Herman Miller is an office furniture company founded in 1905. It has experienced both hardships and success over the years. More recently, it has faced challenges from the recession and shift toward more home working. The document evaluates alternatives for Herman Miller's future business model, including maintaining the status quo, improving the current model, or focusing on marketing and research & development. It recommends a combined approach of improving the current model while also investing more in marketing and R&D. A three-phase implementation plan is outlined focusing on the home office market in the short term, establishing a low-cost subsidiary and marketing campaign in the medium term, and partnerships and green initiatives in the long term.
2. Company History
Back to 1905
Herman Miller -> 1919
Hardships and Success
Recessions and Investment
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content/uploads/2011/11/herman-miller-logo-design-1905.jpg
3. Company History
Specializes in office furniture
Being innovative
Continuous expansion
Design of The Decade -1989
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4. Employment and Culture
Empowerment
Employee Stock Option Plan
Company Performance
Good Strategy Execution
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5. Employment and Current Situation
2003: Lifelong Employment
Strategy Execution
Skills for the Future
Employee Empowerment
7. Alternatives
Idea 1: Continue using current business model.
Idea 2: Improve Current Business Model
Idea 3: Marketing and R&D
8. Decision criteria
Alternatives Cost (35%) Profit (30%) Employee
Empowerm
ent (15%)
Innovation
(20%)
Total
Status Quo 1 (.35) 2 (.60) 2 (.30) 3 (.60) 1.85
Improve
current
business
model
3 (1.05) 1 (.30) 1 (.15) 1 (.20) 1.7
Marketing
and R&D
2 (.70) 3 (.90) 3 (.45) 2 (.40) 2.45
1 = best in
class
3 = worst in
class
9. Recommendation
Combine alternative 2 and 3
Start with small strategy change
Start building on home office strategy
Invest in more R&D and marketing
Create a system for forecasting
10. Implementation plan
Short Term-
Investing into a home office team
Create a team that study’s the market environment
Start planning a marketing campain
11. Implementation Plan
Medium Term-
Create a subsidiary for a low cost strategy
Utilize Marketing Campaign
Improve Relations with supplier’s and create contracts
12. Implementation Plan
Long Term-
Partnership with companies that compliment Herman Miller
Partner with celebrity's or famous companies to promote Herman Miller
Start a Green initiative with products to promote themselves
