Palliser Furniture

2055 Words Oct 10th, 2012 9 Pages
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
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These product developments have strengthened Palliser’s competitiveness against international competitors.
3. Strategic Planning – Palliser’s strategic planning initiatives that strengthen their international competitiveness include:
Capacity – recognizing the growth in business in earlier years and planning for continued growth Palliser purchased a large site (40 acres) back in 1963 that today house most of their factories. This enables Palliser to react to increased demand by having the available capacity to expand operations.

Capabilities – in addition to capacity, Palliser has the capability to produce significant levels of furniture within their 8 factories located internationally (4 factories in Canada and 4 factories in Mexico) along with other owned facilities in the US. The organization also has the ability to make particle board and upholstery fabrication.

Importing – Palliser imports more costly traditional labour intensive wood furniture from Far Eastern companies and re-sells this furniture on the market. Palliser recognizes that they cannot compete on labour cost however; the company remains competitive purchasing completed units and selling them through their distribution system.

Political/Legal – Palliser takes advantage of political & legal changes in the external environment. The implementation of NAFTA represented
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