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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