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In Huari Ltd, there are two major departments: Furniture department and Fabric department; The fabrics has two subsections, a subsection produces the carpets, another one manufacture the clothing. There are 625 operate workers, 400 workers in furniture department, 125 workers in carpet subsection, 100 workers in clothing subsection. 32 product designers: 20 designers in furniture department, 12 designers in fabric department. There are 88 supervisors and managers, 36 marketing researchers, 20 people in furniture department, 16 people in fabrics department .
Before 2008, the Company was in good condition. But since 2008, The profit of enterprises has been decreasing dramatically, the financial report in 2008 shows that the company had already suffered a serious loss.
There are a lot of reasons causing loss. In companys external environment, fierce competition, and the decline of consumption demand make the loss. From the company itself, they can not guarantee product quality, especially the quality of the furniture is not good enough, While the competitors provide customers with high quality product and attract the customers; The company lacks innovation, They only provided the old product of the single system for several years
At present, the authorities of the Company know very well that they should draft a feasible reform scheme. The general manager, Mike, after two months’ investigation and analysis, put forward a report toward the board of directors. the report includes the following reform measures: Firstly, as the clothing department got a loss for the time being, They intend to get rid of this department ;secondly , they maintain Carpe
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