Discussion responses
Initial post 1 (McCashland):
1. Explanation of Mission Statement Requirements
The Mission Statement is usually formulated after the Vision Statement, as a more specific and actionable indication of the company's intentions. The mission statement should describe how the business will achieve the vision statement, and indicate the competitive advantage they will leverage to do so (Bruton & Bruton, n.d.b, The Mission Statement). From the mission statement, we should be able to determine what industry the business is in, and how it intends to set itself apart from the competition.
2. A Mission Statement for Smithfield Custom Furniture's New Product Line
Mission Statement: To be the gold standard of high-end furniture for modern households, using fair and sustainable processes.
For the mission statement, I brought in the industry, furniture, and the new demographic that Smithfield's is targeting to expand their market share. I wanted to expand a bit on the social responsibility statement, to endorse fair labor practices as well as sustainable manufacturing and shipping. Smithfield's wants their new 'Executive' line of furniture to be what professionals wish they had, and strive to attain.
3. Explanation of Vision Statement Requirements
A Vision Statement can be thought of as a rallying cry that brings the company together under one idea, or vision. The vision statement is an inspiring motto that signifies what the organization hopes to achieve (Bruton & Bruton, n.d.b, The Vision Statement). This is a concise and easily remembered, but non-specific description of where the company is going, that inspires both employees and customers. This needs to be specific enough to guide the mission statement, but general enough to allow flexibility to adapt to a changing world.
4. Vision statement for Smithfield Custom Furniture's Product Line
Vision Statement: We Deliver Sustainable Lifestyles for Success.
Tag line: "You bring the success, we provide the lifestyle."
I chose this vision statement because it puts sustainability and social responsibility right up front. In an era when businesses are moving from providing products to providing services, I felt Smithfield's needs to focus not on the furniture products they provide, but what need or desire the furniture fulfils. This allows the flexibility to expand into new areas such as interior decoration services, furniture leasing, etc. Smithfield's target demographic of professional households on the go will respond to an appeal to their drive for success while embracing sustainability. I left the 'success' reference a bit ambiguous to imply that 'our' furniture contributes to success as well as signifies and embellishes it.
5. Application of Porter’s Competitive Strategy
Smithfield's is following an Integrated strategy that combines their traditional focused differentiation strategy with a focused lower-cost line of products to capture a larger market share. Integrated strategies try to get the best of both worlds by either aiming for a balance of value and cost, or by having separate lines of product for value or low cost (Bruton & Bruton, n.d.d, Integrated Strategy). A differentiation strategy seeks to provide high-value products or services that justify a higher price tag (Bruton & Bruton, n.d.d, Differentiation Leadership Strategy, para. 1). A Low-price strategy optimizes efficiency to keep costs minimal so they can offer products to a broader range of customers (Bruton & Bruton, n.d.d, Low Price Leadership Strategy). Smithfield's hopes to maintain a high level of quality in their new 'Executive' line so their luxury brand is not diluted, but instead of custom-making this furniture, they'll use more efficient manufacturing methods to lower costs.
6. Priority Order/Justification Smithfield's 3 Next Steps
The most important thing for Jonas to do nest is to clarify the values of his organization. A Values Statement would define what qualities are most important to the organization, and guide the behavior or the business and every employee (Bruton & Bruton, n.d.b, The Values Statement, para. 1). Smithfield's values statement might include such values as Quality, Sustainability, and Integrity. These values must be embraced and modelled by the senior leaders, monitored and enforced by management, and baked into the culture of the company.
Next, Smithfield's must complete a Situational Analysis to understand the business environment and market conditions under which they are launching their new 'Executive' line of furniture. The information generated by the Situational Analysis, combined with the Vision, Mission, and Values statements, provide what is needed to formulate the company's major goals (Bruton & Bruton, n.d.c, What you'll learn, para. 2). The Situational Analysis might include a SWOT analysis, which looks at the internal Strengths and Weaknesses of the organization, as well as the external Opportunities and Threats the company is facing (Bruton & Bruton, n.d.a, SWOT). Smithfield's is used to building custom furniture, and will likely need to acquire the tools and knowledge to mass-produce quality furniture.
With all of the above in place, Jonas and his leadership team are ready to define Smithfield's new goals. These objectives need to implement the company's mission in the spirit of its vision, while maintaining its values (Bruton & Bruton, n.d.e, Stages in the Planning Cycle, Define objectives). The situational analysis will guide what goals are feasible and how they can provide competitive advantage. Once specific objectives are defined, the entire company can align on these goals.
References
Bruton, J. & Bruton, L. (n.d.a). Common frameworks for situational analysis. Lumen Learning. https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/common-frameworks-for-situational-analysis/
Bruton, J. & Bruton, L. (n.d.b). Mission, vision, and values. Lumen Learning. https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/reading-mission-vision-and-values/
Bruton, J. & Bruton, L. (n.d.c). Pros and cons of planning. Lumen Learning. https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/reading-pros-and-cons-of-planning/
Bruton, J. & Bruton, L. (n.d.d). Stages and types of strategy. Lumen Learning. https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/stages-and-types-of-strategy/
Bruton, J. & Bruton, L. (n.d.e). The planning cycle. Lumen Learning. https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/the-planning-cycle/