Filmore Case 1 
Filmore Case Study
Case synopsis
Filmore Furniture is company that produces colonial maple furniture, incorporated by Fred Filmore in 1970. The company later was sold to his son Phil Filmore who was an innovative strategist in the business and introduced new designs and marketing strategies. From 1983-1993 Phil achieved over 5 million in sales for the business, but due to the highly competitive furniture industry profits remained low. In 1999 Phil died from a car accident leaving his entire estate to his wife Lucinda which included 63 percent of the company’s shares. Lucinda has no background in operating the business as she was previously a stay at home mother, however there are many colleagues of Phil who are giving her advice and tips to run the business. Lucinda must now decide whether to continue with managing the business, sell or merge it with another furniture company, or hire executives either from within the company or from a competitor to run it for her.
Problem:
What should Lucinda decide to do with the company?
Objectives:
Sell the business as the industry is highly competitive and profits remain low.
Hire an experienced manager to help run the business with expected recovery of the furniture industry.
Decide to merge with another furniture company allowing them to run the company but overall lose control of the business.
Let Lucinda run the business herself, holding on to the 63 percent of the shares and controlling the company.
Filmore Furniture Ltd. is in the furniture manufacturing industry. The company sells its products to large furniture stores in a very competitive atmosphere. This results in the products being priced near costs, which drives profits low. The company has been around for a long time that allowed it to achieve customer loyalty and a brand image, which sets it apart form competitors.
Buyers Power
-The buyers are the wholesalers who buy the finished product from Filmore Furniture Ltd. The buyers have moderate to high
Case synopsis
Filmore Furniture is company that produces colonial maple furniture, incorporated by Fred Filmore in 1970. The company later was sold to his son Phil Filmore who was an innovative strategist in the business and introduced new designs and marketing strategies. From 1983-1993 Phil achieved over 5 million in sales for the business, but due to the highly competitive furniture industry profits remained low. In 1999 Phil died from a car accident leaving his entire estate to his wife Lucinda which included 63 percent of the company’s shares. Lucinda has no background in operating the business as she was previously a stay at home mother, however there are many colleagues of Phil who are giving her advice and tips to run the business. Lucinda must now decide whether to continue with managing the business, sell or merge it with another furniture company, or hire executives either from within the company or from a competitor to run it for her.
Problem:
What should Lucinda decide to do with the company?
Objectives:
Sell the business as the industry is highly competitive and profits remain low.
Hire an experienced manager to help run the business with expected recovery of the furniture industry.
Decide to merge with another furniture company allowing them to run the company but overall lose control of the business.
Let Lucinda run the business herself, holding on to the 63 percent of the shares and controlling the company.
Filmore Furniture Ltd. is in the furniture manufacturing industry. The company sells its products to large furniture stores in a very competitive atmosphere. This results in the products being priced near costs, which drives profits low. The company has been around for a long time that allowed it to achieve customer loyalty and a brand image, which sets it apart form competitors.
Buyers Power
-The buyers are the wholesalers who buy the finished product from Filmore Furniture Ltd. The buyers have moderate to high