Internal Environmental Analysis – Rooms To Go Inc

Rooms To Go Inc. sis a low-to mid-priced furniture store chain which rapidly has expanded and opened more than 60 stores; It deals with home furniture retail. It offers living room sets, sofas, leather living room sets, sectionals, sleepers, recliners, loveseats, ottomans, table sets, chaises and home entertainment products; and bedroom sets, beds, head boards, day beds, chests, armoires, cedar chests, dressers, dresser and cheval mirrors, nightstands, jewelry armoires, accent pieces, mattresses, and bed linens. The company also deals with dining room sets; benches, arm and side chairs, servers, China cabinets, barstools and bistro sets. Also they provide home furniture accessories which include; wall decors, lamps, decorative chairs and mirrors, accent cabinets and pillows, rugs, silk floral, chandeliers, and accent benches and tables among other many items. The company was founded in 1991 and it’s based in Seffner, Florida. Rooms To Go Inc. sells its products online and has its showrooms/stores in Florida, Alabama, Louisiana, Georgia, North Carolina, Mississippi, South Carolina, Texas, Tennessee, Virginia and Puerto Rico. The company’s distribution center is located in Katy, Texas.

Internal Environment Assessment

Founded by Jeffrey Seaman and his father, Morty Seaman, the company comprises of an impressive executive management team; headed by Jeffrey Seaman as the Chief Executive Officer and also the president, Russ R. is Chief Information Officer, Jamie S. the Chief Financial Officer, and Gary C. the Senior Vice President. The company provides its employees with advancement opportunities, great working environment, training opportunities and endless earning potential. The company promotes advertising campaigns through almost every social media outlet and this ensures a very profitable business, led by the sales team and this has allowed the “sky is the limit” slogan to the financial success.

The privately owned company primarily markets its products in United States and also in other 14 foreign nations. It is organized in the concept of convenience as its name implies. Their designers coordinate choosing colors, complete room sets, styles, fabrics, and furniture groupings and which when purchased in sets, are priced at a very significant discount. Rooms To Go delivers the purchased items to their customers typically within a week and which is appealing to many buyers. Some of the company’s competitors include; Kane’s, Levitz, Roberds and Rhodes.

The top management together with the Human Resource department is responsible in promoting effective corporate culture in creation of the unique business identity and which also attracts the top talent from the outside (Kuratko, Hornsby & Covin, 2014).

Organizational Strengths

The company’s major strengths include; good customer knowledge, constantly applying innovations to drive costs down, supply chain integration, diversified product portfolio and brand reputation and market presence.  Rooms To Go Inc. operates a chain of furniture retail stores in the United States. It also operates a chain of retail stores in Puerto Rico. The company also operates over Rooms To Go Kids chain of stores which deals with kid’s furniture and other related accessories for teens and kids. The United States furniture giant boasts of its experienced executive team, massive distribution operations and its huge manufacturing capabilities.

Recently, the company builds a 1.5 million square foot distribution center in North Carolina while expanding others in Texas and Florida. In almost every market which Rooms To Go operates, the company has picked up some degree while in some markets, it has had substantial growth. The company has enjoyed rapid global expansion with the online selling and fast furniture reliable stores which sells low to moderate furniture. They also give discounts in their furniture and accessories prices which are viewed as a competitive tool.

The great relationship between the management and employees has greatly benefited the organization by creating a conducive working environment and this has created an opportunity for advancement, a training ground and an endless earning potential, creating stability in the company. The company has also engaged in multiple advertising programs via almost every media channel which has boosted the company’s marketing strategy (Nazarko, Ejdys, Halicka, Magruk, Nazarko & Skorek, 2015).

Organizational Weaknesses

The company’s major weaknesses include; negative publicity, decreasing quality and standard products. Due to the economies of scale, the company has had challenges in delivery. This has been due to the new and growing market ventures. Sometimes the management micros manage and are not so pro-active. Yet they become indecisive when it comes to workers. Workers have also been complaining over the environmental setting where during summer, it is too hot and freezing during the winter season.

Important internal environmental factors in the general, industry, and external analysis in relation to the internal analysis

Rooms To Go Inc. has been ramping up its plans for store growth. The company has been posting a steady increase in sales profit which includes double digit gains in the recent periods. The company expects to roll out more stores and which are expected to fill out the existing markets. The largest piece of Rooms To Go infrastructure expansion is the 1.45 million square foot distribution center and building a showroom in Dunn and which is expected to open during the High Point Market this year.

In the year 2017, the company tracks better than 10 percent growth of sales with the business doing well although with some exceptions of some areas in Louisiana and Texas where economies are heavily tied to the energy sector. In the Dallas Market colony area, where the company has been going head-to-head with NFM, the company has been receiving great performance with Nebraska generating a massive traffic in the market place.

Rooms To Go sells online both on Furniture.com and also on its website, where it has among a handful biggest anchors including brick-and-mortar retailers who expanding their e-commerce presence. Rooms To Go average order size in the site is about $1,176 with its top sales categories being stationery and motion upholstery, which include sectionals and sofas, and bedroom furniture including king sets and seven-piece queen.

However, the company and which has an ownership position in some suppliers, has completed sale of its stake in upholstery manufacturer Corinthian to Corinthian President and Co-worker Vic Etheridge for an amount which has not been disclosed. The company is also the majority owner of Mississippi upholstery producer and which in June announced plans involving $8 million expansion of a plant.

Rooms To Go Inc. Competitor Analysis

Premier retail businesses look for more intelligent ways to manage their businesses in the highly competitive retail market. Rooms To Go puts into consideration all this and continually looks to gain a better insight of the needs, buying patterns and wants of their clients.

The competitive landscape in which the Rooms To Go Inc. operates, currently is occupied by highly competitive furniture companies and which overtime have been experiencing rapid growth, companies like;  Berkshire Hathaway Inc., Inter IKEA Systems B.V., ASHLEY FURNITURE INDUSTRIES, INC. These companies are well developed and known and they pose a great competitive challenge to the Rooms To Go Inc. With Ashley Furniture, they have little, if any, solid wood. They are style experts and their prices are quite affordable although, they may not be a great value because of the short period use of furniture. IKEA has also dominated the market and   people consider it as a starter furniture store before graduating to others. They are affordable in their prices and they are also stylish among others.

Rooms To Go Company Structure

An organization structure is the grouping and which shows the interrelation of sub units in an organization. In Rooms To Go Inc. the subordinates reports to their superiors and this has enhanced the coordination of all activities of every member in the company. It has reduced conflicts between members with regard to which member is supposed to perform which task in the organization and this has greatly increased performance in the organization.  Jeffrey Seaman is the Chief Executive Officer; under him is the Chief Finance Officer, followed by the Chief Operating Officer, Chief Information Officer, Senior Vice President, Distribution Department, Human Resource department and the digital marketing department (Friesen, Kay, Eibach & Galinsky, 2014).

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