CTU Business Strategic Management in Dynamic Environments Discussion Mike, one of the marketing strategists on your team, stops at your office door wanting to talk. We use fabrics that are made domestically; however, there are issues with using these same fabrics globally. There are laws and regulations that prevent us from shipping these fabrics to other countries. This is a huge concern. One of our primary selling points is the consistency of quality of our product.
You confirm Mikes concern, Thats an excellent point, you say. Now youve just given yourself and our team more work for the presentation. Im sure that will come up. One of the board members used to run a textile plant in China.
Mike nods his head in agreement. I imagine textiles will not be the only resource concern, he says.
Consider the following in your response:
Why should resources be a concern in a global strategy?
What resources may be a concern in the country you selected? (CANADA)
How will this impact the decision to move to the country that you selected?
How will this impact your competitive strategy in your global market?
2-3 pages, APA Format 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 Deborahs 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 Deborahs 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 20052006), 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 Ferrers 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 quarters 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, Weve 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. Im 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.
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