Week 1 Individual Fin-Gm571

Ongko Furniture Store Scenario

Shannon Sullivan

FIN/GM571

June 6, 2011

Professor Bob d’Alessio

Ongko Furniture Store Scenario

In this scenario, Jaya Ongko, the business owner is trying to make sure that his company stays afloat in an extremely competitive market. His furniture company started off as a small company that made hand-crafted furniture. He did well for himself but after competition started moving into the area Mr. Ongko realized that he had to adapt his business to fit the current market. A supplier in Brazil brought up a possible joint venture but due to current political and monetary issues this would not be the wisest choice to make at this moment.

The best ideas for expansion at this point are to upgrade technology which would cut down on man power so not as much money for salary will have to be paid. Production would also have to adjust to a 24-hour schedule. Even though the technology upgrade would be costly it will pay off in the long run because we will be able to produce more in a shorter amount of time. Another idea being evaluated is the possibility of becoming a distributor as well for Danish company through their current distributors. This would be of little cost to Mr. Ongko’s company and could give them a great profit. The last expansion idea would be to market the flame retardant finishing layer but this seems to be the weakest out of all of the ideas. We must first look at what the current financial state is and use that data to come up with a projected forecast for the expansion projects.

The Behavioral Principle has been used in this scenario. One reasonable approach is to look for guidance in what other firms similar to your firm are currently doing and have done in the recent past (Emery, Finnerty & Stowe, 2007). By looking at how the Norwegian company and how their use of technology has made the production of the furniture faster and more efficient. Technology is very expensive but to keep up...