Dahlia Case Study Essay

OVERVIEW1.Time ContextThe difficulty has to be understand by the year 1985.2.ViewpointMr. Chua bequest Kang and Mr. Leong Sim Lam3.Major Policy parameterdahlia Furniture Private Limited is a topical anaesthetic article of piece of article of piece of furniture advertise, which supplies ordinarily kitchen cabinets, w tot some(prenominal)y units, bedrooms set and dining set. It similarly has metal and wood furniture sets. 4.Background of the Casea.The Companydahlia Furniture made its entrance into the furniture application in 1972 as subcontractors to two large furniture concerns, Ching Lin and Diethelm. It supplied in the main wall units and kitchen cabinets while bedrooms sets and dining sets were subcontracted ascend bug out or obtained from local suppliers. work went puff up and the keep familiarity immovable to branch into retailing. The business was successful in its operation especially during the time when Singapore conducted a massive habitual hous ing programs. In fact their sales increased from $4,800,000.00 to $5,500,000 in 1980 to 1981. However, during that year, the guilds sales dec distinctiond especially in 1983 in which it seizeed only $289,000.00, and in some manner recovered in 1984. Contributory factors to the dec margin in sales include mis centering of Mr. Lim. Because of this, reorganizations were happening and most of the employees resigned. Also furniture industry was genuinely competitive.b.The IndustryFurniture industry in Singapore began only as an extension of the countrys oldest industry which is the sawmilling. But the demand for the furniture expanded which led to it as the leading local industry. The growth of the local furniture industry has been closely linked to the growth of the countrys construction and building industry. There argon now more than two hundred establishments manufacturing furniture of which 59 are twain manufacturers and exporters of wooden knock-down, 35 ratan palm and 12 steel furniture. Therehas been a change in the posture towards purchase of furniture. Fashion trend has been the latest amity of the customers. Singporeans have sound more entrusting to decease m wizardy to decorate their homes.5.Environmental synopsisa.SWOT analysisSTRENGTHSSafe EnvironmentGood quality of the yieldsRun the new variability with the present set of designers.dahlia Furniture line was of a high quality and price than those of other retailers. dahlias furniture line is more for those who want exclusivity. Retail outlets are now carrying wider range of furniture. dahlias is considered as adept of sophisticated furniture dealer with exclusive design for their customers. dahlia has a great experience in the field of furniture. Since 1972 they are in this field and they have worked at almost all levels of the industry the analogous subcontracting, importing, manufacturing and retailing. They have good support from local manufacturers who are in acetify als o working as their sub contractor. The companion has taken incidentally decision to go to retail merchandise to get sizeable customers from in stipulationediate to high dissever range.WEAKNESSESThe association is in need of competent managers that would be of great help to the success of the furniture association. dahlia Furniture has the old dilemma of filling their showroom with salable merchandise furniture and snub the domestic demand that the great impact in the performance of sales. dahlia has no advertisement.dahlias securities industry share has be lie with dilapidate by some big players in the decreasing revenues from current harvest-time Poor precautionMany workers resigned due to Ang Mo Kio Factorys failure in.OPPORTUNITIESDomestic demands for furniture rise by about xii part annually Increasing demand in exports to United States, Australia, Canada, horse opera Europe and in the Middle East. Singaporeans are more provideing to fall out money to decorate their homes.THREATSIntense contention between domestic U.S. manufacturers. tendinous competitors.Other companies offer lower pricesb.Competitor Analysisdahlia Furniture, aside from its manufacturing operations, assist the maintenance on the supply of their inventories to some of the local suppliers. most of them are manufacturers while others are retailers who have their own showrooms. They rump be affirmable competitors of dahlia. Other competitors comprise of unusual manufacturers and retailers. just about of these are Ikea , Fly, Homestead and shortly to operate S kindledinavian, Italian, Japanese and American manufacturers.6.Present Company Departmental Plansa.Product Planningdahlia generally supplies wall units and kitchen cabinets. It subcontracts local suppliers of bedroom sets and dining sets. b.Market Planningdahlia Furniture advertises in Straights clock. In connection to its retailing operations, dahlia rented a showroom to a department store in Orchard area, i n Bukit Timah area and Upper Thompson area c.Production PlanningThe purchase of Upper Thompson and Ang Mo Kio factories are sought to increase the telephoners supply. d.Manpower PlanningDahlia acquired two factories namely Ang Mo Kio and Upper Thompson. The workers of these two factories were also hired.Staffsgross revenue person11 personsClerical workers4 personsProduction workers (Thompson Factory)6 personse.Organizational PlanningDahlia Furnitures is managed by Mr. Chua and Mr. Leong. Other staffs of the society are as followsPersonnel PositionChua Soo Lee widely distributed Admini originionRobert LamProduction and habitual ManagementPROBLEM RESOLUTION1.Background of the CaseOn August 1984, Mr. Chua donation Kang and Mr. Leong Sim Lam bought over Peter Lims forty six percentage (46%) stake at Dahlia Furniture Private Limited. Although co-owners at one time, Mr. Chua and Mr. Leong have found Mr. Lims management of the beau monde to be unsatisfactory. Some reorganization too k place as most of the production workers who were doing subcontracting orders solely for Dahlia had resigned due to poor participation performance in 1982. Dahlia also sold off seventy five thousand dollars ($75,000) worth of machinery utilize for mass producing furniture which was introductoryly purchased by a former Managing Director, who has since leave the party. Now at the helm, both are uncertain about the yearn boundary direction of the familiarity. Meanwhile, they are both concerned over affirming sales growth in a highly competitive industry.2. pedagogy of the ProblemWhat should the management do to assert sales growth and improve caller-ups position in a highly competitive industry? 3.Statement of ObjectivesoLong term To live the largest manufacturer of furniture and exporter in the furniture industry.oShort term To maximise the profit of the confederacy.4.Areas of ConsiderationTaxes applied to importation The Singaporean government imposes 5%import duties for goods import in the country. This area should be taken into precondition because this provide affect the entitys expenses when such importation has been made. The governments policy regarding distant parturiency In the production of the furniture , the company needs to employ the services of the laborers. The company should determine the amount of labor force needed and if there is a need to avail of the foreign laborers services because the government of Singapore discourages the use of foreign labor. Competition With the approach of the furniture industry in Singapore , more and more competing manufacturers and retailers come to exist not just from the local but as substantially as with the foreign brands. Trend in the furniture industry It should be noted that the market demands in Singapore largely depends on the buyers side of what is the in- thing in the fashion of the furniture industry. The company should be eternally updated with these current trends so that t hey leave stooge not be leftover quarter by other contenders.5.Alternative Courses of Action1.Find a competent person to be the General Manager of the company 2.Intensify advertisements of the company in the domestic and world-wide market through connective product conventions, trade expos, putting up advertisements in local and foreign furniture and interior design magazines , broadsheets and home- tv set shopping. 3.To formulate a relative neckcloth acquisition with some products imported and some make, to drive a counsel aspiration and at the same time, maintain its present image, also to take a shit all brackets of prospective leaf nodeele.6.Analysis of AlternativesALTERNATIVE 1AdvantagesWhen a General Manager for the company is hired, the over- all operations forget be supervised from the production, especially to the sales operation lead be given the right attention. Necessary solutions leave behind be implemented in to solve the problems of the company wit h the right person to handle the position and manage the operationsDisadvantagesThe company finds it hard to keep a competent GM to handle the operations of the company either he leaves the company to dumbfound his own business or leaves the management for another company. There is a risk that the person positioned as GM be a succeeding(a) competitor just like what happened to one of their previous GM who clear-cut to run his own furniture company.ALTERNATIVE 2AdvantagesIntensive advertisements and promotions in domestic and international market will be the easiest gauge for the company to set awareness to the market the existence of the firm in the furniture industry. Advertisements in all media forms can reach wide-range of customers, from all walks of life. Likewise connexion trade expos in which the company can showcase their products and attract proximo guests.DisadvantagesPutting-up advertisements would be costly, especially those which are shown on high cast magazine s or the TV channels. The company should limit expenses during this time because the company is just retrieve from their losses from past years operations. The market, especially the international market in which the company wishes to conquer, is highly competitive and a huge battlefield for the company. Advertisements whitethorn not be enough to outwit the competitors.ALTERNATIVE 3Advantages be related to importations will be toned down because only harmonious of the line of descent is imported and the remaining inventories are manufacture by the company. woo to overhead and labor will be regulatedThe company will not have to depend largely on the local suppliers which could mayhap be competitors in the long run. The company could cater to middle class clients as well as the mass. Insufficiency of the supply will be eliminated because the goods imported will cover up for the deficit inthe manufactured goods or vice versa when imported goods have been delivered in delay.Disadva ntagesWith the intuition that Singaporeans favor the imported goods than those of locally made products, the goods manufactured by the company will be disregarded and will call on to change in the relative stock-take rate. The company will still incur costs for productions and importations7.Decision StatementAfter further analysis of the alternatives presented, it will be best for the company to use Alternative 3 which is to formulate a proportional neckcloth acquisition with some products imported and some manufactured, to drive a path competition and at the same time, maintain its present image, also to reach all brackets of prospective business sector. The last alternative would best fit to answer the problem of the company regarding its inventories, maximizing profit returns and improvement of the companys position. It should be noted that the company has a dilemma of filling up their showrooms because of the yielding of the workers in one of the factory of the company, the Ang Mo Kio so they turned out to importing goods. In turn, only the spiritualist-class clients and upper income gainers become its customers. With proportionate entry acquisitions, the company can control overhead, labor and importation costs. In that way, the company will minimize operating expenses leaving the company with greater profits. In using the third alternative, the company can also cater to both the middle class clients for they take imported furniture and the mass client for lower priced furniture which are locally made, therefore expanding the market of Dahlia. carrying out PROGRAM1.Action Plansa.Long-term action plansPutting up additional showrooms for the mass business organization and for the middle class customers b.Short-term action plansExpansion of the companys market through ad and promotions2.Proposed Company Operational Plansa.Product planningThe company should take on unique furniture designs which will attract the customersb.Market planningIntensi fy advertising and promotion schemes for furniture products not just on the Straight quantify for those middle class customers but to other forms of media so that it can reach other people from all walks of life.c.Production planningUpon expansion of the production, Dahlia should re-avail of machineries that will be employ for the additional production of furnitured.Manpower planningThe company will employ additional laborers to keep up for the additional inventory requirements.e.Organizational planningThe management should hire a competent person to be designated in the position of the General Manager.3.Other problems and proposed solutionsStrict competition in the industryoDahlia Furniture should develop innovative products so that they can have an mete over other manufacturers. The management should know its target market. In that way they can cater what their clients wish to have and in return they can develop goodwill and loyalty among their customers.OVERVIEW1.Time ContextT he problem has to be understand by the year 1985.2.ViewpointMr. Chua Boon Kang and Mr. Leong Sim Lam3.Major Policy StatementDahlia Furniture Private Limited is a local furniture industry, which supplies usually kitchen cabinets, wall units, bedrooms set and dining set. It also has metal and wood furniture sets. 4.Background of the Casea.The CompanyDahlia Furniture made its entrance into the furniture industry in 1972 as subcontractors to two large furniture concerns, Ching Lin and Diethelm. It supplied mainly wall units and kitchen cabinets while bedrooms sets and dining sets were subcontracted out or obtained from local suppliers. line of business went well and the company decided to branch into retailing. The business was successful in its operation especially during the time when Singapore conducted a massive common housing programs. In fact their sales increased from $4,800,000.00 to $5,500,000 in 1980 to 1981. However, during that year, the companys sales declined especiall y in 1983 in which it reached only $289,000.00, and someways recovered in 1984. Contributory factors to the decline in sales include mismanagement of Mr. Lim. Because of this, reorganizations were happening and most of the employees resigned. Also furniture industry was very(prenominal) competitive.b.The IndustryFurniture industry in Singapore began only as an extension of the countrys oldest industry which is the sawmilling. But the demand for the furniture expanded which led to it as the leading local industry. The growth of the local furniture industry has been closely linked to the growth of the countrys construction and building industry. There are now more than two hundred establishments manufacturing furniture of which 59 are both manufacturers and exporters of wooden knock-down, 35 rattan and 12 steel furniture. There has been a change in the place towards purchase of furniture. Fashion trend has been the latest consideration of the customers. Singporeans have become more willing to spend money to decorate their homes.5.Environmental Analysisa.SWOT AnalysisSTRENGTHSSafe EnvironmentGood quality of the productsRun the new piece with the present set of designers.Dahlia Furniture line was of a high quality and price than those of other retailers. Dahlias furniture line is more for those who want exclusivity. Retail outlets are now carrying wider range of furniture. Dahlias is considered as one of sophisticated furniture dealer with exclusive design for their customers. Dahlia has a long experience in the field of furniture. Since 1972 they are in this field and they have worked at almost all levels of the industry like subcontracting, importing, manufacturing and retailing. They have good support from local manufacturers who are in turn also working as their sub contractor. The company has taken punctual decision to go to retail market to get sizeable customers from medium to high class range.WEAKNESSESThe company is in need of competent managers tha t would be of great help to the success of the furniture company. Dahlia Furniture has the previous dilemma of filling their showroom with salable imported furniture and handle the domestic demand that the great impact in the performance of sales. Dahlia has no advertisement.Dahlias market share has become eat at by some big players in the decreasing revenues from current product Poor managementMany workers resigned due to Ang Mo Kio Factorys failure in.OPPORTUNITIESDomestic demands for furniture rise by about cardinal percent annually Increasing demand in exports to United States, Australia, Canada, horse opera Europe and in the Middle East. Singaporeans are more willing to spend money to decorate their homes.THREATSIntense competition between domestic U.S. manufacturers. brawnycompetitors.Other companies offer lower pricesb.Competitor AnalysisDahlia Furniture, aside from its manufacturing operations, underworld the maintenance on the supply of their inventories to some of t he local suppliers. Some of them are manufacturers while others are retailers who have their own showrooms. They can be practicable competitors of Dahlia. Other competitors comprise of foreign manufacturers and retailers. Some of these are Ikea , Fly, Homestead and soon to operate Scandinavian, Italian, Japanese and American manufacturers.6.Present Company Departmental Plansa.Product PlanningDahlia mainly supplies wall units and kitchen cabinets. It subcontracts local suppliers of bedroom sets and dining sets. b.Market PlanningDahlia Furniture advertises in Straights Times. In connection to its retailing operations, Dahlia rented a showroom to a department store in Orchard area, in Bukit Timah area and Upper Thompson area c.Production PlanningThe purchase of Upper Thompson and Ang Mo Kio factories are sought to increase the companys supply. d.Manpower PlanningDahlia acquired two factories namely Ang Mo Kio and Upper Thompson. The workers of these two factories were also hired.Staf fs gross sales person11 personsClerical workers4 personsProduction workers (Thompson Factory)6 personse.Organizational PlanningDahlia Furnitures is managed by Mr. Chua and Mr. Leong. Other staffs of the company are as followsPersonnel PositionChua Soo Lee General AdministartionRobert LamProduction and General ManagementPROBLEM RESOLUTION1.Background of the CaseOn August 1984, Mr. Chua Boon Kang and Mr. Leong Sim Lam bought over Peter Lims forty six percent (46%) stake at Dahlia Furniture Private Limited. Although co-owners at one time, Mr. Chua and Mr. Leong have found Mr. Lims management of the company to be unsatisfactory. Some reorganization took place as most of the production workers who were doing subcontracting orders solely for Dahlia had resigned due to poor company performance in 1982. Dahlia also sold off seventy five thousand dollars ($75,000) worth of machinery used for mass producing furniture which was previously purchased by a former Managing Director, who has since left the company. Now at the helm, both are uncertain about the long term direction of the company. Meanwhile, they are both concerned over maintaining sales growth in a highly competitive industry.2.Statement of the ProblemWhat should the management do to maintain sales growth and improve companys position in a highly competitive industry? 3.Statement of ObjectivesoLong term To become the largest manufacturer of furniture and exporter in the furniture industry.oShort term To maximize the profit of the company.4.Areas of ConsiderationTaxes applied to importation The Singaporean government imposes 5%import duties for goods imported in the country. This area should be taken into consideration because this will affect the entitys expenses when such importation has been made. The governments policy regarding foreign labor In the production of the furniture , the company needs to employ the services of the laborers. The company should determine the amount of labor force needed and if t here is a need to avail of the foreign laborers services because the government of Singapore discourages the use of foreignlabor. Competition With the advent of the furniture industry in Singapore , more and more competing manufacturers and retailers come to exist not just from the local but as well as with the foreign brands. Trend in the furniture industry It should be noted that the market demands in Singapore largely depends on the buyers perspective of what is the in- thing in the fashion of the furniture industry. The company should be ceaselessly updated with these current trends so that they will not be left behind by other contenders.5.Alternative Courses of Action1.Find a competent person to be the General Manager of the company 2.Intensify advertisements of the company in the domestic and international market through joining product conventions, trade expos, putting up advertisements in local and foreign furniture and interior design magazines , broadsheets and home- video shopping. 3.To formulate a proportionate inventory acquisition with some products imported and some manufactured, to drive away competition and at the same time, maintain its present image, also to reach all brackets of prospective clientele.6.Analysis of AlternativesALTERNATIVE 1AdvantagesWhen a General Manager for the company is hired, the over- all operations will be supervised from the production, especially to the sales operation will be given the right attention. Necessary solutions will be implemented in to solve the problems of the company with the right person to handle the position and monitor the operationsDisadvantagesThe company finds it hard to keep a competent GM to handle the operations of the company either he leaves the company to start his own business or leaves the management for another company. There is a risk that the person positioned as GM be a early competitor just like what happened to one of their previous GM who decided to run his own furniture c ompany.ALTERNATIVE 2AdvantagesIntensive advertisements and promotions in domestic and international market will be the easiest gauge for the company to set awareness to the market the existence of the firm in the furniture industry. Advertisements in all media forms can reach wide-range of customers, from all walks of life. Likewise joining trade expos in which the company can showcase their products and attract hereafter clients.DisadvantagesPutting-up advertisements would be costly, especially those which are shown on high class magazines or the TV channels. The company should limit expenses during this time because the company is just acquire from their losses from past years operations. The market, especially the international market in which the company wishes to conquer, is highly competitive and a huge battlefield for the company. Advertisements may not be enough to outwit the competitors.ALTERNATIVE 3Advantagescost related to importations will be toned down because only pr oportionate of the inventory is imported and the remaining inventories are manufactured by the company. terms to overhead and labor will be regulatedThe company will not have to depend largely on the local suppliers which could perhaps be competitors in the long run. The company could cater to middle class clients as well as the mass. Insufficiency of the supply will be eliminated because the goods imported will cover up for the deficit in the manufactured goods or vice versa when imported goods have been delivered in delay.DisadvantagesWith the intuition that Singaporeans prefer the imported goods than those of locally made products, the goods manufactured by the company will bedisregarded and will turn to change in the proportionate inventory rate. The company will still incur costs for productions and importations7.Decision StatementAfter further analysis of the alternatives presented, it will be best for the company to use Alternative 3 which is to formulate a proportionate in ventory acquisition with some products imported and some manufactured, to drive away competition and at the same time, maintain its present image, also to reach all brackets of prospective clientele. The last alternative would best fit to answer the problem of the company regarding its inventories, maximizing profit returns and improvement of the companys position. It should be noted that the company has a dilemma of filling up their showrooms because of the forbearance of the workers in one of the factory of the company, the Ang Mo Kio so they turned out to importing goods. In turn, only the medium-class clients and upper income gainers become its customers. With proportionate inventory acquisitions, the company can control overhead, labor and importation costs. In that way, the company will minimize operating expenses leaving the company with greater profits. In using the third alternative, the company can also cater to both the middle class clients for they prefer imported furni ture and the mass client for lower priced furniture which are locally made, therefore expanding the market of Dahlia. effectuation PROGRAM1.Action Plansa.Long-term action plansPutting up additional showrooms for the mass clientele and for the middle class customers b.Short-term action plansExpansion of the companys market through advertising and promotions2.Proposed Company Operational Plansa.Product planningThe company should set off unique furniture designs which will attract the customersb.Market planningIntensify advertising and promotion schemes for furniture products not just on the Straight Times for those middle class customers but to other forms of media so that it can reach other people from all walks of life.c.Production planningUpon expansion of the production, Dahlia should re-avail of machineries that will be used for the additional production of furnitured.Manpower planningThe company will employ additional laborers to keep up for the additional inventory requirement s.e.Organizational planningThe management should hire a competent person to be designated in the position of the General Manager.3.Other problems and proposed solutionsStrict competition in the industryoDahlia Furniture should develop innovative products so that they can have an demonstrate over other manufacturers. The management should know its target market. In that way they can cater what their clients wish to have and in return they can develop goodwill and loyalty among their customers.