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Case 22 Herman Miller Case Analysis

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CASE 22 HERMAN MILLER INC.: THE REINVENTION AND RENEWAL OF AN ICONIC MANUFACTURER OF OFFICE FURNITURE

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MGMT 599

August 15, 2013

Herman Miller, Inc. is primarily concentrated in the business and institutional market. Herman Miller is one of the leading players in the US office furniture industry with a 12% market share. Over the last several years, the entire industry has experienced significant declines in sales due to poor macroeconomic conditions. However, Herman Miller has managed to outperform most of its competitors in terms of profitability, illustrated through strong operating margins and return on sales. Herman Miller has a strong reputation for high quality, innovative products, strong customer service, high customization, and reliability. This strong brand equity enables the company to leverage its brand strength across different market segments, leading to extended customer reach I have analyzed the company and the industry, and have chosen the best strategy to expand customer reach, and increase sales revenue. My analysis chosen will consist of a three-year implementation plan that will bolster sales revenue and expand the company’s customer base.
Herman Miller Inc. internal environment brings to light the following strengths and weaknesses, threats, and opportunities.

Strengths

The $1.3 billion manufacturer of office furniture is known for its distinctive innovation skills and management methods. The following list of strengths elaborates on the company’s distinguishing capabilities.

Innovative products and processes – Herman Miller has led the industry with many ground-breaking developments, such as the first open-plan modular office system, the first seating configuration scientifically based on ergonomic principles, and cradle-to-cradle environmentally friendly product construction.
Organizational culture and value system –

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