MGMT 690: Strategic Management in a Dynamic Environment Report

This report provides a comprehensive analysis of strategic management within a dynamic environment, focusing on the office furniture industry. It identifies and examines global competitors like Steelcase and Herman Miller, analyzing their competitive advantages, including product innovation, brand image, and market presence. The report utilizes SWOT analysis to evaluate the strengths, weaknesses, opportunities, and threats faced by these companies. It also explores the potential for cooperative strategies, such as joint ventures or horizontal integration, and suggests strategies to enhance a company's competitive market profile through innovation and customization. Furthermore, the report explains the concept of the balanced scorecard as a tool for strategic management and performance measurement, covering its four perspectives: financial, customer, internal processes, and organizational capacity. The analysis is supported by relevant references to academic and industry sources.

RUNNING HEAD: STRATEGIC MANAGEMENT IN DYNAMIC ENVIRONMENT
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Strategic Management in Dynamic Environment
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Table of Contents
Global competitors and why are they direct competitors................................................................2
Competitive advantage....................................................................................................................2
SWOT Analysis...............................................................................................................................4
Could you form a cooperative strategy with any of the competitors?.............................................6
What strategies could you use to build a competitive market profile?............................................6
What is balance scorecard?..............................................................................................................6
References........................................................................................................................................8

Global competitors and why are they direct competitors
The global competitors that are analyzed in the global environment in office furniture
industry are Steelcase and Herman Miller. These brands have global presence and have strong
brand image in the office furniture industry. These are the brand that can give direct competition
because of same line of products at competitive price and the industry in which these brands are
operating is similar so these are the direct competitors in global market (Buehlmann & Schuler,
2019). Hence competition is bound to happen.
Competitive advantage
Competitors at global platform in office furniture
industry
Competitive Advantage
Herman Miller  Ability to offer furniture for offices to
solve problem of space
 Commitment to excellence and offer
quality products to its customers
 New product research and innovative
designs are main advantage or strength of
the company
Steel case  Experience and brand image of the
organization in office furniture is strong
 Strong portfolio of furniture

 Good management structure and decent
balance sheet or optimum utilization of
resources

SWOT Analysis
Basis Herman Miller Steel case
Strengths  Strong base of suppliers
 Diversified economic cycle and
expansion strategies that company
adopted are extraordinary and help to
gain advantage (HermanMiller, 2019)
 Strong history of mergers and
acquisitions
 Product innovation and high level of
customer satisfaction
 Steelcase has long experience
in the office furniture industry
that is of 100 years
 Its wise management and
innovation make it different
from its competitors
 Global leader in
manufacturing and sales of
office furniture (Steelcase,
2019)
 Strong research capabilities
Weaknesses
 Low profitability ratio
 Unique selling propositions and
marketing of products not done in an
appropriate way
 Focused only on office
furniture with limited
expansion
 Attrition rate is high in
workforce
 Weak financial structure that
is current ratio and liquid
ratio

Opportunities  Changing environment policies
 Adoption of new technology
 Online customer base
 Company can gain advantage
of acquisitions in near future
 Increasing use of online
platform
Threats  Growing competition at domestic and
global level
 Increasing competition in the
industry
 Creative destruction

Could you form a cooperative strategy with any of the competitors?
Yes, cooperative strategy can be formed with Steelcase as company is looking for tie ups
and acquisitions in order to expand its business and to strong its financial position. The firm can
form cooperative strategy with Steelcase as it benefits both the companies and due to that
objectives of both the companies can be achieved. There are various cooperative strategies that
can be adopted by firm that are through joint venture or horizontal integration as Steelcase has
strong customer base and experience of 100 years in the industry this can help the firm to get
advantage of their customer base and provide innovative products as Steelcase lacks innovation
so this cooperative strategy can prove to be advantageous for both the companies (Reuters,
2019).
What strategies could you use to build a competitive market profile?
In order to build competitive market profile, the firm should focus on offering innovative
products and mainly customized office furniture as of now there are few companies in the market
that are focusing on customization of office furniture so through that strategy firm can improve
its competitive market profile. Innovation and Customization are two key aspects that should be
considered (Myerson & Bichard, 2016).
What is balance scorecard?
A balance score card is a framework that is helpful in managing and implementing
strategies. It is a tool that helps in balancing “financial measures with performance measures”
and attainment of objectives of the organization. This is developed by David Norton and Robert

Kaplan and termed as a performance management tool. Four perspectives are described in
balance scorecard that is financial, customer, internal processes and organizational capacity
(Hansen & Schaltegger, 2016).

References
Buehlmann, U., & Schuler, A. (2019). The US household furniture industry: Status and
opportunities. Forest Products Journal,, 20.
Hansen, E. G., & Schaltegger, S. (2016). The sustainability balance scorecard. Journal of
Business Ethics, 193-221.
HermanMiller. (2019, 09 02). About us. Retrieved from https://www.hermanmiller.com
Myerson, J., & Bichard, J. A. (2016). New demographics new workspace: Office design for the
changing workforce. New York: Routledge.
Reuters. (2019, 09 2). Global Office Furniture Market 2019 Industry Key Players, Trends, Sales,
Supply, Demand, Analysis & Forecast To 2024. Retrieved from
https://www.reuters.com/brandfeatures/venture-capital/article?id=85108
Steelcase. (2019, 09 02). About us. Retrieved from https://www.steelcase.com