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Kacey Fine Furniture: Human Resources Management in the Face of Change
Case Study
BUSA 4980
Professor Charles Nichols
April 7, 2003
Group K:
Nam Kim
Jeremy Kwon
Gil McMillan
Jessica Won
Naima Wood
Table of Contents
Company History and Case Summary
2-4
Present Strategy
. ... 4-5
Kacey Product Lines
5-6
Situational Analysis
. ... 24
Company History and Case Summary
Kacey Fine Furniture began as a small floor-coverings store in 1950 and later expanded its product line to include fine furniture in 1965. ... The two of them eventually went on to run the business and evolved the company into one of Denvers major suppliers of furniture. ... Kacey moved its original location to a seven story building in lower downtown Denver (LoDo) and opened a second showroom in the suburbs. ... Retail businesses were hit hard by the economic downturn in the late 1980s and the furniture industry was hit especially hard. Selling furniture is a difficult business because there is not much room for product differentiation. ... Kaceys new plan was developed so that everyone would share the same mission and buy into this new corporate culture. ...
Kacey values entrepreneurship and is committed to developing this mindset in their employees through training and education. ... Kacey Fine Furniture is interested in what each employee has to say and will pay for their suggestions. Kaceys culture encourages a great amount of participation and involvement from employees of all levels. ...
In 1996, Kacey Fine Furniture was faced with a huge challenge. ... Selling furniture in LoDo would become increasingly difficult because it was no longer the furniture district that it once was. ... Kaceys Operation Manager, Tom ODonnell, believed that the downtown store eventually become an asset to the company. ...
Present Strategy
The present strategy for Kacey Fine Furniture has not changed over the last decade. ... This strategy is also what made Kacey a first mover. While many of the furniture stores in the Denver area were suffering, Kacey was the first to make such a drastic change that would ultimately improve their future.
Kacey Product Lines
Kacey Fine Furniture offers a wide variety of high quality furniture at each of its five showroom locations. ... In many cases the sales associates do not have to work hard at convincing customers to purchase certain selections of furniture because the name brand represents quality. Kaceys top five selling product lines are listed below:
Henredon - Company uses only high quality wood and upholstery items and each piece is manufactured with a considerable amount of hand and detail work. ...
Drexel Heritage Company ranks high among the top furniture manufacturers in the world in terms of size and volume. ...
Stanley The Stanley goal has always been to manufacture high quality furniture at a price the average American family could afford. The company has surrounded itself with the finest furniture craftsmen and has instilled a sense of pride in them so that they build the best quality into every Stanley product. ...
Situational Analysis
Firms in the furniture industry have experienced a substantial amount of rivalry throughout all phases of the economic cycle. Some furniture companies have enjoyed above average returns during the last few years whereas others have had to close their doors or file for bankruptcy protection. Despite some of the challenges Kacey Fine Furniture faced in the mid 1990s, they have enjoyed a steady increase in profits and have been able to expand by opening three additional locations in the Denver surrounding area. Kacey now has four showrooms and one clearance center that are all doing very well. The furniture industry is highly competitive in the Denver area because customers have over 250 retail furniture stores that they can purchase furniture from. Kacey has managed to maintain its rank as one of the largest stores in the area. Although there is not much room to differentiate furniture product lines, Kacey is able to maintain their competitive advantage by offering top-notch service to its customers.
According the Kelly Stancel, sales manager of the Denver showroom, Kacey has held their own during these trying economic times. ... When LoDo Denver began its transformation into an entertainment district, Kaceys leaders were worried that the end for their main showroom was near. ... Stancel is pretty optimistic that Kacey will remain in this location for many years to come. ... Kacey provides everyone that walks into the store with quality service even if they are only stopping by to kill time before an event. The company believes that these guests will need to purchase furniture at some point and will return to Kacey where they were treated well. Kacey is dealing with the impact of the current war the same way. The company has experienced a decrease in customer traffic since the war with Iraq began but they are concentrating on selling furniture to every customer that walks into the building. ...
There are definitely barriers to entry in Denvers furniture industry. Denver experienced a large residential growth in the 1990s and the city was described as the fastest-growing furniture market in the U. ... Although many of those furniture retailers are no longer in business, a significant number of them are still operating in Denver. ... Kacey Fine Furniture has developed economies of scale in several of their business functions. ... One employee developed a plan to handle a problem Kacey was having with freight. As a result, Kacey now has one of the lowest incoming freight rates of anybody in the country. ...
The rivalry among furniture competitors is so intense because they are not able to differentiate their products in a way that is valuable to customers. ... Kacey has done this by offering in-home sales. A Kacey customer can have a sales representative come to their home and help them decide on a selection of furniture based on the dιcor in the customers home.
Approximate Word count = 4758
Approximate Pages = 19
(250 words per page double spaced)
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