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Herman Miller Inc.

In: Business and Management

Submitted By kazumigosna
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Question 1: Herman Miller’s Strategies: evidence on its competitive advantage and good financial performance 1. Corporate Strategy: Diversified Strategy From the headquarters of Herman Miller Inc., Curt Pullen talks amid the unmistakable pounding sounds and commotion associated with a construction work site about his company's plan to rebound from the recession. Pullen, the firm's executive vice president and president of North America, says the workers are installing new lower-height Herman Miller workstations designed to accommodate a growing trend in offices toward more open, collaborative environments. The new product, called Canvas, is part of the company's market-shift strategy after the demand for office furniture fell hard during the economic downturn. The plan also involves diversifying into the health care and academic furniture markets and more emphasis on emerging economies. The plan appears to be paying off. For the first time in nearly four years the company reported two consecutive quarters of double-digit percentage sales growth after releasing its second-quarter earnings statement on Dec 15th. Orders in the second quarter rose 34% to $462 million. CEO Brian Walker noted the company's expanded market reach as a contributing factor to growth. Significant increases occurred in international markets where sales rose 33%. In 2010 the company acquired UK-based ergonomic workstation manufacturer Colebrook Bosson Saunders and purchased assets from Australian furniture maker Living Edge Group. In 2008, the company announced a partnership with China's Posh Office Systems Ltd. to expand in the Asia-Pacific region. The company attributed a year-end surge to gains in its international, health care, learning and retail vertical markets. The expanding health care industry has become one of the company's key growth targets. One of the

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