Dahlia Furniture Private Limited Essay

I. Time Context Last 5 months of 1984II. Viewpoint Mr. Chua Boon Kang, co-owner of dahlia furniture Private Limited III. Major Policy Statement Dahlia Furniture Private Limited is a local article of furniture manufacturer of standard and custom-made furniture known for their advanced eccentric and elegant palisade units, kitchen cabinets, bedroom sets, and dine set. And aims to be one of the largest furniture manufacturer in capital of Singapore by 1990. IV. Statement of the Problem What can the company do to maximize profit to improve the companys position? V. ObjectivesLong Range Objectives To expand our business operation after 2 years To be the confidential information furniture manufacturer by 1987Short Range Objectives To maximize profit and minimize termsTo increase salesTo cater furniture for the mass marketplaceVI. SWOT AnalysisStrengthsa. The company is known for high lumber and elegant image of their furniture b. Dahlia Furniture is a known seller of merchandise furniture Weaknessesa. Dahlia Furniture has a small market precisely middle and speeding income families could afford their furniture b. Limited product line composes only of circumvent units, kitchen cabinets, bedroom sets, and dining sets Opportunitiesa. Growing number of families who can afford and are willing to pay higher impairment for a high quality furniture b. Growing demand for imported furnitureThreatsa. Other companies that offer furniture for a lower price b. Foreign manufacturers and retailers that are entering the Singapore market VII. Alternative Courses of ActionACA 1 Continuous moment of some furniture and start to producequality furniture that could be sold for a lower price to expand our market in servicing the mass market of low income generating families.ACA 2 Remove locally made furniture in our product line and import all our furniture to uphold the image of high quality and elegant furniture for middle and swiftness income families.ACA 3 din our pro duct line by producing and importing other high quality and elegant furniture other than wall units, kitchen cabinets, bedroom sets and dining sets for middle and upper income families. VIII. Analysis of AlternativesACA 1 Continuous importation of some furniture and start to produce quality furniture that could be sold for a lower price to expand our market in serving the mass market of low income generating families. Advantagesa. Expanding our market is also a means of expanding the rises of our income b. The life of the company is not but dependent on the purchase of our small market for middle and upper income families Disadvantagesa. Great risk whether the new-made target market of low generating families would purchase our furniture b. Costly as we would be starting from scratch to develop, produce and sell our new affordable furniture c. Additional Labor is neededd. The image of cultivation and exclusivity of our furniture might be lost ACA 2 Remove locally made furniture in our product line and import all our furniture to uphold the image of high quality and elegant furniture for middle and upper income families. Advantagesa. No overhead expense for usb. The image of the company for ply high quality, elegant and exclusive furniture would be preserved c. We could focus more on the imported products that bring us income d. No need to film additional workerse. Less attention required by the importation of furniture for we would not be the one to create themDisadvantagesa. Costly to import furniture id it would not be sold right away b. The operations of the company is solely dependent on our foreign suppliers c. Small market only for middle and upper income families that could afford to purchase imported furniture d. In violation of the anti-foreign labor regulation of the government e. Slow rate of repurchase because we offer the same furnitureACA 3 Expand our product line by producing and importing other high quality and elegant furniture other tha n wall units, kitchen cabinets, bedroom sets and dining sets for middle and upper income families.Advantagesa. Creating new line of furniture is also creating a new source of income for the company b. We can maintain the image of the company as producer of high quality, elegant and exclusive furnitureDisadvantagesa. Costly to develop, produce and sell new furniture line b. Requires additional workersc. Still dependent on the purchase of our small market of middle and upper income families d. Risk whether the new furniture would be bought by the market e. The company could be subjected to government ceremonial occasion since we are importing more furniture IX. Decision StatementAfter closely analysing all the alternatives, the best alternative for the company is ACA 1 Continuous importation of some furniture and start to produce quality furniture that could be sold for a lower price to expand our market in serving the mass market of low income generating families. The imported furni ture is alleviate in the growth stage and the demand for them is still high. The continuing the importation of furniture could still bring us income and can be used as capital in our plan of targeting a new market. The company is known for catering high quality, elegant, and exclusive furniture extending this to the mass market could bring drastic increase in our sales for the company already has a prestige name in the furniture industry. The company would be catering both high-end furniture and affordable furniture but of sizeable quality. Expanding our market is extending the coverage of our company and also the source of our income. ACA 2 and ACA 3 still focuses on serving a limited market only for middle and upper income families making the sources of our income also limited to them. Furniture is a durable product and repurchase of it is not made in a short span of time. If the each of these middle and upper income families has their own wall units, kitchen cabinets, bedroom s ets and dining sets then they would not repurchase again and so the company might be in danger. ACA 1 would find us another(prenominal) source of income as we extend our market to the lower income generating families but at the same time retaining the service for middle and upper income families. And having the prestige of high quality and elegant furniture, the new target market would be eager to purchase our furniture. X. Implementation PlanLong Range Implementation Plana. Continuous approach of the quality, operations, management of the company and continuous search on how we could minimize the cost of our operations Short Range Implementation Plana. Research about the new target marketThe price range that they can and willing to pay for a furniture. Designs, specifications and quality of a furniture that would draw them to purchase it. b. Canvass materials of good quality but of lower price to be used in the production of the furniture c. Create a plan on how we could minimize the cost of our importation, production and operation d. Make the furniture, specially the affordable furniture, known to the market by advertisement through publication at least once a week in a local newspaper of general circulation