...Stickley Furniture Ashford University Online BUS 644 Operations Management Instructor: Michael Snell July 4, 2011 L. & J. G. Strickley was founded in 1900 by brothers Leopold and George Strickley. The company produces fine cherry, white oak, and mahogany furniture. Over the years the company has experienced both good and bad times. At one point the company employed over 200 people and at another point when the business was in disarray they employed only 20 full time employees. When the business hit its low point in 1974, it was bought by the present owners. Since then the business has prospered and grown. Stickley furniture now has 1,350 employees has five retail showrooms in three states. Their furniture is sold nationally by some 120 dealers. Within this paper I will discuss the history of Strickley furniture, the production process, and changes that might be beneficial to the company. The Stickley brothers burst into international prominence in the early 20th century with their Mission Oak designs. These were based on the notion that furniture should be “honest”—a reaction against the fake joinery, unnecessary gaudiness, and shoddy workmanship of many of the pieces created in the early days of industrial furniture making. [pic]The Stickleys used solid construction, what-you-see-is-what-you-get joinery, and the highest quality woods. But even more, they showed a genius for design, creating hundreds of new forms that were at once beautiful to look upon, practical...
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...life. These objects of religious beliefs were usually found in the royal homes due to the high cost which again, shows diversity in different working classes. The majority of Egyptians were workers and were therefore forced to live inside primitive houses whereas the royals lived in the glorious buildings that symbolised wealth and pleased their gods. Many years after this, Europe witnessed the Elizabethan Era that focused largely on Tudor Gothic legacy which certainly influenced the Royals between the years of 1485 – 1603. Houses were even built and designed differently with common characteristics including recycling medieval stone, using large bricks for chimneys and including depressed archways throughout the buildings. This period in history reflected a lot on the Egyptians and how they used bigger buildings to symbolise power for the Royals. However, the homes provided for the poor and middle class were certainly more humane in the Elizabethan...
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...Horace Walpole defined Gothic in 1736, as "'light, delicate, and rich to an extreme, full of whimsical and impertinent ornaments,'" as "'the irregular lightness and solemnity of Gothic.'" This definition of Gothic was incorporated into Gothick designs in the eighteenth and nineteenth century. Fundamentally, the Gothick style was based on structural elements in its designs and furniture, but designers also were able to use their imagination to create "a little exotic fantasy for its own sake." This freedom of design, however, depended on the patron, and how accurate a designer chose to be. In this paper, I am going to examine Gothick designs from the late eighteenth and to the mid nineteenth century. This comparison will feature both American...
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...is a global furniture brand inspired by the egalitarian society of its Swedish heritage and appears to the public to be forever Swedish. It expands its retail stores all over the world including North American, European Middle East and Asian countries but also spreads a kind of its own a highly strong business culture and values with a strong Swedish image to other countries through the establishment of business there. History: IKEA was founded in 1943 in Sweden by Ingvar Kamprad. Kamprad was born in 1926 as the son of a farmer in Småland, a region in southern Sweden. At the age of five Ingvar Kamprad starts selling matches to his nearby neighbors and by the time he is seven, he expands to selling flower seeds, greeting cards, Christmas tree decorations, pencils and ball-point pens. In 1943, at the age of 17, Kamprad became an entrepreneur and created a commercial company called "IKEA." The word IKEA was an acronym of his name and “Ingvar Kamprad” and the address, the name of his farm and village: “Elmtaryd, Agunnaryd”. Company initially sold fish, vegetable seeds, and magazines to customers in his region. Then in 1950 IKEA added furniture and home furnishings to the product line. IKEA entered new markets around the globe in the 1980s. IKEA expands dramatically into new markets such as USA, Italy, France and the UK. Operating Environment: Ikea is the world's largest furniture retailer which specializes in stylish but inexpensive Scandinavian designed furniture. Ikea's success...
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...the furniture is very modern and light as it is made of particleboard. The products are of contemporary design and function with the concept that is based on low price. High quality, convenience, affordability, consistency, functionality and good design are the essence of this world class home furnishing retailer. Challenges IKEA faced many challenges in terms of culture and business practices as well as socio-economic and political conditions in China. The biggest challenges were pricing, copycat producers and cheap labor cost for assembled furniture. Alternatives To make the price more affordable for Chinese consumers IKEA has developed manufacturing units in China and collects raw materials locally. Due to country specific environment IKEA chose franchising in China. Because of cheap labor cost of Chinese assembled furniture IKEA offers reasonable fee-based assembling services. IKEA has built its stores near public transportation lines inside cities since only 20% of customers own cars in Shanghai. Recommendations IKEA needs to find more local suppliers to keep price lower. To understand local culture and purchasing habit, the company should carry out extensive market research. To attract more middleclass consumer huge adaptation is necessary. Extensive training for the employees and better supply chain management will solve customer service and out-of-stock problems for IKEA. Introduction and summary of the case study IKEA is a famous Swedish furniture company...
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...Guillermo’s Furniture 1 GUILLERMO’S FURNITURE Guillermo’s Furniture Michelle Pate Sundar Shankar Mani Vannan Osvaldo Perez Niaz Tavakoli FIN571 University of Phoenix November 2009 Guillermo’s Furniture 2 Introduction During the history of furniture, designing trends have correlated to society’s changes. Today, because we have access to different fabrics, textures and technology advancements, people have a variety of furniture to choose from. Historians have a record of the year and technique in which furniture was made. Presently, you can find hand-made furniture at auctions, historic places and museums. They have a higher value and are looked at as a work of art because they are created by an artist’s imagination. Furniture makers often use oak wood in their furniture, since it is stronger and will last longer than other wood. It would be more difficult to create custom hand-made furniture using an automated machine because it takes the art out of the furniture, though it is less expensive. It takes more time and money to create hand-made furniture and get it ready for the selling stages than to create automated furniture or become a distributor. Guillermo’s Furniture Store is going through changes and he needs to adapt new strategies that would help him overcome the market’s competitors and stay in business. Guillermo’s Furniture Store is located in Sonora, Mexico and is one of the biggest companies that manufacture furniture in North America. This area has a...
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...Question 1 Environment in the this model is more inclined to consist of things outside of the organization that can affect the inside operations such as competition, technology, market needs and/or changes, and government relations (Hughes, Gwinnett, & Curphey, 2012). IKEA, one of my favorite places to shop, is an environment that is affordable for many people to have the homes décor and all-around supplies they need at a reasonable cost. With the market changes, economic, and overall changes to the environment (aka flood, earthquake), the one thing that stays stable is the pricing and products at Ikea. The furniture is typically good quality and usually easy to put together (depending on who is doing the task). The decorated areas, for example, a small room with sample bedroom furniture provides the feel of how a customer’s bedroom would look after buying those products. Since it is a place to easily get lost and go in circles, there is always a co-worker nearby to direct you to where you have to go. In most cases, they are respectable and happy. Perhaps this is because of how Kamprad respects co-workers views and overall good working environment he creates for his co-workers. Resources. According to Hughes, et al., (2012), resources are intangible elements and material resources as well as capital and perception of product quality. Ikea has noticeable and immaterial resources. From its success, one can actually see its sales success, profits, and other financial ...
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...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 Of Contents Introduction 4 History 4 I/O model 6 The External Environment The Industry Environment The competitive environment Value Chain 6 7 8 8 International Strategy 10 Strategic Choice 11 International Business Level Strategy 11 Multidomestic Strategy 11 Global Strategy...
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...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 Of Contents Introduction 4 History 4 I/O model 6 The External Environment The Industry Environment The competitive environment Value Chain 6 7 8 8 International Strategy 10 Strategic Choice 11 International Business Level Strategy 11 Multidomestic Strategy 11 Global Strategy...
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...Guillermo Furniture Store Concepts Introduction Guillermo’s Furniture Manufacturing facility has been located in Sonora, Mexico successfully until the late 1990’s. Guillermo Navallez noticed a decline in profit and found that he would need to make changes to his manufacturing establishment in order to financially stay in business. Navallez used concepts from staying in the competitive economic environment and using accounting and research to establish some potential changes in Guillermo’s future endeavors. The Competitive Economic Environment Navallez saw through his loss of profit that there was competition for his manufacturing facility. Through researching his competitors he came up with future options for his manufacturing facility to stay in business and grow. Several of the concepts and principles of the financial environment were used. Navallez obtained information about the overseas competitor using high-tech machinery compared to the labor force. Profit margins were shrinking and decisions were going to be necessary. Navallez had options of consolidating into a larger organization through acquisition or merger. Navallez wanted to stay in business and be active but not take any more time away from his family. Principles Used The Principle of Self-Interested Behavior: People Act in Their Own Financial Self-Interest. (Emery, 2007, p. 20). This principle uses the theory of choosing the most financially opportunity. “In such impersonal transactions, getting the most...
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...IKEA MARKETING CASE 1. 1. Until now IKEA international marketing strategy has been tightly and centrally controlled by corporate headquarters. However, high local' pressures emerging due to demographic and cultural differences might force the local IKEA shops to take strategic initiatives to respond to local market needs. In this connection discuss the regional headquarters and transnational organization (presented in Chapter 12) as hierarchical 'entry mode' alternatives to the very centralised strategy emanating from IKEA's headquarters. The advantages of having regional headquarters ( feature of divisional structure) are : flexible reaction to local conditions, accountability and be more competitive. However, this implementation could face some problems: strategic focus, economies of scale, loss of efficiency and costs, and finally large commitments. If they pass from regional headquaters to a transnational organization they will obtain differents advantages related to focus on global integration: efficient resource allocation, knowledge Exchange, economies of scale, local focus. But some disadvantges would appear like corporate identity and complexity of the process. 2. IKEA has not yet explored joint venture and strategic alliances strategies. Evaluate the pros and cons regarding these two entry strategies versus the traditional IKEA entry mode of franchising. As we know, strategic alliances appear when parterships between firms where their resources and capabilities...
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...2002, the IKEA Group was the world’s top furniture retailer. With sales approaching $12 billion, IKEA operated 154 stores in 22 countries and serviced 286 million customers a year. (See Exhibits 1 through 4.) In the United States, IKEA had 14 stores, with plans to open as many as nine more in 2003. There were a number of factors that distinguished IKEA from other furniture retailers—its stores were strictly self-service and featured such amenities as playrooms for children and Swedish cafés, and all of its furniture came unassembled (customers were expected to put together the furniture on their own)—yet there was no question about the company’s success; when a new store opened, it was not unusual for thousands of shoppers to line up on the first day. Company Background IKEA was founded in 1943 when 17-year-old Ingvar Kamprad decided to start a local catalog company using some money his father had given him.1 Initially, the company sold basic household goods at discount prices; in 1947, however, Kamprad began selling home furnishings. Six years later, Kamprad opened his first furniture showroom, and two years after that, IKEA began designing its own low-priced furniture. In 1958, IKEA opened its inaugural store, in Almhult, Sweden; at 6,700 square meters, it was the largest furniture display in Scandinavia at the time. By the time IKEA opened its flagship store in Stockholm in 1965, IKEA had become the favored furniture-shopping destination for price-conscious...
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...what the small retailers could afford. As a result the small stores had to shut down. While on one hand Price Mart took away some jobs it created many more to compensate for the unemployment created by the closure of a manufacturing plant in the same town. This illustrates a common outcome of the arrival of giant retail companies in otherwise unexplored geographies. This is also touted as the reason why many governments were initially and many still are opposed to the idea of allowing large retail companies to set up shop especially if they are from abroad. One of such large retailer is IKEA which has of late managed to enter the Asian market. IKEA is known all over the world as a low cost high quality provider of ready to assemble furniture. This is about what the company does and not what it stands for. IKEA is a symbol of excellence that serves as an inspiration for entrepreneurs and business houses alike. There are no two views about the successful business model adopted by IKEA which also has a strong value system. There are fewer controversies and lot more accolades for IKEA as compared to other large retail giants. What is more fascinating however is the fact that in spite of being a large and powerful entity IKEA does not abuse its dominant position to extract any benefits from its partners and suppliers. It is this characteristic that differentiates IKEA from other large retail companies. It is not surprising to find large corporations taking advantage of cultural...
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...before such decision is made. Rooms to Go is one of the biggest furniture stores in the United States with numerous stores across the country. The global company has already managed to successfully open numerous stores in other countries, but has yet to enter the United States neighboring countries’ furniture industry, Mexico. The growth spurt in some of Mexico’s most urbanized cities have increased demand for furniture as the country’s furniture industry only represents 1.8% of the country’s manufacturing GDP and 0.4% of the total GDP (Matrade.gov, 2004). The furniture industry in Mexico City is rapidly expanding despite high levels of poverty; growth in the housing markets is driving demand for house furniture. Rooms to Go should penetrate the Mexican Furniture Market by franchising in Mexico City, one of the fastest growing cities in Mexico. Entry into this region promises profits and potential growth for a company like Rooms to Go. Trade agreements like the North American Free Trade Agreement will not only facilitate entry into this market but maximize economic integration. Rooms to Go is an established furniture company in the U.S. with the resources to grow and expand. As the Mexican middle class gets bigger and the cities housing programs continue working on the construction of new homes, the need for house ware will influence a furniture boom in this urban city. A furniture boom that will give way to furniture manufactures and retail stores to benefit economically from the...
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...Contents 1. Company’s presentation 1.1 History 1.2 Vision and Mission 2. Business model 3. Study of the competition 4. Marketing 4.1 Positioning 4.2 Differentiating values 5. Financial management 5.1 Financial facts and figures 5.2 Risk Analysis 6. Strategic development 6.1 SWOT Analysis 6.2 Future strategies 7. Conclusions 1. Company’s presentation 1.1 History IKEA is a multinational Swedish company that sells retail furniture and home furnishings and decor, at a low price and with a contemporary design. The word IKEA is made up of the initials of its founder Ingvar Kamprad (IK) plus the first letter of Elmtaryd and Agunnaryd, which are the farm and village where he grew up, respectively. It was founded in 1943 in the province of Småland, Sweden. It’s logo is blue and yellow, as it represents the colors of the Swedish flag. In 1943, Ingvar Kamprad started its business by selling goods by mail in a village in southern Sweden. The idea was to sell items that cover different needs, at affordable prices. Thus began selling pens, wallets, picture frames, watches, jewelry etc. In 1947, expanded his business to selling furniture and four years later published the first catalog IKEA furniture, then took the historic decision to focus exclusively on home furnishings, and leave the other articles. The catalog became a symbol of the company and its main marketing channel. By 1953, IKEA sells by catalog...
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