Leading change in Haworth Asia Pacific case study - Assignment Example

Finally the paper presents a guideline for Haworth Asia to manage the change journey in the near future. The guidelines present some standard tools and checklists that may help Frank Rexach in mapping an action plan for the future. 2. Case Summary and Key Issues 2.1 Introduction Haworth Asia is the second largest designer and manufacturer for contract office furniture and has recently started its second round of global expansion. The company wants to move towards a business model which works in a more integrative way.

This will be a change from their present model in which sourcing and product development happens largely in isolation in different parts of the world. Thus the case was about a company which was a global organization and has to manage issues that are relevant to international marketing or international finance. The company also has to manage cross cultural management. 2.2 Office Furniture Industry Haworth is one of the four global leaders in the contract office furniture industry along with Steelcase, Herman Miller and Teknion.

Haworth has been the most aggressive when it comes to global expansion, with presence in Europe, Australia and China. There are different strategies for global expansion and Haworth has been inclined towards acquisitions and others have been more inclined towards joint ventures. In joint ventures or agency relationships, these companies have to bear with agents or partners who try to push their own cheaper products to customers. Any corporation can adopt different methods to expand internationally.

As was mentioned in the case Haworth has been able to choose its preferred mode expansion, partly because it was a private corporation. Normally a company starts with joint ventures or agency relations as it expands internationally. The tactics of Haworth, to expand with direct acquisitions, will be considered aggressive by most standards.  2.3   Haworth Asia Pacific Haworth is a private company which has worked to their advantage when it comes to global expansion. Their large competitors have to meet the near term expectations of financial markets, which can be a disadvantage during times of financial crisis (even though the crisis may be due to factors completely external to the furniture business, as in this case it was the dot com bubble burst).

Haworth is a global organization since the product design and development takes place largely in USA and Europe, while the sourcing happens largely in Asia, and most of the clients are large multinationals. Haworth Asia pacific differs from Haworth operations in the USA, since Haworth Asia manages both manufacturing and client interaction. In USA, dealers manage the client interface. Haworth Asia was also considering targeting medium-priced segments since they have access to cheap labour and raw material.

So when Haworth Asia Pacific decides to shift its head office from Hong Kong to Shanghai, they will be confronted with a unique challenge. For the first time in the history and culture of Haworth, the functions of manufacturing and marketing will be reporting to the same leaders. The conflicts and frictions that are usually between manufacturing and marketing in most industry can occur in Haworth Asia Pacific as well. They merit thorough consideration and analysis. 2.4   Market Analysis Haworth Asia was number two or three in all the markets, but in all the markets there