Herman Miller Case Study - 1175 Words

Herman Miller Inc. Financial Analysis: Herman Miller Inc. Fiscal Years Ending | May 29, 2010 | May 29, 2009 | May 31, 2008 | June 2, 2007 | June 3, 2006 | | | | | | | Profitability Ratios | | | | | | Gross Profit Margin | 32.5% | 32.4% | 34.7% | 33.7% | 33.1% | Operating profit margin | 71.6% | 75.2% | 77.5% | 76.7% | 76.0% | Net Profit margin | 2.1% | 4.2% | 7.6% | 6.7% | 5.7% | Return on total assets | 6.5% | 12.2% | 21.8% | 21.4% | 16.9% | Return on stockholder s equity | 35.3% | 850.0% | 650.9% | 83.1% | 71.7% | Return on invested capital | 10.1% | 21.9% | 38.2% | 39.3% | 31.6% | Earnings per share | 0.0000005 | 0.0000013 | | | | | | | | | | Liquidity Ratios | | | | |†¦show more content†¦Value Chain – Herman Miller Inc. Herman Miller Value Chain Suppliers -gt; Operations -gt; Distribution -gt; Marketing -gt; Service Manufacturing Independent Ramp;D Distributors Competitors Value Chain Suppliers -gt; Operations -gt; Distribution -gt; Merchandising-gt; POS To stores sell at stores Generic Strategy Lower cost Differentiation Broad | | | Narrow | | | Herman Miller Haworth Steelcase HNI Office Max Wal-mart The recession in late 2007 affected Herman Miller like that of other companies in this same industry. Herman Miller was able to come out of this better than most of because of measures taken in earlier recessions. Herman Miller was able to earn $152.3 million on $2.01 billion in sales in 2008. The 2010 sales had fell $700 million and earnings were down $124 million. But despite the downturn in the economy Herman Miller still was profitable. Pay cuts that were instituted in 2009 of 10% and the suspension of the 401(K) contributions. These cuts reduced job security but the employees railed around management because it was best for the company as a whole. Other companies would fail at this. Herman Miller has followed the same basic strategy throughoutShow MoreRelatedHerman Miller Company Case Study3089 Words   |  12 Pagesï » ¿Herman Miller 1 herman miller case study 1.0 Internal Analysis 1.1 Timeline The Herman Miller Company operated as the Star Furniture Company in Michigan in 1905. It was named the Michigan Start Furniture Company in 1909. In 1919, Dirk Jan Du Pree became its president. In 1923, his father-in-law Herman Miller bought the majority shares in the company and it was renamed to the Herman Miller Furniture Company. Since then, under the leadership of Du Pree, the company has continuously adopted innovativeRead MoreHerman Miller Case Study Essay1260 Words   |  6 PagesCase Six: Southwest Airlines Introduction Herman Miller has a deep-rooted history as a quality manufacturer of office furniture. 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