3-2 Final Project Milestone One Summary and Description

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Summary and Description 1 3-2 Final Project Milestone One: Summary and Description Javier Macias Southern New Hampshire University PSY-618-X4286 Sem in Industrial & Org Psych Dr. Kayla Finuf 06/02/2024
Summary and Description 2 Summary and Description: Sullivan Soap Company Sullivan Soap Company, nestled in the heart of Charleston, South Carolina, stands as a testament to the enduring spirit of family entrepreneurship. Founded and nurtured by Grace and Jack Sullivan, this business embodies the quintessential family-operated venture. Among its 32 employees, an impressive 20 are kin, spanning across generations and relations, including the Sullivans' own children, grandchildren, in-laws, cousins, and other relatives. With a humble beginning marked by the acquisition of a small business license and two patents, Grace and Jack embarked on a journey fueled by ambition and dedication. Over four decades, their steadfast commitment bore fruit, propelling the company to a commendable milestone of over $3 million in sales last year, signaling its transition towards larger-scale operations. However, as Grace and Jack approach retirement, coupled with health concerns, they confront the imperative task of crafting a succession plan to safeguard the company's legacy and future prosperity. Despite the absence of substantial cash reserves, the company remains financially nimble, with the flexibility to invest in expertise and strategic adjustments essential for sustained growth. A notable advantage lies in the absence of long-term debt burdening the company's facilities or equipment, providing a solid foundation to leverage additional capital for expansion endeavors. As the Sullivan Soap Company stands at the precipice of transformation, poised for a new chapter of growth and innovation, the legacy of familial dedication and entrepreneurial spirit continues to shape its destiny. Goods, Services and Consumers The genesis of the Sullivan Soap Company can be traced back to Grace's passion for fragrances and her expertise in the cosmetics realm, complemented by Jack's background in
Summary and Description 3 organic chemistry. Together withtheir combined talents and dedication laid the foundation for a thriving enterprise. Evolving steadily over the years, the company has established itself as a purveyor of premium-grade soaps, shampoos, and a array of personal hygiene essentials. Diversifying their offerings, they boast an impressive portfolio of 24 distinct products spread across six meticulously curated product lines. Among these offerings are signature scents like Honeysuckle and Rose, crafted with meticulous attention to detail to evoke a sense of luxury and indulgence. Moreover, their product range extends to include a captivating selection of coastal- themed items, catering to the preferences of both discerning men and women alike. This strategic blend of product diversity and quality craftsmanship underscores the company's commitment to excellence and its keen understanding of consumer preferences. Presently, this establishment boasts a robust network encompassing over 200 retail outlets situated across the southern United States. This extensive reach spans key states such as South Carolina, North Carolina, Virginia, Georgia, Florida, and Alabama, catering primarily to a female demographic aged between 35 and 70. Notably, the majority, constituting 65% of this target audience, falls within the age bracket of 45 to 65, demonstrating a longstanding loyalty to the brand cultivated over several years. With aspirations of broader market penetration, the company's founders are actively exploring avenues for nationwide expansion. A pivotal step in this endeavor was the recent launch of the company's website and online sales platform by the marketing and sales department. Early indicators from this initiative reveal a noteworthy trend: a significant portion, accounting for 70% of online sales, originates from individuals aged between 22 and 35. This emerging consumer segment presents a promising opportunity for the organization to diversify its customer base and amplify its market presence beyond its current geographical confines.
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Summary and Description 4 Markets and Competitors The Sullivan Soap Company has thrived in retail locations, proving to be a lucrative endeavor. However, the company harbors ambitions of venturing into new markets, yet this aspiration has been hampered by a lack of expertise and resources. Grace and Jack Sullivan, the visionary founders, acknowledge the necessity of conducting a comprehensive review of their staffing and organizational structure before embarking on expansion efforts. This introspective assessment is crucial to ensuring the company's readiness for growth and mitigating potential challenges. Additionally, the familial nature of the company's operations has engendered internal conflicts that necessitate resolution prior to any expansion initiatives. Addressing these familial dynamics is paramount, as they pose a potential obstacle to the success of the company's expansion endeavors. By proactively addressing these foundational aspects, the Sullivan Soap Company can position itself for sustainable growth and navigate the complexities of expansion with confidence and success. The Sullivan Soap Company boasts a wide distribution network, servicing over 200 retailers. However, there's a notable absence of specifics regarding the nature of these retail partners. Potential competitors for the company might include boutique establishments offering similar products to those of the Sullivans. These boutiques could potentially cater to a more upscale clientele, posing a formidable challenge in terms of competition. Additionally, other soap manufacturing companies, whether local or nationwide, operating within the same geographical region as the Sullivan Soap Company, present another source of competition. According to Biggart (2018), conducting thorough competitive research is paramount for formulating a robust marketing strategy. The Sullivan Soap Company must identify its direct competitors, entities
Summary and Description 5 marketing or selling similar products, as well as its indirect competitors, those vying for digital presence and customer attention in the broader marketplace. Understanding the competitive landscape is essential for the company to effectively position itself and navigate the challenges posed by both direct and indirect competition. Organizational Structure The Sullivan Soap Company operates across four distinct divisions: product development and production, marketing and sales, distribution, and accounting. At the helm of the company stands Grace, not only as a co-founder but also in the capacity of CEO. Her spouse, Jack, also shares the co-founder title and assumes the role of vice president overseeing product development and production. Grace's affection for her family sometimes leads her to overlook their shortcomings, a tendency exacerbated by her recent diagnosis of early-stage Parkinson's disease, prompting her urgency in identifying a successor. In her office, Grace relies solely on her niece, Savannah, who serves as her executive assistant. Meanwhile, Jack manages a team of six individuals, including his eldest daughter, Julie, her younger sister, Angela, Angela's husband, Sanjay, and three other non-family members. However, tensions simmer within this division, particularly between Sanjay and Julie, as well as between Sanjay and Jack. Sanjay's staunch advocacy for animal rights clashes with the research practices employed in the new product lab, a disagreement that Jack, preoccupied with his laboratory duties, tends to overlook. This friction underscores the complex dynamics at play within the company, posing challenges to effective collaboration and productivity. Addressing these interpersonal conflicts and aligning the division's goals with the company's overarching vision will be critical for fostering a harmonious and successful work environment.
Summary and Description 6 Bethany, Grace’s sister, holds the position of vice president overseeing marketing and sales. Her sole subordinate, Rebecca, assists with advertising and doubles as the organization's receptionist, though they are unrelated. Meanwhile, Bethany has been mentoring her great- nephew, Sam, in the realms of sales and marketing. Running the distribution division is Jim, the eldest son of the Sullivan family. Positioned as the division's vice president, Jim harbors ambitions of ascending to the role of CEO. Despite managing a team of ten, half of whom are family members, Jim's leadership style has left much to be desired. Employees within his division lament his difficult and bullying demeanor, leading to discontent among the workforce. In the accounting domain, Adam Sullivan serves as the chief financial officer, renowned for his level-headedness and responsibility. Adam oversees a team of eight individuals, including two in human resources, three in billing, and three managing purchasing, mailroom, and housekeeping services. Notably, Adam fosters a collaborative environment, with all employees cross-trained to support one another. His leadership is marked by encouragement for innovation, resulting in a positive work atmosphere. The Sullivan Soap Company exhibits a spectrum of leadership styles, ranging from laissez-faire to authoritarian. Jack, representing a laissez-faire approach, shies away from decision-making and prefers delegating responsibilities. In contrast, Jim's authoritarian style emphasizes control and minimal input from team members. Employee Diversity and Productivity Issues The composition of the Sullivan Soap Company's workforce lacks diversity, consisting predominantly of family members, totaling 20 individuals. Despite this lack of diversity, the staff members hold a wide array of opinions and perspectives. Take Sanjay, for example, employed in
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Summary and Description 7 the product development and production department. As a staunch animal activist, he vehemently opposes the lab's research practices, sparking frequent clashes with his colleague Julie and creating a tense atmosphere within the division. Likewise, Sanjay's spouse, Angela, who also works in the same division, shares similar views. Another case in point is Savannah, an employee in Grace's division, who, while mirroring Grace's leadership style, recognizes the shortcomings within the Sullivan family and advocates for necessary organizational changes. Meanwhile, Uncle Jeff, stationed in the distribution division, contends that Jim's treatment of his subordinates is unjust. He assumes the role of morale booster, preventing staff turnover and maintaining motivation amidst challenging circumstances. The organization's recent operational challenges, such as productivity and production issues, can be partly attributed to absenteeism and turnover within the product development and production division. Consequently, this has burdened the remaining workforce with increased workloads. Additionally, discontent within the distribution division, stemming from Jim's management style, exacerbates the productivity decline. Despite Jim's claims of laziness among his team, his lack of involvement in the actual work further strains morale, leaving Uncle Jeff to pick up the pieces. Adam, noticing higher absenteeism and turnover rates among non-family employees, seeks solutions to enhance productivity. Encouraged by Grace, he collaborates with his sister Julie and Aunt Bethany to devise an incentive program aimed at fostering innovation within the company. However, Jim's reluctance to embrace collaborative efforts due to his strict adherence to delineated responsibilities poses a challenge to implementing such initiatives, reflecting his rigid leadership approach.
Summary and Description 8 References Biggart, A. (2018, February 22). How to identify your competitors in 6 steps. Spotlight Conductor. Retrieved from https://www.conductor.com/blog/2018/02/identifycompetitors/. Cherry, K. (2017, August 4). 5 Common leadership styles. Explore Psychology. Retrieved from https://www.explorepsychology.com/leadership-styles/.