Herman Miller Case Analysis

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Herman Miller, Inc. Analysis 1. Herman Miller’s Overall Strategy: Herman Miller Inc. focuses on growth, by introducing innovative products. The company believes that in order to achieve operational excellence, the company needs to focus on employees’ motivation and problem solving process. Herman Miller concentrates on producing high quality products. The company is trying to reduce fixed manufacturing cost by outsourcing with their strategic suppliers, which helps controlling the company’s overall cost structure and accomplish a competitive advantage. The survival of Herman Miller when facing recession came from a flexible business strategy and plan. The company did well in developing new products and designs to broaden its activities. Herman Miller also tried to strengthen existing relationships with strategic suppliers. This strategy was important because it enabled Herman Miller Inc. to achieve world-class status in its industry. Herman Miller reduced manufacturing cost, inventory costs, and time saving due to high standard production. Those changes positively impacted Herman Miller sales. 2. Herman Miller’s Strategy Execution: Building employees’ capabilities - The firm recognizes the importance of developing employees’ skills, abilities and competences to achieve goals. The company was working around two important questions. First, how can we create great opportunity for workers and develop their skills to set a competitive advantage? How can we help our employees to build a safe and peaceful work environment? Building employees’ commitment - Employees should have opportunities for growth and development. The company should provide their employees with financial benefits linked to their performance. Training to build employees’ competencies - Evaluate performance and determine what changes should be made and what areas to be improved.
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