Appendix 119Herman Miller Inc. Performance Trend19Appendix 2:201.0 Introduction1.1 ObjectiveFlexibility, dynamism, globalization, knowledge-based economy and technological advancement are some of the terms that characterize developments in the business world. If a company does not discern changing trends in the market, it is bound to lose its market share and competitive edge. Downsizing and structural changes are some of the strategies that are implemented by companies in an effort to remain profitable in the face of increased competition. Market intelligence department of any company has to collect information about the prevailing trends in the market and any other changes that are anticipated.
This report discusses the initiative taken by Herman Miller Inc to ensure it remained competitive in an increasing flexible world. 1.2 ScopeThis report will discuss the various circumstances that Herman Inc has waged through and what has kept the company moving despite the changing environment. The objective spells out the purpose of this report while the scope provides a framework through which issues raised in this case study will be discussed. The recommendations provide a guideline of leeway that can be used by the company to achieve its objectives.
The conclusion summarizes the main ideas discussed in the report. 1.3 Action PlanThis report will evaluate the strategies used by Herman Miller Inc and determine their sustainability in a competitive world. Recommendations will be drawn from issues identified in the case. The conclusion recaps the main items. 2.0 Findings-Issues in the case2.1 Why the company was an outstanding and award-winning company2.1.1 Strong Cultural BackgroundHerman Miller Inc established itself as an award winning and an outstanding company through the practices and strategies that were used by the company.
The company hard a strong culture of treating employees equally which was a foundation laid down by De Pree. All workers were treated with respect and their diversity of gifts and talents were exploited exhaustively. The employees of the company were motivated to work by this fair treatment in the company and thus contributing to positive growth. De Pree treated all workers who possessed potential and special talents. Employees were given an opportunity to become shareholders and thus bestowing to them a sense of ownership.
Becoming part of the ownership group of the company made employee have a sense of pride and commitment towards the activities of the company. Hard work and employee engagement were developed to the highest degree that cultivated a culture of cooperation. 2.1.2 Outstanding Communication NetworkPoor communication within the organization affect the way people relate in any given company. Herman Miller Inc made sure there is excellent rapport between the employees and the management and hence increasing their motivation. Synchronized-synergetic relationship made Herman Miller Company to develop into a ward winning and formidable company.
The employees were personally concerned about the welfare of the company. The sense of identity of employee had towards the company made them devote themselves to the operations of the company. Implementation of environmental friendly programs with engagement of employees was a good course towards winning the support of the community and particularly the customers of products from the company. When the leadership of the company was extended to non-family member, the performance of the company increased tremendously (Weiss & Molinaro, 2005, p. 55). The company got involved in proactive actions in times of crisis.
When the sales dwindled in 2003, the Georgia plant was closely to reduce production costs in a shrinking market. Thirty eight percent of its workforce was laid off.