DARLANA FURNITURE

Situational analysis Canada is a country not far from the US, but as comparable to US as in land size. Canada has many provinces, with many distinguished needs of these industries (Interior, Design and furniture), which means there are many chances to compete in this sector of Industries. Darlarna is a furniture manufacture company that sells various kinds of home based and office standard furniture products, at first darlana has a successful major growth in the industry. Darlarna had sold many kind of its product across Canada, Darlana focus customer segment are small retailers, which is kind of amazing considering the rate of success they have in previous year (2005 2007). Darlarna is a manufacturer of high-end Swedish-style furniture. It has grown rapidly since its formation in 2005 and is currently attempting to expand into the U.S. market. In early 2009, after releasing the financial statements from accountants, the owner became very concerned about a dramatic decrease in profits and all the bad news relating to the financial crisis in the United States. A chartered accountant was hired to conduct an analysis of Darlarnas operations and to make recommendation for future actions within the week.

Problem & Opportunity PROBLEMS STRENGHT Darlarna furniture design Darlarna high end material Darlarna talented workers Darlarna as local product from Canada WEAKNESS Raising wages of workers & talent Internal financial issue Ineffective use of company current factory Distribution issue

OPPURTUNITY Expansion in domestic province across all Canada Great material source Expansion through international market not just US

THREAT Chinese furniture manufacture Other competitors in Canada Ikea Investor are bailing Financial issues will be heard by board and potential investors

OPPURTUNITY

SOLUTION ALTERNATIVES

1. Darlarna should reduce the number of the companys growth until the financial crisis in America is complete Financial crisis in America make financial conditions in various industries experiencing uncertainty. This is the reason why Darlarna furniture industrys profit declined. Growing their company in financial crisis condition like that, can threaten the survival of the company. So, because of that, they shouldnt develop companys growth, but reduce its number until the financial crisis in America is complete. Darlarna should pick what project which have to be done or not. Having to much inventories also can increase their cost, so they have to be selective what inventories that they should have or not. By doing that, Darlarna

can reduce their cost. In that moment, the most important thing is their companys sustainable. If financial crisis in America is complete, Darlarna can expand their company and increase the number of the companys growth again.

2. Darlana should try to approach domestic market, with selected market and reseller vendor. The reason that darlana try to approach US market because the demand and the opportunity to present an high quality product to impress consumers are a good start to boost the revenue, also the company name. But as the company grows darlarna should consider the opportunity in domestic market also, because various reasons, first is the potential market for more than 10 million users in Canada only. Second, is easier to distribute furniture between places while there are in the same region / country. It is also cheaper to do. While doing that will make darlarna names also known and fear by local competitor. Third the root of the design in darlana style are well known in potential targeted market because theowner have various experience in working with or inside IKEA, and with a specialize design (Swedish style) the opportunity are definite.

3. Ending crisis by finding a buyer for the large amount of raw material and create a new product using durable, easy to build, cheap material Darlarna have many problems. Their main problem was the financial issue. As the case explained Darlarna have large amount of raw material that can be sell if they can find a right buyer, they also have new machine manufacture not used. Therefore they can lend it to other competitor and reduce their production due to financial crisis issues, if they have balance their financial sheet they can proceed they regular productions.