Instructor: Sir Farooq Qaiser

Assignment No. 1 (Group Assignment) Date of Submission: 02-April-2014

INTERNATIONAL BUSINESS

Section: M.Com 1A

Group Members:

Ayman Javed (0020)

Sana Riaz (0185)

Saira Khalid (0201)

Hina Naseem (0067)

Zunaira Mazhar (0039)

Hifza Azeem (0075)

Ali Waqas (0117)

Mohsin Ali (0175)

Kashif Naseer (0 )

Hassnain Ayub (0 )

PHASE 1:Conduct the comprehensive exploratory study of MNE:

DEFINITION OF MNE:The organizations that have headquarter in one country but perform their operations in

other countries. Like:a. Walmartb. Fordc. General Motors

MAJOR SECTORS:MNE’s are operating in different sectors like in

1. oil industries2. computer industry3. mobile manufacturing4. software industries5. textile and fabric manufacturing6. furniture manufacturing, etc.

SELECTED INDUSTRY:our group decided to work on furniture industry and all the items that are prepared by

wood.

NAMES OF MNES DEALING IN FURNITURE AND WOODEN PRODUCTS:

1. Ikea2. Imperial Woodworking Company 3. Burmeister Woodwork Company4. Everexcel Worldwide Corporation5. Rosewood Furniture Company6. Primeval Wood

7. Acacia Home And Garden Inc.8. Ashley Furniture Homestores9. Bassett Furniture:10. National Furniture:11. Segoro Mass Furniture Manufacturer12. Autumn Wood Products Corporation13. Kimball International14. Ethan Allen (Furniture Company)15. Steelcase Authorized Retailers16. Nick Scali Furniture

IKEA

Basic Introduction:

Type: Private Industry: Retail Founded: Älmhult, Sweden (1943) Founder(s): Ingvar Kamprad Headquarters: Leiden, Netherlands Area served•Europe•Asia•North America•Oceania Key people•Peter Agnefjäll•(Chairman and CEO) Products: Self-assembly furniture Revenue: Increase €28.506 billion (2013)

Product Line:Ikea has following product line:

1. sofas,2. sofa beds, 3. rugs, 4. bedding 5. Upholstered furniture, coffee tables, rattan furniture, bookshelves, media storage,

doorknobs: Swedish place names (for example:Klippan)

6. Beds, wardrobes, hall furniture: Norwegian place names7. Dining tables and chairs: Finnish place names8. Bookcase ranges: Occupations9. Bathroom articles: Scandinavian lakes, rivers and bays10. Kitchens: grammatical terms, sometimes also other names11. Chairs, desks: men's names12. Fabrics, curtains: women's names13. Garden furniture: Swedish islands14. Carpets: Danish place names15. Lighting: terms from music, chemistry, meteorology, measures, weights, seasons,

months, days, boats, nautical terms16. Bed linen, bed covers, pillows/cushions: flowers, plants, precious stones17. Children's items: mammals, birds, adjectives18. Curtain accessories: mathematical and geometrical terms19. Kitchen utensils: foreign words, spices, herbs, fish, mushrooms, fruits or berries,

functional descriptions20. Boxes, wall decoration, pictures and frames, clocks: colloquial expressions, also

Swedish place names

Wood Consumption:

They consume about 1% of total wood supply annually.

No. Of Stores:

In Germany it has the highest number in store that is 44 Second comes, USA with 37 stores. By the end of 2009, there were total 267 stores in 25 countries. It operates in developed countries but minimal in underdeveloped countries. Its largest stores are in Sweden and China.

i. Stockholm Kungens Kurva, Sweden: 55,200 m2 (594,000 sq ft)ii. Shanghai Baoshan, China: 55,032 m2 (592,360 sq ft)

iii. Shanghai Pudong Beicai, China: 49,400 m2 (532,000 sq ft)iv. Wuxi, China: 49,117 m2 (528,690 sq ft)v. Ningbo, China: 47,505 m2 (511,340 sq ft)

Production:

The production of furniture is done in china and other developing countries. The reason for this is low cost of production. All the furniture is designed in Sweden.

Market Analysis:

Past trends:

Past trends show that ikea furnitures were demanded in excess in all parts that is why they were following market penetration policy in all countries of the world. They have become world’s most demanded furniture brand in 2009. They first targeted Europe for FDI and then tried to spread all around the triad. But the market refused to digest the names that were given by ikea to its brands. So, they lost many sales in foreign country.

Future trends:

Future trends of market show that ikea furniture being very trendy and decent will be able to capture the market throughout the countries. Moreover, the products are cheap. Modernization is prevailing now a days in developing countries also, that’s why if they target developing countries also, it will be a source of healthy profit for them.

SWOT Analysis:

Strength

Ikea is a popular brand name.

being cost efficient is its main advantage

ikea produces modern architectural furniture

it deals with home decor also

supply chain of ikea is integrated

ikea has a diversified product portfolio

Weakness

ikea focuses on europe and its homeland in switzerland and decide the brand names

not accepted by other cultures

negative publicity of ikea in different regions of the

world

they deal mostly in standardized products

and don't focus on customization

some of the customers complaint for its

decreasing quality

not targeting developing countries

Opportunity

they can include developing countries' citizens as their target

market

can offer other ooden products

they can offer their customers for online sale

they can add the representatives who will

help customers to assemble furniture

they can also expand to some items of grocery

also

Threat

excessive importance to homeland can become a

cause of lost sales in other countries

if they would not be able to attract the customers

through innovative product, then they will not be able to maintain

thier positon

increase in critics issues towards company will

lead them to non-profitable organization

IMPERIAL WOODWORKING COMPANY

Since our beginning in 1963, we have worked tirelessly to earn our reputation for quality, service and dependability. For over 50 years these founding principles have helped us succeed in creating prestigious architectural woodwork projects on a global scale.

Competitive Advantage

Imperial Woodworking has a reputation for the highest quality custom architectural millwork and specialty finishes, on time delivery and expert project management – regardless of the project’s complexity. 

CapacityImperial Woodworking has more than 225,000 square feet of woodworking facilities around the globe. Each facility has made significant investments in equipment and training

TechnologyImperial Woodworking has a reputation for the highest quality custom architectural millwork and specialty finishes, on time delivery and expert project management – regardless of the project’s complexity. 

SustainabilityImperial Woodworking Company can help your project team earn points in as many as five LEED categories.  No one else in the woodworking industry can deliver the quality, craftsmanship and LEED experience that we can

PeopleWith an average employment tenure of over 15 years, Imperial has a highly professional staff with literally hundreds of years of combined experience specific to the custom architectural woodworking industry. They are familiar with every aspect of delivering a successful project from start to finish and providing the highest level of personalized customer service.

Product Line

Kitchens, Pantries, Dining Rooms, Islands Bathrooms, Vanities, Wall and Linen Cabinets Home Office, Desks, Drawers, File Cabinets Wet Bars Fireplace Surrounds Entertainment Centers | Built-ins | Book Shelves Master Suites | Closet Systems Mantles

Custom Furniture

Projects And Their Locations In The World

1. Burj Khalifa . Location: Dubai, UAE2. Garmin Flagship Store, Location: Chicago, IL

3. Astellas, US LLC North America Headquarters Location: Chicago, IL4. Elmhurst Hospital Location: Elmhurst, IL5. Bing Concert Hall at Stanford University Location: Stanford, CA6. Boeing Corporate Headquarters Location: Chicago, IL7. Hard Rock Café Location: Punta Cana, Dominican Republic8. Northwestern University Bienen School of Music Location: Evanston, IL9. Luxury Residential10. University of Chicago Graduate School of Business Location: Chicago, IL11. Kauffman Baseball Stadium Location: Kansas City, MO 12. Louis Vuitton Location: Locations Worldwide13. Baker McKenzie Location: Chicago, IL14. Revel Casino Location: Atlantic City, NJ15. WMS Gaming Location: Chicago, IL16. Midwest Medical Center Location: Galena, IL17. Illinois State Capitol House and Senate Chamber Renovation Location: Springfield,

IL18. Kirkland & Ellis, LLP Conference Center Location: New York, NY19. Ann and Robert H. Lurie Children’s Hospital of Chicago Location: Chicago, IL20. Greenburg Traurig, LLP Location: Miami, FL21. Smith Center Location: Las Vegas, NV22. Tate & Lyle North American Headquarters Location: Chicago, IL23. RR Donnelley & Sons Location: Chicago, IL24. Trump Ocean Club Location: Panama City, Panama25. Miller Coors Location: Chicago, IL26. Qatar National Convention Centre Location: Doha, Qatar27. Blue Cross/Blue Shield of Illinois Headquarters Location: Chicago, IL28. Square 54 Location: Washington, DC 29. Kimmel Center for the Performing Arts Location: Philadelphia, PA30. EIG Global Partners Location: Houston, TX31. Harris Bank Location: Chicago, IL32. Dallas Cowboys Stadium Location: Dallas, TX

SWOT Analysis:Strengths

1. Highest quality custom architectural millwork and specialty finishes,

2. On time delivery and expert project management – regardless of the project’s complexity.

BURMEISTER WOODWORK COMPANYSince 1937, Burmeister Woodwork Company has been providing top quality design and service

in custom cabinets, prefinished modular cabinets, millwork, stairs, and window & door products to Wisconsin and Illinois builders, developer’s and home owners.

Using the best materials and products available, we take pride in producing and supplying the finest custom millwork. Our craftsmen are unsurpassed in accuracy, quality workmanship and technical ability to provide only the best finished products.

Our sales & design staff, with many years of combined experience in the industry, maintains close contact to all of the major regional distributors of stock millwork and building products offering many options to satisfy your distinctive needs.

Weaknesses

They don’t do customization , on the other hand their competitors prefer this strategy.

Opportunities:

Mostly market of this company have operations in USA but it may expand its market in other countries like in UK, it will give it the opportunity to have more share because UK is a part of TRIAD

Threats

Growing competition of wood manufacturing companies in the US may become a threat for it.

Location:Burmeister Woodwork has two showrooms to serve you and a manufacturing facility combined with the latest in machinery, including computerized drafting and machining centers to insure increased productivity needed during peak construction times.

  Product Line General DécorDutch madeCustom cabinet and millworkWoodharbor – CastpointeWoodharbor – Rockglen

SWOT Analysis:

Strength:

1. Now offering custom premium grade and euro style, both of which deliver exceptional quality

2. offer several manufactured cabinet lines, including Dutch Made, Koch, Woodharbor,

3. Decor, as well as mantles, beams and raised paneling to add a rich look to any home

Weaknesses:

It may introduce other itens in their perspective item like Furniture .. and they also introduce new design patterns

Opportunities:

They may do mergers and acquisitions (M&A), strategic partnerships and alliances, capital raising to expand its business

Threats:

They are using similar design patterns on the other hand the growing market and change. It may become a threat in the coming year

PRIMEVAL WOODPrimeval wood is one of a select few companies offering our customers whether, woodworker, boat builder, architect, homeowner, or connoisseur something so special. They hold logs or timbers in largest form possible to satisfy custom orders. They also specialize in wide vertical grain or quarter sawn lumber from large diameter slow growing trees. To compliment this they also offer a variety of recycled lumber, spalted lumber, as well as certain commodity items. Primeval wood offer any type of wood machining with the exception of end matching on flooring.

Product line: Hickory, Sycamore, True Pecan, Elm, Beech, Maple, Hackberry, Ashe, Walnut, White Oak, Red Oak, Red Gum, Wormy Chestnut, Tupelo, Black Locust.

EVEREXCEL WORLDWIDE   CORPORATION Everexcel Worldwide Corporation is a professional furniture group with factories in Taiwan & China for more than 30 years. The products we make include bentwood furniture, metal furniture, upholstery furniture, and storage furniture.Strict quality controls and on-time delivery are the promise we committed to our clients. We are so proud that Everexcel Worldwide Corporation is committed to working reliably and honestly.To keep up with our ongoing growth of business, we supply both high level and economic products. Best quality, satisfactory service, and competitive prices are our principles. In general, we sell by fully loaded containers. The pictures on the website are not exhaustive, but represent items of high turnover. For more detailed information, please do not hesitate to contact us. Any other offer can also be made on specific request.

Product line Bentwood chair and stool Dinning set

Office chair Stacking chair Cast iron table base Garment rank Aluminium rank

SWOT Analysis

Strength

it has Qualified workforce

Sufficient quantities, relatively cheap local raw

materials and energy

Good technology equipment in large part of

the sector enterprises

Contacts through the professional organization with UEA/European association of the furniture-manufacturers and national associations)

Weakness

Strong dependence on small number of clients

(markets)

Production, often not compliant with the

target markets requirements regarding

quality and design

Local raw materials often don’t meet the high requirements of

target markets

Limited experience in organizing and participation in

international exhibitions

Opportunity

Financial and expert support provided by

BSMEPA

Project funding under structural

funds

Public incentives for the formation of

clusters, incl. export clusters

threat

Deepening of the global economic

crisis and consumption contraction

Decrease in investment activity

in worldwide

Difficult crediting

Increased competitive pressure

Higher barriers to entry the target

markets

ROSEWOOD FURNITURE COMPANY

Rosewood Furniture Company is one of the leading furniture manufacturers @ exporters of

Pakistan, known for creating timeless furniture that is practical, beautiful and stays relevant even

as your taste and lifestyle changes.it was founded in 1958 in Malaysia.

Location:East Asia.Europe, UK and north America.

Product line:

boxes cabnets chairs tables animal figures antique doors bedroom sets camel head stands and bouls cheest of drawers couches dresser and counsole sets

Operations:

The company is performing operations by producing the better quality product at cheap rates. For this purpose it uses the concept of economies to scale by utilizing the resources from operations place.

SWOT Analysis:

Strength

it has Competitive labour cost

it prepares product at low cost

Export orientation of the sector

it is a strong professional organization

Weakness

Few professionals with trade export

experience

Insufficient information about foreign markets

Difficulty in providing working

capital, debt

Small number of enterprises, certified

according to international

standards

Low labour productivity

opportunity

Improvement of the country’s image

Increase in demand on target markets –Balkan region, EU,

Middle East

Withdrawal of Western investors from the Far East

region and increased interest in the Eastern Europe region

Increased interest on behalf of investors from the Far

East to the Eastern Europe region

Threat

Increased prices of raw materials and energy

Increased labour cost

Lack of reliable information for management decision

making

Decrease in the number of Bulgarian trade representations

Abroad

ACACIA HOME AND GARDEN INC.

Basic introduction:Acacia Home and Garden is an established manufacturer of fine indoor and outdoor furniture. We are a vertically integrated operation supplying private label and branded product from our international and local facilities.

Our focus is to consistently deliver high quality furniture that is known for drawing on the beauty and character of ancient weaving arts while incorporating the benefits of modern technology. From natural plant materials to the in-house development and introduction of innovative Durapex® and Poly-vexin

Furniture (sofas, lounge chairs, multi-item orders too large to ship via regular mail) will be delivered via white glove service. Items shipping white glove will be brought into your home, placed into the room of your choice, unpacked, and packaging removed. Because of this specialized service, please allow up to 4-6 weeks for delivery.

Strength

the established leader in design

Better quality products and marketing

An excellent management team, highly skilled, loyal

employees, with years of experience

Weakness

Limited factory capacity

Making products that people buy mainly when their incomes are rising

and which they can postpone buying when

the future looks less optimistic.

ASHLEY FURNITURE HOMESTORESAshley Furniture HomeStore is a chain of both corporate and independently owned and operated furniture stores that first opened in 1997, licensed to sell Ashley Furniture products exclusively. Since 1997, over 300 HomeStore locations have opened in North America.

Currently there are over 480 Ashley Furniture HomeStore locations operating worldwide including 60 corporate owned locations, which are also referred to as enterprise stores.

Location:The first Ashley Furniture HomeStore opened in Anchorage, Alaska in 1997.

Since then, the company has become the #1 home furniture retailer in North America. They have stores located throughout the

United States,

Opportunity

and chiefly the British public's increased home-

fashion orientation

the acquisition offered the opportunity of broadening its category product range and

build on the strategy of offering full room solutions for every room in the home.

Threat

existence of market rivals (e.g. DFS) and the possibility that more competitors might

enter the market.

Canada, Mexico, Central America, Japan

Product Line:

Living room Bedroom Dining room Home office Matresses

Operations:

The parent company of Ashley Furniture HomeStore, Ashley Furniture Industries, is the world's largest home furniture manufacturer headquartered in Arcadia, Wisconsin. Owned by father and son team, Ron and Todd R. Wanek, the company manufactures and distributes home furnishings throughout the globe.

SWOT Analysis:

Strength

it has Localy owned stores

it has a very powerful supply chain

Weakness

Geographical dependence

BASSETT FURNITURE:

Basic introduction:Bassett Furniture is a furniture manufacturer headquartered in Bassett, Virginia, United States. It was founded in 1902, by John David Bassett, Charles C. Bassett, Samuel H. Bassett, and Reed L. Stone. Bassett Furniture is one of the oldest furniture manufacturers in Virginia and has been producing hand-crafted furniture for over 100 years.

Bassett furniture company export there product in over 50 countries.

Product lineAll types of comfortable furniture. It includes:

Sofas Beds Dining sets Chairs Office furniture

Operations Bassett Furniture Industries, Incorporated (Bassett) is a vertically integrated manufacturer, importer and retailer of home furnishings. The Company operates in three segments: Wholesale,

Opportunity

expansion into world market

furniture industry

Threat

difficult to compete in highly competitive

market

there was no proper understanding of Global

economic scenario

Retail and Investments/Real Estate. The Company’s range of furniture products and accessories are sold through a network of 86 retail stores known as Bassett Home Furnishings (BHF). The Company owns and operates 53 stores (Company-owned retail stores) with the other 33 being independently owned (licensee operated). The Company also distributes its products through other multi-line furniture stores, many of which feature Bassett galleries or design centers, specialty stores and mass merchants. During the fiscal year ended November 24, 2012, the Company acquired one store located in Knoxville, Tennessee and two stores in the Orange County, California market.

SWOT Analysis:

Strength

Positioning as a single source home furnishings retail

store.

Wide brand portfolio

Weakness

Declining performance of

licence store

Weak liquidy position.

Decreasing sales at some stores.

NATIONAL FURNITURE:National Business Furniture LLC is one of North America's largest catalog and online retailers of office furniture and office accessory items

Opportunity

Stratigic growth initistives can be taken.

Increasing prospect in upholestry division.

Threat

Changing consumer behavior at their

hometown.

Further decline in housing secter.

Incresing competition in market for survival.

The company, with corporate headquarters in Milwaukee, Wisconsin, U.S., is a subsidiary of K + K America Corp.,

A holding company for TAKKT AG, a German mail order retailer of office, business and warehouse equipment.

National Business Furniture (NBF) markets furniture products and other office products from hundreds of manufacturers. The company has several subsidiaries. Alfax Wholesale Inc. based in Farmer's Branch, TX, and Dallas Midwest, based in Dallas, TX, target schools, churches and institutions. National Business Furniture Ltd. in Richmond Hill, Ontario, is NBF's presence in the Canadian market.

Although NBF began as a catalog retailer, in the 21st century it has focused on expanding its Internet presence. In addition to its own online storefront, NBF operates three other online retail companies.

Product line:NBF distributes products for the office, including

office desks, chairs, reception furniture, tables, file cabinets, bookcases and accessories. Wall Rail Solutions Presentation Products Dividers Filing and Storage

NBF carries other office products in addition to furniture, such as partitions, coat racks, lamps, floor mats, paper shredders and trash cans. NBF offers furniture and equipment to supply every space of an office building, including the lobby, reception area, conference room, break room and executive office. NBF has furniture, equipment and accessories designed specifically for government, schools, doctor's offices and hospitals.

Subsidiaries: Alfax Wholesale Inc. Dallas Midwest National Business Furniture Ltd. (Canada) OfficeFurniture.com OfficeChairs.com

OfficeDeal.com TheOfficeFurnitureExperts.com

SWOT Analysis:

Strength

Affordable

Location in state capital

expertise in furniture manufacturing

Comprehensiveness, quality, and growth of

online

Accessibility – day, night, online formats

Faculty service to the larger community.

Weakness

Underfunding in many departments and

programs

Lack of financial support for faculty

Thin on cultural/racial/ethnic

diversity

Understaffing at many levels

Inadequate resources for recruitment,

retention, advising, and marketing lack of

infrastructure – including physical,

financial, and human resources; inadequate

capital funds

Opportunity

Online opportunities worldwide

More conversations and partnerships with local

employers – those in the private, nonprofit, and public sectors – so that our students are more appealing to them

Becoming a leader in interdisciplinary and integrated learning

Opportunity to build an undergraduate experience

using the best practices from throughout the country

Threat

Risk of losing prominent faculty and staff for

genuinely better opportunities

growing competition from nearby public and small

privates in central Illinois

SEGORO MASS FURNITURE MANUFACTURER

Basic IntroductionSegoro Mas is furniture manufacturer and exporter from Indonesia. The line of products is focusing on teak wood furniture to accomplish all modern living spaces, whether intended for indoor furniture or outdoors. All the furniture collections are made from finest teak wood material to meet worldwide market demand of teak wood furniture.

Product line:1. Bed2. Banches3. Chairs4. Indoor furniture5. Cabinet

Manufacturing process and operations

In the manufacturing process of furniture different operation are performed.

Log

The wood result of hewing we known as log wood, from this the furniture making

process is started. The log wood will be distributed to sawmill.

Swamilling is the first manufacturing process of furniture.

Kelin

Spliting and cutting process

Planning and Drilling Process

Sanding process

Assembling process

Finishing process

SWOT Analysis:

AUTUMN WOOD PRODUCTS CORPORATION

Basic information:This is a Hudson North Carolina company establish in 1992. Company manufacture spsolid woods, stair treads, moldings, legs, base caps, carvings, furniture bases, and flooring.

ProductsHome furniture, cabinet,tables and chairs.Hospital chairs.frames and moulding.

OperationsAssembly Specializing In Frames, Chairs, Hospitality Chair Sides

Machining Specializing In Furniture , Hospiliaty Parts And Frames

Woodworking Specializing In Moulding, Custom And Millwork , Turnings

Segoro provided unique products the customers which are better in quality.

Sale volume of company is always less than its competitors.

Can increase sale volume and profits by using latest technology.

Its competitors are threat in case of technology.

S

W

O

T

SWOT Analysis:

KIMBALL INTERNATIONAL

Basic introduction:Kimball International is a manufacturer of furniture and electronic assemblies, serving customers around the world. Kimball International consists of two groups: the Furniture Segment and the Contract Electronics Segment.The company provides a variety of products through its electronic manufacturing services and furniture segments.

Product line:• Kimball Office• National Office Furniture• Kimball Hospitality• Piano

Location: Tampa, Florida, picking up four facilities in: Michigan, California,

Company use latest technology due to which they produce quality furniture.Strength

Production of company is low due to which they cannot earn high profits.Weakness

Increase production and earn high profits.Opportunity

Threat Threat for better opportunities

exploitation from the

competitors

Florida, and Minnesota US, Poland, China, Thailand, Mexico UK.

SWOT Analysis:

Strength

the established leader in design

Better quality products and marketing

An excellent management team, highly skilled, loyal

employees, with years of experience

Weakness

Limited factory capacity

Making products that people buy mainly when their incomes are rising

ETHAN ALLEN (FURNITURE COMPANY)

Basic introduction:

Location:Ethan Allen Global, Inc. is a North American furniture chain with almost 300 stores across the United States, Canada and the United Kingdom. It was founded in 1932 by two brothers-in-law, Nathan S. Ancell and Theodore Baumritter.

Operations:Ethan Allen has 295 Design Centers and Studios, six manufacturing facilities including two sawmills, six wholesale distribution centers, 29 retail service centers, one hotel, and sales of $980 million located across the United States.[3] It is one of the largest furniture companies in the United States.

The company makes customized furniture domestically ( Maiden, NC ), such as upholstered furniture, sofas and chairs; custom made in a selected fabric. Overall domestic manufacturing of Ethan Allen products stands at 65% with goals to raise this to 70% with the release of the new American Artisan line.

Product line: Tables Chairs Storage and display Bar counter Bed Mirrors Living room Office, home and many more

SWOT Analysis:

Strength

Their raw materials are mainly in the Appalachian

Mountains which enables the company to virtually have

more resources than international competitors.

Recognized name brand furniture established in the

United States.

Vast amount of raw furniture materials mainly from the Appalachian Mountains.

High customer demand in expanding overseas market.

Customers design their own furniture on-line

Owns manufacturing plants in the Philippines, Mexico,

and Vietnam.

Products are fairly and evenly priced on-line.

Weakness

Newly entering the global market.

Communicating internationally poses a great

challenge.

The name “Ethan Allen” mainly has historical and

cultural value in the United states

Hand-crafted furniture is expensive to the average

consumer.

Opportunities

Growing demand for high quality, hand-crafted furniture in Asia.

Limited natural resources in China.

Mergers with existing furniture businesses.

Lowering cost of transportation fees.

Increase profits by localizing Design

Centers and choice customer’s of furniture style.

Threats

Government restrictions

Importing, Exporting Fees

Existing Global Furniture retailers such as IKEA are

selling at lower costs.

Cultural Barriers

STEELCASE AUTHORIZED RETAILERS

Basic introduction:Steelcase Inc. is a global company headquartered in Grand Rapids, Michigan, United States that

develops and manufactures furniture, interior architecture, and technology products and services

for corporate offices. Through its brands, the company also creates products for small businesses,

healthcare, and higher education settings, as well as environments for mobile workers. Steelcase

has over 80 locations in the Americas, Europe, Asia, Africa, and Australia, and over 11,000

employees worldwide. The company sells its products and services worldwide, primarily through

more than 650 independent and company-owned dealers, and markets through several retail and

web-based channels.

Operations:Steelcase began in 1912 as The Metal Office Furniture Company in Grand Rapids, Michigan.

They received their first patent in 1914 for a steel wastebasket -- a major innovation at a time

when straw wastebaskets were a major office fire hazard. That led to metal desks, and they've led

the way with product and service innovations ever since. Today, their portfolio of solutions

address the three core elements of an office environment: interior architecture, furniture and

technology.

Product line Home furniture all type

Office furniture all type

SWOT Analysis:

Strength

The company's improved financial

performance

revenuegrowth across all segments

strong market position across the geographical segments gives the company a competitive advantage

Steelcase has a strong portfolio of products and brands selling furniture

systems and seating, user-centered

technologies and interior architectural products

Weakness

large amount of debt

NICK SCALI FURNITURE

Basic introduction:

Despite the naysayers, traditional high street retail shops aren’t going anywhere. Nick Scali Furniture has not only seen an increase in retail spending in its stores in recent years, but is also opening new branches around Australia.

The company is seeing continued growth. And we think it is because the showrooms offer at Nick Scali customers what a website never can.

SWOT Analysis:

Opportunity

corporate restructuring to

improve operations

Steelcase’s PolyVision manufactures steel and

ceramic surfaces for sale to third-party

fabricators to create static whiteboards sold

in the primary and secondary education

markets in the US and Europe.

Threat

The cost of raw materials has been volatile

rising cost of fuel and energy

disruption in the supply and

delivery

Strength

low cost with high quality of product

Trusted service

constant improvement in services

innovative designs

Weakness

Newly entering the global market.

Communicating internationally poses a

great challenge.

Opportunity

Stratigic growth initistives can be taken.

Increasing prospect in upholestry division.

Threat

Changing consumer behavior at their

hometown.

Further decline in housing secter.

Incresing competition in market for survival.

GLOBAL MARKET TREND

As the greatest hope for growth in the global economy for the past two years, the emerging markets have become the darlings of the financial press and a favorite talking point of C-suite executives worldwide.

Once attractive only for their natural resources or as a source of cheap labor and low-cost manufacturing, emerging markets are now seen as promising markets in their own right. Rapid population growth, sustained economic development and a growing middle class are making many companies look at emerging markets in a whole new way.

Many companies that had previously posed no competitive threat to multinational corporations now do so. These emerging market leaders represent a major shift in the global competitive landscape, a trend that will only strengthen as they grow in size, establish dominance and seek new opportunities beyond their traditional domestic and near-shore markets.

FUTURE TREND:

Emerging Market Leaders Will Become A Disruptive

As emerging market countries gain in stature, new companies are taking center stage. The rise of these emerging market leaders will constitute one of the fastest-growing global trends of this decade.

These emerging market companies will continue to be critical competitors in their home markets while increasingly making outbound investments into other emerging and developed economies.

Working to serve customers of limited means, the emerging market leaders often produce innovative designs that reduce manufacturing costs and sometimes disrupt entire industries.

A case in point: India's Tata Motors' US$2,900 Nano, priced at less than half the cost of any other car on the market worldwide. A version is set to go on sale in Europe this year.

Leading Emerging Markets Will Continue To Drive Global Growth

Estimates show that 70% of world growth over the next few years will come from emerging markets, with China and India accounting for 40% of that growth. Adjusted for variations in purchasing power parity, the ascent of emerging markets is even more impressive: the International Monetary Fund (IMF) forecasts that the total GDP of emerging markets could overtake that of the developed economies as early as 2014.

The forecasts suggest that investors will continue to invest in emerging markets for some time to come. The emerging markets already attract almost 50% of foreign direct investment (FDI) global inflows and account for 25% of FDI outflows. The brightest spots for FDI continue to be

Africa, the Middle East, and Brazil, Russia, India and China (the BRICs), with Asian markets of particular interest at the moment.

By 2020, the BRICs are expected to account for nearly 50% of all global GDP growth. Securing a strong base in these countries will be critical for investors seeking growth beyond them.

Emerging Markets As New Battleground

The BRICs are having a major impact on their regional trading partners and more distant, resource-rich countries, an increasing number of which are being pulled into their economic orbit.

In 2009, emerging-to-emerging (E2E) trade reached US$2.9 trillion. This massive flow of investment among emerging markets is well on its way to creating a second tier of emerging market leaders.

As pressure for resources increases, we expect a battle for first-mover advantage among emerging heroes, global players and emerging market governments in regions such as the Middle East and Africa.

New Consumer Growth Due To Rising Population And Prosperity Drive

Between now and 2050, the world's population is expected to grow by 2.3 billion people, eventually reaching 9.1 billion. The combined purchasing power of the global middle classes is estimated to more than double by 2030 to US$56 trillion. Over 80% of this demand will come from Asia.

Most of the world's new middle class will live in the emerging world, and almost all will live in cities, often in smaller cities not yet built. This surge of urbanization will stimulate business but put huge strains on infrastructure.

Physical infrastructure, such as water supply, sanitation and electricity systems, and soft infrastructure, such as recruitment agencies and intermediaries to deal with customer credit checks, will need to be built or upgraded to cope with the growing urban middle class.

Addressing such concerns in Asia alone will require an estimated US$7.5 trillion in investments by 2020.