11

an Miller Inc.: Unrelenting Pursuit of Reinvention and Renewal

Herman Miller designs, manufactures, and sells office systems, products

and services internationally. Based in Zeeland, Michigan.
1905 1942

1905 Star
Furniture
Company
1909 Hired De
Pree as clerk
1919 De Pree
became
president
Designed &
Manufactured
bedroom set until
1942
1942 first office
furniture:
Executive Office
Group

1942 1980s

1944 Hires
Nelson as first
design director
1946 hires
Charles & Ray
Eames
1950s launch
Eames Lounge
Chair
1960s introduce
Action Office
System
1970- Turn go
public
1981 Initiative to
become more
efficient/ecofriendly
1983 initiative to

1990 2000s

1994 Founding
member of US Green
Building Council
Establishes Leadership
in Energy &
Environmental Design
Standards (LEED)
1994 Launch Aeron
Chair
1995 Hire Mike
Volkema as CEO
2000-2001 Record
profits
Post 9/11 Sales drops
by 34%
Volkema makes change
cuts 38% of employees
2003 - 2008 Sales are
stable, but profits hit all

2013
Organizational Values titled What
We Believe :
Curiosity & Exploration
Engagement
Performance
Inclusiveness
Design
Foundations
A Better World
Transparency

Functional
MARKETING

Value-Driven Marketing:
Integrated Green Marketing:
Functional, Emotional & Spiritual
Products (2003, Mirra Chair top
10 green product)
Waste Reduction (24 Mio lbs to
3.6 Mio lbs from 1994 to 2008)
Herman Miller Greenhouse

PRODUCTION/OPERATION

HR MANAGEMENT

Culture of Empowerment &

acknowledge talents
Cross functional team based on
product development
Various benefits to it employee

Research-driven design
Lean Manufacturing:
Herman Miller Performance System
(HMPS)
Multinational subsidiary &
branches:
Canada, France, Germany, Italy,
Japan, Mesiko, Australia, Singapore,
China, India and the Netherlands

FINANCE

Very influenced by macro

condition
Debt-to-equity from 1.18 in 2006 to
47.66 in 2008
Even in turndown, still invested
ten of millions dollars in R&D

SWOT Analysis
Strength

Opportunities

Very strong R&D Innovative

product & process
Various award
Company Culture
Known as Green company
Herman Miller Production
System (HMPS) Just in time
Process
Proven to survive multiple
Weakness
recession

Increase in demand for

ergonomic furniture
Growing desire for green
products

Vulnerable to loss in bad

economic condition
Extremely dependent on US
office & government
institutions.

Technological advances
decreasing the need for office
furniture
Prices of raw material
constantly changing

Threats

Value Chain
Supply Chain
Management
Agreement
with suppliers
to deliver
parts to
Herman Miller
production
facilities in a
just-in-time
process
outsources
component
parts to
suppliers

Operations

Herman Miller
Production
System
(HMPS) Just
in time
Process
Minimizing
inventory
cost by
purchasing
direct
materials and
parts as need
to meet
demand

Distribution
s

Sales &
Marketing

Manufacturin
g operations
locatedin
different
countries,
and it
produces the
products and
delivers to
the local
independent
dealerships

Value-driven
marketing
through:
Green
Marketing

Service

explanations
and
description
for the
products, and
customers
support

Product R&D, Technology, Systems Development

Focus on improving and innovating products, even during the recession.
breakthrough product concept & acknowledges by external
Human Resource Management
Culture of empowerment & acknowledges talents
Various benefits to it employee: profit sharing plan & employee stock purchase
plan (ESPP)
General
Administration

Herman Miller
Greenhouse Factory & Offices

VRIN Test
Rare

Inimita
ble

Nonsubstituta
ble

Conclusion

Yes

No

No

No

Competitive Parity

Worldwide
distribution through
independent
dealership

Yes

No

No

No

Competitive Parity

Various benefits to
employees

Yes

No

No

No

Competitive Parity

Yes

Sustained
Competitive
Advantage

Yes

Sustained
Competitive
Advantage

Yes

Sustained
Competitive
Advantage

Resources /
Capabilities

Valuabl
e

Herman Miller
Production System
(HMPS) Just in time
Process

Culture of
empowerment &
acknowledges talents
Value-driven
marketing:
Integrated Green
Marketing
Very strong R&D

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Recommendation

Herman Miller continuously investing in R&D and innovating

in products to satisfy the need of its customers earned the
customer brand loyalty.
The company willingness to contribute in the green world
and environmental friendly strategy gained a good reputation
and feedback in the market.
As the company new product lines meet the increasing demand
of ergonomic health products in the working environment,
the new innovation product will become a competitive
advantage over its rivals.