11
an Miller Inc.: Unrelenting Pursuit of Reinvention and Renewal
Herman Miller designs, manufactures, and sells office systems, products
and services internationally. Based in Zeeland, Michigan.
1905 1942
1905 Star
Furniture
Company
1909 Hired De
Pree as clerk
1919 De Pree
became
president
Designed &
Manufactured
bedroom set until
1942
1942 first office
furniture:
Executive Office
Group
1942 1980s
1944 Hires
Nelson as first
design director
1946 hires
Charles & Ray
Eames
1950s launch
Eames Lounge
Chair
1960s introduce
Action Office
System
1970- Turn go
public
1981 Initiative to
become more
efficient/ecofriendly
1983 initiative to
1990 2000s
1994 Founding
member of US Green
Building Council
Establishes Leadership
in Energy &
Environmental Design
Standards (LEED)
1994 Launch Aeron
Chair
1995 Hire Mike
Volkema as CEO
2000-2001 Record
profits
Post 9/11 Sales drops
by 34%
Volkema makes change
cuts 38% of employees
2003 - 2008 Sales are
stable, but profits hit all
2013
Organizational Values titled What
We Believe :
Curiosity & Exploration
Engagement
Performance
Inclusiveness
Design
Foundations
A Better World
Transparency
Functional
MARKETING
Value-Driven Marketing:
Integrated Green Marketing:
Functional, Emotional & Spiritual
Products (2003, Mirra Chair top
10 green product)
Waste Reduction (24 Mio lbs to
3.6 Mio lbs from 1994 to 2008)
Herman Miller Greenhouse
PRODUCTION/OPERATION
HR MANAGEMENT
Culture of Empowerment &
acknowledge talents
Cross functional team based on
product development
Various benefits to it employee
Research-driven design
Lean Manufacturing:
Herman Miller Performance System
(HMPS)
Multinational subsidiary &
branches:
Canada, France, Germany, Italy,
Japan, Mesiko, Australia, Singapore,
China, India and the Netherlands
FINANCE
Very influenced by macro
condition
Debt-to-equity from 1.18 in 2006 to
47.66 in 2008
Even in turndown, still invested
ten of millions dollars in R&D
SWOT Analysis
Strength
Opportunities
Very strong R&D Innovative
product & process
Various award
Company Culture
Known as Green company
Herman Miller Production
System (HMPS) Just in time
Process
Proven to survive multiple
Weakness
recession
Increase in demand for
ergonomic furniture
Growing desire for green
products
Vulnerable to loss in bad
economic condition
Extremely dependent on US
office & government
institutions.
Technological advances
decreasing the need for office
furniture
Prices of raw material
constantly changing
Threats
Value Chain
Supply Chain
Management
Agreement
with suppliers
to deliver
parts to
Herman Miller
production
facilities in a
just-in-time
process
outsources
component
parts to
suppliers
Operations
Herman Miller
Production
System
(HMPS) Just
in time
Process
Minimizing
inventory
cost by
purchasing
direct
materials and
parts as need
to meet
demand
Distribution
s
Sales &
Marketing
Manufacturin
g operations
locatedin
different
countries,
and it
produces the
products and
delivers to
the local
independent
dealerships
Value-driven
marketing
through:
Green
Marketing
Service
explanations
and
description
for the
products, and
customers
support
Product R&D, Technology, Systems Development
Focus on improving and innovating products, even during the recession.
breakthrough product concept & acknowledges by external
Human Resource Management
Culture of empowerment & acknowledges talents
Various benefits to it employee: profit sharing plan & employee stock purchase
plan (ESPP)
General
Administration
Herman Miller
Greenhouse Factory & Offices
VRIN Test
Rare
Inimita
ble
Nonsubstituta
ble
Conclusion
Yes
No
No
No
Competitive Parity
Worldwide
distribution through
independent
dealership
Yes
No
No
No
Competitive Parity
Various benefits to
employees
Yes
No
No
No
Competitive Parity
Yes
Sustained
Competitive
Advantage
Yes
Sustained
Competitive
Advantage
Yes
Sustained
Competitive
Advantage
Resources /
Capabilities
Valuabl
e
Herman Miller
Production System
(HMPS) Just in time
Process
Culture of
empowerment &
acknowledges talents
Value-driven
marketing:
Integrated Green
Marketing
Very strong R&D
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Recommendation
Herman Miller continuously investing in R&D and innovating
in products to satisfy the need of its customers earned the
customer brand loyalty.
The company willingness to contribute in the green world
and environmental friendly strategy gained a good reputation
and feedback in the market.
As the company new product lines meet the increasing demand
of ergonomic health products in the working environment,
the new innovation product will become a competitive
advantage over its rivals.
