La-Z-Boy (A)
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Publication Date:
October 06, 2016
Industry:
Manufacturing
Industry:
Retail & Consumer Goods
Source:
Harvard Business School
Kurt Darrow, CEO of La-Z-Boy furniture, must decide whether to continue an overhaul of the company’s strategy in the face of a collapse in demand during the great recession. Having pared back La-Z-Boy’s portfolio of brands and manufacturing network, he intends to reposition the company as a branded retailer of furniture and home fashions. Just management is poised to implement a new strategy that involves a heavy investment in brand advertising, a complete overhaul of the retail organization and a fundamentally new manufacturing system, the industry experiences a catastrophic downturn. Should he continue to invest in a highly speculative strategy or rein in investment and preserve cash?
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La-Z-Boy (A)
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