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n Miller Inc.: Unrelenting Pursuit of Reinvention and Renewal

erman Miller designs, manufactures, and sells office systems, product and services internationally. Based in Zeeland, Michigan.

  • 1905 – 1942

1905 – Star

Furniture Company 1909 – Hired De

1942

Pree as clerk 1919 – De Pree

became president Designed &

Manufactured bedroom set until

1942 first office

furniture:

Executive Office Group

1942 – 1980s • • • • • 1944 – Hires Nelson as first design director
1942 – 1980s
1944 – Hires
Nelson as first
design director
1946 – hires
Charles & Ray
Eames
1950s – launch
“Eames Lounge
Chair”
1960s – introduce
“Action Office
System”
1970- Turn go
public
1981 – Initiative to
become more
efficient/eco-
friendly
1983 – initiative to
ll
k

1990 – 2000s

1994 – Founding

member of US Green Building Council Establishes Leadership

in Energy & Environmental Design Standards (LEED) 1994 – Launch “Aeron

Chair” 1995 – Hire Mike

Volkema as CEO 2000-2001 – Record

profits Post 9/11 – Sales drops

by 34% Volkema makes change

– cuts 38% of employees 2003 - 2008 – Sales are stable, but profits hit all

2013 Organizational Values titled “What We Believe” : • Curiosity & Exploration • Engagement • Performance
2013
Organizational Values titled “What
We Believe” :
Curiosity & Exploration
• Engagement
• Performance
• Inclusiveness
• Design
Foundations
• A Better World
• Transparency

Functional

 

MARKETING

 

PRODUCTION/OPERATION

Value-Driven Marketing:

Research-driven design

Integrated Green Marketing:

Lean Manufacturing:

Functional, Emotional & Spiritual

Herman Miller Performance System

Products (2003, Mirra Chair top

(HMPS)

10 green product)

Multinational subsidiary &

Waste Reduction (24 Mio lbs to

branches:

3.6 Mio lbs from 1994 to 2008) Herman Miller Greenhouse

Canada, France, Germany, Italy, Japan, Mesiko, Australia, Singapore, China, India and the Netherlands

   
 

HR MANAGEMENT

 

FINANCE

Culture of Empowerment & acknowledge talents

Very influenced by macro condition

Cross functional team based on

Debt-to-equity from 1.18 in 2006 to

product development

47.66 in 2008

Various benefits to it employee

Even in turndown, still invested ten of millions dollars in R&D

SWOT Analysis

Strength

Very strong R&D – Innovative

product & process

Various award

Company Culture

Known as Green company

Herman Miller Production

System (HMPS) – Just in time

Process

Opportunities

Increase in demand for

ergonomic furniture

Growing desire for green

products

Proven to survive multiple

Weakness

recession

Vulnerable to loss in bad

economic condition

Extremely dependent on US

office & government

institutions.

Threats

Technological advances

decreasing the need for office

furniture

Prices of raw material

constantly changing

Supply Chain Management • Agreement with suppliers to deliver parts to Herman Miller production facilities in
Supply Chain
Management
• Agreement
with suppliers
to deliver
parts to
Herman Miller
production
facilities in a
just-in-time
process
• outsources
component
parts to
suppliers

Value Chain

Operations
Operations

Herman Miller Production System (HMPS) – Just in time Process Minimizing inventory cost by purchasing direct materials and parts as need to meet demand

Supply Chain Management • Agreement with suppliers to deliver parts to Herman Miller production facilities in
Distribution Sales & Service s Marketing • Manufacturin g operations located in different countries, and it
Distribution
Sales &
Service
s
Marketing
• Manufacturin
g operations
located in
different
countries,
and it
produces the
products and
delivers to
the local
independent
dealerships
• Value-driven
marketing
through:
Green
Marketing
• explanations
and
description
for the
products, and
customers
support

Product R&D, Technology, Systems Development

Focus on improving and innovating products, even during the recession. –

breakthrough product concept & acknowledges by external

Human Resource Management

Culture of empowerment & acknowledges talents

Various benefits to it employee: profit sharing plan & employee stock purchase

plan (ESPP)

General Administration

Herman Miller reenhouse Factory & Offices

Herman Miller reenhouse Factory & Offices
Herman Miller reenhouse Factory & Offices
Herman Miller reenhouse Factory & Offices
Herman Miller reenhouse Factory & Offices
Herman Miller reenhouse Factory & Offices
Herman Miller reenhouse Factory & Offices
Herman Miller reenhouse Factory & Offices

VRIN Test

Resources /

Valuabl

Rare

Inimita

Non-

substituta

Conclusion

Capabilities

e

ble

ble

Herman Miller Production System (HMPS) – Just in time Process

Yes

No

No

No

Competitive Parity

Worldwide distribution through independent dealership

Yes

No

No

No

Competitive Parity

Various benefits to employees

Yes

No

No

No

Competitive Parity

Culture of

 

Sustained

empowerment &

Yes

Yes

Yes

Yes

Competitive

acknowledges talents

 

Advantage

Value-driven

         

marketing:

Integrated Green Marketing

Yes

Yes

Yes

Yes

Sustained

Competitive

Advantage

   

Sustained

Very strong R&D

Yes

Yes

Yes

Yes

Competitive

 

Advantage

Recommendation

Herman Miller continuously investing in R&D and innovating

in products to satisfy the need of its customers earned the

customer brand loyalty.

The company willingness to contribute in the green world

and environmental friendly strategy gained a good reputation

and feedback in the market.

As the company new product lines meet the increasing demand

of ergonomic health products in the working environment,

the new innovation product will become a competitive

advantage over its rivals.