Company Biography
In January of 2002, John Ferrer and his wife Deborah started their own corporation, a large custom furniture
manufacturer located in Boston, MA. Their initial accounts were in the Northeastern region of the United States,
and they annually observed a constant profit increase. By March of 2006, they were able to grow the company
enough to go from five distribution and manufacturing plants to 10 to allow shipping to 48 states. Although they
have two retail stores, one located in Phoenix and one in Boston, their primary source of revenue is online catalog
sales. They have 10 manufacturing plants and distribution centers throughout the country.
John and Deborah’s corporation is known throughout the industry for its exceptional customer service and
superior quality. The contemporary designs lend themselves to a younger market, and the customer base is
predominantly upper-middle class because it is one of the highest priced furniture companies in the market. Part
of the appeal of John and Deborah’s brand is their consistent involvement with the local communities to create
green gardens. They have also been a major contributor to organizations that build houses for people in need.
One of their primary strengths is their vertical integration. They have a team of in-house designers saving the
company design costs and allowing the flexibility to rapidly change designs as the market changes. Their products
have been featured on several prominent home design and gardening shows and have been endorsed by several
well-known designers.
Because of the recent housing market sales decline (8% from 2005–2006), home renovations have slowed
significantly. This has impacted the amount of furniture and fixture sales and continues to impact revenue.
Furniture sales in the United States have decreased significantly, and John and Deborah have recently been
discussing the possibility of global expansion.
Another potential threat to their company is that many higher-end brands have been marketing aggressively and
creating lines for popular retail stores. These allow the lower-income consumers to have access to high-end brands
at a much lower price point. So far, these lines have been incredibly successful and have significantly increased
profits for competitors. Many of these competitors have also had great success in the global marketplace with
these lower cost replicas.
John and Deborah know that it is time to seriously consider expanding their business. They want to be able to
make it through the economic crisis and rely on other ways to increase sales and business. They are open to
looking into the global market, but they want to be sure that it is the right move for the business. They have
requested an advisory board meeting next month in which you will present the global marketing strategy. As the
market strategist, you will play a key role in helping the board decide if this is the right move for the company.
The Problem
You are sitting in Deborah Ferrer’s office. After the customary small talk, Deborah sits forward and states, “I am
very impressed with the work that you have done as the strategic marketing manager. Since John and I started this
company in Boston, we have seen continuous growth, but nothing like what we have seen since you started.
However, the housing market is really starting to impact our profits. This last quarter’s numbers were not looking
good.”
You reply, “The crisis has really hit us hard. We have some stiff competition, too, with the other brands creating
retail knock-offs.”
She counters, “We’ve had great success with your strategies in the domestic markets, but we do need to think of a
new approach and strategy. I have complete faith in your abilities to take this company exactly where it needs to
go. I must say that we are really counting on you, and I know that you will follow through.”
“I will make sure that we do well. Do you have any new projects for me?” you ask.
Deborah smiles and says, “You know me well. I do have a new project for you. I sent you an e-mail just before our
meeting. I’m curious if expanding in a global market would be a good move for our company. I would like you to
look into this for me.”
“Our team is definitely up for the challenge,” you say with enthusiasm.
Deborah shakes hands with you warmly, and you make your way out of the meeting. As you drive out of the
parking garage, you think about your success with the company. You cannot wait to get started.
CULTURAL CONSIDERATIONS
Balanced Score-Card
Perspectives
Financial
Customer
Objectives
To Improve Generated Income
To Improve Customer Satisfaction Through Originality
Internal Business Process | Efficiency in Business | Working Communications System | Control System
Learning, Growth and Expansion
Improve Employee’s Knowledge
Strategic map plan of the Jane and Deborah furniture organization.
Financial strategy; The organization has been doing well except recently. To generate
more finances, the company has to start investing in marketing strategies. Making of commercial
advertisement will help create a strong brand against our competitors. The retail shops should be
expanded into the global market. The potential threat from competitors will be eliminated once
the company begin doing advertisements and marketing having edged them in quality provision
(Hohenthal, Johanson & Johanson, 2015).
Customer satisfaction strategy; Although the company has been doing well in the past
years in customer satisfaction and quality. A new plan will be adopted. The new marketing
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strategy will target individuals from a new culture. An advertisement must, therefore, be diverse
cultural and the furniture designs should embrace a different cultural background, this will help
get new customers and satisfy them even further. The mission of the company too is to always
remain co-operative and respectful to customers.
Internal business process; Has to be achieved in three strategies. Business efficiency
will be achieved through all the department of the organization joining to undertake all projects.
These ensure faster delivery and no failed projects. The communication strategy should be
centralized from the top employees to the bottom. However, each employee is free to
communicate their ideas through the mail. Customer communication will be taken seriously.
Learning growth and expansion: The business is going global, breaking through the
worldwide market. This calls for more commitment as the organization will be dealing with new
culture and new customers. The strategy for new customers will be believing and investing in our
unique quality while embracing the new religion. Advertisements will help in reaching out to the
new religion. Edging out our competitors will be more comfortable when we sell out quality.
What are the considerations that you need to be aware of to remain competitive?
Pricing
The prices of the furniture have always been pocket-friendly. The customers have not
complained about the costs. Going into the global market, the new market might see the
company increase prices to accommodate the new financial strategies, but hopefully, that should,
not change the perspective of most customers about the products since they show value for every
product.
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Marketing and advertisement
The new global market operates on a different culture; it is essential that our market stay
while our products remain relevant to the new market. We can only achieve this through proper
marketing and advertisement. The company, therefore, therefore, has to be first to market into
the culture with other different. The success of marketing will be based on getting the lead to
understand the market leader. Once we hit the market leader, then every single dollar spent on
advertisement and marketing will help dictate the competitive playing field and remain a top
competitor (Benmehaia & Brabez, 2016).
Personnel
In the new market, the staff will be very crucial. The best company talents should be
distributed to all the retail shops and outlet. This strategy will ensure customer satisfaction and
therefore selling the brand positively. We need to identify the personnel demands of customers,
and the HR department picks talents that can serve these personal demands. That way it is easier
to win the customer trust, especially in the global market (Bahner, Stevenson & Zwygart, 2015).
Based on the research and analysis that you have done, can you compete in the
market that you have chosen? Why or why not?
With vertical integration being the company’s strongest advantage over the other, the
company can compete favorably in the new market. Most of the companies employ vertical
integration as an alternative and not as a main venture. Our company introducing this style to the
market will give the advantage needed to hit the new market (Penrose, 2017).
What primary factors led you to this decision?
It, therefore, goes that there would be an increased supply chain and reduced cost to the
advantage of our organization, while other competitors employ horizontal integration at the same
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part of the supply chain. The cut of the middleman builds customer trust, as clients are served
directly by talented employees. With the influence of middle-men, the customers in the global
new market do not like the horizontal integration due to trust issues. Our strategy will, therefore,
do well in the new market (Johanson & Mattsson, 2015).
The reduction in cost that comes with the direct supply of chain will make the customers
and client believe in our product. It is the easier to get the brand selling off to the new market.
What would you say to someone who would dispute your position?
Like it has been working in the local market, it will work for the foreign exchange. The
commotions that come with external disruptions on labor rules and laws are not likely to apply to
our organization if we imply the vertical integration like we have been doing except marketing of
the product will be equally important.
Since we are looking to control the market and having a stronger demand than our
competitors. Through vertical integration, there is a possibility of dictating terms of the market
power, an edge over other competitors (Penrose, 2017).
How do you plan on evaluating the global marketplace in the future?
Evergreen potential. After the first stage of the implementation of global marketing. We
will determine the evaluation of how much we need to put into consideration to continue
operating in the new market. Are there better places that might require the resources and energy
that we will be applying in the current foreign exchange? Answers to all these questions will be
the perfect form of evaluation (Penrose, 2017)
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References
Bahner, I., Stevenson, F., & Zwygart, K. (2015). Vertical integration of basic science: returning
the basic sciences to the final medical school year using individuated, career-specific
short courses. Medical Science Educator, 25(4), 481-482.
Benmehaia, A. M., & Brabez, F. (2016). The Empirical Factors Determining Vertical Integration
in Algerian Food Manufacturing Sector. European Scientific Journal, ESJ, 12(28).
Hohenthal, J., Johanson, J., & Johanson, M. (2015). Network knowledge and businessrelationship value in the foreign market. In Knowledge, Networks and Power (pp. 187224). Palgrave Macmillan, London.
Johanson, J., & Mattsson, L. G. (2015). Internationalisation in industrial systems—a network
approach. In Knowledge, networks and power (pp. 111-132). Palgrave Macmillan,
London.
Penrose, E. T. (2017). Foreign Investment and the Growth of the Firm 1. In International
Business (pp. 33-48). Routledge.
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