Chabros International Group: A World of Wood

The Chabros tabooside(a) Group started with fair low-key beginnings in the late sixties, hardly has gradu t pop out ensembley reach a well-thought-of name in a wealthiness of disparate timber merchandises. In particular, it has kick the bucket a well-known wood and facing supplier refer able to the relentless and a lot pioneering efforts of its president Antoine Chami, who has c atomic number 18fully build up a reputation for spirited gear woodland products and olympian(a) service. The take for granted employs more than 600 stave with an annual turnover of $100 zillion USD.Chabros is a leading producer and supplier of wood and cladding and a each(a)ocator of a wide mental image of inner and exterior products that have been specified and employ in major high-end projects throughout the heart East for over 40 age. With an excogitation to cater to the innovative needs of carpentry professionals, architects & interior designers as well as contractors, Chabros has established overseas work units and dispersion points throughout the centre of attention East Region, targeting businesses that argon in search for property products and prodigious service.In addition to its strong presence of Lebanon, Chabros has endlessly been devoted to expand its hurl of products to result original and fresh design solutions to its customers. Chabros has similarly added a line of services to its live product pull uperings including cladding stitching & pressing, sanding, cover finger jointing, parquet and exterior decking facility as well as teakwoodwood yacht decking. Chabros is positioned as one of the market leading suppliers of Wood & Veneer with a large stock of wide range of products, exceptional service and unique expertise.The conjunctions success is driven by its loyal customers, their team and their unrelenting taper on delivering results by executing with excellence. In Lebanon, Chabros was one of the first to produce cover products instead of solid wood because of its ecologic and frugalal benefits. The communitys ken has of solely time been to expand the business shape up in order to meet the perseverances demands and replenish the shortages that exist. However, due to the wars and policy-making unrest in Lebanon, the phoners desire to expand was stifled clean until 1998 when it ventured into the GCC and could establish a branch in Dubai.In the midst of a growing globose market, Chabros has established overseas product units and dissemination points throughout the halfway East Region, targeting businesses that atomic number 18 in search for quality products and exceptional service. The caller-outs regional dissemination centers ar headquartered in Dubai covering a vast geographical area of supply. The Chabros planetary Group case studies how Chabros confronts a forceful drop in its largest subsidiarys gross revenue later on 2008s global sparing crisis.Chami, the fami liaritys owner and president, was reviewing his alliances 2009 end-of-year monetary statements and, in particular, a 30 per cent drop in gross gross sales in Dubai. In 2007, a year before the global economic crisis, Chami had invested more than $11 cardinal to procure and expand a sawmill in Serbia to meet Chabross growing pound sales demand. With a some(prenominal) higher efficacy to produce quality and a over some(prenominal) bring down probability to sell it, Chami had to conciliate what to do to overcome this challenge. Shocked, Chami went into crisis mode and consulted all of his top management to address these issues.Questions that were embossed Should he close separate of his Serbian sawmill? Should he try to hike up his companys sales to use all of his sawmills open content? If so, should Chabros try to increase sales within the United Arab Emirates, Saudi Arabia, Qatar, Oman, and Egypt or should it expand into a new commonwealth much(prenominal)(prenomin al)(prenominal)(prenominal) as Algeria, Bahrain, Iran, Iraq, Jordan, Kuwait, Libya, Syria, Tunisia? Would Morocco, among some distinct countries, be the best realm to expand into? Was it the repair time to embark on such an expansion?The management too had explored divergent alternatives such as closing move of the Serbian sawmill and opposite strategies that they could decipher if they finalised to try grow the companys sales. The future seemed so shot and the team did non know what to expect. It was pass make that closing the Serbian sawmill was out of the question, mainly because the company had invested over $11 just less than two years ago. Closing that plant would put the company in a difficult financial patch as it invested for the long run.The companys best alternative would be to delay operations in the Serbian sawmill and try to expand into other markets where such materials were in high demand. introductory to this, expansion, an extensive research woul d have to be conducted, particularly due to the crisis affecting legion(predicate) parts of the world. If Chabros was competent to find an expanding market, they could get across operations in all of their sawmills. some other picking would be to sell off either part of the operations or the entire sawmill.Both of these woofs would put them at a loss, however, it would be a better option than shutting the entire mill. Some of the strengths and hawkish advantages, which Chabros International Group consisted of, were being at the same time a producer and a wholesaler, which gave them strategical flexibility. They understood and adapted to its Western suppliers and the set East and North Africa suppliers. Lebanese plenty are very adaptable due to their culture, which brought the main sawmill to a often greater advantage. other strength which Chabros had, was providing its customers with more wide-ranging and customized wood products than most other competitors, which buil d distinctive relationships with its key suppliers. With strengths and advantages come disadvantages, which Chabros had as well. Being a lumber producer put Chabros in the reverse slip and sometimes gave it a disadvantage compared to lumber wholesalers. This happened during the financial crisis, where euro reached an all time high of $1.55 and Chabros Russian supplier was able to sell at a cast down price. A weak point where Chabros stands, is non working on their brand name. Although Chabros was direct in seven MENA countries, their name was not very well known, not to book of facts in its parent country, Lebanon. Through its affiliates all over the world, the company has established strategic alliances with mills in Africa, North and southward America and Europe, which are responsible for sourcing, cooking, cutting, drying, equalization and supplying the heterogeneous wood products.In new-fangled years, it has broadened its product lines to include new products such as mo ther-of-pearl laminates and Duroxill UF powder glue. The exploitation of the company means it has also panoptic its services, which have developed to include the production of lay-ons, veneered boards and parquetry designs through the use of confused splicing, cutting and laser machines in its different locations.Chabros International Group A arena of WoodThe Chabros International Group started with clean low-key beginnings in the late sixties, except has gradually become a well-thought-of name in a wealth of different timber markets. In particular, it has become a well-known wood and veneer supplier due to the relentless and much pioneering efforts of its president Antoine Chami, who has carefully built up a reputation for high quality products and exceptional service. The company employs more than 600 staff with an annual turnover of $100 million USD.Chabros is a leading producer and supplier of wood and veneer and a distributor of a wide range of interior and exterior pr oducts that have been specified and employ in major high-end projects throughout the Middle East for over 40 years. With an depend to cater to the innovative needs of woodworking professionals, architects & interior designers as well as contractors, Chabros has established overseas production units and dispersal points throughout the Middle East Region, targeting businesses that are in search for quality products and exceptional service.In addition to its strong presence of Lebanon, Chabros has always been devoted to expand its range of products to suffer original and fresh design solutions to its customers. Chabros has also added a line of services to its menstruation product offerings including veneer stitching & pressing, sanding, veneer finger jointing, parquet and exterior decking inductive reasoning as well as teak yacht decking. Chabros is positioned as one of the market leading suppliers of Wood & Veneer with a large stock of wide range of products, exceptional service and unique expertise.The companys success is driven by its loyal customers, their team and their unrelenting stress on delivering results by executing with excellence. In Lebanon, Chabros was one of the first to produce veneer products instead of solid wood because of its ecological and economical benefits. The companys great deal has always been to expand the business besides in order to meet the industrys demands and replenish the shortages that exist. However, due to the wars and governmental unrest in Lebanon, the companys desire to expand was stifled just about until 1998 when it ventured into the GCC and could establish a branch in Dubai.In the midst of a growing global market, Chabros has established overseas production units and diffusion points throughout the Middle East Region, targeting businesses that are in search for quality products and exceptional service. The companys regional distribution centers are headquartered in Dubai covering a vast geographical area of supply. The Chabros International Group case studies how Chabros confronts a drastic drop in its largest subsidiarys sales by and by 2008s global economic crisis.Chami, the companys owner and president, was reviewing his companys 2009 end-of-year financial statements and, in particular, a 30 per cent drop in sales in Dubai. In 2007, a year before the global economic crisis, Chami had invested more than $11 million to acquire and expand a sawmill in Serbia to meet Chabross growing lumber sales demand. With a much higher capacity to produce lumber and a much lower probability to sell it, Chami had to decide what to do to overcome this challenge. Shocked, Chami went into crisis mode and consulted all of his top management to address these issues.Questions that were increase Should he close parts of his Serbian sawmill? Should he try to encouragement his companys sales to use all of his sawmills obtainable capacity? If so, should Chabros try to increase sales within the United Ara b Emirates, Saudi Arabia, Qatar, Oman, and Egypt or should it expand into a new country such as Algeria, Bahrain, Iran, Iraq, Jordan, Kuwait, Libya, Syria, Tunisia? Would Morocco, among other countries, be the best country to expand into? Was it the overcompensate time to embark on such an expansion?The management also had explored different alternatives such as closing parts of the Serbian sawmill and different strategies that they could follow if they decided to try grow the companys sales. The future seemed so mutable and the team did not know what to expect. It was clear that closing the Serbian sawmill was out of the question, mainly because the company had invested over $11 just less than two years ago. Closing that plant would put the company in a difficult financial situation as it invested for the long run.The companys best alternative would be to continue operations in the Serbian sawmill and try to expand into other markets where such materials were in high demand. for mer to this, expansion, an extensive research would have to be conducted, particularly due to the crisis affecting many another(prenominal) parts of the world. If Chabros was able to find an expanding market, they could continue operations in all of their sawmills. Another option would be to sell off either part of the operations or the entire sawmill.Both of these options would put them at a loss, however, it would be a better option than shutting the entire mill. Some of the strengths and competitive advantages, which Chabros International Group consisted of, were being simultaneously a manufacturer and a wholesaler, which gave them strategic flexibility. They understood and adapted to its Western suppliers and the Middle East and North Africa suppliers. Lebanese peck are very adaptable due to their culture, which brought the main sawmill to a much greater advantage.Another strength which Chabros had, was providing its customers with more vary and customized wood products than most other competitors, which built distinctive relationships with its key suppliers. With strengths and advantages come disadvantages, which Chabros had as well. Being a lumber manufacturer put Chabros in the reverse situation and sometimes gave it a disadvantage compared to lumber wholesalers.This happened during the financial crisis, where euro reached an all time high of $1.55 and Chabros Russian supplier was able to sell at a lower price. A weak point where Chabros stands, is not working on their brand name. Although Chabros was operate in seven MENA countries, their name was not very well known, not to look up in its parent country, Lebanon. Through its affiliates all over the world, the company has established strategic alliances with mills in Africa, North and south America and Europe, which are responsible for sourcing, cooking, cutting, drying, marker and supplying the various wood products.In fresh years, it has broadened its product lines to include new products su ch as mother-of-pearl laminates and Duroxill UF powder glue. The harvest-festival of the company means it has also extensive its services, which have developed to include the production of lay-ons, veneered boards and parquetry designs through the use of various splicing, cutting and laser machines in its different locations.