Dahlia Furniture

June 29, 2017 Marketing

Title Dahlia Furniture Private Limited Time context 1972 Summary On August 1984, Mr. Chua Boon Kang and Mr. Leong Sim Lam bought over Peter Lim’s forty six percent (46%) stake at Dahlia Furniture Private Limited. Although co-owners at one time, Mr. Chua and Mr. Leong have found Mr. Lim’s 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. Dahlia Furniture made its entrance into the furniture industry in 1972 as subcontractors to two large furniture concerns, Ching Lin and Diethelm.

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It supplied mainly wall units and kitchen cabinets while bedrooms sets and dining sets were subcontracted out or obtained from local suppliers. Business went well and the company decided to branch into retailing. Between 1979 and 198, Dahlia acquired two factories At Ang Mo Kio and Upper Thomson at a cost of $400,000 and $300,000, respectively. The factory At Ang Mo Kio was rented out on a monthly basis to furniture makers who were also subcontractors to Dahlia. The company also acquired two or more showrooms in the Bukid Timah and Upper Thomson area in 1978 and 1982, respectively. Vision

The furniture business industry vision, our ethos is built upon providing tailor-made business furniture solutions that exceeds our client’s unique needs and expectations whilst remaining cost competitive. We strongly believe in superior customer service, competitive prices and deliver on our promises. Mission The furniture industry mission is to be the industry leader in manufacturing and marketing of solid wood furniture. Core values * Innovativeness It will encourage creativity and ingenuity in our processes and systems, products and services. * Integrity In the conduct of business, it will be guided by what is ethical, fair and right.

It believes in profit with honor and are committed to good governance and the highest moral standards. * Customer Focus They will be our customers preferred choice. They will choose our products and services above others because we provide them with products and services that satisfy their needs. Statements of the objectives * To crush the competition and make us much profit as possible. * To provide customers with high quality, innovative, expressive and inspirational interior design, furnishing and accessories as a seamless and affordable solution to all their retail, rental, wholesale and project based needs. To combine aggressive strategic marketing with quality products and services at competitive prices to provide the best insurance value of consumers. * Profitable growth through superior customer service, quality and commitment. * To implement the critical initiatives required to achieve our vision. * To be the best in the eyes of our customers. Central problem How they satisfy their biggest client for them not failed to generate regular and sizeable orders, because when they failed many of the workers resigned? Areas of consideration (SWOT analysis) Strengths Increasing demand in modern, clean, minimalist designs * Highly educated, skilled, young, capable & dynamic human resources * Established branding, tradition * Diversity vs. Ideas (Innovation, Integration) * Big democracy= (big market & free media) Weaknesses * Inefficient stock control; outdated system * Lack of trust in external organizations * Fear of sharing knowledge & taking risks * Lack of effective & execution framework * Decreasing demand in traditional furniture * Industry has slow absorption of innovation & change * Lack of quality awareness

Opportunities * Big potential market in Design sector & emerging new market segment in Services * Lower labor costs in outsourcing * Research & Development capability * More efficient production method * Hybrid solutions– balancing & blending * Need modernization of infrastructure * Very little competition in modern furniture design Threats * Inter-company collaboration is unknown * Rising cost of imported goods * Pioneering uncertainties * Clashes in Diversity vs. Imbalance * Fast change Internet (IT), new inventions (Technology, Innovations) Alternatives courses of action . Make furniture that has high quality and standard of materials used. Advantages 1. They will satisfy their biggest client. 2. They will have many more clients. 3. It will help them to be popular. Disadvantages 1. It gives more expenses to them. 2. It will increase the salary of their workers because they will give so much effort in making furniture. 3. The materials they will need to use have a high cost. * . Use durable materials for your furniture for them to be satisfy their biggest client. Advantages 1. It will impress their client and give satisfaction to them. . It convinced their client that their furniture is for long lasting furniture. 3. Other consumer will buy their client if they notice that it is for long lasting. Disadvantages 1. It is expensive to the Dahlia. 2. Their competitor will be more competitive to them. 3. They will need to expand their company and budget will be their problem. * Give their biggest client a fairly price and a high discount of their furniture with high quality. Advantages 1. They will give satisfaction to their client. 2. It will start of their success. 3. It gives more clients to the Dahlia.

Disadvantages 1. It will decrease their profit because instead of giving same price with their small consumer they will give discount. 2. Many competitors will come. 3. It will encourage their competitors to be more competitive. Strategy Formulation/Recommendation * I therefore conclude that the best solution to the problem is alternative course number 1 which stated, make furniture that has high quality and standard of materials used, because it will help them to satisfy their client and it will lead them to enter to the biggest world of furniture industry.

Plan of action 1. Consider all the negatives to be positive for them to concentrate to their success. 2. Get idea on how to improve their services to the experts in furniture. 3. Think of strategy on how they will defeat their competitors. Potential Problem 1. What if they can’t afford high quality of materials? 2. What if they can’t satisfy their client? 3. What if they will defeat their competitors? Contingency Plan 1. Invest to other company to have more profit. 2. Encourage people to invest on their company. 3. Give an appropriate service and product to the clients.


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