Case for Critical Analysis Sunbright Outdoor Furniture, Inc

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Case for Critical Analysis SunBright Outdoor Furniture, Inc. Executive Summary This case study is a brief analysis of the case analysis regarding SunBright presented on the assignment. The outlook of the assignment is to review the company, and the issues as presented by the consultant. By reviewing the issues and provide alternative course of action, solutions are made available. The environment, industry, and the organization analyzed. Further consideration is given to the problems and issues found including any ramifications these problems may have on the company’s future. Lastly, formulating alternative course of actions as an evaluation takes the analysis to its conclusion. Background Assessment Environment The retail industry has moved into consolidating various chain stores under one roof, therefore restricting competition. This gives more power to the retailers increasing their ability to negotiate prices and demand higher quality from manufactures. “Mergers and acquisitions (M&A) have resulted in the consolidation of retail chains, thereby substantially altering the retail competitive arena” (Bolton, Venkatesh, & Dentra , n.d., p. 246). SunBright Outdoor Furniture, Inc. is in a debilitating position before its customers, as retailers grow in size as a result of the acquisitions and mergers. Industry The nature of the retail business has changed in the past few years. In addition to the negotiating pressures from retailers to lower prices and higher quality, many manufactures have moved to use private labeling strategies. This strategy lowers much of the production costs and the burden of managing the manufacturing process. Many private label manufacturers are overseas with decreased cost of labor and raw materials therefore, much more competitive than any manufacturer in North America. Organization SunBright was founded by

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