Essay about Herman Miller

1142 Words Oct 27th, 2011 5 Pages
HERMAN MILLER 1. Describe Herman Miller’s strategy. Is there evidence it has produced a competitive advantage and good financial performance? Explain.
They focus on a growth strategy, through innovative products and production processes. Reinvention and renewal. They survived the Great Depression and multiple recessions, recovered from the dot-com bust and were able to continue expanding overseas. They adapted to save the company, by introducing new designs. In 1996, Herman Miller began an aggressive drive to reinvent its operations and established a fruitful relationship with the Toyota Supplier Support Center. Unique to the office furniture industry, the relationship enabled the company to adopt and implement world-class, lean
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How have the company’s values shaped its strategy and approach to strategy execution? Provide illustrations of how these values are reflected in company policies.
They treat all workers as individuals with special talent and potential. They respect all employees, which fuelled the quest to tap the diversity of gifts and skills held by all, in an environment where people felt comfortable taking risks. In 1950, developed a Scanlon Plan (productivity incentive plan), which reflects values, equity and justice for everyone in the company. Employees felt empowered a new manager took his safety glasses off and an employee yelled at him to put his safety glasses back on. The company’s beliefs were also reinforced through the employee gift committee and environment quality action team, which distributed funds and other resources based on employee involvement. They became a responsible corporate citizen through minimizing their waste which was both environmentally friendly and cost-effective. Shared gains and pains. Top executives took 10% pay cuts consecutively to avoid letting staff go, received less than competing firms top executives, which shows their commitment to the “team”. They have committees for sharing ideas on improvements and how to increase profitability. Even through project purple, one out 1000 companies would do that, increasing spending for the sake of tomorrow while cutting back to

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