Lajoma Furniture

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  • Topic: Material, Raw material, Materials
  • Pages : 3 (453 words )
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  • Published : December 3, 2012
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CASE ANALYSIS: LA JOMA FURNITURE

I. Time Context

1980

II. Viewpoint

Viewpoint of the owners/partnership (Gaffud, Roque and Palisoc)

III. Central Problem

Unsteady supply of main raw material (wood).

IV. Statement of Objective

Must:

To accommodate furniture demands of client and dealer by having steady supply of raw materials.

Want:

To be a top supplier of quality furniture in the Philippines.

V. Areas of Consideration

EXTERNAL ENVIRONMENT

Opportunities
1. New materials to create new design may appeal to market. 2. Introduce new line of furniture design without the use of wood.

Threats
1. Threats of competition.
2. Scarcity of raw materials.
3. Bad reputation if commitment to dealer/client won’t be delivered.

INTERNAL ENVIRONMENT

Strength
1. Lean team with different area of expertise.
2. Versatility of the team/owners.

Weaknesses
1. Existing factory layout must be restructured.
2. Machines may have to be changed.
3. Employees may have to undergo additional training.

VI. Alternative Courses of Action
1. Create new line of furniture with less/no wood materials.

Advantages:
a. It may appeal to the market.
b. Futuristic design may be a hit, since sci-fi film is a hit during that era (STAR WARS Movies). c. It will sustain demand of furniture of client/dealer.
d. A new marketing campaign may be in line with this new design.

Disadvantages:
a. Re-Training cost of the staff.
b. Machine and restructuring layout is costly.
c. New Design and Marketing Campaign may not appeal to consumer market.

2. Continue with the existing line of furniture, which is wood.

Advantages:
a. No restructuring cost.
b. No training cost.

Disadvantages:
a. Not friendly to the environment.
b. Un-steady supply of raw materials will result to delays. c. Bad reputation to client/dealer.
d. High cost of raw...
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