Stix Furniture
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STIX Furniture
STIX FURNITURE
INCEPTION
Stix began as Feasibility Study in Business 257.
Wanted to Develop Innovative Furniture Company
Dave Bissinger
Honors Business Administration Degree
Full Time position with Cintas
HOCKEY STICK MUSKOKA CHAIR
Twist on Traditional Operations began in 2003 Targeted Hockey fans Major sales from Women Seasonal Sales During Christmas & Early summer
SALES
• 130 in 2004
• 210 in 2005
• In 2006 it was double of 2005
PROMOTION
• Retail Store & Online Sales
• C.O.D
• 3 week delivery time
• Charity - Name Plates
• Post Card Advt
FINANCING
• Believed CIBC.
• Neither Partner wanted more investors.
• Hiring part-time laborer
COMPETITION
COMPETITIO
NDIRECT
INDIRECT
DIRECT COMPETITION
Bear Chair•Formed in 1987•15,000 sq. ft•Exported to all over the World
Sports Furniture
•Formed in 1996•Complicated Design•Chairs for the fans of sports
Hockey Stick Stuff
•Variety of Furniture•Website was poorly designed
Hockey Stix •Each product was made to order
COMPETITION
INDIRECT COMPETITION Known as SUBSTITUTE competition Arts & Craftsmen Hobbyists & Retirees Sold products at craft shows
INTERNAL OPERATIONS
Manufacturing Process Fixed assets Selling Expenses
Direct InDirect
Overheads
GROWTH OPPORTUNITIES
MUSKOKA CHAIR EXPANSION
U.S. EXPANSION
BISSENGER’S CONCERNS
NEW PRODUCTS
PICTURE FRAMES
MUSKOKA CHAIR EXPANSION Expanding Stix’s distribution network of chair to
Ontario. Contacted the Muskoka store.
U.S. EXPANSION Kevin hilson, a proposal. He agreed to sell the chairs in Boston, and surrounding
areas. Secured an order of 20 chairs. Estimated to sell 100 chairs annually at NHL.
BISSENGER’S CONCERNS Bissinger argument regarding fall in wholesale
price. Fluctuating exchange rates might also affect the
sales. Supply was of great concern. Supplier - minimum order of 75 sticks @ $4 per
stick.
NEW PRODUCTS New products to piggy back Gossip Chair
PICTURE FRAMES Hockey Stick Picture Frame Costs
Direct Cost Absorption Cost Full Cost of the Picture Frame
Future Potential Project 30% of the Hockey teams 75% would buy Keepsake
DECISION
On one hand, Clarke wanted to capitalize the trend and increase salesOn the other hand, Bissenger thought of introducing more products
In Canadian Dollars
SUMMARY
Inception
Dave Bissinger
Peter Clarke
Competition
Direct
InDirect
Internal Operations
Manufacturing &Costs
Selling Expenses
Growth Opportunities
Expansion &
Concerns
New Products