What Is The Nature Of Cmr's Business? How Does It Differ Across The Two Market Segments?
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1. What is the nature of CMR’s business? How does it differ across the two market segments?
CMR enterprise was established in June 1997 when Marcus and his partner bought Mike’s cabinets, one of the 1500 small companies that was part of the architectural millwork industry. The company had annual sales of $6.9 in 1997, top 5% in its industry. Like most of the architectural millwork companies, CMR competes in both residential and commercial construction market segments creating custom installed woodwork, cabinetry, and furnishings for businesses and high end homes.
The commercial work done by CMR workforce involved some subcontracting roles that were carried out by the architects, sales team, project managers and of course the customer who they were aiming to please. The customer was responsible for funding the job, the architects designed and developed drawings for the project and lastly the plans were turned to finished projects by the general contractor. Additionally, under the commercial constructions the sales team was left in charge of creating opportunities for negotiated bids and leading the company towards winning in open market bids by establishing a relationship with the contractors. A few factors sets the commercial segment from that of the residential; firstly, under commercial the jobs include retail store fixtures, executive suites, lobbies for office buildings and customized wood for banks and doctors’ offices and many other buildings. Secondly