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21 Tyndall Furniture
Company (B)
It is most important that we come to a decision in the near future. As the issues involved
have been discussed for some time now, the proposed investment is not something that’s
new to us all. However, in order to capitalize on the advantages that having a modernized
rough mill will provide, an important consideration is to phase its introduction in line
with marketing’s plans for a new product range linked to the High Point Furniture Fair
this time next year. Getting the timing right is often, as we all known, as important as the
investment itself.
Company Background
Established in 1898 by Henry H. Tyndall, the company remained a family-owned
business until 1963, when it was bought out by Berkron Industries Inc., a large
conglomerate with interests in textiles, chemicals, food, clothing, retailing and,
more recently, financial services. Although predominantly based in North America,
Berkron also has interests in Australasia and Europe.
Although in the past the company had been an above-average profit earner within
the furniture industry as a whole, in recent years its performance had declined (see
Exhibit 2), a fact that led to the appointment of Matt Culley as chief executive
officer two years before. As with most markets, the furniture industry was both
becoming increasingly more competitive and witnessing significant changes in both
products and market outlets (see Exhibit 3).
This case was prepared by Professors W. L. Berry (Ohio State University), T. J. Hill (University of Oxford), J. E. Klomp-
maker (University of North Carolina) and W. G. Morrissey (North Carolina State University) as a basis for class discussion
rather than to illustrate either effective or ineffective handling of a business situation. © Professor W. L. Berry, Professor J.
E. Klompmaker, Professor W. G. Morrissey or AMD Publishing (UK). Inquiries in the USA to Zip Publishing, 1634 N.
High Street, Columbus, Ohio 43201.
539
Note
1. Dimension stock is wood components ready for fine mill operations.
Product Strategy
‘Part of our decline’, explained Greg Procter,
has been the failure in the past to offer an adequate product range. Understandably, our
customers have been demanding a fuller product line as a key feature in boosting overall
sales. Our principal furniture designs are Colonial and Early American, and within these
‘looks’ we use primarily oak and cherry woods.