Divine Furniture

International Market Entry Strategies

Team Case Study I (Part I and II) Overview

The following case is to be completed by your team using the Harvard Case Methodology. As this is your first case study assignment of this course you will be required to complete a full case analysis over two assignments. This case will be graded using the case study evaluation guidelines. For further information about the Harvard Case Study Methodology – please refer to the guide in blackboard.

Part I – For Part I you will be required to build upon the SWOT case analysis you did for your first assignment. Now as a team you will be required to complete the Case Methodology  up to and including the alternatives section.

Part II – Your team will take the feedback you received from Part I and complete the remaining sections of the case study.

Divine Furniture Company

The Divine Furniture Manufacturing Company has been in business selling a broad range of Office furniture since 1984. They focus mainly on high end desks and wall cabinets with prices ranging from $2,000.00 to $4,000.00 per executive “CEO” desks to $3,000.00 to $6,000.00 per “CEO” cabinet. While the early years were a little slow; sales increased

slowly with the company starting to show a profit after the 5th year. In the past 5 years sales had started to increase substantially with the “CEO” line being recognized in the industry as being of high quality material and workmanship. Sales are made across Canada with the majority of sales being in Ontario and Vancouver. Sales were starting to pick up in Quebec and there for Divine had recently added French speaking staff to the sales and ordering dept.  He has also made a number of large sales to U.S. customers through a U.S. Distributor who has been very difficult to work with.

Divine based their selling process on personal selling with strategically located showrooms across Canada. In all there were currently 22 showrooms staffed by full time and part time employees. The Divine Furniture Manufacturing Co. believed in providing strong support for their product and any questions or problems with their furniture was quickly dealt with to the benefit of the customer.

The production of the furniture was operating about 100% of capacity with the warehouse having about 6 months of seasoned pine and oak wood available. Contracts for a supply of wood were always negotiated 2 years ahead to ensure quality seasoned wood was in the supply chain. His financial position is strong, but he would need to finance any international activity and/or if he planned to expand domestic production.