CASE ANALYSIS: LA JOMA FURNITURE

I.

Time Context 1980

II.

Viewpoint Viewpoint of the owners/partnership (Gaffud, Roque and Palisoc)

III.

Central Problem Unsteady supply of main raw material (wood).

IV.

Statement of Objective Must: To accommodate furniture demands of client and dealer by having steady supply of raw materials. Want: To be a top supplier of quality furniture in the Philippines.

V.

Areas of Consideration EXTERNAL ENVIRONMENT Opportunities 1. New materials to create new design may appeal to market. 2. Introduce new line of furniture design without the use of wood.

Threats 1. Threats of competition. 2. Scarcity of raw materials. 3. Bad reputation if commitment to dealer/client wont be delivered.

Prepared by: Heinz Reimann Orais SSCR, MBA 2

INTERNAL ENVIRONMENT Strength 1. Lean team with different area of expertise. 2. Versatility of the team/owners. Weaknesses 1. Existing factory layout must be restructured. 2. Machines may have to be changed. 3. Employees may have to undergo additional training.

VI.

Alternative Courses of Action 1. Create new line of furniture with less/no wood materials. Advantages: a. It may appeal to the market. b. Futuristic design may be a hit, since sci-fi film is a hit during that era (STAR WARS Movies). c. It will sustain demand of furniture of client/dealer. d. A new marketing campaign may be in line with this new design. Disadvantages: a. Re-Training cost of the staff. b. Machine and restructuring layout is costly. c. New Design and Marketing Campaign may not appeal to consumer market. 2. Continue with the existing line of furniture, which is wood. Advantages: a. No restructuring cost. b. No training cost. Disadvantages: a. Not friendly to the environment. b. Un-steady supply of raw materials will result to delays. c. Bad reputation to client/dealer. d. High cost of raw material in the future.

Prepared by: Heinz Reimann Orais SSCR, MBA 2

3. Shut down operation. Advantages: a. No cost on trainings and machines. b. No risk taken. Disadvantages: a. Unable to maximize capital expenditures. b. Legal obligation must be settled to staff, customers and dealers. c. Maximum potential of the business to earn will be put into halt. d. Bad reputation of the business and the owners.

VII.

Recommendation The best action to take is the ACA 1.

VIII.

Action Plan Activities Create new furniture design with new materials. Source supplier and purchase materials needed for the new design. Negotiate and close deal with chosen supplier. Train staff and analyze restructuring and machines to be use. Create new campaign and marketing efforts for the new design line. Create hype and launching of the new design. Time Frame 5 Days

Person Responsible Mr. Gaffud

Mr. Roque

15 Days

Mr. Roque Mr. Gaffud

3 Days 5 Days

Mr. Palisoc

5 Days

Mr. Palisoc

60 Days

Prepared by: Heinz Reimann Orais SSCR, MBA 2