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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 these terms. i. productivity
Answer
Productivity is the relationship between inputs and outputs. It is a measure of how efficiently an organization is transforming inputs like raw materials and labor into outputs such as finished products. High productivity levels indicate that an organization is effectively utilizing its resources to maximize output per unit of input.
Step 2
ii. outsourcing
Answer
Outsourcing is the practice of hiring an external organization to perform specific tasks or services that could be done internally. This strategy allows businesses to focus on their core functions while leveraging external expertise and potentially reducing costs associated with production or service delivery.
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 provide essential materials and components necessary for production. A strong relationship with reliable suppliers ensures timely delivery of quality materials, which is crucial for maintaining production schedules and product quality.
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Employees: Employees form the backbone of the organization, and their skills and satisfaction directly influence productivity and service quality. Supporting employee morale and development through training can lead to a more engaged workforce, ultimately benefiting the company's operations.
Step 4
Explain the relationship between a mission statement and a strategic plan.
Answer
A mission statement articulates the organization's purpose, values, and objectives. It serves as a foundational guide for developing a strategic plan. The strategic plan outlines specific actions, goals, and resources needed to achieve the mission. Thus, the mission statement informs the strategic plan's content, ensuring alignment between the organization's long-term vision and day-to-day operations.
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 contributes to environmental sustainability, which is a key aspect of social responsibility. By minimizing waste, Southern Furniture Ltd can lower its environmental impact, enhance resource efficiency, and showcase a commitment to ethical practices. This aligns the organization with the growing consumer demand for socially responsible businesses.
Step 6
Identify and justify an appropriate organisational structure that will assist the organisation to achieve its strategic plan.
Answer
An appropriate organizational structure for Southern Furniture Ltd is a geographical structure, where the organization is divided into regions or specific market segments, such as a dedicated department for operations in China. This allows the organization to focus on growing its market share in that region effectively. It enhances local responsiveness and optimizes resource allocation, leading to improved operational efficiency.
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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Communication Skills: Effective communication is vital for conveying the strategic plan to all stakeholders, ensuring that everyone understands their roles and the collective goals of the organization. This transparency fosters collaboration and reduces resistance to change.
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Decision-making Skills: Mr. Gomm must make informed decisions that guide the organization's direction in alignment with the strategic objectives. This skill involves assessing situations, considering alternatives, and making choices that best support the strategic plan, including resource allocation and prioritizing initiatives.