University of Maryland Global Campus Wk 2 Smithfield Custom Furniture Discussion

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Case Discussion

Smithfield Custom Furniture (Part 2)

As a result of its consultants' wonderful guidance in 1901, Smithfield Custom Furniture has continued to do extremely well financially. It is now 1987, and the company has been headed by the founder’s grandson, Jonas Smithfield III. He has run the company for the past twenty years.

The company now has 247 retail stores. 220 stores are spread throughout the 50 states, and 27 stores are located in England, France, and Germany. Each country has 9 stores. In total, the company employs 13,000 people. Approximately 40% are manufacturing, distribution, quality control, design, delivery, administrative, and back-office work. Approximately 60% of the employees are in retail stores.

It has been Smithfield Custom Furniture’s mission to target the wealthiest segments of the market. The company does all its manufacturing in the United States at six facilities, recently modernized with the latest equipment. They use the finest and most exotic woods to make distinctive furniture for their clientele. Much of their work is limited edition, and they try to ensure demand is slightly higher than supply for each product they make.

For the past 20 years, Jonas Smithfield III has been aware of the financial growth in a large segment of the workforce, primarily due to more women in the workforce holding full-time and professional occupations. He knows too that families are moving more often and may not need or desire the exclusivity of his furniture. His last concern is that his plants may not be working as efficiently as they could. In other words, he realizes his plants could produce less of the high-end furniture if the company developed a line of products that was still upscale—aimed at mid-career professional households.

1. Explanation of Mission Statement Requirements

2. A Mission Statement for Smithfield Custom Furniture's New Product Line

3. Explanation of Vision Statement Requirements

4. Vision statement for Smithfield Custom Furniture's Product Line

5. Application of either of Michael Porter’s two strategies --- Competitive Advantage (low cost versus exclusivity) or Competitive Strategy (Five Forces Model)

6. Priority Order/Justification Smithfield's 3 Next Steps

-------------------------------------------------------------------------------------------------------------------------------------------------------------------***What is required***

Your Task Format for Your Response Post

Two Options for Your Required Replies to Classmates

Option 1 is to find an issue of the classmate to whom you respond with which you disagree. You must state why you believe there is a better manner to address a particular issue that differs from your classmate’s response. You must state the major idea associated with your choice and why that idea applies to the issue more appropriately. You must support your reply with course materials, in-text citations, and references.

Option 2 occurs if you agree with all of a particular classmate’s initial posting responses. In that case, you must expand on one issue that your classmate presented. Your enhancement will provide more depth or other related factors that your classmate should consider. Your reply must be supported with course materials, in-text citations, and references.

You may use either Option 1 or Option 2 for each different classmate to whom you respond.

"Required, your task is to reply to 4 classmates, instructions below"

Instructions for Responses to Classmates’ Posts

A response posting should be a minimum of one short paragraph. Word totals for these posts should be in the 75–150-word range. Your response posts' goal is to extend discussions already taking place or pose new possibilities or ideas not previously voiced. Your goal should be to motivate the group discussion and present a creative approach to the topic. Do not merely agree or disagree, repeating what a classmate stated or what you have already stated. Explain the ‘why or how’ with supporting evidence and concepts from the course material. Include in-text citations and associated references within a reference list.

**All 4 student needing responses are in four different word documents attached and responses need to be separated to each word document and students name for posting in the correct areas.**

Course Materials (This is the only material that can be used):

Mission, Vision, and Values | Principles of Management. (2021). Retrieved 29 October 2021, from https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/reading-mission-vision-and-values/

Pros and Cons of Planning. (2021). Retrieved 30 October 2021, from https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/reading-pros-and-cons-of-planning/

Putting It Together: Planning and Mission. (2021). Retrieved 29 October 2021, from https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/putting-it-together-planning-and-mission/

Stages and Types of Strategy. (2021). Retrieved 30 October 2021, from https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/stages-and-types-of-strategy/

The Role of Strategy in Management. (2021). Retrieved 30 October 2021, from https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/the-role-of-strategy-in-management/

Why It Matters: Planning and Mission. (2021). Retrieved 30 October 2021, from https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/why-it-matters-planning-and-mission/

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Classmate: Shamar Thompson 1. Explanation of Mission Statement Requirements A mission statement should be an actionable, concise statement addressing what the organization is doing to achieve its goals (Mission, Vision, and Values, n.d.). Additionally, this statement should articulate the value the product/service offered has for customers. 2. Mission Statement for Smithfield Custom Furniture’s New Product Line Smithfield Custom Furniture desires to deliver upscale, semi-distinctive furniture made with finest and exotic woods at an affordable price across the United States and Europe. 3. Explanation of Vision Statement Requirements A vision statement should broadly reflect the hopes of an organization and should be no longer than a short paragraph (Mission, Vision, and Values, n.d.). 4. Vision Statement for Smithfield Custom Furniture’s Product Line Smithfield Custom Furniture seeks to create upscale furniture for mid-career professional households. 5. Competitive Strategy (5 Forces Model) Smithfield Custom Furniture is susceptible to the threat of substitute products. Customers may be more inclined to substitute quality for the price by purchasing lower-end furniture items from Amazon or Walmart rather than custom items from Smithfield Custom Furn iture. While a bookshelf from Walmart and Amazon will achieve the same purpose as a bookshelf from Smithfield Custom Furniture, customers may feel more comfortable purchasing the cheaper product. Perhaps, emphasizing the value of customization to customers can lessen this threat for Smithfield Custom Furniture (Common Frameworks for Evaluating the Business Environment, n.d.). There are not a lot of known custom furniture companies. I anticipate that there will not be many barriers to entry aside from furniture companies that manufacture generic items. As mentioned in the case study, the shift in the demographic of the workforce has impacted buyers’ demand for high-end furniture. Consequently, Jonas has felt pressure to revamp his mission, vision and marketing strategy. This suggests that the bargaining power of customers is relatively high. The bargaining power of suppliers is moderately low. Jonas has some control of the demand and supply for each product. Overall, Smithfield Custom Furniture appears to be both competitive, attractive and profitable in the industry as they have a limited number of competitors, threats and customer bargaining power (Common Frameworks for Evaluating the Business Environment, n.d.). 1. Priority Order/Justification Smithfield’s 3 Next Steps 1. Analyze strengths and weaknesses of company to assess customer value and competitive advantage Customers are essential to the profitability of a company. Thus, it is imperative to not only acquire customers but also understand factors that contribute to their purchasing behavior to retain them. Knowing what matters to customers influences marketing, production, and delivery, which in turn can help distinguish the company from competitors. Consequently, increasing supplier bargaining power, and company attractiveness and profitability. b. Increase product awareness among customers Identifying the appropriate segment of the market can be beneficial financially as well as help with customer retention. This is also a good way to convey the value of the product/service to customers that they may not readily understand. c. Increase sales through branding Branding can help distinguish a company from its competitors, which in turn increases its attractiveness and profitability. Customers are more likely to purchase products/services that they are confident will meet their needs as well as popular brands that offer some level of exclusivity. References Common Frameworks for Evaluating the Business Environment. (n.d.). Retrieved October 28, 2021, from https://learn.umgc.edu/d2l/le/content/616924/viewContent/23346650/View. Mission, Vision, and Values. (n.d.). Retrieved October 28, 2021, from https://learn.umgc.edu/d2l/le/content/616924/viewContent/23346650/View. The Role of Strategy in Management. (n.d.). Retrieved October 28, 2021, from https://learn.umgc.edu/d2l/le/content/616924/viewContent/23346650/View. Classmate: Melissa Darling 1. Lumen Learning explains a mission statement to be a statement that “describes what the organization needs to do now to achieve the vision.” Another great way of thinking of a mission statement is to have a statement that makes you stand out from the rest of the companies that are in the same industry as you. A mission statement should set you apart and above your competition. A mission statement is more action-driven than a vision statement and should lead to strategic goals (Mission, Vision, and Value. N.d.). 2. To appeal and provide quality furniture for working families. Keeping our upscale style and high quality with a higher supply and a lower price tag. 3. A vision statement can be described as what the company hopes to achieve (Mission, Vision, and Value. N.d.). Vision statements do not provide strategic goals and should be broad enough that they do not apply to only companies in your industry. Keeping it short is key to having a great vision statement, look at Disney’s for example, “To make people happy. (Mission, Vision, and Value. N.d.).” 4. To be the working family’s company. 5. Michael Porter created a system known as Porter’s Five Forces. It is commonly used in business to evaluate opportunities and threats of the company’s external environment to lead to strategic goals for business success (Common Frameworks for Evaluating the Business Environment. N.d.). We can apply this system to Smithfield Custom Furniture’s strategy of a new line of more affordable and available furniture. The five forces in Porter’s Five Forces include threat of new entrants, threat of substitute products/services, competitive rivalry in the industry, bargaining power of buyers, and bargaining power of suppliers(Common Frameworks for Evaluating the Business Environment. N.d.). The threat of new entrants into the industry poses the issue of taking away customers (Common Frameworks for Evaluating the Business Environment. N.d.) from Smithfield, a loss of profit. With the strategy of introducing a new furniture line within the Smithfield company, a rebranding if you will, is a smart move. Smithfield has become the new entrant, yet it’s the same company. They will be attracting more people and keeping their existing customers because of the new product and the consistency of the original product. This also applies to the threat of substitute products/services. With a whole new line, Smithfield is the new product. Competitive rivalry in the industry is an external factor of business that can show a causeeffect of profitability. As Porter sees it is “a highly competitive market suggests that the competitors are aggressively trying to take market share from their rivals.(Common Frameworks for Evaluating the Business Environment. N.d.)” So new rivals are not always a bad thing, but it does require aggression and focus. The addition of a line of furniture that is targeted toward middle-class families, that increases Smithfield’s competitiveness. Going from a high-end furniture store to moving in on lower quality, and cheaper furniture stores shows that Smithfield wants some of that market and they are going to get it because they already have a large following being around for so many years. The bargaining power of the buyers being high is not an attractive market to get into(Common Frameworks for Evaluating the Business Environment. N.d.). With Smithfield moving into a more department store style of furniture does move them into a market with more competition, thus more bargaining power from the buyers. If a buyer sees two pieces of furniture that are of similar quality, but one is lower priced than the other, they will go for the lower-priced one. This gives the buyers bargaining power. Smithfield has also put itself in a sticky situation with the bargaining power of the suppliers. With the demand for products potentially going up, that increases the supplier’s bargaining power. Suppliers can raise prices, lower quality, or reduce the availability of supply thus Smithfield could not supply their demand potentially(Common Frameworks for Evaluating the Business Environment. N.d.). 6. Step 1: Plan your strategic management processes. Planning your company’s objective will involve laying out your mission statement, vision statement, and values statement. Complete the SWOT Analysis. The SWOT analysis looks into the internal and external weaknesses and strengths that would affect an organization(Common Frameworks for Situational Analysis. N.d.). Understanding what your company is up against and what you bring to the table can be very effective in planning. Having this information at your fingertips can assist you in the next step of the strategic management process. Step 2: Strategic Formulation. Gather resources and information from your SWOT and PESTEL analysis to set clear and realistic goals (Common Frameworks for Situational Analysis. N.d.). All of this information is based on the weaknesses and strengths of the company. Use them to your advantage. Step 3: Strategic Implementation. This can be thought of as the execution phase, the planning stops and the action begins. The importance of strategic management is to make sure everyone is aware of their role and what their role needs to do to work towards their shared goal (Common Frameworks for Situational Analysis. N.d.). References: Common Frameworks for Evaluating the Business Environment. N.d. Lumen Learning. https://learn.umgc.edu/d2l/le/content/616924/viewContent/23346650/View Common Frameworks for Situational Analysis. N.d. Lumen Learning. https://learn.umgc.edu/d2l/le/content/616924/viewContent/23346650/View Mission, Vision, and Value. N.d. Lumen Learning. https://learn.umgc.edu/d2l/le/content/616924/viewContent/23346650/View Classmate: Adaliyah Toro 1. Explanation of Mission Statement Requirements Many people can get the mission statement and the vision statement confused but the mission statement is what tells you the steps on what you should do in order to finish your goal that you have in mind. They both come together and support each other but t he vision statement is not as specific as the mission statement (University of Maryland Global Campus, n.d, “Week 2 Mission, vision, and values,” para. 7). The main goal that the mission statement does is to show what the difference will be compared to other companies and how it is a better company. 2. A Mission Statement for Smithfield Custom Furniture's New Product Line Smithfield Custom Furniture- We use the most exotic wood to enhance the customers needs and wants for them to have the best furniture to feel comfortable and safe. 3. Explanation of Vision Statement Requirements When looking at the vision statement you will see how it is just a smaller version of the mission statement since it does not have all the aspects provided. The vision statement is what tells you what the company wants to achieve or hope to achieve in the future. It does not go into detail and is usually a very short slogan. Since it does not provide any targets it only points out what the company provides and needs to inspire people to want to be apart of the team (University of Maryland Global Campus, n.d, “Week 2 Mission, vision, and values,” para. 5) 4. Vision statement for Smithfield Custom Furniture's Product Line Smithfield Custom Furniture- Made with love and the finest woods you can find! 5. Application of either of Michael Porter’s two strategies --- Competitive Advantage (low cost versus exclusivity) or Competitive Strategy (Five Forces Model) The best strategy for Smithfield's Custom Furniture would be the Competitive Advantage (low cost versus exclusivity) and that is because that goal is to provide affordable prices to the customers. If the prices are too high the customers won’t bother to look at the furniture but if they are at an affordable price they can buy more of it and tell all of their friends (University of Maryland Global Campus, n.d, “Week 2 stages and type of strategy,” para. 9). Having this strategy makes it harder for other stores to compete with you; they will not have the same plan. 6. Priority Order/Justification Smithfield's 3 Next Steps 1. Pros and cons of planning- In order to become a great business you need to know what are the good steps to take and what are steps you should avoid. Having this first step will allow the process to run smoothly. It sets the basic foundation that everything else you do will look back at that plan (University of Maryland Global Campus, n.d, “Week 2 Pros and cons of planning,” para. 1). 2. Types of plans and common planning tools- There are two types of planning that should happen in the beginning of starting your business. There is long term and short term and they both allow you to decide what you want and when you want to achieve those goals (University of Maryland Global Campus, n.d, “Week 2 Types of plans and common planning tools,” para. 2). Long term should be up to a five year plan and that gives you goals and a structure. Short term goals are usually less than a year and since it's a short term goal it has to deal with the little aspects throughout the day and the week. 3. Mission, vision, and values- This step is important because in order for you to get customers they need to be pulled toward your company. A good way for that is having great mission and vision statements (University of Maryland Global Campus, n.d, “Week 2 Mission, vision, and values,” para. 6). It shows what your main goals are and what you will do to achieve that goal. CitationsUniversity of Maryland Global Campus. (n.d). Week 2: Reading and Activities. Document posted in UMGC BMGT 364 7388 online classroom, archived at https://learn.umgc.edu/d2l/le/content/616924/viewContent/23346650/View University of Maryland Global Campus. (n.d). Week 2: Reading and Activities. Document posted in UMGC BMGT 364 7388 online classroom, archived at https://learn.umgc.edu/d2l/le/content/616924/viewContent/23346650/View Classmate: Courtney Yates 1. Explanation of Mission Statement Requirements Our mission statement needs to be specific in addressing what the “organization needs to do to achieve the vision” (Mission, Vision, and Values, 2021). The mission statement will need to align with our vision statement which is: Create timeless upscale furniture available to all. Creating the mission statement is only one of the tasks at hand. For the mission statement to work, you will need to create a plan towards succeeding in your mission as an organization. 2. A Mission Statement for Smithfield Custom Furniture's New Product Line We seek to create the upscale furniture that are affordable and desired for all. 3. Explanation of Vision Statement Requirements For our vision statement, we will need to determine what the organization is “hoping to achieve or to become” (Mission, Vision, and Values, 2021). This will need to be broad and very high level to provide an image of what the organization hopes to achieve or produce. The vision statement needs to support our mission statement which is: We seek to create the upscale furniture that are affordable and desired for all. 4. Vision statement for Smithfield Custom Furniture's Product Line Create timeless upscale furniture available to all 5. Application of either of Michael Porter’s two strategies --- Competitive Advantage (low cost versus exclusivity) or Competitive Strategy (Five Forces Model) Smithfield’s exclusive product line and new reasonably priced product line should follow Michael Porter’s competitive analysis strategy to execute their goal and mission effectively. With the exclusive product line, it has been our mission to provide high-end furniture pieces for the wealthier market whereas the new reasonably priced product line will need to target the middle-class market. First, we need to examine the competitive advantage that we can have over other businesses that separates our products from theirs (The Role of Strategy in Management, 2021). With our exclusive product line, we have been very successful because we are providing customers unique, high quality pieces made from high quality materials. To create a distinction between our new reasonable priced product line, we will need to determine what our competitive advantage will be. One way to do this would be to establish a supply chain management group that focuses on finding alternative materials to use that is high-quality but also much cheaper. That way, our clients are still getting the quality they expect from our brand, while remaining affordable. The threat of substitute products or services in Porter’s five forces model is a variable worth considering as well when discussing the new product line (The Role of Strategy in Management, 2021). This is because to be successful with our new reasonable priced product, we need to understand what the competition in this market looks like to determine how to maximize profits. Ensuring that we are producing a unique product is going to maximize profits greatly with this competitive market. Ikea is a good example of a furniture store that has mastered the art of producing affordable unique furniture to its clients. 6. Priority Order/Justification Smithfield's 3 Next Steps 1. First, it is important to determine Smithfield’s mission and vision statement that will support the organization's goals. The mission and vision statement will demonstrate to our customers what we want to achieve with our product lines. 2. Secondly, Smithfield must make a strategic business plan that explains the organizational goals. This plan will support the vision and mission statement by providing a “roadmap that guides the organization to success” (Why It Matters: Planning and Mission, 2021). As a business leader you need to know what steps need to be taken to accomplish your mission and vision and ensure the consumer also recognizes what our goals with our products are. Since “goals are derived from the vision and mission statements”, we can set a plan in place for management to utilize to control our products and better cater to the market (Pros and Cons of Planning, 2021). Plans also allow us to continue working towards improvement and provides continuous motivation. 3. Thirdly, would be to begin implementing the plan by using a strategic management process. Now that we have created a plan and determined our vision and mission statements, we are ready to put this plan into action. To do this, it is important that we provide employees with the proper training and resources to ensure they also carry out the mission and vision statement in their day-to-day job functions. References: Mission, Vision, and Values | Principles of Management. (2021). Retrieved 29 October 2021, from https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/readingmission-vision-and-values/ Pros and Cons of Planning. (2021). Retrieved 30 October 2021, from https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/readingpros-and-cons-of-planning/ Putting It Together: Planning and Mission. (2021). Retrieved 29 October 2021, from https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/puttingit-together-planning-and-mission/ Stages and Types of Strategy. (2021). Retrieved 30 October 2021, from https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/stagesand-types-of-strategy/ The Role of Strategy in Management. (2021). Retrieved 30 October 2021, from https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/therole-of-strategy-in-management/ Why It Matters: Planning and Mission. (2021). Retrieved 30 October 2021, from https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/why-itmatters-planning-and-mission/
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Smithfield Custom Furniture Response Paper

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Smithfield Custom Furniture Response Essay
Student 1: Shamar Thompson
I agree with the majority of the discussions you have presented under the porter five model. I
agree that Smithfield will face a high threat of competitive rivalry, the threat of substitutes,
buyers' bargaining power, and a low threat of new entrants for custom furniture. However, I'm
afraid I have to disagree with your claim that the bargaining power of suppliers is relatively low.
Instead, I believe that the bargaining power of suppliers is high. Smithfield is a furniture
company, which implies that most of its products are created from wood, a scarce raw material
(Adamkasi, 2019). Therefore, the suppliers have a high bargaining power during purchase
negotiations because there is a demand for timber from both local and international furniture
companies (Adamkasi, ...

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