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Southern Furniture Ltd’s mission statement reads Southern 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 Southern 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 Southern Furniture Ltd is a leader in the manufacturing of household furniture - VCE - SSCE Business Management - Question 1 - 2006 - Paper 1
Step 1
Define terms. i. productivity
Answer
Productivity is defined as the relationship between inputs and outputs. It measures how efficiently an organization turns inputs, such as raw materials and labor, into finished goods. High productivity levels indicate that the organization is achieving a greater output from the same input levels, enabling increased profitability.
Step 2
ii. outsourcing
Answer
Outsourcing involves contracting a third party to perform certain tasks or services traditionally handled within the organization. This strategy allows companies to focus on core functions while leveraging external expertise and often leading to cost reduction and efficiency improvement.
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
Two other stakeholders of Southern Furniture Ltd are suppliers and employees.
- Suppliers: They provide the necessary materials for production. A strong relationship with suppliers ensures timely delivery of quality materials, which is critical for maintaining production schedules and quality standards.
- Employees: They are essential for the operation of the organization. Well-trained and motivated employees contribute to efficiency and productivity, directly impacting the organization's ability to meet its objectives.
Step 4
Explain the relationship between a mission statement and a strategic plan.
Answer
A mission statement defines the core purpose and values of the organization, guiding its direction and decision-making. A strategic plan, on the other hand, outlines specific objectives and action plans to achieve the mission. The strategic plan serves as a roadmap for implementing the mission, ensuring that all team members are aligned towards common goals.
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
One objective in the strategic plan is to reduce materials waste by 5% per year. Achieving this goal not only improves operational efficiency but also demonstrates a commitment to sustainability. By minimizing waste, Southern Furniture Ltd can contribute to environmental protection, thereby enhancing its reputation as a socially responsible organization.
Step 6
Identify and justify an appropriate organisational structure that will assist the organisation to achieve its strategic plan.
Answer
A geographic structure would be appropriate for Southern Furniture Ltd as it expands into the Chinese market. This structure divides the organization into regional units, each responsible for its own operations. This approach allows the company to adapt to local market needs effectively while minimizing costs and improving efficiency.
Step 7
Identify and explain two management skills that could be used by Mr Gomm to implement the strategic plan.
Answer
Mr. Gomm could utilize the following management skills:
- Communication Skills: Effective communication is crucial for conveying the vision and objectives of the strategic plan to all levels of staff. It fosters a culture of transparency and encourages collaboration.
- Decision-Making Skills: Timely and informed decision-making is essential for setting priorities and ensuring that strategic objectives are met. This skill enables Mr. Gomm to evaluate alternatives and choose the best course of action for achieving the organization's goals.