BMGT DISCUSSION 2 response (2)
Two Options for Your Required Replies to Classmates
Option 1 is that you will 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. Your reply must be supported 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.
A response posting should be a minimum of one short paragraph. Word totals for these posts should be in the 75–150-word range. The goal of your response posts 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 reference within a reference list.
Use only these links:
https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/why-it-matters-planning-and-mission/
https://www.forbes.com/sites/georgedeeb/2017/07/05/5-considerations-when-setting-your-ma-goals/?sh=3f55375f5370
https://www.partnersinleadership.com/insights-publications/how-to-prepare-your-company-for-a-merger-or-acquisition/
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SMITHFIELD CUSTOM FURNITURE CASE STUDY
Fawziyah’s Week Two Discussion
Fawziyah Alebiosu
Jonas,
Based on the context you provided me, and the readings I have done on this topic, I have outlined my suggestions below
1.
Explanation of Mission Statement Requirements
A mission statement is used to broadly outline how the organization will become what its vision statement describes. Some mission statements achieve this by focusing on how the organization will be different from its competitors, like that of Adidas. With a mission statement like “We strive to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle”, Adidas intends to fulfill its vision statement by setting itself apart (Mission, Vision, and Values, The Mission Statement, paras. 8).
2.
A Mission Statement for Smithfield Custom Furniture’s New Product Line
Build the world’s best furniture, and sell it at affordable prices that our customers love
3. Explanation of Vision Statement Requirements
In Module 3 of Principles of Management, a vision statement is described as what an organization intends to achieve (Mission, Vision, and Values, The Vision Statement, paras. 5). With that description, the vision statement for the new product line can be drafted with the following in mind: your goal for the line to be upscale, and for your customer to be mid-career professionals.
4. Vision statement for Smithfield Custom Furniture’s Product Line
A vision statement that captures that sentiment, and encapsulates what you intend for the line to achieve can be: Our vision is to provide the most high end and affordable furniture to every home.
5. Application of Porter’s Competitive Strategy
To analyze how profitable both the industry Smithfield is established in (luxury furniture) and the one Jonah is entering the company into (upscale and affordable furniture), Porter’s 5 choices will be utilized.
A. Analysis of the profitability of the luxury furniture industry
a. In terms of barriers to entry into this industry, it is logical to assume that it is low-medium. First, Smithfield has been able to keep demand higher than supply with 247 stores in 4 countries, 13,000 employees, and 6 facilities. Additionally, the luxury furniture industry does not handle human lives which means it does not have countless liabilities and regulations to maintain. Logically any other company with the capital to foot that many assets, and employees can do the same thing too.
b. Next, the threats of substitute products into this industry is high. Because luxury furniture can be used for the same things that cheaper furniture does, customers are able to use both for the same purpose. If aesthetics is ignored, this threat becomes even higher!
c. Third, the bargaining power of buyers of luxury furniture is low-medium. On one hand, those customers could choose to purchase non luxury furniture, yet they decide to spend more money on it. On the other hand, if we assume that Smithfield is the only global luxury furniture retailer and producer, customers who want to splurge, have to go to Smithfield. Based on your reference about families moving often, it is clear that customers being able to purchase luxury furniture around the globe is a convenience to them. Thus reducing their bargaining power. Overall, due to the availability, the convenience, and the small size of luxury furniture shoppers, their bargaining power as buyers is low-medium.
d. Finally, the bargaining power of suppliers like Smithfield in this industry is low. Logically, the luxury furniture industry sells goods when customers are moving (an infrequent situation) or when they want to change their current home style. If customers don’t do these things, this industry will not get revenue.
When combined with low barriers to entry, high threats of substitutes for their goods, and low bargaining power of suppliers, the luxury furniture industry is not very profitable or competitive.
B. Analysis of the profitability of the affordable furniture industry
b. Similarly to the luxury furniture industry, the barriers to entry are quite low. In this industry, they are even lower because there is no need to source only the finest materials.
b. The threat of substitutes for the affordable furniture industry is low. Unless I’m failing to think of alternatives, the purpose that affordable furniture serves is not easily duplicated by other goods.
b. Within this industry, the bargaining power of buyers is low-medium. Low because homes with people in them need furniture to make them conducive to live in. Medium is attributed because the low barrier to entry means there are likely to be more suppliers. More suppliers, logically, gives customers more bargaining power since they can purchase elsewhere
b. On the other hand, the bargaining power of suppliers is high. If the furniture is already cheaper to make because it is affordable, it is safe to assume that they are able to control the supply quite easily. Although suppliers still rely on customers moving to purchase furniture, they are able to offset this through reducing how much resources they dedicate to producing them.
In addition to low barriers of entry, low threat of substitutes for their products, and high bargaining power of suppliers, the affordable furniture industry is quite profitable, and can be competitive.
6.
Priority Order/Justification Smithfield’s 3 Next Steps
Based on the analysis of the industry you are trying to expand the company into, the context you provided about the company, and the course readings for this week, I’d recommend doing the following next.
1.
Conduct a situational analysis for this new line
. Examine the customers, competitors, suppliers, and government and legal issues that will come with this new area. This examination will help you identify, and prepare for how these factors will influence and affect the new line (module 4, What you’ll learn to do: describe common frameworks used for situational analysis).
a. This is ranked first because this will help you solidify what this new line can achieve, and immediately rule out any challenges you don’t want the company to deal with.
1.
Conduct a SWOT analysis to help you identify what Smithfield’s current strengths are
. This will allow you to pinpoint what your competitive advantage will be. Then you can rely on that to increase and sustain profitability.
b. This is ranked second because now that you know what your customer looks like, and the other factors that can affect the new line’s success, you can identify the strengths that specifically makes Smithfield uniquely built to solve this problem.
1.
Craft and finalize your vision and mission statements
. As I argued above, it will be integral to laying the foundation for this new space you are entering. It will also help you make key decisions.
c. Now that you know exactly what the new line is capable of achieving, and understand how your strengths and weaknesses are positioned to impact that, you can finalize your vision and mission statements. I think going into this process with the knowledge from the 2 analyses will make your vision statement more accurate, and your mission statement more actionable.
References
University of Maryland Global Campus. (2021). BMGT 364 – Week 2 Discussion in BMGT 364. Case Study Scenario shared in UMGC BMGT 364 online classroom, archived at
https://learn.umgc.edu/d2l/le/content/547071/Home
Lumen Learning (2021). Principles of Management. Retrieved from