Manchester
Situation Analysis:
Manchester- Leading manufacturer of premium office furniture Revenues $2.33 billion in 2004.Home lines currently include Recliner, Home office, Media/Entertainment furniture. Home sales expected to grow 30% in 2005, from $260 million. Want to leverage manufacturing expertise and production capacity into household furniture Goal: To provide a complete family of household furniture products in the mid- to upper-price points. Paul Logan- Furniture Division revenues $990 million in 2004. Number 1-2 in market share and brand recognition. Well established sales force; strong ties to leading distribution channels; talented design team. Sold Furniture Division to refocus on its competencies in fashion and textile design.
Manchester Home expanded household furniture division by adding market leader PLFD. Addition of 990 million in PLFD revenues .Addition of established sales force, talented design teams. PLFD’s Signature Style line very popular with consumers. Ability to combine PL design skills with MH engineering and manufacturing. Manufacturing expertise and ergonomic designs.
How would you characterize the household furniture industry?
The annual growth for household furniture was $36.64 Billion, and office furniture annual growth is $10.69 billion in 2004. Employment growth and new business formation increased the furniture growth. The recession of 2001 and rise in refurbished furniture contributed to the sharp decline of the furniture market. Competition for the lowest import price from Asia and Mexico increased. New home constructions and home sales were tied closely to the furniture industry.
What are the benefits and risk associated with the acquisition of PLFD (Paul Logan Inc.)
The merger process will lead to many departments reorganization
(Benefits) Opportunity: 1, market leader position 2, improvement brand awareness 3, high share of market 4, high barriers of industry The MH Company will achieve the largest market share and
Manchester- Leading manufacturer of premium office furniture Revenues $2.33 billion in 2004.Home lines currently include Recliner, Home office, Media/Entertainment furniture. Home sales expected to grow 30% in 2005, from $260 million. Want to leverage manufacturing expertise and production capacity into household furniture Goal: To provide a complete family of household furniture products in the mid- to upper-price points. Paul Logan- Furniture Division revenues $990 million in 2004. Number 1-2 in market share and brand recognition. Well established sales force; strong ties to leading distribution channels; talented design team. Sold Furniture Division to refocus on its competencies in fashion and textile design.
Manchester Home expanded household furniture division by adding market leader PLFD. Addition of 990 million in PLFD revenues .Addition of established sales force, talented design teams. PLFD’s Signature Style line very popular with consumers. Ability to combine PL design skills with MH engineering and manufacturing. Manufacturing expertise and ergonomic designs.
How would you characterize the household furniture industry?
The annual growth for household furniture was $36.64 Billion, and office furniture annual growth is $10.69 billion in 2004. Employment growth and new business formation increased the furniture growth. The recession of 2001 and rise in refurbished furniture contributed to the sharp decline of the furniture market. Competition for the lowest import price from Asia and Mexico increased. New home constructions and home sales were tied closely to the furniture industry.
What are the benefits and risk associated with the acquisition of PLFD (Paul Logan Inc.)
The merger process will lead to many departments reorganization
(Benefits) Opportunity: 1, market leader position 2, improvement brand awareness 3, high share of market 4, high barriers of industry The MH Company will achieve the largest market share and