Analysis Swot Tows and Financial Herman Miller - 1938 Words

Financial Ratios and Analysis of Herman Miller Liquidity Ratios Liquidity ratios for a company help whomever is analyzing the data determine the company’s liquidity. When a company has good liquidity they are able to pay off their short term debt without having to take out any additional financing. We will look at Herman Miller’s current ratio for 2009 and 2010. The current ratio is calculated by taking the company’s current assets and dividing it by the current liabilities. It shows how many times the current assets can cover the current liabilities. 2009 current ratio | 2010 current ratio | 450.9/282.2= 1.597 | 394.7/313= 1.261 | Herman miller’s current ratio in 2009 of 1.597 shows they have approximately $1.60 of current†¦show more content†¦Employees at Herman Miller feel empowered they have no problem telling a supervisor that they are breaking the rules and also feel like they can make some decisions. Empowering your workforce even just a little boosts morale and makes workers feel like they are important to the company. This in The last strength we will mention is Herman Miller’s production. Herman Miller implements the process of lean manufacturing. They call their process the â€Å"Herman Miller Performance System†. They maintain efficiencies and cost savings by minimizing the amount of inventory on hand by using â€Å"just in time† inventory process in the case they mention that some suppliers deliver to Herman Miller multiple times daily. Weaknesses The first weakness would be how close their debt ratio is to 1. Having such high debt ratio could chase away creditors. When you have a small amount of creditors to choose from then you lose the power to choose between different creditors depending on interest rates and other variables. This could greatly increase things like interest expense. Another weakness Herman Miller might have is also a strength. The manufacturing strategy and using just in time inventory can be very efficient but, it can sometimes create problems. If a supplier ran out of material or some other type of crisis could cause Herman Miller to lose out on orders and in relation lose out on sales. The third weakness is their participative managementShow MoreRelatedExploring Corporate Strategy - Case164366 Words   |  658 Pagesmain issues inï ¬â€šuencing the competitive position of a number of organisations in the same industry with a relatively short case. For a case that permits a more comprehensive industry a nalysis The Pharmaceutical Industry could be used. However, if the purpose is more focused – illustrating the use of ‘ï ¬ ve forces’ analysis – the TUI case study or Illustration 2.3 on The Steel Industry could be used. Some cases are written entirely from published sources but most have been prepared in cooperation with