BMGT Week 2 Discussion

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Apr 3, 2024

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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. Your Task for Your Initial Post In your role as a consultant to Smithfield Custom Furniture, Jonas Smithfield III has requested you, using this week's assigned reading , to provide to him the following information: An explanation of what a mission statement requires plus a mission statement for the new furniture line. Use in-text citations and list references from course readings as required. An explanation of what a vision statement requires plus a vision statement for the new brand. Use in-text citations and list references from course readings as required. An analysis of how Michael Porter's competitive advantage (low cost versus exclusivity) or competitive strategy (Five Forces Model) applies to both Smithfield's exclusive product line and the newly conceived, more reasonably priced product line. Use in- text citations and list references from course readings as required. A list from this week's course readings, placed in priority order, of the 3 next steps Jonas Smithfield III should take to enhance his chances for success if he moves ahead with the new product line. Justify the selection of your 3 priority steps by writing a 2-3 sentence rationale for each. Use in-text citations and list references from course readings as required. Format for Your Initial Post

Use the following numbers and headings for each part of your response to a particular issue. You will also use, as required, in- text citations and a reference list to support your answers. 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 Discussion Answer 1. “the mission statement describes what the organization needs to do now to achieve the vision. A mission statement must be specific, acknowledge what distinguishes themselves from the others, must support the vision, and conveys to stakeholders why the organization exist.” (Brunton) 2. Smithfield mission statement is, we aim to provide the highest quality of exquisite and modern furniture to customers that require an elevated and high-end experience. 3. “A vision statement is a statement of an organization’s overarching aspirations of what it hopes to achieve or to become. The vision is a broad description of the value an organization provides. It is a visual image of what the organization is trying to produce or become. It should inspire people and motivate them to want to be part of and contribute to the organization. Vision statements should be clear and concise, usually not longer than a short paragraph.” (Bruton)

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4. Smithfield's vision is to make available the finer things in life for everyday people. 5. When analyzing the mission statement and the vision statement, a strategic and competitive analysis will need to be conducted. Looking at Porters five forces model, this can help us analyze and assess the competitive forces within an industry by understanding the attractiveness and profitability of a market. Smithfield's Custom Furniture's mission originally was to target the wealthiest segments of the market. This was done by utilizing the finest and most exotic woods to make distinctive furniture for their clientele. However, it is necessary for businesses to constantly be aware of external and internal factors that can redirect the business strategy and goals. After conducting a customer and SWOT analysis Smithfield identified major changes. They were able to identify changes in demographics. More women were entering the workforce which contributed to a large financial growth in the workplace. Families moved more and would not need or desire exclusive furniture. He also identified that his factories could be more efficient if he produced products that were still upscale but aimed at mid-career professional households. To enter into this new market, it is essential that we get a thorough analysis of the external environment to guide decisions moving forward. When looking at Porters competitive advantage strategies he identified two ways of targeting the market, “by focusing on a particular market segment or appealing to the overall (broad) market” (Bruton). By changing the customer base to target mid-level professionals from the wealthiest segment of the market Smithfield is looking to broaden their market. Porter also indicates two ways of achieving competitive advantage can be through either differentiation or cost. Smithfield aims to maintain its quality and brand of upscale furniture through overall differentiation.

6. After identifying the mission and vision statement and conducting the necessary analysis the next step for Smithfield would be strategic formulation. Strategic formulation involves using the information from PESTEL and SWOT analyses to set clear and realistic goals and objectives based on the strengths and weaknesses of the company and formulating targeted plans to achieve the goals. Taking the information gained from analyzing the external environment, their competitors and the company itself will guide Smithfield in formulating objective and strategic goals that will enable them to plan and make business decisions. Developing strategy immediately after an analysis helps mitigate risk, improves efficacy and ensures that the organization is well-positioned to achieve its long-term goals. The next step for Smithfield would be Strategic implementation. After developing their strategy, Smithfield must implement these strategies. Implementation must be strategic, which means that all players are aware of their roles and responsibilities and work together to achieve these objectives. Management must provide additional employee training to meet plan objectives during this stage, as well. Proper allocation of resources and funding is also necessary for success. The last step for Smithfield would be Strategic Evaluation and Control. Due to the dynamic nature of retail this step is crucial to ensure the success of Smithfield's continued operations and growth. This step involves continuously evaluating and comparing performance metrics to established strategic plans to ensure key milestones are being met. If there is any divergence, corrective action would need to take place. The strategic management process allows us to constantly go back and revisit prior steps and reevaluate. Doing so helps ensure that the ongoing actions will deliver the desired results.

Bruton, J., Bruton, L., & Lumen Learning (n.d.). Mission, Vision, and Values. Lumen. Retrieved January 18, 2024, from John/Lynn Bruton and Lumen Learning Bruton, J., Bruton, L., & Lumen Learning (n.d.). Common Frameworks for Evaluating the Business Environment. Lumen. Retrieved January 19, 2024, from John/Lynn Bruton and Lumen Learning Bruton, J., Bruton, L., & Lumen Learning (n.d.). Stages and Types of Strategy. Lumen. Retrieved January 20, 2024, from John/Lynn Bruton and Lumen Learning

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BMGT Week 2 Discussion

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