GREEN FURNITURE Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Green Furniture Case Study Solution

As discussed in the case, the company produced quality products with also low cost. But after the 2008 incident, it became hard for the company t mange the quality yet the cost too. In order to cope up with the trend and issue, the company did not compromised n the quality of the bamboos for example and outsourced it t different places present in china, in order to meet the quality standards Because the brand image of the Green furniture’s could not be compromised. Moreover, in order to include and pursue the green strategy f the company, like using timber which is f high c=quality and is produced and customized according to the need of the company. The customization to make it eco-friendly costed company more, which affected the revenues and cost leadership strategy of the company. In order to deal with this, Maria grouped together bunch off suppliers who could offer different rates and yet a quality raw material. This way the company held it position and brand image through maintaining the quality standards even after the economic downturn.

Before economic downturn, the company maintained its quality standards by minimizing the economic harm. This the company did by using the eco-friendly products to make less pollution in the city, further, the company designed is strategy in a way which took innovation, design and pricing into consideration. The company offered quality and value to the product by enticing it with good pricing, and unique designs. In addition to this, the company also procured the material from different parts of the chain, which wee than processed to make it eco-friendly and match the standards of the company.

Lean Principal

In practicing the lean principal, the company established its very own factory in Guangzhou and other part of the country with the pursuance of the green strategy. This step reduced the cost of the company which incurred due to outsourcing partnering with other supplier to produce the goods. Moreover, this move helped the company maintain its quality too, because every process than got under the control of companies itself. It also reduced the cost additionally incurred in transporting the raw material finished goods.

In addition, the company reduced the chain of additional suppliers who did not offer a comparative offering to the company. The move reduced the cost. The company also improved its quality department by adding more innovative technology and expertise to reduce the number of returns, this move improved the image s well as reduced the cost leading to dealing with the close-knitted value offering operations. Moreover, the company also reduced the lead time, which improved the making time of the product leading to less use of fuel and energy. It also implemented the innovative methods like assembling and painting through same machine, which reduced the make cost of the product. Finally, it followed the cot-leadership strategy and response strategy to create value to its customers. In response strategy, the company made sure that the furniture is present in market, and h demand for any specific article is fulfilled immediately.

Supply Chain Management of Green Furniture

The supply chain of Green furniture’s consisted of suppliers from internal china who were basically he farmers, In order to make the best out of the relationship; the company offered good profits to the farmers and improved their lifestyle, by offering financial aid and machines. To enhance the distribution network in US and also in china, the companies joined and made alliances with the local distributors tap the local market effectively. Moreover, Maria incorporated marketing strategy of positioning the product into the distribution strategy. It made sure that the green furniture is in the eye level range of the customer, increasing the chances of purchase. The company paid high price relate to the market and other perks to the distributors in order to offset them and make them loyal with the company. In maintaining the good relation with the customer and to delight them, the company continually involved itself into the improvement process. It offered new designs and color yet sticking to the green strategy. The company catered the customer base largely with it pricing and easy to carry furniture type, which attracted mainly student when analyzing the US market. Furthermore, the company reduces the operational cost and the other expense, by improving the lead time. It developed the quality department which focused on SCOR strategy in order to reduce the operation cost.

Processes

After analyzing the case, it can be determined that, Maria Yee Inc. had efficiently developed and establish effective processes that account in setting it apart from the rest of the competitor in the market. Which, in turn, enable the company to gain significant share of the market and ensure its profitability? Furthermore, the primary purpose of the company was to be eco-friendly in the market. However, to ensure the success of its new strategy implemented known as Green Strategy In which, the company sorts to induces its eco-friendly attitudes in its business processes. This would enable them to enhance their brand image in the market and reducing their adverse environmental footprint. This, in turn, would enhance the environment, allowing the company to operate in it for longer period of time.

Capacity

In order to cater to demand in overseas market and gain a competitive advantage on its foreign competitors the company established to furniture factories with its flagship in Guangzhou while the other in Hunan province. The main reason to establish these factories in china was to take hold of cheap labor and low cost raw material, as Hunan region was a major bamboo producing area. Hunan facility was followed by a furniture assembly plant after two year.

Customization

The company developed its processes in such a way that enabled them to assemble its products as per the requirement or specification of its customers available in the market, which, in turn, enabled the company increase the customer’s satisfaction level, which allowed it to gain their trust, while increasing their retention rates. This enabled the company to ensure its survival in the long-term.

Inventories

The company could significantly bolster its value creation and revenues by employing just in time inventory system, this will reduce their inventory holding cost and their overall efficiency in the business as this will reduce old raw materials in store and make it easy for the company to provide latest trends in the market. More over the funds that the company will free through adoption of just in time system could be utilized for improving other aspects of the business.

Lead time

The lead-time is minimal in case of Green furniture because the suppliers are present in the closer vicinity of china, which gives Maria a competitive advantage in a sense that it offer a great control over the process efficiency and quality.

The company could use further improvements through negotiations with its key suppliers, and thus improve their delivery time and minimize the lead time, this will increase Maria lee’s production levels and could improve their risk of being stock out, a reduction in lead time could also give them a chance to provide latest raw materials without the danger of providing obsolete products to its customers.

GREEN FURNITURE Harvard Case Solution & Analysis

Cycle time

The company employed efficient process planning and developed effective strategies to reduce its cycle time. Which would enable them to efficient produce its finished product, using raw material effectively, while minimize the bottleneck and unnecessary production stoppages in its production processes. This, in turn, could enable them to enhance their efficiency levels and increase their overall production capacity, while minimizing the overhead cost of production...................

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