Haverwood Case Analysis Article

п»їAmy Weaton

Professor Mostro

Haverwood Home furniture

Haverwood Pieces of furniture Individual Overview


In 2008, Haverwood Furniture and Lea-Meadows Incorporation. merged into one company. The problem at hand requires merging the selling work of the two companies. That they both go about selling goods differently and the best strategy is unclear. John Bott, of Haverwood, believes that Haverwood sales representatives implement the best selling strategy whereas Matn Moorman, the national product sales manager for Lea-Meadows thinks that they have the superior approach. Haverwood is actually a manufacturing firm that makes medium-high priced home furniture made out of wooden. Net revenue for Haverwood was 75 million in 2007 with a before taxes profit of 3. 7 , 000, 000. They make use of their own sales representatives who represent 1000 different full accounts for the company. These associates earn an annual salary of 70, 500 (plus expenses) and obtain a commission of. 5% with the company's net sales. Haverwood believes that their revenue personnel are highly regarded inside the furniture sector, knowledgeable about real wood furniture, and willing to work with buyers and retail sales staff. The only negative point about Haverwood's selling strategy is that each of the retail accounts that the merger will create tend not to carry the finish Haverwood line. In order to combat this, Botts was advised to push the sales repetitions, urging these to make 12 sales cell phone calls per week and increasing the call frequency to seven calls per year. However, Lea-Meadows is a small , for yourself owned manufacturer of padded furniture intended for living and family bedrooms. The company is well know for employing some of the very best fabrics and frame structure. Their net sales in 2007 had been 5 million. Total market sales to get upholstered pieces of furniture manufacturers had been 15. 5 billion. This number is definitely expected to enhance 3% annually in the future. Lea- Meadows utilizes 15 sales people. These providers also stand for several...

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