Herman Miller is a furniture company based in Michigan that was originally founded in the early 1900s as the Star Furniture Company. It was renamed Herman Miller Furniture Company in 1923 and later became Herman Miller Inc. in 1960. The company pioneered the cubicle office and aims to have a sustainable environmental footprint. A SWOT analysis found strengths in brand loyalty and marketing but weaknesses in organizational aspects. Opportunities exist in the stable US economic and political environment. Threats include technological advances. The company evaluates new products for material safety, disassembly, and recyclability. It offers a variety of seating, workspaces, tables, and accessories drawn from George Nelson's vision of a permanent collection.

1. Herman Miller’s Case Study
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Dhia Hayouni
A’Kendria Burns
Xavier Harris
Dr. Jimmie S. Warren
BA 451 – Fall 01

2. Strategic Profile
•Herman Miller is a modern furniture company based in Zeeland,
Michigan. Originally named Star Furniture Company in the early
1900’s the company was known for high quality bedroom suites
•In 1909 Dirk Jan De Pree was hired as a clerk for the company and
eventually became president in 1919 when the company was also
renamed Michigan Star Furniture Co. later De Pree and his father-in-
law purchases 51% of the company’s stock then renamed the company
Herman Miller Furniture Company
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3. Strategic Profile
•The company later became Herman Miller Inc. in 1960.
•First company to create the cubical office or “action office”
•. In July 2014 the company reached an agreement to create
contemporary retail design worth $154 billion dollars to establish
itself as a “premier lifestyle brand”
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4. Environmental Analysis
•Herman Miller believes that the future quality of human life is dependent on
both economic vitality and both a healthy and sustainable natural
environment.
•2004, the company put together a plan of environmental goals that included
a zero operational footprint and 100 percent renewable electrical energy.
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5. Environmental Analysis
•In ten years they have largely achieved their past goals,
having reduced their company’s footprint by 91 percent, and
using 100 percent of their electrical energy from renewable
resources for more than three years.
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6. Internal Analysis
•The company also has a system of design for problem
solving where they look, ask questions, and take feedback
from their employees, discuss and use trial and error to create
some of the innovative designs they have produced.
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7. SWOT Analysis and Financial
Ratios
The SWOT analysis is made to determine a company’s Strengths /
Weaknesses / Opportunities and Threats within its environment.
Financial ratios are useful indicators of a firm performance and financial
situation. (Netmba.com)
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8. SWOT Analysis and Financial
Ratios
•Strengths:
•The customers are brand-loyal and the company is still gaining a very
prestigious position among competitors.
•Herman Miller is maintaining a powerful relationship with suppliers,
vendors and labor unions.
•The marketing strategy is well designed and well accomplished on field
which is making a financial growth for the company.
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9. SWOT Analysis and Financial
Ratios
•Weaknesses:
•The organizational aspects and the human resources guidelines have to
be reconsidered for he company.
• Opportunities:
•The economic condition of the United States is considered as a great
asset for the company to grow.
•The political environment is stable and in improvement.
•The company is on the same wavelength with technology.
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10. SWOT Analysis and Financial
Ratios
•Threats:
•The furniture industry is subject to technological advancements and new
revolutionary ideas.
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11. SWOT Analysis and Financial
Ratios
•Return on assets
An indicator of how profitable a company is relative to its total assets. ROA
gives an idea as to how efficient management is at using its assets to generate
earnings. (Investopedia.com)
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12. SWOT Analysis and Financial
Ratios
•Operating profit margin
Operating margin is a margin ratio used to measure a company's pricing
strategy and operating efficiency
Operating margin is a measurement of what proportion of a company‘s
revenue is left over after paying for variable costs of production as
wages, raw materials, etc.
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13. SWOT Analysis and Financial
Ratios
•Net profit margin
The ratio of net profits to revenues for a company or business segment -
typically expressed as a percentage – that shows how much of each dollar
earned by the company is translated into profits.
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14. SWOT Analysis and Financial
Ratios
•Current ratio
The current ratio is called “current” because, unlike some other liquidity
ratios, it incorporates all current assets and liabilities.
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15. Strategic Formulation
•Strategy formulation is the process by which an
organization chooses the most. appropriate courses of action
to achieve its defined goals. This process is. essential to an
organization's success
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16. Strategic Alternative Choice
•Herman Miller makes some of the best office furniture
available. From work desks to conference tables to chairs
for more than 75 years, this company has been producing
furniture that stands the test of time.
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17. Strategic Alternative Choice
•Big brands like Herman Miller are often price prohibitive,
leaving small, midsize, and more frugal businesses looking for
alternatives.
•Alternatives are well below the price of a Herman Miller Chair,
but not as good though.
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18. Strategic Alternative Choice5 brands that manufacture high quality yet affordable office furniture.
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Affordable Interior System (AIS) Manufactures office furniture that lends
itself
to those that desire a more open office
space
Modular Millwork Known for its fully sustainable and modular
casework that is popular in healthcare and
educational settings
GlobalTotalOffice Specializes in contemporary office furniture
that's a great value for us working folks,
RFM Seating office seating in terms of comfort and
quality without sacrificing selection,
Woodstock Marketing Focuses on efficiently and inexpensively
manufacturing a select repertoire of sleek,
modern office chairs

19. Strategic Alternative Evaluation
Herman Miller protocol goes beyond regulatory compliance to thoroughly
evaluate new product designs in four key areas:
Material Chemistry and Safety of Inputs—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?
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20. Strategic Alternative Implementation
When you sit in a Herman Miller chair, you’re actually sitting in every chair
we’ve ever made and we’ve been making chairs a long time (Sitting is Never
Just Sitting). While each one was designed to solve a unique set of problems,
they’ve all taught us something about what a chair needs to do to make
people more comfortable, organizations more productive, and spaces more
inspiring (Sitting is Never Just Sitting).
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21. Strategic Alternative
Implementation
Action Items
•Herman Miller specializes in “Living Office, Small and
Medium Business, Home, Healthcare, Education, and
Government.
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22. Strategic Alternative Implementation
Action Items
• Herman Miller’s products consist of seating, workspaces, tables,
storage, accessories, healing spaces, and collection.
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Seating “Seating” includes performance work chairs, executive
seating, multi-use guest chairs, stacking chairs, stools,
lounge seating, public seating, bench seating, and
outdoor seating.
Workspaces “Workspace” includes individual workstations, private
office, desks, collaborative furniture, and boundary
screens
Tables Tables” include conference tables, sit-to-stand tables,
training tables, dining tables, occasional tables, and
outdoor tables
Storage “Storage” includes meridian storage, canvas office
landscape, Tu Storage, Eames Desks and storage units,
Nelson Thin Edge Group, Nelson Basic Cabinet Series,
etc..
Accessories Accessories” include Technology Support, Personal
Task Lights, System Task Lights, Work Tools, and
Accents
Healing Spaces Healing Spaces” include Systems,
Carts, and Patient Seating
Collection “Collection” includes products, living and lounge, dining,
and meeting, working and storage, and outdoor.

23. Strategic Alternative
Implementation
Action Items
• The Herman Miller collection draws on George Nelson’s
vision of “a permanent collection designed to meet fully the
requirements for modern living” (Herman Miller)
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24. References
•Alhamdulillah, B. A strategic analysis of Herman Miller, Inc. for the year
2013 (Nov 2013)
•Investopedia.com
•Netmba.com
• (http://www.hermanmiller.com/products/collection/m/index.htm
l).
• (Sitting is Never Just Sitting).
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