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West Lake Home Furnishing Ltd

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GUIDING QUESTIONS FOR ANALYSIS OF THE WESTLAKE HOME FURNISHINGS LTD CASE
(Case to be used for Class Discussion on Tuesday, Aug.19)

1. Analyze the North American home furnishing industry using both Porter's 5-forces and the PEST models.(Book 1 Chapter 3) 2. Oualitatively, what are the possible advantages and disadvantages of Bowman accepting his customer's price reduction proposal? Do you think Bowman should proceed with the reduction? Why or why not? 3. What other recommendations might you propose or support to improve West Lake's performance?

Richard Ivey School of Business

The University of Western Ontario

IVEY
9B07M071

WEST LAKE HOME FURNISHINGS LTD.

Ken Mark wrote this case under the supervision of Professor Charlene Zietsma solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction this material is not covered under authorization by any reproduction rights organization. To order copies or request permission reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright

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INTRODUCTION

It was May 23, 2007, and Charles Bowman, the chief executive officer (CEO) of West Lake Home Furnishings Ltd. (West Lake), was thinking about a proposal one of his top three wholesale customers had made to him: if Bowman would reduce the retail price of a

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