MGMT690

Company Biography

Four years ago, John Ferrer and his wife Deborah

started their own corporation, a large custom furniture

manufacturer located in Boston, MA. Their initial

accounts were in the Northeastern region of the United

States and annually observed a constant profit increase.

In time, they were able to grow the company enough to

go from 5 distribution and manufacturing plants to 10 to

allow shipping to 48 states. Although they have two

retail stores, one located in Phoenix and one in Boston,

their primary source of revenue is online catalog sales.

They have 10 manufacturing plants and distribution

centers throughout the country.

John and Deborah’s corporation is known throughout

the industry for its exceptional customer service and

superior quality. The contemporary designs lend

themselves to a younger market, and the customer base

is predominantly upper-middle class because it is one

of the highest-priced furniture companies in the market.

Part of the appeal of John and Deborah’s brand is their

consistent involvement with the local communities to

create green gardens. They have also been a major

contributor to organizations that build houses for

people in need.

One of their primary strengths is their vertical

integration. They have a team of in-house designers

saving the company design costs and allowing the

flexibility to rapidly change designs as the market

changes. Their products have been featured on several

prominent home design and gardening shows and

endorsed by several well-known designers.

Recently, home renovations have slowed significantly.

This has impacted the amount of furniture and fixture

sales and continues to impact revenue. Furniture sales

in the U.S. have decreased significantly, and John and

Deborah have recently been discussing the possibility

of global expansion.

Another potential threat to their company is that many

higher-end brands have been marketing aggressively

and creating lines for popular retail stores. These allow

the lower-income consumers to have access to high-

end brands at a much lower price point. So far, these

lines have been incredibly successful and have

significantly increased profits for competitors. Many of

these competitors have also had great success in the

global marketplace with these lower cost replicas.

John and Deborah know that it is time to seriously

consider expanding their business. They want to be

able to make it through the economic crisis and rely on

other ways to increase sales and business. They are

open to looking into the global market, but they want to

be sure that it is the right move for the business. They

have requested an advisory board meeting next month

in which you will present the global marketing strategy.

As the market strategist, you will play a key role in

helping the board decide if this is the right move for the

company.

The Problem

You are sitting in Deborah Ferrer’s office. After the

customary small talk, Deborah sits forward and states,

“I am very impressed with the work that you have done

as the strategic marketing manager. Since John and I

started this company in Boston, we have seen

continuous growth, but nothing like what we have seen

since you started. However, the housing market is

really starting to impact our profits. This last quarter’s

numbers were not looking good.”

You reply, “The crisis has really hit us hard. We have

some stiff competition, too, with the other brands

creating retail knock-offs.”

She counters, “We’ve had great success with your

strategies in the domestic markets, but we do need to

think of a new approach and strategy. I have complete

faith in your abilities to take this company exactly

where it needs to go. I must say that we are really

counting on you, and I know that you will follow

through.”

“I will make sure that we do well. Do you have any

new projects for me?” you ask.

Deborah smiles and says, “You know me well. I do

have a new project for you. I sent you an e-mail just

before our meeting. I’m curious if expanding in a global

market would be a good move for our company. I

would like you to look into this for me.”

“Our team is definitely up for the challenge,” you say

with enthusiasm.

Deborah shakes hands with you warmly, and you make

your way out of the meeting. As you drive out of the

parking garage, you think about your success with the

company. You cannot wait to get started.

KEY ASSIGNMENT:

Your team attends a trade conference on the subject on

globalization. They have attended several seminars both

advocating and dismissing implementing a global

strategy. You return to the office and share some of

what you have learned to the team.

“Globalization is a very interesting topic and can get

very heated,” you explain. “There are some countries

and companies who are fiercely loyal to their homes

and would not consider going global. Others see it as a

benefit to the company and their customers. Some

people here in the states believe that American-made is

best because we are contributing to our home country.

But, is it? Is it always best to stay domestic? How does

this impact pricing? Are you truly helping?”

As your team ponders these questions, you start to

think about your position on the topic. Complete the

following:
•Are you for or against globalization?
•Is your recommendation for your company to go

global? Why or why not?
•How does globalization impact the marketplace as a

whole?
•Has your opinion changed from the beginning of the

course to now

 

You can place an order similar to this with us. You are assured of an authentic custom paper delivered within the given deadline besides our 24/7 customer support all through.

 

[order_calculator]