The majority owner and general manager of City Furniture and Mattress (CFM) needed to make several decisions that would determine the company’s strategy. CFM had continued to grow in terms of sales, but the general manager and his father, also an owner and manager at CFM, were concerned with profitability and the increasing competition from local and big-box stores. The general manager looked at several options including capital investment, expanding global outsourcing, store network expansion, and vertical integration.
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