Masterson Carpet Mills

Group Case Study for Masterton Carpet Mills, Inc. Definition of interest The Problem Masterton Carpet Mills must decide whether a change in distribution practices for fiscal 2001 is necessary. Company chafe: Masterton Carpet Mills, Inc. is a privately held manufacturer of a unspoilt line of medium to high-priced spread overing primarily for the residential segment. The company markets its products under the Masterton and Chesterton brand names. MCM currently distributes its line by seven tale covering wholesalers located throughout the ignite in States (Kerin & Peterson, 2004). U.S. Carpet and Rug Industry: U.S. consumers and businesses spend closely $50 billion annually for floor coverings. The largest category of floor coveringsis rug and carpetingings, followed by resilient coverings (vinyl), hardwood, ceramic tile, and laminates. The U.S. carpet and rug labor recorded gross revenue of $11.69 billion at manufact urer’s prices in 1999. Carpet and rug retail gross sales were estimated to be $17.9 billion. Industry sales are shared out between “contract,” or commercial, sales for institutions and businesses and residential sales for syndicate replacement carpets (Kerin & Peterson, 2004). Competitors: The U.S.

carpet and rug manufacturing is undergoing a hitch of consolidation begun in the mid-1980s. Mergers, acquisitions, and bankruptcies among manufacturers brought about by declining demand for carpet and rugs, excess manufacturing capacity, and narrowing profit margins reduced the number of carpet and rug manufacturers from more than 300 i! n the mid-1980s to about hundred companies in primeval 2000. By 1999, it was estimated that 10 companies in the industry produced 91 percentage of carpet and rug sales in the United States. lead companies: Shaw Industry, Mohawk Industries, and Beaulieu of America accounted for about 85 percent of U.S. residential carpet and rug sales. The U.S. industry sales leader is Shaw Industries, with 1999 sales of...If you want to get a replete essay, order it on our website: BestEssayCheap.com

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