Damietta city is considered one of the most important industrial entities in Egypt due to its excellence in a number of industries, especially furniture industry, which has gained wide fame worldwide over the past decades. The furniture industry in Damietta faced a large number of challenges that caused a state of recession and stagnation, which leads us to question the causes of this crisis and search for the best ways to deal with it. In the study, the administrative activity developments synchronized with the industrial developments were tracked, plus identifying external environment variables that had an impact on the industry. Plus, a questionnaire was distributed to a number of furniture factories that share several features. Its purpose is to determine the extent to which management principles are applied therein and its impact on the performance of the factory. The research dealt with a case study of one of the factories and the study indicated the existence of a number of problems that were addressed, and proposing appropriate solutions to them based on the scientific foundations and standards aimed at increasing effectiveness and raising efficiency and productivity. The results indicated that as the industry developed, administrative practices developed that would enable companies to Maximizing the benefit of these industrial developments, plus the negative impact of external environmental changes on the industry, plus the weak application of management principles within Damietta furniture factories, and the possibility of raising the performance of furniture factories through Apply appropriate management solutions and practices.