Herman miller
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Herman Miller is an office furniture company founded in 1905. It has experienced both hardships and success over the years. More recently, it has faced challenges from the recession and shift toward more home working. The document evaluates alternatives for Herman Miller's future business model, including maintaining the status quo, improving the current model, or focusing on marketing and research & development. It recommends a combined approach of improving the current model while also investing more in marketing and R&D. A three-phase implementation plan is outlined focusing on the home office market in the short term, establishing a low-cost subsidiary and marketing campaign in the medium term, and partnerships and green initiatives in the long term.
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Herman Miller Case Study _1
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.
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- 1. Herman MillerAMAR ARORA ALEX CHOW PATRICK GODLEWSKI
- 2. Company History Back to 1905 Herman Miller -> 1919 Hardships and Success Recessions and Investment Retrieved from: http://imjustcreative.com/wp- content/uploads/2011/11/herman-miller-logo-design-1905.jpg
- 3. Company History Specializes in office furniture Being innovative Continuous expansion Design of The Decade -1989 Retrieved from: http://designspiration.net/data/l/1020332116709_iiRb9913_l.jpg
- 4. Employment and Culture Empowerment Employee Stock Option Plan Company Performance Good Strategy Execution Retrieved from: http://www.youtube.com/watch?v=XkqLZAEL_TQ
- 5. Employment and Current Situation 2003: Lifelong Employment Strategy Execution Skills for the Future Employee Empowerment
- 6. Issues Recession Reinvent Business Model of the Future Shift toward Home Working
- 7. Alternatives Idea 1: Continue using current business model. Idea 2: Improve Current Business Model Idea 3: Marketing and R&D
- 8. Decision criteria Alternatives Cost (35%) Profit (30%) Employee Empowerm ent (15%) Innovation (20%) Total Status Quo 1 (.35) 2 (.60) 2 (.30) 3 (.60) 1.85 Improve current business model 3 (1.05) 1 (.30) 1 (.15) 1 (.20) 1.7 Marketing and R&D 2 (.70) 3 (.90) 3 (.45) 2 (.40) 2.45 1 = best in class 3 = worst in class
- 9. Recommendation Combine alternative 2 and 3 Start with small strategy change Start building on home office strategy Invest in more R&D and marketing Create a system for forecasting
- 10. Implementation plan Short Term- Investing into a home office team Create a team that study’s the market environment Start planning a marketing campain
- 11. Implementation Plan Medium Term- Create a subsidiary for a low cost strategy Utilize Marketing Campaign Improve Relations with supplier’s and create contracts
- 12. Implementation Plan Long Term- Partnership with companies that compliment Herman Miller Partner with celebrity's or famous companies to promote Herman Miller Start a Green initiative with products to promote themselves