establish a good reputation in the furniture industry. From 1983 to 1993, sales income increased to $5,100,000, and the company had 58 full-time employees on the payroll. While sales grew quite strongly, the highly competitive nature of the furniture business held profits to relatively low levels. In 1998, the company's after-tax profit amounted to $204,000, or 4.0 percent of sales income, which was very close to the industry average. Phil Filmore was clearly in charge of the key activities of the business, including all of the strategic decisions mentioned earlier. The company employed five sales representatives who called upon the smaller accounts, but Phil personally handled the responsibility of calling on the major accounts. Of particular importance were the company's relationships with major chain stores that Phil had developed in the years after he took...
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...What are IKEA’s firm-specific advantages? Country - specific advantages? IKEA’s firm and country specific advantages could be the following: IKEA sells the same furniture all over the world, so IKEA rips huge economies of scale from the size of its stores and the big production runs necessary to stock them. IKEA also offers a low competitive price because of the economies of scale (30% lower than competitors) Exclusive relationship between IKEA and its suppliers, offering modern and exclusive designs for IKEA. Designers also work closely with suppliers, keeping the costs low. Ready-to-assemble kits help to stack products in shelves in order to maintain larger inventories. The cash and carry shopping formula; you can go to the rack directly to collect the product and go home to build it by yourself. Successful use of the word of mouth and the use of catalogues in order to reduce the advertising costs. IKEA has simple and plain staff levels, lowering the fixed costs and giving more freedom to its employees. This management structure also helps making decisions in a faster way. 2. What are the cultural factors that make expansion abroad in retailing difficult? What has made it possible in IKEA’s case? Ikea has encountered many problems when entering the U.S. market because it had to adapt its products and its shopping style to the American standards. IKEA had to redesign its beds because the American citizens were not buying the European size beds (Beds in America...
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...manufacturer of high quality furniture and bedroom suites entitled the Star Furniture Co. In 1909 the company’s name was switched to the Michigan Star Furniture Company. At the same time, Dirk Jan De Pree was hired as a clerk. Just 10 years later, Mr. De Pree became president of the company. Mr. De Pree saw great potential with the company and soon after talked his father-in-law, Herman Miller, to purchase the company by buying up the majority (51%) of the company stock in 1923. The company name was then changed and named after Herman Miller and remains that way today. Early on, Herman Miller became a company that treated workers very differently. Most manufacturing companies, De Pree stressed that all workers are important individuals with special talents and potential (Adams, S. B., Manz, C. C., Manz, K., Shipper, F. (2010). He saw that workers were more than just hourly labor and knew that if he could encourage them to expand their horizons and broaden their knowledge and interests that the company would also benefit from this. In the early 1930s, the Herman Miller company was known for producing high-quality, traditional furniture. However, this was the time of the Great Depression. A very trying time with unemployment rates as high as 25% in the United States and as high as 33% or more in other countries (Unemployment Statistics During the Great Depression, n.d.). The demand for Herman Miller's high-quality, traditional furniture plummeted. Sales dropped sharply...
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... IKEA, founded in 1943, is a world famous home furniture company whose vision is “To provide better life for everyone”. The brand provides modern and fashionable low cost furniture for over 38 countries with 301 stores. It is the largest furniture retail chain in the world and boasts a range of 12000 products, including home furniture and accessories. What’s more, it’s concern for people and environment lead to excellent use of raw material and energy, which result in their green targets and the overall environment. We are going to analyse the difficulties in expansion in the U.S. market and use a SWOT analysis to assess the circumstances that affect the same. In addition, we would give our proposed strategy and the three-year plan both in U.S and Indian market. IKEA’s expansion plan in U.S, faced a lot of problems. Firstly, the economic recession had a deep impact on the home furniture industry in America. For example, the home furnishings sector decline strongly in 2008 by -7.9% to 94.58 billion dollars. Secondly, the demand for customization and convenience is strong in U.S. Because unlike people in other countries, the U.S. people prefer to store most of their clothes folded while Italians like to hang. They were buying vases to drink because of the too small glasses. In short, they want more comfortable sofas, higher-quality textiles, bigger glasses and more spacious entertainment units. And the do-it-yourself furniture takes time to assemble, which leads to inconveniences...
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