Filmore Furniture Case
Filmore Furniture Case
By: Hamaza Azam, Kavan Grewal, Deep Dave, Carl Ribeiro and Austin Mathews
Key Events:
Fred Filmore opened Filmore Furniture in 1970, a company that manufactures small colonial furniture. After 13 years, he retired and sold his business to his son Phil Filmore who was an aggressive manager, strategist and modernized in introducing new product designs and new marketing skills. Phil owns 63% of the business, shareholders own another 31%, and some employees account for the other 6%. His marketing strategies and skills with his engineer Jean Lechaise brought business and increased sales income to 5,100,000 in 1993. His annual salary amounted to 80,000 and he earned another $20,000 on dividends from shares. He died in a car accident and left all his business and shares for her wife Lucinda Filmore.
Problem Statement & Objective:
Lucinda Filmore faces a problem in deciding what she will do with Filmore Furniture after Phil’s Death, and how she will provide for herself and her family. The objective is how to deal with Filmore Furniture in a way that she will still have a steady income and high standard of living for her and her children.
Situation Analysis:
Summary:
Our situational analysis of the Filmore Furniture case will demonstrate several key issues that will help us determine an appropriate course of action for Lucinda. Through SWOT we can see that Lucinda's weaknesses outweigh her strengths, due to her lack of knowledge and experience. We also see that the threats to Filmore's Furniture outweigh the opportunities for the company. Through our analysis of Porter's 5 Powers we have established that the high buyer power and high power of competition in the industry outweigh the low supplier power, low power of substitutes and low threat of new entrants. Therefore the furniture manufacturing industry is a moderately unattractive industry for Luncinda to be in, especially considering her current situation.
Industry Analysis:
Porter’s Five
By: Hamaza Azam, Kavan Grewal, Deep Dave, Carl Ribeiro and Austin Mathews
Key Events:
Fred Filmore opened Filmore Furniture in 1970, a company that manufactures small colonial furniture. After 13 years, he retired and sold his business to his son Phil Filmore who was an aggressive manager, strategist and modernized in introducing new product designs and new marketing skills. Phil owns 63% of the business, shareholders own another 31%, and some employees account for the other 6%. His marketing strategies and skills with his engineer Jean Lechaise brought business and increased sales income to 5,100,000 in 1993. His annual salary amounted to 80,000 and he earned another $20,000 on dividends from shares. He died in a car accident and left all his business and shares for her wife Lucinda Filmore.
Problem Statement & Objective:
Lucinda Filmore faces a problem in deciding what she will do with Filmore Furniture after Phil’s Death, and how she will provide for herself and her family. The objective is how to deal with Filmore Furniture in a way that she will still have a steady income and high standard of living for her and her children.
Situation Analysis:
Summary:
Our situational analysis of the Filmore Furniture case will demonstrate several key issues that will help us determine an appropriate course of action for Lucinda. Through SWOT we can see that Lucinda's weaknesses outweigh her strengths, due to her lack of knowledge and experience. We also see that the threats to Filmore's Furniture outweigh the opportunities for the company. Through our analysis of Porter's 5 Powers we have established that the high buyer power and high power of competition in the industry outweigh the low supplier power, low power of substitutes and low threat of new entrants. Therefore the furniture manufacturing industry is a moderately unattractive industry for Luncinda to be in, especially considering her current situation.
Industry Analysis:
Porter’s Five