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Haverwood Furniture

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by

Adam Markulics

on 16 November 2016

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Transcript of Haverwood Furniture

Haverwood Furniture
The Company
The Industry
Strengths
Weaknesses
Opportunities
Threats
The Problem
Alternative 1
Alternative 2
Alternative 3
Adam Markulics, Jordan Delao, Max Forster
[ ]
[ ]
Recommendations
OR
OR
SWOT
Alternatives
Middle- to high-quality wooden furniture.
1,000 department stores and independent sellers nationwide
10 employees and 2 regional managers
Upholstered, wood and other furniture
Estimated $31b in sales revenue (2007)
50% upholstered, 40% wood, 10% from other (ready-to-build/casual furniture)
Approximately 1,000 manufacturers
Top 25 own ~50% of sales
Asian imports driving prices down
Three general categories:

2007 Net Sales: $75 mill. (profit of $3.7 mill.)
Promotion Spending:
In-house sales force
2 Regional Managers
10 Full-time sales representatives
Offer full product line to affiliated stores
High competition
1,000 manufacturers in the U.S.
Small sales force
To accept the proposed increase in advertisement or not?
Secondarily:
Invest on expanding sales force?
Lack of online presence
Criteria for Evaluating Alternatives
Ease/Time of Implementation
Cost/Return of Investment
Competitive Advantage Gained
New distribution channels
Offers Higher-Quality products
Understanding of their target market
Top 10 make up one-third of market
Haverwood accounts for <1%
Imports from Asia driving prices down
Small distribution share in comparison to industry gatekeepers
(Accept the proposed promotional budget expansion of $225K)
Ease of implementation - High
Cost/Return - $225K/
Competitive Advantage - Additional awareness of new styles in '08
(Allocate additional funds to sales force)
Ease of Implementation - Medium
Cost/Return - Cost: ~$135,000
Return: $12,000 leftover for other expenses
Competitive Advantage - Increased ability to manage new accounts
(Build a website)
Ease of Implementation - low
Cost/Return - ~$100,000 to develop & maintenance costs
Competitive Advantage - Easy access for customers; real time inventory information
Expand sales force
Develop online presence
(Better management of additional accounts)
(99% of respondents answered they like when there is a rep available to) inform.
(Acts as an online gallery)
Full transcript