Tuesday, February 14, 2012

kacey fine furniture: mission and external factors

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A. Corporate Mission

Kacey Furniture’s Mission was to maintain their current position (being fourth in the furniture industry) as a full-line retailer with its flagship store in the city of Denver.

Kacey’s objectives

• Being the one of the only ones that offers a full range of products (i.e. being a one � stop shop)

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• Maintain their core competencies (fashion, service and high customer satisfaction) and sustained competitive advantages by being the smallest of the big players.

• Take advantage of the available alternative distribution outlets to give a fashion focused, value oriented products.

• Maintain their specific appeal in terms of financial transaction or greater service after the sale.

• Maintain their corporate culture as being a family focused company.

• Maintain the sales levels, sales commissions and bonuses by motivating employees to initiate changes or take on new responsibilities.

• Keep the employees energy level high and make sure that all their employees share the same vision to achieve same goals.

B. Corporate Governance

Kacey Fine Furniture was started by Jack Barton in 150 in Denver. His wife Shirley joined the store in 166 and later Jack and Shirley passed on to their oldest daughter Leslie who is currently the vice president of the company. Leslie’s managerial and design skills and her husband Sam’s marketing skills transformed Kacey from a small family business to a major player in Denver’s growing furniture market.

C. Top Management

As the current vice president of kacey, Leslie encourages employees to work as a team to achieve the company’s targets. Kacey’s management values employees opinions and suggestions. As an inspirational motivator, Leslie didn’t want to be too tough on employees.

Kacey Fine Furniture had had a “family focus” since its inception. It was still oriented toward families and community involvement. Kacey not only allow nepotism, they promote it.

At Kacey, managers took on the role of coaches and trainers instead of schedulers and disciplinarians. Management policy was to motivate employees to have a great degree of participation, involvement, and continuing education.

II. External Environment

A. General Environment

Denver, “boom-or-bust town, was the fastest �growing furniture market in the U.S. in 1, and new housing starts promised continued increases over the next several years. However slowly more people started moving into the suburbs and therefore business started declining. Furthermore, the area where the store was located became more industrialized with restaurants, brew-pubs, aquariums, basket ball stadium, amusement park and more. Also it was out of the way for customers who went furniture shopping.

B. Industry Environment

Denver is considered one of the most competitive retail furniture environments in the country. There were over 50 retail furniture stores in the greater Denver metropolitan area in 15 serving a population of about two million people. Also in competition with Kacey were the more than 50 establishments that sold used furniture, as well as the many stores that competed in specialty or accessory goods, such as electronics, carpet & floor coverings, art work and knickknacks.

The Denver furniture market was dominated by four full-line independent merchandisers American Furniture Warehouse, Weberg Furniture, Homestead house, and Kacey Fine Furniture. Each of the stores has to apply different strategies in order to survive the competition.

C. Summary of External forces

According to me, the change in the general environment is the cause for the sales decline. The movement of people from the downtown area to the suburbs has become the major cause for the industrialization, which has further lead to insufficient parking space, traffic and finally a n absolute, unqualified disaster to the furniture shopping.

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