‘Designing Strategies’ eNewsletter
January – February 2008 Volume 5 — Issue 20
The 2007 Fortune ‘Top 100 Best Companies to Work For’ is out. Once again, several of our own have made that coveted list. Milliken ranked 92nd , Herman Miller ranked 96th and Sherwin Williams was ranked 98th on the list. Milliken provides extensive hours each year for professional training of its staff, having an on-site fitness center, and allowing for telecommuting. It was recognized for having a diverse workforce: 40% of their employees are minorities and 39% are women. They also have a strong nondiscrimination policy.
Herman Miller was cited for their job growth in 2007, an onsite fitness center and subsidized gym memberships for employees. They provide job sharing and a condensed work week, as well as allowing for telecommuting by employees. Their staff consists of 20% minorities, 40% women, and an impressive 23% of their workers have been with HM for more than 20 years. Like Milliken, Herman Miller has a strong
nondiscriminatory policy in place.
Sherwin Williams ranked 98th , boasting of recruiting employees for the long term. Their CEO has been with the organization for 25 years. Of their staff , 10% have been with SW for 20 or more years, and another 30% of their staff have been with them for more than 10 years. Like the others, SW has a fitness center on site and subsidize gym memberships for employees. Extensive professional training is provided for employees, of which 22% are minorities and 20% are women. SW also has a nondiscrimination policy.
Congratulations!
There was an unnerving article in the 1/27/08 issue of ‘The Columbus (OH) Dispatch’. The hot topic was about a growing number of furniture manufacturers and retail stores in the area either entering bankruptcy or going completely out of business. While the much discussed mortgage lending fiasco was certainly a contributing factor, this trend has been growing for some time. Clearly, many of these companies had not prepared marketing strategy for outside influences on their industry.
Sofa Express was in the news a while ago announcing it will close its 41 stores and its headquarters. A number of traditional retail furniture stores, including long-time family-owned businesses have been spiraling downward over the past several years. Nearly 400 retail outlets for The Bombay Company have closed. ( update: Bombay Company now licenses their products for sale by brick and mortar stores and online outlets. 2017) A number of well-known and respected residential furniture manufactures are also feeling the economic pinch and seeing double-digit drops in sales figures.
What Prompts a Change in Marketing Strategy?
If not simply the fault of the mortgage lending crisis, then what is causing these tremors in the furniture manufacturing and retail industries? Simply put, change is the problem. Change from a local or national economy to a global economy. Changing competition from overseas manufacturers where materials and labor come much cheaper than here in the US. Changes in the cost of gasoline and heating fuel are affecting bottom lines.
Changes in customer expectations are being felt. Customers who once looked for durable, long lasting products are now satisfied with products of lower quality with shorter life spans. Younger generations now want furnishings that they can replace in five years. Changes in competition are having enormous effects. In the past, competition came from the other furniture stores or manufacturers in town. Now it is comes on the Internet from all over the globe, in big box stores and specialty shops. Customers used to order customized furniture and wait excitedly for its arrival and installation in their home. Today’s customers want it now, as is, preferably in their home today.
Prepare to Change Marketing Strategy in Your Firm
How can you prepare for this constant barrage of changes that can and do affect your business? One store owner in the ‘Dispatch’ article said: “Sometimes, you’re a victim of the economy and of being caught with a business that’s just not set up for that point in history.” That one sentence explained his problem. His business had been set up for some specific point in history. He was unprepared for outside influences on his business and strategically poised to battle them. He had not looked to the future and planned scenarios for dealing with changes. Not seeing the changes coming his way, he failed to adapt his company marketing strategy.
Too many struggling and failed businesses didn’t think or act strategically to assure they were ready for variations affecting their marketplace. Factors like changes in technology, the economy, sociology, environmental issues, and the political arena can have profound affects on a business. It is imperative to keep abreast of what is happening in the world around you and adapting to those changes. Outside influences can have major effects on any small business. It is imperative that strategies are in place to address changes those outside influences can bring to your business. Like boxing champion Mohammed Ali, small businesses should ‘bob and weave’ to avoid being blindsided by changes.
Look to the future now to see what changes might be coming as a result of trends just beginning to surface. Create a number of ‘What if?’ scenarios based on those trends becoming strong realities that will affect your business. Stay flexible and able to adapt quickly to changes that start affecting your bottom line. Don’t sit back and just hope the economy will swing the other way, or that overseas markets and workers will all just suddenly go away. Stay on top of environmental influences on your organization and market, then strategically plan to tactically embrace those changes.
While you’re planning your training and/or marketing calendar, don’t forget to include an educational program by Terri Maurer. Two of her most popular programs, ‘Managing an Age Diverse Workforce” and “The Changing Market Place: Selling to the Generations” were presented to sold out crowds around the country this year. To bring one of Maurer’s educational seminars or training sessions to your region or company, contact Terri directly at Maurer Consulting Group. Call her at 330.666.0802 or send an email to schedule for your event or staff training session.
