...Herman Miller, Inc. Traditional Case Study June 18th 2012 David Maillie Andrew Hatfield-O’Hern Andrew Withers Isil Ecevit Nawaf Nizamudeen Current Status History Herman Miller began in Zeeland Michigan as a 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%...
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...TO: BUS 470 Consultants FROM: Brian Walker RE: Comparison of financial performance with rivals DATE: April 4, 2012 Herman Miller is reviewing the adequacy of our current strategy and we are requesting your services for a specific part of the analysis. Please conduct an analysis of our financial performance to determine how well our strategy is working. Include in your analysis comparisons with our principal rival(s), an analysis of the strategic factors leading to the financial performance, and, if relevant, an analysis of the strategic implementation. Please provide make specific, actionable recommendations based on your analysis of the facts. Provide a physical copy of your memo on or before April 18, 2012. As part of your analysis, please complete the following tables and append them to your two page memo in response to this request. Please use percentages for each of the criteria. Fiscal year ending | | 2010 | 2009 | 2008 | 2007 | 2006 | Net sales | 100% | 100% | 100% | 100% | 100% | Cost of sales | | | | | | Gross margin | | | | | | Operating expenses | | | | | | Selling, General and Administrative | | | | | | Restructuring | | | | | | Design and research | | | | | | Total operating expenses | | | | | | Other expenses (income) | | | | | | Interest expense | | | | | | Interest and other investments | | | | | | Other, net | | | | | | Earnings before interest and taxes | |...
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...Herman Miller Case Study 1. Describe Herman Miller’s strategy. Is there evidence it has produced a competitive advantage and good financial performance? Explain, supporting your answer with case based evidence including financial evidence. Herman Miller’s main focus is on growth strategy, through innovative products and production processes. Herman Miller offers inventive designs, technologies, and related services that improve the experience of working people, and people with medical problems offering products designed to heal, learn, and live. The design excellence brought the company award-winning products and services, resulting in more than 500 million in net sales in the fiscal year 2013. Analyzing the case study it looks like Herman Miller’s competitive advantage includes the company’s focus on growth, by introducing innovative products and their ability to offer problem-solving design for different workplaces, and different needs (Birchard B., 2010). The company is recognized for building in 1994 one of the most successful and best-recognized office chairs in the industry called Aeron. The company offers good financials and sells its products for a fairly cheap price in the comparison quality vs. price. (Raheja. N., 2013). The company efforts to reduce fixed manufacturing cost by outsourcing through strategic suppliers helps controlling the company’s overall cost structure and accomplish a competitive advantage. Herman Miller Inc. used for its international expansion...
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...CASE 22 HERMAN MILLER INC.: THE REINVENTION AND RENEWAL OF AN ICONIC MANUFACTURER OF OFFICE FURNITURE For MGMT 599 August 15, 2013 Herman Miller, Inc. is primarily 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 I have analyzed the company and the industry, and have chosen the best strategy to expand customer reach, and increase sales revenue. My analysis chosen will consist of a three-year implementation plan that will bolster sales revenue and expand the company’s customer base. Herman Miller Inc. internal environment brings to light the following strengths and weaknesses, threats, and opportunities. Strengths The $1.3 billion manufacturer of office furniture is known for its distinctive innovation skills and management methods. The following list of strengths elaborates on...
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...Cradle-to-Cradle Design at Herman Miller: Moving Toward Environmental Sustainability MGT 551 Operations Analysis October 21, 2013 Cradle-to-Cradle Design at Herman Miller: Moving Toward Environmental Sustainability Many organizations today claim they are environmentally friendly, their businesses are sustainable, or they work at minimizing their carbon footprint. While stating the claims may be easy, they take commitment of time and resources, a culture or homogeneity of vision, and a great deal of planning to implement. The complicated part is that the change cannot occur in just one facet of the organization, the change must carry across the organization and the entire supply chain. Drew Schramm finds himself in a difficult position at the Herman Miller organization. His supply chain background is in conflict with the organization’s environmental sustainability position. While he may see easy money to be picked from the savings tree, it has now become forbidden fruit. The Herman Miller organization is committed to their stance of environmental sustainability and Schramm must now take that into serious consideration when making supply chain decisions. Their new chair design, the Mirra Chair, has yet to have a decision made on the construction and materials of its arm pads. They can either use the common polyvinyl chloride (PVC) that violates their cradle to cradle (C2C) protocol standards, thermoplastic urethane (TPU) which meets the C2C standards but is more expensive...
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...Question 1: Herman Miller’s Strategies: evidence on its competitive advantage and good financial performance 1. Corporate Strategy: Diversified Strategy From the headquarters of Herman Miller Inc., Curt Pullen talks amid the unmistakable pounding sounds and commotion associated with a construction work site about his company's plan to rebound from the recession. Pullen, the firm's executive vice president and president of North America, says the workers are installing new lower-height Herman Miller workstations designed to accommodate a growing trend in offices toward more open, collaborative environments. The new product, called Canvas, is part of the company's market-shift strategy after the demand for office furniture fell hard during the economic downturn. The plan also involves diversifying into the health care and academic furniture markets and more emphasis on emerging economies. The plan appears to be paying off. For the first time in nearly four years the company reported two consecutive quarters of double-digit percentage sales growth after releasing its second-quarter earnings statement on Dec 15th. Orders in the second quarter rose 34% to $462 million. CEO Brian Walker noted the company's expanded market reach as a contributing factor to growth. Significant increases occurred in international markets where sales rose 33%. In 2010 the company acquired UK-based ergonomic workstation manufacturer Colebrook Bosson Saunders and purchased assets...
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...Herman Miller Darden Case Study 8Nov05.doc Herman Miller’s Design for Environment Program November 2005 Mark Rossi, Scott Charon, Gabe Wing, and James Ewell 1 Herman Miller launched its Design for Environment (DfE) program in the 1990s. At the core of the Herman Miller DfE program is the McDonough Braungart Design Chemistry (MBDC) Cradle to Cradle Design Protocol, which evaluates new product designs in three key areas: • • • Material Chemistry -- What chemicals are in the materials we specify, and are they the safest available? Disassembly -- Can we take products apart at the end of their useful life to recycle their materials? Recyclability -- Do the materials contain recycled content, and more importantly, can the materials be recycled at the end of the product's useful life? Herman Miller’s commitment to DfE includes requiring all new products be evaluated within the MBDC Protocol. Material Chemistry Assessment When Herman Miller launched its DfE program, the challenges for the DfE team were substantial: Learn how to use and integrate the MBDC protocol into the launch of new products, modify MBDC’s protocol to meet the needs and unique circumstances of Herman Miller, gather the data necessary to meet material evaluation criteria as required by MBDC’s material health protocol, gain acceptance from product development teams for design process changes, and complete all this work on a schedule that would not delay the launch of products. A core component...
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...Each student must complete a Final Project. The Final Project is a definitive case analysis and is to be in the form of a written paper in APA format. The purpose of the Final Project is to assess the student’s learning accomplishments by demonstrating how well the student has assimilated the information learned in this and all other Business Management courses. The Final Project includes two definitive business case analyses. The successful student will be able to discern between relevant and irrelevant material and then apply the various business techniques and skills to thoroughly analyze the cases in relation to the questions posed. Students may use any material in the text, from other courses, in addition to original research in developing the Final Project, but every word (unless expressly quoted with appropriate credits given) must be that of the student submitting the paper. Information used from other course work must be appropriately referenced and cited. Students would be well advised to begin making notes immediately upon starting this course on how they will respond to the Final Project. Final Project Case #1: Complete a comprehensive APA formatted paper that includes a thorough analysis of the following questions. The first part of the Final Project is to be performed on the Herman Miller Inc. in 2012: An Ongoing Case of Reinvention Case in the text on page C-332. 1. What does the five-forces analysis reveal about the strength of competition in...
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...Strategy Management in Global Environment GM599 Case Study: Herman Miller Inc Professor Denis Juren JeanMary Hermann Colas October 10, 2011 Herman Miller Inc started back in 1905, as a furniture company. The Star Furniture Company was a manufacturer of traditional-style bedroom suites in Zeeland, Michigan. It changed its name to Michigan Star Furniture Company, in 1909. Dirk Jan De Pree was hired as a clerk during that transition. D.J. De Pree became the president of the company 10 years later. He then renamed the company Herman Miller in honor of his father –in-law in recognition of his support for purchasing majority of share to save the company from failing (Shipper, Manz, Adams, Manz, 2010). Herman Miller Inc. became a leader in "modern" furniture in the 1930s and 1940s; developed lasting ties through the 1950s with legendary industrial designers who led us in new directions; transformed the office furniture industry with the first panel system in the 1960s; invented and refined ergonomic work seating in the 1970s, 1980s, and 1990s; reinvented the geometry of systems furniture in 2000, and is today the second largest office furniture company with customers and locations around the world (Dowdell,2008). Herman Miller Inc. is a global company with operations, sales offices, dealers, and licensees in more than 40 countries in North America, Asia/Pacific, Europe, Middle East, Africa, and Latin America. They serve customers virtually anywhere in the world. Their headquarters...
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... Explain if it matters that a parent literally had nothing to do with a biological child in order for the child to take advantage of the Family and Medical Leave Act (FMLA) to care for that parent. The Family Medical Leave Act specifically states that an employee has the right to take advantage of the FMLA benefit that he/she is covered under to take care of a member of family such as child, spouse, or parent in serious health conditions. There is no rule that exempts a child from caring for the parent regardless of the relationship, or financial responsibility (Halbert & Ingulli, 2011). In the video between Tony and Herman, Tony explained to Herman that he had intension of taking care of his sick father. Herman agreed with the idea, but then disagreed about the caring of Tony’s father once Herman found out that Tony wanted to take a 3 week...
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... ABL Tile & Bathroom - Huge Easter Sale. 19th To 21st Apr Adwww.abltilecentre.com.au/ (02) 9623 0499 Reduced Prices. Shop Online & Save! Baths and Spas Showers and Accessories Dorf Jovian Sale Bathroom Accessories Search Results Cpa Case Study 2012 - Term Paper Warehouse www.termpaperwarehouse.com › Business and Management Apr 22, 2012 - Cpa Case Study 2012. Australian Beverages Ltd-Pre-seen case study information. A Introduction to Australian Beverages Ltd In 1937 ... Case Summary - Term Paper Warehouse www.termpaperwarehouse.com › Other Topics Apr 26, 2012 - Case Summary. Extended case study. Australian Beverages Ltd—Pre-seen case study information. A - Introduction to Australian Beverages Ltd Case Study Comm 215 Free College Essay 301 - 320 www.termpaperwarehouse.com/subcategory/case-study-comm-215/16 Australian Beverages Ltd-Pre-seen case study information A Introduction to Australian Beverages Ltd In 1937, Australian Beverages Ltd (ABL) commenced. Abl Limited - Term Paper Warehouse www.termpaperwarehouse.com › Business and Management Apr 30, 2012 - Abl Limited. CASE STUDY ANALYSIS EXTERNAL ENVIRONMENT ANALYSIS Define the Type of Organisation...
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...Department of Labor, 2010). Also, under the law, each employee has a set amount of vacation and sick time allocated, in which they can by law take if there is enough to cover what they are asking to take (U.S. Department of Labor, 2010). Therefore, Tony is eligible in this category to take FMLA, providing that he has fulfilled all other qualifications. Explain whether the size of the business can have any effect on whether Tony is eligible for family leave under the FMLA. FMLA does not apply to everyone. There are exceptions. The Act does not apply to small employers, or to employees who have been hired recently. Although the exceptions to coverage are few, they are worth exploring every time an employee requests leave. In each case, there are two coverage questions. First, is the employer covered by the FMLA (U.S. Department of Labor, 2010)? Second, even if the employer generally is covered, is the specific employee who is requesting leave eligible for FMLA benefits (U.S. Department of Labor, 2010)? These...
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...Manufacturing Industry Analysis Manufacturing Industry Analysis Introduction Manufacturing industry refers to businesses that employ machines, tool, labors, chemical and biological processing to convert raw materials to finished goods on a relatively large scale. This industry makes up a sizable portion of the industrial production sector in developed nations. It also boosts the economic growth and creates jobs. In 2013, manufacturers contributed $2.8 trillion to the economy, up from $2.03 trillion in 2012. This was 12.5% of GDP. For every $1.00 spent in manufacturing, another $1.2 is added to the economy, the highest multiplier effect of any economic sector. Manufacturing promotes innovation, productivity and trade. Globally, manufacturing continues to grow. It now accounts for approximately 16% of global GDP and 14% of employment. The latest trend of manufacturing and industrial companies is that more and more of them are investing in emerging market to gain a foothold in future large market. Manufacturers expect about 40% of their global revenues to come from emerging market by 2017. General Environment Analysis General Environment Segment | Changes that may affect the industry | Level of Impact | Threat, Opportunity or Both? | What are companies in the industry doing about this trend? | Demographic | Education, sex, race | Moderate | Opportunity | More and more knowledgeable and skilled workers and expertise | Sociocultural | More women in workforceMore...
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...Employment-At-Will-Doctrine Clearly, employees are curious and feel they have the right to find out if their workers are productive and loyal employees. Employers have to protect themselves from liability for their employee’s everyday activities. At the same time, employees expect to have a certain comfort level by not having their space or privacy invaded in the workplace. “Tension between privacy and the need to know is heightened as computer technology revolutionizes information gathering.” (Halbert & Ingulli, 2010, p. 70) How can employees reasonably expect to have privacy when most companies are carrying some type of monitoring system that will allow employers to monitor the employee’s performance to see if their time is being utilized effectively? “According to a 2005 American Management Association survey, it states both the intensity and range of workplace surveillance is surging, from videotaping to monitoring of IM chat and blogging to GPS satellite tracking of cars and cell phones” (Halbert & Ingulli, 2010, p. 73). Technology has made it easy to track employees and their behavior on a daily basis. Most employers are becoming more knowledgeable on various types of electronic surveillance. For example, some employers monitor their employees email usage. Although, some employees may assume their emails are private; however, they are not. Deleted messages are stored into archive and are accessible to employers and others. (Halbert & Ingulli, 2010) In addition, technology...
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...Review Case 1.1 Explain how Henry Miller uses outside resources to drive innovation. Identify the additional resources might they need if expanding to a new market like Malaysia. Henry Miller work is innovated by his own expertise, but does not end there. Instead of creating the designs for his company within, he outsources the company’s creative work to professional designers and fully understands that he could benefit from the creativity of his staff as well. By allowing his staff to take part in design, he is able to generate unlimited ideas, which means the company’s chances of producing quality designs are greater. I like the fact that his company focuses on “green” production and design by recycling waste and using resources from renewable supply sources to support our environment. If he would like to expand to a new market like Malaysia, he and his staff should study the culture of Malaysia, and create designs in demand in this specific marketplace. If he hired local people from Malaysia, he would better understand the culture, and that could be of great advantage because hiring the right people matters. Mr. Miller could sponsor a trip for his employees to Malaysia where they could meet with potential co-workers from Malaysia in an effort to determine goals, challenges and opportunities in the specific marketplace. Boone, L. & Kurtz, D. . Contemporary business: 2011 custom edition (13th ed.). Hoboken, NJ: John Wiley & Sons. Review Case 1.1 Considering each...
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