Netflicks Case Analysis

Table of Contents Strategy: | | Issue 1 | 3 | Strategy 1 | 3 | issue 2 | 4 | strategy 2 | 4 | Issue 3 | 4 | Strategy 3 | 5 | Appendices | | Appendix A: External Environment 1. Key economic and industry variables (A-1) 2. Porter’s 5F analysis (A-2) 3. Key drivers for the industry (A-3) 4. A positioning map of the industry (A-4) 5. KSF’s in the industry (A-5) 6. Conclusion about the attractiveness of the industry (A-6) | 6667777 | Appendix B: Internal envernment 1. Herman miller’s strategy (B-1) 2. Herman miller’s vision and mission/purpose (B-2) 3. Functional strategies (B-3) 4. Herman miller’s value chain and competitive advantage (B-4) 5. Herman Millers attention to the 10 components of strategy 6. Financial analysis (B-5) 7. SWOT analysis (B-6) 8. Competitive Strength Assessment (B-7) 9. Issues that herman miller should address in the suggested strategy (B-8) | 7788889101010 |

strategy

Issue 1: The current economic downturn and the state of the credit markets in the U.S pose a prominent risk of prospective bankruptcy among Herman Miller’s (HM’s) customers, resulting in a larger risk of uncollectible outstanding accounts receivable. According to HM’s consolidated balance sheets for fiscal years 2010, the company has a book value of $144.7 million as account s receivable, which accounts for 37 percent of the company’s current assets. The amount of account receivable reduces the company’s liquidity ability and exposes the company to the risk of bad debts. Moreover, demand for office furniture is greatly influence by macroeconomic factors such as white-collar employment, corporate profit, and commercial office construction. Therefore, persistent downturn in the global economy not only affects the company’s account receivables collectability, but also impact on its customers’ ability to sustain financial health. For example, losses of key contract customers within specific industries could reduce revenues