Herman Miller

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CASE ANALYSIS

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. In order to meet the ever increasing demands of the business, it is important that the employees are equipped with such capabilities that enable them to do so. For this purpose, the formulation and building of employee’s capabilities will consist of the following strategy: The first step in this regard is to increase the knowledge that employees possess as there is increased value being placed on knowledge. The focus should be on building intellectual capital which means employees who are equipped with not only the basic and advance skills but also have knowledg eabout the entire system. Without such knowledge, meeting the needs of theexpanding business would not possible. Secondly, the employees should be empowered. This means that the employees should be given responsibilities and the chance to make decisions; this makes the employees more diligent as they are accountable for their...
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