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Southern Furniture Ltd's mission statement reads Souther Furniture Ltd is a leader in the manufacturing of household furniture - VCE - SSCE Business Management - Question 1 - 2006 - Paper 1
Question 1
Southern Furniture Ltd's mission statement reads Souther Furniture Ltd is a leader in the manufacturing of household furniture. Our mission is to meet customer need... show full transcript
Worked Solution & Example Answer:Southern Furniture Ltd's mission statement reads Souther Furniture Ltd is a leader in the manufacturing of household furniture - VCE - SSCE Business Management - Question 1 - 2006 - Paper 1
Step 1
Define these terms. i. productivity
Answer
Productivity is the relationship between inputs and outputs. It measures how efficiently an organization turns inputs (such as raw materials and labor) into outputs (final products). A high level of productivity indicates that the organization is effectively utilizing its resources to maximize outputs.
Step 2
ii. outsourcing
Answer
Outsourcing is the practice where an organization contracts another organization to perform specific tasks or services that could be performed internally. This strategy allows companies to focus on their core activities while leveraging the expertise and costs efficiencies of external service providers.
Step 3
Apart from the stakeholders mentioned in the mission statement, identify two other stakeholders of Southern Furniture Ltd and explain their importance to the organisation.
Answer
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Suppliers: Suppliers are crucial as they provide the necessary raw materials for manufacturing furniture. A strong relationship with suppliers ensures timely delivery and quality materials, which directly impacts production efficiency and product quality.
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Employees: Employees are vital stakeholders as they contribute to the operational success of the company. Their skills and commitment influence productivity, innovation, and overall organizational performance.
Step 4
Explain the relationship between a mission statement and a strategic plan.
Answer
A mission statement defines the purpose and core values of an organization. It outlines what the organization stands for and its long-term goals. The strategic plan, on the other hand, is a roadmap that translates the mission into actionable objectives and strategies for achieving them. Thus, the mission statement guides the development of the strategic plan, ensuring that all strategies align with the company's core purpose.
Step 5
Describe how one of the objectives in the strategic plan will assist Southern Furniture Ltd to become a more socially responsible organisation.
Answer
The objective to reduce materials waste by 5% per year not only improves operational efficiency but also reflects a commitment to environmental sustainability. This effort can enhance the company's reputation, attract environmentally-conscious customers, and contribute to broader community welfare.
Step 6
Identify and justify an appropriate organisational structure that will assist the organisation to achieve its strategic plan.
Answer
A divisional structure could be suitable for Southern Furniture Ltd, especially with plans to expand into the Chinese market. This structure allows for dedicated divisions focused on specific markets or products, enabling greater flexibility and responsiveness to market needs. Each division can optimize its operations and strategies tailored to local conditions and consumer preferences.
Step 7
Identify and explain two management skills that could be used by Mr Gomm to implement the strategic plan.
Answer
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Leadership Skills: Mr Gomm will need strong leadership skills to inspire and guide his team through the changes outlined in the strategic plan. Effective leadership can help align the workforce's goals with the company's objectives, boosting morale and productivity.
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Communication Skills: Clear communication is essential for the successful implementation of the strategic plan. Mr Gomm will need to convey the strategic objectives and updates effectively to ensure all staff understand their roles and the changes taking place.