Dahlia Furniture

Case Report

Dahlia Furniture Private Limited

1. Time Context: 1972

2. View point: Mr. Peter Lim, the owner and major shareholder of Dahlia Furniture Private Limited.

3. Major Policy Statement

Dahlia Furniture Private Limited is a furniture company which manufactures different sets of house furniture with high quality at a high price. Its goal is to become the top manufacturer and exporter of high quality furniture in furniture industry.

4. Current Business Policies

5. Statement of the Problem:

What way of acquiring inventories should Dahlia employ to maximize

profit and improve the company’s position?

6. Statement of Objectives

Short-term – To maximize the profit of the company

Long-term – To become the largest manufacturer and exporter in furniture industry.

7. SWOT Analysis

8. Alternative Courses of Action

a. Import all products and continue its high quality and fairly expensive image with middle and upper income family’s clientele.

b. Expand its production unit and contend with competitors through lowering of prices to reach a larger market, the mass.

c. To formulate a proportionate inventory acquisition with some products imported and some manufactured, to drive away competition and at the same time, maintain its present image, also to reach all brackets of prospective clientele.

9. Analysis of Alternatives

a. Import all products and continue its high quality and fairly expensive image with middle and upper income family’s clientele.

ADVANTAGES | DISADVANTAGES |

1. Dahlia would be free from hiring more labor. | 1. Would turn out costly if not sold two months or more |

2. Will maintain its present image for quality and pricing. | 2. Dahlia would be driven away by competitors because of erratic pricing |

3. No overhead costs | 3. It could not cater to the mass market.

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4. Smaller units of products are needed to be sold because of its price | 4. It will be pinpointed...