Capstone Project: Global Business Management of Palliser Furniture

This comprehensive project analyzes Palliser Furniture's global business management strategy. It begins with an introduction to the company, including its vision, mission, products, and values. A detailed SWOT and DEPEST analysis of the UK market is presented, evaluating demographic, economic, political, social, technological, and environmental factors. Porter's Five Forces analysis is used to assess the competitive landscape. The project then outlines marketing objectives, including SMART goals, segmentation, positioning, branding, pricing, and distribution strategies. An operations plan covers legal compliance, operational processes, supply chain management, and quality control. Risk management strategies are also discussed. Finally, the project includes forecasted financial statements, SROI, break-even analysis, and financing considerations. The project provides a thorough examination of Palliser Furniture's business operations and expansion plans.

Running head: GLOBAL BUSINESS MANAGEMENT 1
Global Business Management Capstone
[Author Name(s), First M. Last, Omit Titles and Degrees]
[Institutional Affiliation(s)]
Author Note
[Include any grant/funding information and a complete correspondence address.]

GLOBAL BUSINESS MANAGEMENT 2
Table of Contents
Introduction.............................................................................................................................................................9
Company’s Information:......................................................................................................................................9
Vision:..................................................................................................................................................................9
Mission:................................................................................................................................................................9
Products Information:........................................................................................................................................10
Values:...............................................................................................................................................................10
Performance..................................................................................................................................................10
Responsibility................................................................................................................................................10
Advancement................................................................................................................................................10
Client Care.....................................................................................................................................................10
Employee Satisfaction:..................................................................................................................................10
Business Objective:............................................................................................................................................11
SWOT Analysis.......................................................................................................................................................11
UK.......................................................................................................................................................................12
DEPEST Analysis.....................................................................................................................................................12
Demographic:....................................................................................................................................................12
Economic:..........................................................................................................................................................12
Positive...............................................................................................................................................................13
Free market........................................................................................................................................................13
Negative.........................................................................................................................................................13
Political...............................................................................................................................................................13
Positive...........................................................................................................................................................13
Negative.........................................................................................................................................................13
Social:.................................................................................................................................................................13

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Positive...........................................................................................................................................................13
Negative.........................................................................................................................................................14
Technology factors:...........................................................................................................................................14
Positive...........................................................................................................................................................14
Negative.........................................................................................................................................................14
Environmental factors.......................................................................................................................................14
Porter’s 5 Analysis.................................................................................................................................................14
Power of Supplier:.............................................................................................................................................14
Threat of new Entrants:.....................................................................................................................................15
Power of buyers:................................................................................................................................................15
Threat of substitutes:........................................................................................................................................15
Rivalry................................................................................................................................................................15
Competitor’s Information:.............................................................................................................................15
Conclusion..............................................................................................................................................................16
Marketing Objectives.............................................................................................................................................16
SMART Objectives..............................................................................................................................................16
Specific...........................................................................................................................................................16
Measurable....................................................................................................................................................17
Achievable......................................................................................................................................................17
Relevant.........................................................................................................................................................17
Segmentation and Target Market.........................................................................................................................17
Positioning.........................................................................................................................................................18
Branding.................................................................................................................................................................19
Pricing....................................................................................................................................................................20
Marketing Channel and Distribution.....................................................................................................................20
Channel Design......................................................................................................................................................21

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Analyzing Customer Needs................................................................................................................................21
Size of the lot.................................................................................................................................................21
Wait time.......................................................................................................................................................21
Variety of the product...................................................................................................................................21
After sales service..........................................................................................................................................21
Channel Objectives................................................................................................................................................21
Availability of the product.................................................................................................................................21
Providing after sales service:.............................................................................................................................22
Promotional support..........................................................................................................................................22
Information of the market.................................................................................................................................22
Effectiveness of the cost....................................................................................................................................22
Identify Channel Alternatives:...........................................................................................................................22
Exclusive distribution Intermediary...................................................................................................................22
Joint Venture Distribution Intermediary...........................................................................................................22
Traditional Distribution Intermediary................................................................................................................23
Evaluating Channel Alternatives........................................................................................................................23
Economic or Financial Criteria...........................................................................................................................23
Control Criteria..................................................................................................................................................23
Adaptive Criteria................................................................................................................................................23
Selecting Channel Members..............................................................................................................................23
Channel Management...........................................................................................................................................24
Training..............................................................................................................................................................24
Motivating..........................................................................................................................................................24
Evaluating & Modifying.....................................................................................................................................24
Maturity.............................................................................................................................................................24
Channel Dynamics.................................................................................................................................................25

GLOBAL BUSINESS MANAGEMENT 5
Multichannel marketing System........................................................................................................................25
Distribution (Physical Distribution)........................................................................................................................25
Objectives for promotion......................................................................................................................................26
Create awareness-.............................................................................................................................................26
Create interest-..................................................................................................................................................26
Providing information-.......................................................................................................................................26
Stimulating demand and increase the sale.......................................................................................................26
Promotional mix....................................................................................................................................................26
Advertising-........................................................................................................................................................26
Personal selling-.................................................................................................................................................27
Direct marketing-...............................................................................................................................................27
Sales promotion-................................................................................................................................................27
Public relation-...................................................................................................................................................27
Crisis Management Plan........................................................................................................................................27
Week 7: Operations plan.......................................................................................................................................28
Operations objective.............................................................................................................................................28
Legal and Industry Compliance..............................................................................................................................29
Licences, Permits, Approvals.............................................................................................................................29
Business License............................................................................................................................................29
Conditional Permit.........................................................................................................................................29
Fire Department Permit.................................................................................................................................29
Seller’s Permit................................................................................................................................................29
Laws and Regulations............................................................................................................................................29
Industry Standards and Requirements..............................................................................................................30
Compliance Plan................................................................................................................................................30
Operations Process and Setup...............................................................................................................................32

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Production Process............................................................................................................................................32
General Operational Information......................................................................................................................32
Operations Location and Layout........................................................................................................................32
Operating Assets................................................................................................................................................33
Operations Resource Requirements..................................................................................................................33
Supply Chain Plan..................................................................................................................................................35
Sourcing.............................................................................................................................................................35
For 3 main BOM items (e.g. wood or metal, cushioning material, upholstery).........................................35
Procurement and Supply Assurance Plan..........................................................................................................35
Procurement..................................................................................................................................................35
Inventory Management.................................................................................................................................35
Quality Management Plan.....................................................................................................................................36
Operations Risk Management...............................................................................................................................36
Operations Risk Management Process..............................................................................................................36
Identify Operations Risks...............................................................................................................................36
Assess/Evaluate Risks-...................................................................................................................................36
Manage Risks.................................................................................................................................................36
Operations Risk Management Plan...................................................................................................................37
Week 10.................................................................................................................................................................38
Forecasted Financial Statements.......................................................................................................................38
Forecasted Income Statements.....................................................................................................................38
Forecasted Cash Flow Statements.................................................................................................................38
Forecasted Balance Sheet..............................................................................................................................39
Social Return on Investment (SROI)......................................................................................................................39
Breakeven Analysis............................................................................................................................................39
Financial Requirements.....................................................................................................................................39

GLOBAL BUSINESS MANAGEMENT 7
Week 11.................................................................................................................................................................39
Financing............................................................................................................................................................39
Business Viability...............................................................................................................................................40
Refrences...............................................................................................................................................................42
Appendix................................................................................................................................................................43

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Executive Summary
The report provides sound knowledge, information and accurate data regarding Palliser Furniture
Upholstery Ltd. It gives a detailed account of its constitution and its present aims, position and objectives.
Palliser has been successfully manufacturing furniture of supreme quality for the people in UK at reasonable
rates. The values, threats, opportunities, merits and demerits are discussed below. A detailed discussion about
the pricing of the company and its aim of expanding its branches to other nations have been discussed vividly.
Furthermore, the marketing strategies are given to be consistent in the business activities. The mission and
the vision of Palliser are stated in clear terms.

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Introduction
Palliser furniture was established in 1944. The main focus of the company has been on making best
quality products for home & customer satisfaction. Since establishment, the main aim of the company has
been to expand throughout the Canada, USA & Mexico. This is because they want to attract customers globally
to use their products. In this way their business would expand and their productivity would increase. The key
milestone of the company is to provide aristocratic and supreme quality furniture in the homes of the
consumers. It is the second largest furniture brand in Canada.
Company’s Information:
Company name: Palliser Furniture Upholstery Ltd
Type of business structure: Private (Family owned)
Ownership/management team: Owner/CEO-Peter Tielmann
President: Cary Benson
Vice President of Operations &Engineering: Mark A. Wiltshire
Corporate HR Manager: Cintia Pauls
Location: It is headquartered at 70 Lexington Park Winnipeg, MB R2G 4H2 Canada and it runs it business at
different locations in Canada, USA and Mexico.
Vision:
Bringing the best of furniture items to the homes of their customers and providing satisfaction is the
main vision of Palliser furniture. They work together to become one of the most extraordinary furniture
manufacturers in the world. Apart from just making products, they also deliver the products to the customers.
These visions highlight their effectiveness and cooperation with their customers to facilitate them to the
extent the company can. The vision for UK is that all the consumers who want to purchase furniture, deserve
the best quality at a cheapest price. For this, Palliser wants to be in every home.
Mission:
Palliser Furniture focuses on producing the great quality furniture for the home and also make valuable
products at economical prices. The mission of the organization is to keep up client connections & fully cope-up
with the needs of the customers. For the UK market specially, it aims to project long lasting conservation of
the natural resources and also to deliver the best quality furniture in the homes.

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Products Information:
They produce and sell various kinds of furniture for bedrooms, kitchen and living room. They include
sofa sets, dining table sets, Lamp shades, TV cabinets, cupboards, shoe racks, book shelves etc.
Values:
Performance
The number of customers depend on how we perform our duties in making them available with the
best of products. We continuously work towards improving the services we provide, more efficiently usage of
our resources.
Responsibility
The condition of the human life can be improved with the successful working of the organizations. We
work by following all the business ethics. We use our resources efficiently which reduces their wastage and
have a healthy impact on the eco system. We give more emphasis on the security of our clients and the people
who represent us.
Advancement
As an organization we believe in doing the work with more creativity and with the new ideas. We
believe in putting our ideas in our resources and create those ideas in a framework.
Client Care
We give more focuses on the need of our clients and work according to their needs. We work as to
make more loyal customers.
Employee Satisfaction:
We keep an eye on the needs and want of our workers. We work for the betterment of our employees
and more development of the administration. We respect our employees and support their ideas and the
things they have learned from their past experiences.
Following are the important values of Palliser Furniture:
Our People – For a long period of time, the Palliser furniture has been a leader in the furniture industry
by meeting the design expectations of their customers and making them available high-quality furniture at
very reasonable rates. We’re a proud company and are inviting you to experience what it like is to be our loyal
clients and what makes us repeat customers.

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Our philosophy – The business of Palliser furniture is run on the trust and relationships that we’ve built
with our customers over the years and we believe that honesty and credibility are our keys to success. We
only work towards the satisfaction of our customers.
Technical Experience – since the start of the company, Palliser furniture has developed a team of great
individuals, designers, managers and technicians. These people give our organization the depth required to
deal with even the most delicate of situations and fulfill every request of our customers.
Service and Warranty – Even after selling the furniture, we are not done with our clients. We provide
them with a 90 days of return policy if they find the product unsuitable to their needs or if they are facing any
problems. Any type of requests is fulfilled without any questions as our only aim is to satisfy our customers
and help them build their homes their way and style.
Business Objective:
The main objectives of Palliser Furniture in UK are to provide dedicated service to the consumers by
supplying them the best furniture at the lowest rates. Further, to provide proper maintenance to the furniture
of the consumers. Lastly, to expand its business all over UK, Canada, USA and Mexico.
SWOT Analysis
Strengths
Strong Brand image
Recruit new employees with diverse ideas.
Using new techniques for distribution of the
products
Using of quality raw materials
Opportunities
To became the leader in the furniture
company
Sell the furniture throughout UK
Increase revenue by increasing sales
Innovation furniture at reasonable rates
Weaknesses
Renovate the products at a reasonable cost
throughout the globe.
Limited inventory to satisfy more demand
Less confidence of the consumers
Lack of communication between
management and staff in certain spheres
Threats
Economy is not stable in UK
Competitors giving more discounts to the
consumers
Lack of knowledge of improvement among
the staff
The climatic conditions create a barrier in the
storage

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UK
Geographically speaking, the countries of England, Scotland, Wales and Northern Ireland constitute UK.
United Kingdom is 500 kilometers in width and almost 1000 kilometers in length. United Kingdom is consisted
of 120 kilometers of sea as well. This indicates that UK is the most suitable place for furniture industry to
foster. Moreover it possesses ample resources for the raw materials to prosper into the best quality of
furniture. A DEPEST analysis on UK and the various factors which might help the Palliser furniture to grow in
UK has been made.
DEPEST Analysis
Demographic:
The age structures of United Kingdom are as follow:
Age Group Percentage in total population Income Levels
Up to $1000 PA
Up to $ 500 -$ 2000 PA
Up to $ 10,000 - $ 20,000 PA
Up to $ 10000000 PA
Up to $ 500000 PA
0-14 years 17.53
15-24 years 11.90
25-54 years 40.55
55-64 years 11.98
65 and over 18.04
From the above table, there are high probabilities among the population of UK to purchase the
furniture from Palliser. The high income groups are generally above 25 years of age. This is the age when
people settle to have new homes. They are the promising consumers in UK market.
Economic:
As compared to other countries the economy of UK is relatively stronger. The GDP of UK is high but it
has some issues. The positive and negative factors are: