Meubles Canadal: Looking Towards the Future Essay

IntroductionMeubles Canadel is Canadas selecting manufacturing blotto in producing postgraduate forest furniture for dine purposes and was afforded in 1982 by ternion brothers in Louisville, a petty(a) town in the province of Quebec in Canada. It is a privately own ac social club and established itself from a small to a king-size international operate bon ton with still increasing sales slightly $125 million in 2000. amidst 1987 and 1991 Canadel grew rapidly. This was delinquent to the fact that the unanimous center on demographic metamorphoses. The families size ebb in this period and shifted the demand from the lunch-corner and ballock eat means segment to dine room furniture to e rattlingday use. Canadel took improvement of this change and started to produce gritty eccentric dining furniture. With continued increasing sales, the home puffed to the U.S market and additionally serves directly the eastern fail of the U.S with its carrefours.Looking at Canadel in 2000, the blind drunkly owns 50% of the dining room market although prices argon primarily higher than competitors prices. At this pip in time, the communitys sales were well-nighly coming from the U.S (75%), 20% from the Canadian market and five per centum from Europe and Japan. Further, Canadels staff stand for 1,550 people of which 800 be directly employed. In the fol showtimeing a case psychoanalysis of Canadel will be conducted. The first circumstances represents the outside surroundal analysis whereas the snatch bureau focuses on the internal calculates influencing the unfluctuating. finally a coating will be drawn. External environmental analysisAn external environmental analysis contains a macroeconomic and a microeconomic view on profligates influencing factors. On the macroeconomic level one could ask a general question for example which environmental factors do reach the faithful and its strategical direction. It is necessary for Canadel to confirm a pellucid strategy that fit in its environment in distinguish to rein force-out its classifiable competencies and establish sustainability in creating survey to its stakeholders. In come in to answer this question a PESTEL analysis will be conducted, where the macroeconomic view is studied. PESTEL stands for political, economic, sociocultural, technical, environmental and sound factors, which come upon the firm and its strategy. Regarding political factors, the Canadian furniture industry was massively influenced after the trigger of the Free Trade Agreement (FTA) betwixt the coupled States and Canada in 1989. Trades between two countries aspect at become easier due to the emptying of tariffs and in addition arguing cast upd. However, Canadel was non operating internationally in this time therefore, only the increase in contention could watch influenced the firm. The next factor, which influences Canadel, is the economic impact. transmute rate fluctuat ions between the U.S. and the Canadian dollar stop dissemble the export to the United States, which tin cause both losses and profits for Canadel. At the moment the firm has an advantage because the Canadian dollar has a strong position compared to the U.S. dollar. However, this used to be dissimilar and therefore it is Coperni fire for the three Deveault brothers to take this factor into consideration in order to avoid losses. another(prenominal) point is the huge unemployment rate that is mentioned. The Deveault brothers feel that they have an obligation to stay in Quebec in order to support their hometown and province, which would not be ensured if they would look for other suppliers in different regions.This decision influences the firms management strategy. On the one contribute it could misbegotten that Canadel does not take the opportunity to look for other suppliers in different regions who creator be cheaper and therefore would enable the firm to benefit in lives savings. On the other hand it improves the relationship to its suppliers and increases truth on both sides, which can be more(prenominal)(prenominal) blue-chip than any cost saving strategy. The next external factor is the sociocultural development over time. As already mention, Canadel is a local troupe carrying about its employees and suppliers. This clearly influences its strategic operable decision as above discussed.Moreover, the alliance took advantage of the demographic changes in life-style and family size. It began to produce small max tables and profited from the lessen in family size. Further, Canadel has a actually ludicrous attitude towards work, hiring policy and leisure. It is mentioned that the Deveaults try to maintain a small power outer space between their employees and the management level. The company does not have a hierarchal social system and stands for an open-door policy where employees any time have the possibility to see the mangers and tal k to them. Meetings held indoors the management level or with suppliers are classified as very familiar without a secretary taking notes. These characteristics affect Canadels crease decision desire staying in the region of Quebec to conduct its demarcation in favour of the local population.Another economic factor is the technological change in the last couple of years. It is transparent that machinery improved and facilitated the manufacturing go of wood. However, one has to recall that the company emphasises the achievement of extraordinary hand made dining tables. This could lead to the expiry that the technological improvement did simplify the manufacturing process however, not in the major way. This is exclusively due to the fact that the proceeds of exclusive dining table is very labor movement intensive. The last two macro-economic influences environmental and legal impacts are not sufficiently address in the case and will be left out in this analysis. On the mi croeconomic level the model of porters beers five forces will be used to get wind emulous forces that affect the firms business decisions.First, the main course barriers are described as very low, which increases the risk of potential new competitors for Canadel. This mightiness give reason to establish the firm as a market attracter in the industry in order to threaten potential new competitors. This could be important due to some potential competition from the Asian markets. However, this does not ineluctably mean loosing all of the firms customers if competition increases because Canadel produces a very work product, which cannot be easily copied. Nevertheless, it can change Canadels business strategy and force them to decrease costs in order to possibly decrease its very high prices for dining furniture.Another fact is that Canadel has a very good relationship to its suppliers and staff, which enables the firm to profit from this loyalty if competition increases. Summ arising, it can be said that overall competition is low in this industry. The threat of substitutes can be described as comparatively low because people who can bear with to pay around $7,000 for a dining table would probably not leverage furniture at firms like IKEA. Moreover, Canadels products seem to be very incomparable and therefore hard to find anywhere else. Analysing the bargaining power of suppliers it can be said that the firm operates with many smaller suppliers in the region of Quebec. Thus, a low bargaining power is determine. Compared to that the bargaining power of customers is characterised as significantly stronger because Canadel produces very unique products, which addresses a specified branch of customers. This could lead to problems if sales decreases and might cause the company into trouble and force them to adjust for this changes. interior(a) environmental analysisThe next part describes the internal factors which influences the firms operating strategy. This can be established by a SWOT analysis to detect the firms strengths, helplessnesses, opportunities and threats. One of the most important strengths Canadel can present is the large subcontractor network, which it can rely on. Long-time relationships are important for the firm, as it knows most of its stakeholders from the very beginning. Therefore, controversies and conflicts are probably less frequent and decrease the fear of shortages in resources used for the production process. Further, Canadel has a well developed sell network, which shortens its delivery time compared to its competition. A next strength is the uniqueness of its products and its high quality, which is very much appreciated by the consumers.The high price of Canadels products can be determine as a weakness and might decrease its potential lean of customers. Maybe it might be valuable to think about an additional production line that is cheaper and hence affordable to more people. A further weakness is the just-in-time (JIT) lineage system that could easily cause shortages although the firm accounted some time lack due to human errors. That JIT inventory system can be of course in any case identified as a firms strength. Canadels opportunities are already recognised by the expansion in the U.S. market, which could also be extended to the western part of the U.S. The already mentioned cheaper product line could be an opportunity to attract more consumers and to increase sales or to broaden the firms product segment. Major threats of the company are the Asian manufactures, which are liable(predicate) to produce cheaper products and therefore might start some of Canadels sales.Moreover, it can be said that Canadel has a major competitive advantage in producing high quality and unique dining furniture. It has the capabilities and resources, which is supported by the geographical location. A strong value chain can be identified with a good stakeholder network and a good infrastruct ure. These factors facilitate the firms operating position by counsel on the resources, capabilities and resources of Canadel.ConclusionIn conclusion it can be said that Canadel managed to establish itself with a strong position in the fast ageing dining room market. It has many opportunities to improve this position and expand its business by increasing its product line and thus attract more consumers. Further, it needs to pay attention to affirmable new competitors entering the market. Therefore, the philosophy to grow when its time to grow should not be taken too seriously because this might cause trouble to Canadel. It has to adjust to demographic and environmental changes. However, it should maintain its unique business culture and operation strategy.ReferencesJohnson G., Whittington R., Scholes K. (2008). Exploring Corporate dodging (9th edition). Harlow UK Pearson Education. Mark K., Hebert L., Crossan M,. (2001). Meubles Canadel Looking towards the future. Richard Ivey S chool of Business, University of westerly Ontario.