Herman Miller Business Strategy
Case Three
Herman Miller: A Case of Reinvention and Renewal
Herman Miller is a high-end furniture store. It was established in 1905 as Michigan Star Furniture Company. In 1919, it was renamed to be Herman Miller and the name has stuck since. In 1942, Herman Miller produced its first office furniture, before that, Herman Miller only manufactured bedroom suites. Ever since, Herman Miller has been manufacturing high-end office furniture. In the 1950’s, Herman Miller expanded internationally and in 1970 it went public. Although it has had its ups and downs, overall, Herman Miller has been doing very well and today is valued at $1.3 billion. Herman Miller has a set of unique principles and practices that distinguish it from most other organizations.
In order to understand the organization better, and where it stands in terms of competitive advantage, and internal analysis can be done.
Distinctive Competencies: are firm-specific strengths that allow a company to differentiate its products from those offered by rivals, and/or achieve substantially lower costs than its rivals (p. 84)
Herman Miller possesses distinctive competencies in many ways. Herman Miller has many intangible assets that are beneficial to the company. Early on, in 1927, De Pree took on the idea that “all workers were individuals with special talents and potential” (p.C38). With this mindset, the organization continued to grow with a different view on management and employee treatment and care. Herman Miller believes in shared leadership. This is done through their “talking up and down the ladder” strategy where workers at all levels are encouraged to put forth new ideas. Another way this is done is the opportunity for all employees to work 16 paid hors a year with a charitable organization of their choice. This mindset and these strategies allows Herman Miller’s employees to feel empowered and this, in turn, leads to better work performance and output.
Herman Miller has also built for
Herman Miller: A Case of Reinvention and Renewal
Herman Miller is a high-end furniture store. It was established in 1905 as Michigan Star Furniture Company. In 1919, it was renamed to be Herman Miller and the name has stuck since. In 1942, Herman Miller produced its first office furniture, before that, Herman Miller only manufactured bedroom suites. Ever since, Herman Miller has been manufacturing high-end office furniture. In the 1950’s, Herman Miller expanded internationally and in 1970 it went public. Although it has had its ups and downs, overall, Herman Miller has been doing very well and today is valued at $1.3 billion. Herman Miller has a set of unique principles and practices that distinguish it from most other organizations.
In order to understand the organization better, and where it stands in terms of competitive advantage, and internal analysis can be done.
Distinctive Competencies: are firm-specific strengths that allow a company to differentiate its products from those offered by rivals, and/or achieve substantially lower costs than its rivals (p. 84)
Herman Miller possesses distinctive competencies in many ways. Herman Miller has many intangible assets that are beneficial to the company. Early on, in 1927, De Pree took on the idea that “all workers were individuals with special talents and potential” (p.C38). With this mindset, the organization continued to grow with a different view on management and employee treatment and care. Herman Miller believes in shared leadership. This is done through their “talking up and down the ladder” strategy where workers at all levels are encouraged to put forth new ideas. Another way this is done is the opportunity for all employees to work 16 paid hors a year with a charitable organization of their choice. This mindset and these strategies allows Herman Miller’s employees to feel empowered and this, in turn, leads to better work performance and output.
Herman Miller has also built for