Herman Miller Case Study Essay - 3539 Words

Herman Miller 1. Do a 5 Forces analysis of the office furniture industry. In Porter’s Five Forces Model, the forces are listed as Risk of Entry, Bargaining Power of Suppliers, Bargaining Power of Buyers, Threat of Substitutes, and Rivalry among Established Firms. For Herman Miller, the rivalry between the established firms is high, and the most important force in their industry. Design is the key feature in the furniture industry, so the company that can come out with new and favored designs will win out in market share and profits. The company that is able to continually win the design battle will have the opportunity to establish brand loyalty and clout, creating a buffer for future downfalls in the economy, entry of new†¦show more content†¦3. What are the key industry life-cycle factors in the office furniture industry, and how should Herman Miller respond? The office furniture life cycle is a mature industry that has been established since the earlier part of the twentieth century. As such, the factors that affect Herman Miller are ones that affect industries within a mature industry. The main factors that affect Herman Miller are its ability to minimize costs, adjust to volatile changes in demand, and to maintain its brand loyalty. Throughout its history, Herman Miller has used a system of employee empowerment to develop new ideas that would, in the long run, minimize costs and increase profitability. Committees were created that could share ideas on improvement, as well as a plan for employee. As time went on, this structure was updated, but the core idea remained the same; giving employees platforms with which to share their ideas on how to better the company. Herman Miller also began a policy with which employees became shareholders within the company. The benefits of empowering the employees are obvious. With this policy it became possible for employees to recognize areas that might need improved that management might have missed. It gives the employees a sense of purpose that goes beyond their job, and has the employees tuned into the overall success of theShow MoreRelatedHerman Miller Case Study1175 Words   |  5 PagesHerman Miller Inc. Financial Analysis: Herman Miller Inc. Fiscal Years Ending | May 29, 2010 | May 29, 2009 | May 31, 2008 | June 2, 2007 | June 3, 2006 | |    |    |    |    |    | Profitability Ratios |    |    |    |    |    | Gross Profit Margin | 32.5% | 32.4% | 34.7% | 33.7% | 33.1% | Operating profit margin | 71.6% | 75.2% | 77.5% | 76.7% | 76.0% | Net Profit margin | 2.1% | 4.2% | 7.6% | 6.7% | 5.7% | Return on total assets | 6.5% | 12.2% | 21.8% | 21.4% | 16.9% | Return on stockholderRead MoreHerman Miller Company Case Study3089 Words   |  12 Pagesï » ¿Herman Miller 1 herman miller case study 1.0 Internal Analysis 1.1 Timeline The Herman Miller Company operated as the Star Furniture Company in Michigan in 1905. It was named the Michigan Start Furniture Company in 1909. In 1919, Dirk Jan Du Pree became its president. In 1923, his father-in-law Herman Miller bought the majority shares in the company and it was renamed to the Herman Miller Furniture Company. Since then, under the leadership of Du Pree, the company has continuously adopted innovativeRead MoreHerman Miller Case Study Essay1260 Words   |  6 PagesCase Six: Southwest Airlines Introduction Herman Miller has a deep-rooted history as a quality manufacturer of office furniture. The company has been recognized on Fortune’s â€Å"Most Admired Companies,† and â€Å"100 Best Companies to Word For† lists, as well as Fast Company’s â€Å"Most Innovative Companies† list (Shipper, Manz, Adams, Manz, 2011). Due to the company’s innate ability to reinvent itself, Herman Miller has been able to stay relevant through the years despite the great depression and severalRead MoreHerman Miller Case Study Essay1040 Words   |  5 PagesNAME: Koray Kendir CASE 7: Herman Miller Inc.: The Reinvention and Renewal of an Iconic Manufacturer of Office Furniture 1. BACKGROUND INFORMATION |Timeframe |Country(s) Involved |Key Individuals Titles |Company Type Size | | | | | | |1905 to present |United States |Brian WalkerRead MoreHerman Miller Inc Case Study Essay1167 Words   |  5 Pagesemployees are often eligible to switch job positions within their companies. Even when employment is at will, permanent employees of large companies are generally protected from abrupt job termination by severance policies, like advance notice in case of layoffs, or formal discipline procedures. They may be eligible to join a union, and may enjoy both social and financial benefits of their employment. Lifelong employment facilitates long-term growth for employees, companies and industries. It developsRead MoreHerman Miller1502 Words   |  7 PagesSection 1: Problem Statement When Mike Volkema, CEO of Herman Miller, abruptly attempted to appoint Gary Van Spronsen to executive vice president of offer development and marketing, Volkema was hesitant to get involved. Since 1992, Van Spronsen had worked feverishly to build a leader in the office furniture industry in the Herman Miller subsidiary SQA. Not only did Van Spronsen create the traction that prompted better customer service, a tailored product line and design process, but he also transformedRead MoreThe Merger Of Two Competing Hospitals1265 Words   |  6 PagesThis case study is about the merger of two competing hospitals, Porter Regional Medical Center (PRMC) and Banner Regional Medical Center (BRMC). PRMC is located on the east side of town, the 188,000 square foot facility sits on 63 acres of land, and houses 110 hospital beds. BRMC is located on the west side of town, the 561,366 square foot facility contains 154 beds, and sits on 6 acres of land. BRMC is faced with the dilemma of aging faciliti es. It has been granted the funds to renovate the facilityRead MoreA New Ceo Of The New Hospital1214 Words   |  5 PagesThis case study is about two merging hospitals Porter Regional Medical Center (PRMC) and Banner Regional Medical Center (BRMC) that are merging together but were once competitors. PRMC is located on the east side of town which consisted on 110 hospital beds with 188,000 square feet of facility space and 63 acres of land. BRMC is located on the west side of town with 154 patient beds, with 561,366 square feet of space and 6 acres of land; however, BRMC faces the dilemma of aging facilities and isRead More Herman Miller. Essay795 Words   |  4 Pages Herman Miller: Role Model in Employee and Environmental Relations Case Summary and Questions for debate †¢nbsp;nbsp;nbsp;nbsp;nbsp;The company had been a model for almost 70 years – until the 1990’s EMPLOYEE RELATIONS †¢nbsp;nbsp;nbsp;nbsp;nbsp;Used as example of superb employee relations in business text books like onbsp;nbsp;nbsp;nbsp;nbsp;A Passion for Excellence onbsp;nbsp;nbsp;nbsp;nbsp;The 100 Best Companies to Work For in America †¢nbsp;nbsp;nbsp;nbsp;nbsp;InterestingRead MoreThe Production Processes, Human Resources, Marketing, And Design Processes3169 Words   |  13 PagesHerman Miller has been in the business for over 90 years and is known for its innovation and design processes. Through more than a few name changes, changes in leadership, and difficult economic times, Herman Miller has managed to keep its hold on the market. It remains the leader in innovation and design processes by remaining committed to Research and Development and continues to commit to it even through rough financial times. There will be several areas of focus during this analysis including