Palliser Furniture
TABLE OF CONTENTS: Executive Summary 3
Problem Statement 3
Situation Analysis 3
Alternatives 6
Recommendations 8
Action Plan 8
Contingency Plan 9
References 9
Executive Summary
Palliser Furniture Upholstery Ltd (Palliser), located in Winnipeg is the largest furniture manufacturer in Canada with facilities in Canada and Mexico. These centrally and strategically located plants allow Palliser to provide prompt, cost efficient service and delivery to its customers. In order to remain a successful company, Palliser needs to assess their current strategies and evoke on new ideas to compete in a economy that maximizes on cost. Several alternatives are available to Palliser, including: Opening more factories in Mexico and sell the products in North America, Opening factories in an Asian country and sell the products to the Asian market or Initiate a joint venture with an Asian company and sell the products to North America. It is recommended that Palliser opens factories in an Asian country and sell the products to the Asian market. This will allow Palliser to enter into a new market, thus avoiding over saturations in current areas, and allowing the company to grow. The Asian market has reduced labour costs, which will allow for an overall cost reduction to Palliser’s consolidated financial statements.
Problem Statement
Palliser Furniture’s profitability is threatened as it deals with the challenges of a rising Canadian dollar and international low cost competitors. Palliser needs to take a more proactive approach and evaluate its production locations strategy to ensure they allow the company to reduce costs, increase revenues and effectively compete with other international manufacturers while maintaining quality.
Situational Analysis
A Successful tradition
Palliser had its humble
Problem Statement 3
Situation Analysis 3
Alternatives 6
Recommendations 8
Action Plan 8
Contingency Plan 9
References 9
Executive Summary
Palliser Furniture Upholstery Ltd (Palliser), located in Winnipeg is the largest furniture manufacturer in Canada with facilities in Canada and Mexico. These centrally and strategically located plants allow Palliser to provide prompt, cost efficient service and delivery to its customers. In order to remain a successful company, Palliser needs to assess their current strategies and evoke on new ideas to compete in a economy that maximizes on cost. Several alternatives are available to Palliser, including: Opening more factories in Mexico and sell the products in North America, Opening factories in an Asian country and sell the products to the Asian market or Initiate a joint venture with an Asian company and sell the products to North America. It is recommended that Palliser opens factories in an Asian country and sell the products to the Asian market. This will allow Palliser to enter into a new market, thus avoiding over saturations in current areas, and allowing the company to grow. The Asian market has reduced labour costs, which will allow for an overall cost reduction to Palliser’s consolidated financial statements.
Problem Statement
Palliser Furniture’s profitability is threatened as it deals with the challenges of a rising Canadian dollar and international low cost competitors. Palliser needs to take a more proactive approach and evaluate its production locations strategy to ensure they allow the company to reduce costs, increase revenues and effectively compete with other international manufacturers while maintaining quality.
Situational Analysis
A Successful tradition
Palliser had its humble