Time Context:Third Quarter of 1984
Point of View: Mr. Chua Boon Kang and Mr. Leong Sim Lam, owners of the Dahlia Furniture
Dahlia Furniture Pte Ltd. Main Problem is that in way they’re going to maintain their sales growth since large foreign manufacturers and retailers are competing with them?
➢ Intense competition both in local and foreign retailers.
➢ Unsatisfactory management under Peter Lim in 1982. It lowered down the sales until 1983.
➢ Most of the production workers who were doing subcontracting orders for Dahlia had resigned due to poor company performance in 1982.
➢ Mr. Lim was using his contacts in Dahlia to benefit his upholstery business possibly at the sacrifice of Dahlia.
Mr. Chua Boon Kang and Mr. Leong Sim Lam are concerned over maintaining sales growth in a highly competitive industry.
Areas of Consideration:
➢ Dahlia Furniture line was of a higher quality and price than those of other retailers.
➢ Dahlia’s furniture line is more for those who want exclusivity.
➢ Retail outlets are now carrying wider range of furniture.
➢ All three owners had commitments to their own custom-made furniture business.
➢ Unpredictable pricing.
➢ Some retailers have been reported selling below cost.
➢ The owners are doubtful about the long-term direction of the company.
➢ Domestic demands for furniture rise by about twelve percent annually.
➢ Increasing demand in exports to United States, Australia, Canada, Western Europe and in the Middle East.
➢ Singaporeans are more willing to spend money to decorate their homes.
➢ Intense competition between domestic U.S. manufacturers.
➢ Many workers resigned due to Ang Mo Kio Factory’s failure...