Analyzing the General Environment of

Office Furniture Industry

 Term Paper on
“Analyzing the General Environment of Office Furniture
Industry’’

Course Code: MGT480

Section: 01

Submitted To
Jashim Uddin, PhD
Associate Professor
Department of Business Administration East
West University

Submitted By
Name ID
Ahmed Sabbir Rabit 2016-2-10-136
Md. Abir Hossain 2016-2-13-032
Faiza Tasnin 2017-1-10-074
Md. Asif Rahman 2017-1-10-274
Md. Shahnewaz Hossain 2017-3-10-194

Date of Submission: 24th April, 2022.

 Letter of Transmittal

Date: 24-04-2022
Jashim Uddin
Associate Professor
Department of Business Administration

East West University

Dhaka.
Subject: Submission of the Term Paper on “Analyzing the General Environment of Office
Furniture Industry”.

Dear Sir,
It is a great pleasure to present the term paper on “Analyzing the General Environment of Office
Furniture Industry” which was assigned to us as learning for Strategic Management course.
It is our honor to do this term paper and gain knowledge from it. We have tried our best of our
capacity to accommodate as much information and relevant issues as possible and tried to follow
the instruction as you have suggested. We tried our best make this term paper as much informative
as possible.
We are grateful to your guidance and kind cooperation at every step of our effort on this term
paper. We will remain deeply grateful if you go through the term paper.

Sincerely yours,
………………………………

Ahmed Sabbir Rabit

Md. Abir Hossain
Faiza Tasnin
Md. Asif Rahman
Md. Shahnewaz Hossain
 Acknowledgement

Alhamdulillah, all praises to Allah for the strengths and his blessings in completing this term paper.
Without His graciousness, it could not be possible to collect all the resources.

We would like to thank our course instructor Jashim Uddin (Associate Professor, Department of
Business Administration, East West University). For his inspiration, kind assistance, valuable
suggestions, wise guidance during the entire phase of the study made it easy for us to prepare this
term paper. Without his supervision and instructions, this would not come out to the light. We are
grateful to our family and classmates without the support of whom this project could never exist.
 Executive Summary
In recent years, the furniture industry is growing very well in our country. Many companies are
coming daily. They start their business many in regions. Opens stores. Implementing variation in
furniture design. They are trying to collaborate user preferences among designs.

The political environment is the most important factor for the business industry. A peaceful
environment grows the business. to face the situation this business industry follows a different
strategy. Hedging and salvaging are them. For the survival situation, they do the insurance
strategy. Even though they do insurance for the business strategy. Businesses keep strategies to
run their business as trademarks, sociocultural economic strategies, behavior, norms, expectation,
and values.

This industry developing very rapidly and they adopt the technologies for better service. Nowadays
augmented reality, 3d modeling, recycling, and IOT are widely used in furniture making.

Also, reusable fiber, different materials, and different dimension aspects are broadly used to design
the furniture. According to the research, nowadays companies are focusing the user comfort, style,
and less space-consuming product development. Raw materials are still totally import-based. So,
we have to look in the international market for machines, materials, etc. Even its prices depend on
the world activities.
 Table of Contents
1. Introduction .............................................................................................................................1
1.1 Origin of the Study ............................................................................................................1
1.2 Objective of the Study .......................................................................................................1
1.3 Scope of the Study .............................................................................................................1
1.4 Limitations of the study .....................................................................................................1
1.5 Methodology of the Study ..................................................................................................1
2. Industry Overview ...................................................................................................................2
2.1 Global perspective .............................................................................................................2
2.2 Impact of Covid-19 and Russia-Ukraine war on this industry .............................................3
2.3 Bangladesh Perspective......................................................................................................3
3. The Basic Concept of General Environment and its Dimension .................................................5
4. Analysis ..................................................................................................................................7
4.1 Demographic Dimension ...................................................................................................7
4.2 Economic Dimension .........................................................................................................8
Existing Companies and New Companies ............................................................................8
Inflation Rate .......................................................................................................................8
Effect on Product Selling Unit When Inflation Rate Gets Higher..........................................8
Income Level with Inflation .................................................................................................9
Supply of Money .................................................................................................................9
Financial Services ................................................................................................................9
4.3 Political Dimension ......................................................................................................... 10
Hedging strategy: ............................................................................................................... 10
Salvaging strategy: ............................................................................................................. 10
Insurance: .......................................................................................................................... 10
Puase Activities: ................................................................................................................ 10
Tax Rate Increase:.............................................................................................................. 11
Trade Mark: ....................................................................................................................... 11
4.4 Sociocultural Dimension .................................................................................................. 12
Behavior: ........................................................................................................................... 12
Expectation ........................................................................................................................ 12
 Values ................................................................................................................................ 12
4.5 Technological Dimension ................................................................................................ 13
3D Modeling: ..................................................................................................................... 13
Artificial Intelligence: ........................................................................................................ 14
Augmented reality:............................................................................................................. 14
4.6 Global Dimension ............................................................................................................ 14
High Price of fuel and gas .................................................................................................. 16
4.7 Interconnection ................................................................................................................ 17
Connection between demography and economic: ............................................................... 17
Connection between demography and political/legal: ......................................................... 17
Connection between economic and political/legal: ............................................................. 17
Connection between economic and global: ......................................................................... 18
Connection between political/legal and global:................................................................... 18
Connection between sociocultural and global: .................................................................... 18
5. Findings ................................................................................................................................ 19
6. Recommendations.................................................................................................................. 19
7. Conclusion ............................................................................................................................ 20
8. References ............................................................................................................................. 21
1. Introduction

1.1 Origin of the Study

Strategic management is one of the important courses that we have to know all the details about
all the strategies about business. It is essential to study about strategic activities those in terms of
every sector in the businesses. By learning this course, we can assure that the idea knowing about
different strategies is not that easy. This term paper has been prepared as a learning requirement
and as learning for practical requirement for the course “Strategic Management” (MGT480) of
Business Administration Department of East West University. Our course instructor Jashim
Uddin, PhD, Associate Professor has assigned us this report as a part of course of Strategic
Management. He has authorized the activities of doing this term paper on a group basis and has
given the activities on “Analyzing the General Environment of Office Furniture Industry”.

1.2 Objective of the Study

The objective is to get idea about the effect of office furniture industry in terms of general
environment dimensions.

1.3 Scope of the Study

As our topic is analyzing the General Environment of Office Furniture Industry, there are six
dimensions and by which we can conduct the research and that is how we can find all the effects
regarding our topic.

1.4 Limitations of the study

It is a term paper of effects on office furniture industry in terms of general environment. It needs
more time to analysis properly. Even there is no enough secondary data regarding these issues.
Whatever the data we have is not enough to conduct research properly.

We had to search many things to do the research and we had to collect some different information
from different websites.

1.5 Methodology of the Study

We have conducted group studies to know more about this issue and all the effects of this topics,
and also, we have used some secondary data so that we can do the research properly.

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2. Industry Overview

2.1 Global perspective

The value of office furniture worldwide has grown significantly over the last few decades. An
increase in the number of corporate offices, owing to the rapid construction of IT parks and
commercial zones, creates a demand for modernized office furniture globally. Office furniture
industry is gaining more significance, with the expanding business environment in the developing
and underdeveloped nations across the world. The number of renovation and modification projects
is increasing in countries, such as the United States, China, India, Brazil, Italy, Middle East and
South Africa fueling the market's growth.

Source: Statistica

The global office furniture market was valued at approximately 54.24 billion U.S. dollars in 2021.
The worldwide office furniture market was forecast to be worth around 85 billion U.S. dollars in
2026. (Simionato, 2022)

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World's top Office furniture manufacturers are adopting sustainable practices in their
manufacturing process. This is mainly a result of growing consumer awareness on sustainable
living that is resulting in increasing demand for eco–friendly furniture. This includes minimizing
fuel consumption and recycling wood by products. Companies manufacturing eco-friendly
furniture products procure wood from plantations that grow sustainable plants and have a long-
term conservation policy. They have adopted a “green” approach wherein it focuses on
replenishing, recycling and reusing of furniture by using recyclable engineered wood and by
reducing raw materials wastage.

2.2 Impact of Covid-19 and Russia-Ukraine war on this industry

The Covid 19 epidemic almost shut down the industry. The shutdown of exports and imports
disrupted the production of this industry and many of them shut down. This business is under threat
due to the stagnation of the whole world. The need for office furniture is greatly reduced as the
offices are closed. At present, the Russia-Ukraine war is hampering the production of raw materials
due to the abnormal growth of gas and oil. Besides, production is being disrupted and delayed due
to inability of manufacturing companies to import raw materials. (OFFICE FURNITURE
MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECAST (2022 - 2027), 2022)

2.3 Bangladesh Perspective

With the economic prosperity, the number of offices in Bangladesh has increased at a higher rate.
Although office furniture of well-known domestic brands is adorned in the offices of private and
multinational companies, the trend towards office furniture of these brands is gradually increasing
in government offices. Brands like Hatil, Otobi, Navana and Akhtar Furnitures are known as high
end brands in Bangladesh and their products are in high demand in this country.

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70% of the furniture produced in the country is home furniture and the remaining 30% is office
furniture. (Source: DATABD.CO)

About 30% of the furniture sector in Bangladesh produces office furniture. (Timber and Furniture,
2019). There is a lot of potential in the office furniture industry in Bangladesh. The development
of this industry is taking place every year through extensive evaluation. Customers with quality
and convenience products. The industry has developed since the days of its cottage industry and
has transformed into a major economic contributor. The industry is meeting the growing consumer
demand either internally or through imports. Previously, the industry relied heavily on furniture
imported from Malaysia, India and Thailand. However, nowadays domestic manufacturers have
been able to capture a large share of the market by providing quality end products. The lack of
skilled manpower in modern machinery and equipment management is limiting the growth
potential of this industry, which can be solved by setting up more technical schools with short term
trade course curriculum.

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3. The Basic Concept of General Environment and its Dimension

General

Environment

The general environment is composed of the nonspecific elements of the organization's

surroundings that might affect its activities. It is a combination of forces or factors outside a
company that can influence the operation and performance of the business.

The general environment is composed of dimensions in the broader society that influence an
industry and the firms within it. We group these dimensions into six segments: demographic,
economic, political/legal, socio-cultural, technological and global.

Demographic Dimension: It concerned with a population’s size, age structure, geographic

distribution, ethnic mix, and income distribution.

Economic Dimension: The economic environment refers to the nature and direction of the
economy in which a firm competes or may compete.

• Firms seek to compete in relatively stable economies with strong growth potential
• It is challenging for firms studying the economic environment to predict economic trends
that may occur and their effects on them because of 2 things:

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 1. The global recession of 2008 and 2009 created problems for companies throughout the
world.
2. The global recovery from the economic shock in those years was slow compared to
previous recoveries.

Political/Legal Dimension: The arena in which organizations and interest groups compete for
attention, resources, and a voice in overseeing the body of laws and regulations guiding
interactions among nations as well as between firms and various local government agencies. This
segment is concerned with how organizations try to influence governments and how they try to
understand the influences of those governments on their competitive actions and responses.

Sociocultural Dimension: Concerned with a society’s attitudes and cultural values.

▪ Greater diversity in the workforce creates challenges and opportunities.

▪ Guanxi (personal relationships or good connections).

Technological Dimension: Includes the institutions and activities involved in creating new
knowledge and translating that knowledge into new outputs, products, processes, and materials.

❖ These effects occur primarily through new products, processes, and materials.
❖ Given the rapid pace of technological change and risk of disruption, it is vital for firms to
thoroughly study the technological segment.

Global Dimension: Includes relevant new global markets and their critical cultural and institutional
characteristics, existing markets that are changing, and important international political events.

✓ In light of threats associated with participating in international markets, some firms choose
to take a more cautious approach to globalization.
✓ Global focusing: often is used by firms with moderate levels of international operations
who increase their internationalization by focusing on global niche markets which allows
firms to build onto and use their core competencies while limiting their risks.
✓ Increasingly, the informal economy as it exists throughout the world is another aspect of
the global segment requiring analysis.

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4. Analysis

Now we are analyzing the dimensions of the General environment of Office Furniture Industry.

4.1 Demographic Dimension

There are several demographic effects on business. Demographic are countless features used to
decide the desire for a product or buyers' buying behavior. Most businesses usually identify their
necessary customers through these numerous traits. Then, the goal customers with similar traits in
their promotions and advertisements. The following are some of the demographic variables that
normally affect a business.

Demographic is one of the segments of the general environment. There are a number of traits in
the demographic that match one another marketers try to find out such factors and then try to target
them to maximize their profits. Some of the demographic factors that affect the businesses are
described as follows:

The income factor of customers affects the decisions of the businesses for example people with
low- or middle-income level will be attracted to discounts, while the customer with high-income
level will be attracted to premium products

There is a different way of demographic setting at the same time there could be some overlaps and
one another, example: The demographic study of the population divided by the income levels is
one of the demographic influents, as there are many people from this demographic income, they
influence us from production to every step. If the present demographic people's group income level
was a little bit higher then it will be beneficial for us. If it's less than the present senior then it
would be a threat for us. so there is an impact of dividing the population by the income levels.

Income is one demographic variable that can affect businesses. A company's products usually
appeal to certain income groups. For example, premium products such as high-end women's
clothing usually appeal to women with higher incomes. Conversely, people. with comparatively
lower incomes are more sensitive to price and, therefore, may prefer purchasing discount products.
People with lower incomes have less disposable income. Value is a major determinant the products
they purchase. Hence, a company may best reach lower-income people through discount retailers
and wholesalers and attract higher-income buyers in specialty retail shops.

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4.2 Economic Dimension
In economic factor, it is mainly depending on the economic level of the whole country, because
having a low economic situation; no industry cannot survive and cannot make their activities move
further. Therefore, we can say that, office furniture industry is also depending on it very seriously,
because it influences them. It is relying on the income level, inflation rate of the country, number
of banks, available notes and coins, even the financial services. It influences all over the point.

Existing Companies and New Companies

We are talking about existing companies who have already arranged their offices with furniture
and maybe they will open new branches; also, we mainly focus on new companies who will open
their multiple offices in place. It is a target for office furniture industry to make their sales higher,
retain their customers and survive in the industry. It means they have multiple issues to focus.

Inflation Rate
When a company opens up new office, no matter whether it is existing company or it is new
company, they actually buy office furniture. It means it is a need of capital to do business. When
it comes to capital, it relates with the inflation rate or buying power. Because we know, it makes
people having decision about the whole budget plan, and it effects negatively on the sales of office
furniture industry. Because, the value of money is decreasing and they cannot do anything. They
have to make the adjustment with the country’s inflation rate. Whenever we talk about inflation,
it indicates bad impact on the forecasting of buying power and in the site of value of the deposit in
the banks. People have to spend more money on one thing than they could do with lesser money.

Effect on Product Selling Unit When Inflation Rate Gets Higher

Because of the inflation gets higher, office furniture industry also have to increase their product’s
price, because they even have to maintain their costs as well. So, in one site the value of money is
decreasing and on the other site, the product’s price is increasing, and in this situation, we can say
that it definitely will make buyer thinking about buying office furniture for their branch, and it is
a negative impact. The sales volume of office furniture industry will go down. Many owners will
face hesitation regarding opening offices or even running offices.

Suppose, in 30, 00,000 taka, the price per products in changing because of the inflation rate. (30,
00, 000 /150 = 20,000)

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 Year Units of product sold Price per unit (Taka)
2018 150 20,000
2019 120 25,000
2019 100 30,000
2020 90 33,333,33
2021 80 37,500
2022 70 42,857.14

Income Level with Inflation

Inflation rate sometime effects on income level of the people. Rising prices mean that company
will have to pay more for the same goods in the future. If company buys furniture before prices
rise, this can provide help to a company, but if company’s money does not keep up with inflation,
it means their purchasing power falls. So, it is also related with the inflation and sales volume will
be negative. Industry have to focus on that part and also have to make their future plan for staying
in the industry which indicates that they have to make adjustment.

Supply of Money
Supply of money means printing money, bank reserve requirement, and interest rates. Because of
many reasons, sometimes a country face problems of supplying money for the fellow citizens,
even sometimes government itself face haphazard situation to cope up with country’s economic
stable. In every point, it makes dominance on them.

Financial Services
In office furniture industry, companies always focus on new customer coming as new companies
and their competition is obviously about increasing sales growth. To maintain growth, they need
good economic situation regarding reserve bank, financial services, because they also rely on it in
some terms, and to do a better performance they must retain on customer who actually are the
stakeholder on this kind of situation. Financial institution work as intermediaries, they help to
make connection between surplus unit and deficit unit.

We can say that, economic factor in one of the most important issues that not only office furniture
industry but also every sector that it has to focus on.

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4.3 Political Dimension

This is another component of general environment of office furniture industry. And office furniture
industry has to adjust with countries political situation. Office furniture industry can’t influence
the political situation of any county but furniture industry will be influence by political situation.
So industry have to adjust always with political situation. Political factors can impact a business
by making the market environment more or less friendly for that business. Typically, governments
have a great deal of power over businesses and many times, there is not much that businesses can
do about it. Political environment is one kind of uncertainty. Industry don’t know when and where
the situation will come and how they have to adjust with the political situation. Political situation
will come again and again but industry have to adjust with situation. And office furniture industry
can follow two strategies to deal with uncertain political situation. One is hedging strategy and
another one is salvaging strategy.

Hedging strategy: when office furniture industry perceives a limited level of uncertainty
or uncertainty around economic condition due to political situation then they can follow
hedging strategy to adjust with uncertain political situation.
Salvaging strategy: when industry perceive high uncertainty, the threat to business
continuity can be fatal to firms without reserves of cash and a presence on mostly declining
markets. In such context, a salvaging strategy is the best option: the idea is to minimize the
consequences of the situation and save what can be saved. In this situation, firms will have
to deal with shrinking sales.

Insurance: Another way to adjust or manage the political situation some office furniture producer
or organization owner do insurance. And insurance work as safeguard for their furniture
organization. When political situation like hartal, road strike is going on then industry can’t supply
their furniture to particular place. Or sometimes strikers break the delivery van, give fire then
industry will face huge loss that’s why insurance will work as a safeguard. So, Industry by doing
insurance are feel better in uncertain political situation.

Puase Activities: Industry also stop their activities in political harass situation to save their
economic loss. If political condition is continuing over long time then corporate office will get
hamper and new company or investor won’t invest to open new office or won’t increase new office

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floor then office furniture industries sale will decrease. So, weather they take risk and continue
activities in political situation and some furniture factory owner stop activities, supply furniture
and when situation normal then they start activities. And some furniture factory owner does
insurance to recover economic loss due to political condition take continue activities. That’s how
office furniture industry adjust with political condition.

Office furniture industry are influence by the most important component which is legal
environment. Legal environment is the laws which are passed by the government for business
operation. In every country, the government regulates business activities. These regulations of
government are considered as legal environment. In practice legal and regulatory goes hand in
hand. When government change in rules and regulations office furniture industry must have to
follow this. There is no chance to skip if industry skip then they will face big trouble that’s why
they have to adjust with the legal environment. These changes of laws or rules and regulations will
increase businesses' costs. Changes to tax regulations and rates can have a significant impact on a
business.

Tax Rate Increase: When the tax rate increase Industries have to pay tax more than before but
their product price is same like before, so then they have to pay increases tax from their profit. If
tax or any rules regulations is change and which is increase Industries cost then industry can’t
increase price suddenly. Office furniture industry have to think more and more before increase
price. If they increase price because tax rate is increase then their sale maybe decreases. So, they
have to think about that and adjust with any changes.

Trade Mark: Sometimes industries one company copy another company’s product, name or logo
then conflict will create and real one will face trouble. In this situation legal environment will help.
If industries any company use trademark which is component of legal environment then no one
can copy his name logo and others office furniture producer have to adjust with this and they won’t
use another’s name and logo. In example we can say Hatil furniture name and logo can’t use by
another furniture producer because only Hatil have legal right to use this. But if legal environment
is cheaper to start a new business then office furniture industry will get benefits. Like if legal
condition is easy then company will start new office or investor will start new office then furniture
industries sale will increase because for new office, they need new office furniture.

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4.4 Sociocultural Dimension

Any industry is influence by the society or sociocultural environment. Industry can collectively
influence society or sociocultural environment but most of the cases industry are influence by the
society or sociocultural environment. That’s why industry have to adjust. The socio-cultural
environment may be defined as all the social surroundings that affect the growth and operation of
a business directly or indirectly. Socio culture is made up of social institutions, class structures,
beliefs, values, accepted patterns of behavior, customs of the people, and their expectations. And
industry will adjust all the belief, values, behavior, expectations. Sociocultural environment
changes with time and industry have to adapt with the changes. Sociocultural environment
overlaps with technology and industry also have to adjust and fulfill requirements. With the time
societies people choice, design expectation, their behavior will change and if industry have to fail
adjust with changes then whole industry will face losses. If industry don’t focus on changes and
think that whatever they produce office furniture that will purchase by office then their sale will
decrease. They have to understand client’s choice and produce furniture based on client’s
requirement. There is some traditional furniture which is basic furniture for office and furniture
industry have to always continue produce that traditional or basic furniture and supply them. If
industry modernized and stop producing basic furniture like chair, table then customer won’t adjust
with Industry.

Behavior: societies people behavior is significantly changing. In certain time people only pay by
cash but nowadays technology update and there are many options for payment and customer can
pay by using anyone. So, industry have to maintain all of payment process and client will pay by
any procedure what they feel comfortable. So here technology overlap with sociocultural
environment. And that’s how industry have to adjust with sociocultural environment.

Expectation: Industry also have to know to client’s expectations and fulfill that. Once upon a time
when industry what type of furniture offer client purchased that but with time changes their choice,
design, quality expectations changes and nowadays industry make product from their expectation.
And that’s how industry adjust.

Values: Cultural values provide patterns of living and prescribe rules and models for attitude and
conduct. For example, several culture-specific values have been identified for specific groups. And

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office furniture industry has to understand and adjust with their value. And nowadays industry
already adjust with values. And in this way office furniture Industry have to understand and adjust
all the components of sociocultural environment.

4.5 Technological Dimension

Nowadays, the technological advancement and the internet access has made changes develop faster
and fastest, making them even more difficult to assimilate and follow. Furniture industry
is following this trend very quickly. It is in the way of designing, manufacturing, or even selling
products.

3D Modeling: 3D printing is already much more speared than we think. These machines are
selling t increasingly affordable prices, generally work by depositing and gluing layer by layer
tiny grains of some reusable material such as plastic, ceramics, glass, metal, and even concrete. It
belongs to a type of manufacturing, which is called additive manufacturing. Where three-
dimensional geometries produced on a computer are transposed into reality utilizing only the exact
amount of material needed and creating shapes that would be unimaginable for a human being to
manufacture.

Its use extends from industrial design to replicas of archaeological objects, and promising research
is underway for the manufacture of artificial human organs and tissues, limb prostheses, and more.
When talking about furniture, the options are also profuse, from printing connectors and junctions
for shelves or benches to making complete furniture.
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 .

Artificial Intelligence: In furniture manufacturing design, AI is used in the concept of generative

& modern design. The computer can develop thousands of iterations, following parameters and
orders pre-established by the user, to arrive at the most appropriate solutions. AI is called the first
market chair created through Artificial Intelligence. Designers design generative & creative design
was used to arrive at the design of a strong, stable, and aesthetically pleasing chair, using as less
material as possible. In this case between the parameters applied in the program and those that
were carefully evaluated.

Augmented reality: Augmented reality has also ceased to be a promise of the future and instead
entered our daily lives. Especially through the cell phone, which we carry all the time, and its
camera and sensors, the technology allows us to superimpose virtual objects onto real
environments. In the case of furniture, augmented reality applications serve, above all, to locate
desired objects in a real space, giving a better sense of scale, color, and how the environment will
look in the future. (Souza, 2020)

4.6 Global Dimension

The global office furniture market size reached a value of USD 54.24 billion in the year 2021.
Some Office furniture’s are: office desks, directors’ desks, writing desks, conference tables, office
chairs, executive chairs, conference chairs, file storage unit. These office furnitures can be made

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by wood, glass, metal, high pressure laminate, polypropylene & polymer plastics and mesh,
upholstery & felt. In these materials, Bangladesh import plastic. The top importers of other office
furniture metals in 2020 were the United States ($801 million), Germany ($194 million), France
($167 million), Canada ($142 million) and the Netherlands ($95.1 million). Sometimes globally,
we have some issues like war, disagreements with those countries. For these reasons, we face
difficulties to manage our preferable materials of office furniture. But office furniture industry
could not stop their production as they have to adjust themselves with this circumstance. They
have to use other materials to produce their final products. They should work with their existing
materials or their own materials which is made in Bangladesh.

As the world becomes more globalized, new workplace areas emerge, increasing the demand for
office furniture. The market for office furniture at gift accounts for 15% of the total international
furniture market. Furniture quality, installations, extended warranties, portability and multi-
functionality, as well as the price of the furniture, are all fiercely competitive among market
competitors. As a result, office furniture makers and vendors are developing new products, causing
the industry to expand significantly.

According to global market study based on extensive primary and secondary research, the
emerging trend is the manufacturing of comfortable chairs such as chairs. While working for
longer periods of time, these chairs maintain proper body postures. Because of the customization
options offered to consumers, such advancements are transforming the furniture market by making
furniture flexible from person to person. The rise in construction activities and office space in
countries like India, Brazil, China, and others is a major driving force for the office furniture
market’s growth. As a result, demand for office furniture is driven by the growth of a region’s
economy. Furthermore, a major challenge for the office furniture market is competition from local
players, whose furniture is more cost-effective for customers and who provide better facilities
during customization of office furniture as well as after-sales services, which is difficult to achieve
on online platforms.

The Office Furniture Market Outlook 2017-2025 has been prepared based on in-depth market
analysis by industry experts. The report covers the competitive landscape and current status of key
players in the Office Furniture market. The report also includes Porter’s Five Forces Model,
SWOT analysis, company profiles, business strategies of the market players and their business

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models. The global office furniture market report also endorses value chain analysis to understand
cost differentiation to provide a competitive advantage to existing and new entrants.

To produce office furniture, the industry use machines which is related to technology dimension
from general environment. If office furniture face trouble with technology or do not have that
technology then again, they have to adjust with these circumstances. Because they are restricted
as they have no preferences to follow or cover up with other things. On the other hand, if our
country political problems have been occurred, then imported materials will not be able to reach
timely from other countries in exact destination. Because country environment is not supporting
at all. And the organization will hamper and failed to produce products. So, the dimensions of
general environment are related with each other. They should have to accept the characteristics of
general environment and also have to make an adjustment.

High Price of fuel and gas: Russia-Ukraine war pushes up the cost of key materials such as
timber. Because of the war of Russia and Ukraine, the whole world suffering from high price of
oil. As Ukraine is an important transit country for Russian oil and gas supplies to European
countries. Russia-Ukraine war pushes up the cost of key materials such as timber. So, when
Ukrainians are under attack, they failed to produce oil. When the resources are not available,
nobody cannot grow their businesses. Government, individual businessman, people cannot
control this situation. Because of high demand for oil and gas, the price of oil and gas will also
increase in the whole world. (Wood, 2022)

By make a collective source, the dimensions of general environment can be changed. When all the
organization of office furniture industry come together, then there is a possibility to make changes
of the relationship with imported country who are import their materials and by these materials,
we produce our final products of office furniture. The only option to make that one influenced and
convinced to make collectivity. As office furniture industry has no other options, that is why, they
always need to use the option of making groups or associations or collective items or collective
actions. By making groups or collective source, office furniture can influence the general
environment dimensions.

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4.7 Interconnection

Connection between demography and economic: In demography as it is all about population,

obviously it connects with economic. First, it comes with income level, that people who have high
income even in a radiation if people have high income or a company within a radiation has high
income to repurchase office furniture, the sales volume of office furniture will get higher. In
addition, if we talk about the inflation rate, it connects with income level. Therefore, if the income
level of people is not that high related with inflation rate, the capability of buying of office furniture
would reduce for either new companies or existing companies. Coming with the availability of
note and coins, even the financial services in terms of demography will be in a negative situation
and the market position will be down if the economic situation be in risky way.

Connection between demography and political/legal: It is the most complicated issues if we talk
about these two, because these two dimensions have logical connections, sometimes-haphazard
connections. In a country there are many parties come in participation to get their positions safely,
so do that sometimes parties make movement, riot, revolt, even sometimes they do not participate
in countries political issues. In that case, because of those movement industries may face problem
to sell their products. Therefore, office furniture industry could face these types of problems as
well. As we know demography talks about people, so where there are people, there must be a
connection with the political and issues. It means office furniture industry must focus on it very
much, because it is a dangerous situation when especially it comes with political and issues.

Talking about legal issues, everything comes with provisional and legal points, and it directly
effects of industries. New laws even the reduction of laws may create indifferent situation terms
of new or existing companies. Therefore, office furniture industry must focus on it.

Connection between economic and political/legal: For the political issues, it may affect on
economics. It totally depends on political parties, political leaders, and even political workers.
Therefore, when it comes with political issues, as negative then it will obviously effects on
economic dimension, and because of the economic situation be negative, the effect of sales volume
of office furniture industry will be in a negative way. In addition, it connects with legal issues as
well. Because some companies may rise up, some companies may go down, some companies may

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be bankrupt, and some companies may come as new competitor. Therefore, everything depends
on different situation, as we know it. Office furniture industry always looks for different situation
in terms of different aspects. Everything must be effective in manner to control over these issues.

Connection between economic and global: Economic issue always related to the global subjects,
because we are living in a world of globalization, we are interdependent to each other. If global
issue occurs that connects with the other countries, then it will definitely effects on different
countries, depends on positive and negative situation. Situation like a problem or a solution
between two or three countries, so, we can see that, if we talk about office furniture industry, they
must make adjustment according to situations.

Connection between political/legal and global: Every politician from different countries
connects globally, and they have only one condition, that is the human development in every term,
therefore it depends on different situation. Office furniture industry somehow makes adjustment
on that.

Connection between sociocultural and global: Here, we are talking about habit of consumption;
industry cannot change it unless it changes globally. Globally, everything is changing year after
year. However, in many times country wise habituation does not change, actually we are talking
about dominant substitute product. But in office furniture industry, there are also some dominant
furniture which cannot be changed easily. Some furniture is available that can be changed when
globally new invention is made. This is the replacement. Office furniture industry must look for
every invention and make things useful so that customers may satisfy themselves and sale volume
may see higher rate.

As we are talking about office furniture industry, technological issue come when we talk digital
furniture, and it is very expensive, and not every companies can buy it for their offices. So,
technological dimensions may also come in that research.

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5. Findings

After analyzing all the facts, we can easily say that the industry always has to adjust to the general
environment. Demographically adjusted based on area, the industry has to give discounts or offer
premium products. In economic factors, the industry mainly focuses on new companies where the
new furniture is needed. Companies when starting a new office, they need furniture, which means
they need capital, and when it comes to capital it relates to the inflation rate or buying power. The
industry has to adjust to countries' inflation rates. When the inflation rate gets higher than the effect
on product selling units, they also have to increase their product price and the inflation rate
sometimes effect the income level of the people. Under the political environment sometimes the
industry follows hedging and salvaging strategies, doing insurance, and stopping activities when
the political situation is bad to minimize the risk. When the government increases the tax then they
increase the price and sales will go down or clients are unsatisfied. The industry has to understand
and adjust to clients' behavior, expectation, and values. The industry should be up to date with
modern technology. Should adopt automation technology, 3D modeling and artificial intelligence.
The industry should be connected globally. Global good or bad conditions affect the furniture
industry. Should adopt the global design, model, and raw materials. The furniture industry is
influenced by the above dimensions but by making associations or collective sources the office
furniture industry can at least little influence the general environment dimensions.

6. Recommendations

❖ Industries need to adjust product prices with the inflation rate and also need to relate with
the income level of people.
❖ Based on location, the industry needs to give a discount or offer premium products.
❖ Industry should be up to date with modern technology.
❖ When the government increases a tax, industries should face the situation tactfully.
❖ Industry should understand clients' behavior and expectation and then make a long-term
plan according to them.
❖ Industry should adopt global design and models to remain competitive.
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 ❖ Office furniture industry needs to use the option of making groups or associations or
collective actions.

7. Conclusion
Office furniture is gaining more importance with the expansion of business environment. The
general environment of the office furniture industry should be taken into consideration and it
should be adjusted. Furniture manufacturers are striving to be environmentally friendly by
reducing chemicals, using recycled materials, and running factories with less energy. By creating
a shared source, the dimensions of the general environment can be changed.

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8. References
OFFICE FURNITURE MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECAST (2022 - 2027).
(2022, January 29). Retrieved from Mordor Intelligence:
https://www.mordorintelligence.com/industry-reports/office-furniture-market

Simionato, C. (2022, January 13). Office furniture market value worldwide from 2021 to 2026. Retrieved
from Statistica: https://www.statista.com/statistics/1062726/office-furniture-market-value-
worldwide/

Souza, E. (2020, May 07). 4 Technologies Impacting Furniture Design and Manufacturing. Retrieved from
archdaily.com: https://www.archdaily.com/938308/4-technologies-impacting-furniture-design-
and-manufacturing

Timber and Furniture. (2019, July 24). Retrieved from databd.co:

https://databd.co/profiles/industries/profile-timber-and-furniture/

Wood, Z. (2022, April 17). UK furniture prices to rise as war in Ukraine drives up cost of timber. Retrieved
from theguardian.com: https://www.theguardian.com/business/2022/apr/17/uk-furniture-
prices-to-rise-russia-ukraine-war-drives-up-cost-of-timber

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