Cmr Enterprises Essay

1742 Words Sep 24th, 2013 7 Pages
4383 Case 1 CMR Enterprises
CMR, originally Mike’s Cabinets, is an architectural millwork business that competes in two different market segments: commercial and residential. In order to effectively compete in both markets, the nature of CMR’s business varies slightly between them.
Commercial business provides two-thirds of the company’s projects as well as 80% of its sales. Due to the higher volume in demand, the commercial sales force is larger than the residential sales team, which relies heavily on CMR’s showroom. The market for commercial business is larger than residential market with projections of its value at upwards of $5 billion. Commercial contracts are also harder to secure than their residential counterparts. They must be
…show more content…
But if customers want to check CMR’s showroom, they would build these woodworks according to their new specifications. So the added cost will then be charged to the contractor. After an increase in CMR prices, Blackstone transferred this increase to subcontractors, so impacting considerably their margins and making CMR looked as a too expensive product. This issue to some extent contributed to the clash with Blackstone.
Also, internal miscommunication had played a part in this episode. Marcus had implemented a software system for the company, called InfoCentral, and insisted that the residential team use InfoCentral for all internal communications. But it did not work out the way he expected. The system is not frequently updated as required by the employees.
The business relations between the two companies started well and was fulfilling for both part. Revenues from Blackstone represent a significant part of revenue growth of the year. However, when the business expended, so did the problems. What was more disappointing was that CMR had shown a weak management of its relationship with this big client and several operational failures that need to be controlled.
Within CMR Enterprises, revenue is generated at different rates in the different segments. Commercial business is responsible for 82% of the revenues generated by the firm, leaving just 18% to residential. Not only do they generate revenue at different rates, but profit is

Related Documents