 The case gives us the clear picture that how

the household furniture industry was

working…..
 And this case is also telling about how the
growth & sale was affected as the industry
was highly unorganized..
 the household furniture industry will grow
1.9% to 2.9% annually for the next 15
years….
 The production cost was very high due to
which the profit was very low..
 There were some external factors which
were also affected scale.

External factors:-
1) the marketing strategy adopted by
industry
and distribution was not up to the mark.

2) time lagging was also another factor.

3) furniture sale was highly depended on

consumer credit..
 Shorterm objective:-
increasing sale & improving delivery system
..

 Long-term objective:-
to make the households furniture industry
organized & competitive…
 This sector is highly unorganized &
percentage growth of marginal scale was
declining per year from 25.4% in 1983 to
78% in 1985.
1)Industry was labor intensive high wage rate
was one of the reason for production cost.

2)Lack of professionally managed organization..

3)Poor marketing strategy..

While reducing cost quality should not be
compromised.
Competition should increase so that costumer
is benefited.
 Mergers & acquisition.

 Contract manufacturing.

 Government aid.
 Production will be done on last scale it will
reduce the cost.
 Companies can take discount on bulk
purchases of row materials from suppliers.
 Companies by using automated and latest
technology machines can reduce time in
production.
 Optimum utilization of resources will be
there.
 Just in time(JIT) strategy can also be
followed.
To decide in which company to invest or which
firm to merge & acquire..
We should have also take a close watch an the
potential of growth of the firm this decision
involves to following steps..
Comparing the firm .
Placing of bid on the business & negotiating
with seller ...
Purchase of business firm is done…
Properly managed …
Company strategy regarding contract
manufacturing should be like that, by
contract manufacturing companies get
product at righy time at right place and of
right quality and in right quantity.
Due to it companies can concentrate on other
productive and effective works like
companies will improve its marketing efforts.
It is being observed through out the case that it
is households furniture industry is highly
unorganized and it marketing strategy and
means of production are also not effective...
It is suffering from economic crunch. Mergers &
acquisitions will provide companies a
professionally managed organization,
Companies will adopt good marketing
strategies.