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name. This sold very well in high street retailers up and down the country. Oakland
Furniture now produces five coordinated ranges and a few ‘specials’ – such things
as one-off tables and matching sets of chairs for town halls, university council cham-
bers and company boardrooms. Oakland’s major competitors are firms such as Stag,
Parker Knoll, Bradley Furniture and Neville Johnson.
The company was purchased more than ten years ago at the peak of its earn-
ings by a major conglomerate. But it languished, declining into losses four years in
a row. This opened the door for a management buyout two years ago, organized
by the present Managing Director, Alex Rheingold, in close association with Rowan
Gregory, the Chief Designer.

>> TECHNOLOGICAL CHANGE AT OAKLAND

In the enthusiasm unleashed by the buyout, and the injection of cash made available,
various opportunities for improving Oakland’s operations were implemented and
others were being closely examined. Several numerically controlled machine tools
were bought second-hand. A major new machine, designed with expert contribu-
tion from Rowan Gregory and produced by a German manufacturer, was obtained
on special terms. Various marketing initiatives were also launched. These certainly
improved the situation, and the company was breaking even, despite having to
cover the heavy burden of interest on the loans used to finance the buy-out.
However, though fundamentally sound in market position, product range and
quality, it was clear that the company desperately required improved means of stock
control and production planning. It was in this general context that Alex Rheingold
was impressed by a presentation on the benefits of ERP by a consultant, Sandy
Corbett, at a furniture industry conference. ERP is sold as an integrated computer-
aided system for materials handling and production scheduling. The latest version
of such systems links production planning to other functional areas of the firm and
more broadly to manufacturing strategy on a company-wide level. As a result of the
consultant’s presentation, Alex suggested that Oakland should look into the pros
and cons of introducing ERP technology (including software to support it).

>> THE MEETING

Alex has convened a meeting (to last around one hour) of a working group to discuss
the pros and cons of introducing ERP technology, and to decide on a way forward for
the company in terms of technological innovation. The aim of the meeting is to decide
whether or not to pursue the development of an ERP system in Oakland. Because of the
company-wide potential for ERP a group of eight key Oakland employees has been called
together. In addition, Sandy Corbett, the external consultant, has also been invited to
advise the company and is ready to answer any questions that members of the working
group might have. Those invited to join the meeting include the following:

1. Alex Rheingold: Managing Director. Chairs the meeting. Knows about the furniture
industry. The driving force behind the recent management buyout. Impressed by a

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