Dahlia Case Study

4282 words 18 pages
OVERVIEW
1. Time Context
The problem has to be solved by the year 1985.

2. Viewpoint Mr. Chua Boon Kang and Mr. Leong Sim Lam

3. Major Policy Statement
Dahlia Furniture Private Limited is a local furniture industry, which supplies usually kitchen cabinets, wall units, bedrooms set and dining set. It also has metal and wood furniture sets.
4. Background of the Case
a. The Company
Dahlia Furniture made its entrance into the furniture industry in 1972 as subcontractors to two large furniture concerns, Ching Lin and Diethelm. It supplied mainly wall units and kitchen cabinets while bedrooms sets and dining sets were subcontracted out or obtained from local suppliers. Business went well and the company decided to branch into retailing.
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Although co-owners at one time, Mr. Chua and Mr. Leong have found Mr. Lim’s management of the company to be unsatisfactory. Some reorganization took place as most of the production workers who were doing subcontracting orders solely for Dahlia had resigned due to poor company performance in 1982. Dahlia also sold off seventy five thousand dollars ($75,000) worth of machinery used for mass producing furniture which was previously purchased by a former Managing Director, who has since left the company. Now at the helm, both are uncertain about the long term direction of the company. Meanwhile, they are both concerned over maintaining sales growth in a highly competitive industry.

2. Statement of the Problem
What should the management do to maintain sales growth and improve company’s position in a highly competitive industry?
3. Statement of Objectives o Long term – To become the largest manufacturer of furniture and exporter in the furniture industry.

o Short term – To maximize the profit of the company.

4. Areas of Consideration
 Taxes applied to importation: The Singaporean government imposes 5%import duties for goods imported in the country. This area should be taken into consideration because this will affect the entity’s expenses when such importation has been made.
 The government’s policy regarding foreign labor: In the production of the furniture , the company needs to employ the services of the laborers. The company should determine the amount of

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