La-Z-Boy Case Study

La-Z-Boy has strong financial statements which indicate that it should be able to obtain additional financing without difficulty; this is critical if the company is to remain a strong participant in this industry. The company needs to target younger consumers in the residential market, expand its operations to include overseas markets, and seek to expand its business segment. This requires different marketing techniques than it currently employs, and may well require that the company sacrifice some of its current financial strength in the interest of gaining long-term market share.

The company has also recently been cited as a potential takeover target; by diluting some of its financial strength to the acquisition of additional companies, La-Z-Boy will not only realize rapid entry into new markets, but will also decrease its attractiveness as a takeover target. Through this strategy and by improving its internal processes, La-Z-Boy should be able

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growth.
Another problem for the company is in its new product lines and the brand familiarity. La-Z-Boy is strongly identified with recliner chairs and motion furniture, and is less identified with other types of furniture. Thus, while the company operates a number of standalone retailers, including the Showcase Shoppes and the Galleries, consumers are unlikely to visit these locations unless they are looking for furniture within the "traditional" LZB line. So long as these outlets continue to sell LZB furniture across all product lines, the company needs to work to change the image that consumers have when considering LZB. Another significant weak area for the company is in its accounting department, and specifically within the accounts receivable area. The company operates on a 2/30, net 45 policy for 15 percent of its sales (customers can take a two percent discount if they pay within 30 days; the total undiscounted amount is due within 45 days). Typical terms in business are 2/10, net 30, which represents an effective annual interest rate of 36 percent. However, the sales department is given considerable latitude with the four sales events each year, and may extend two percent discounts for accounts that extend 90
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Some common words found in the essay are:
Shoppes Galleries, United Changes, Situation Analysis, European Community, Action Plan, Shoppes Furniture, Summary La-Z-Boy, Projections Contingencies, Ward Department, Market Strategy, market share, furniture market, percent market share, percent market, furniture industry, furniture manufacturers, financial strength, residential business, motion furniture, showcase shoppes, residential customers, ten percent market, market share five, showcase shoppes galleries, entering joint venture,
Approximate Word count = 4130
Approximate Pages = 17 (250 words per page)

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