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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 a measure of how efficiently an organization transforms inputs into outputs. It can be quantified as the ratio of outputs (such as finished goods) to the inputs (like raw materials, labor, and technology) used in the production process. Higher productivity indicates that an organization is maximizing output with minimal input, thus driving efficiency.
Step 2
ii. outsourcing
Answer
Outsourcing refers to the practice of hiring an external organization or individual to perform specific tasks or services that could otherwise be handled internally. This strategy often aims to reduce costs, enable focus on core business activities, and leverage specialized expertise.
Step 3
Identify two other stakeholders of Southern Furniture Ltd and explain their importance to the organisation.
Answer
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Employees: They are crucial stakeholders as they directly contribute to the production and quality of furniture. Their engagement and morale are integral to the company's performance. Investing in employee development can lead to increased productivity and innovation.
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Suppliers: Suppliers play a vital role in providing the necessary materials for production. Maintaining strong relationships with suppliers ensures timely delivery of quality materials, which is essential for meeting production targets and maintaining product quality.
Step 4
Explain the relationship between a mission statement and a strategic plan.
Answer
A mission statement defines the fundamental purpose of an organization and its reason for existence. It outlines the organization's core values and primary objectives. On the other hand, a strategic plan serves as a roadmap to achieve the goals specified in the mission statement. It translates the broad concepts outlined in the mission statement into actionable steps, ensuring that the organization remains aligned with its long-term vision.
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
By aiming to reduce material waste by 5% per year, Southern Furniture Ltd demonstrates a commitment to sustainability. This objective not only enhances operational efficiency but also reflects the company's responsibility to minimize its environmental footprint. Such initiatives can lead to cost savings and bolster the company's reputation as a socially responsible entity.
Step 6
Identify and justify an appropriate organisational structure that will assist the organisation to achieve its strategic plan.
Answer
A geographical structure would be suitable for Southern Furniture Ltd as it expands operations into new markets such as China. This structure would divide the organization into specific geographic units, allowing for tailored strategies that cater to local market needs. This decentralization can enhance responsiveness and improve control over each regional operation.
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 must inspire and guide his team towards achieving strategic objectives. Effective leadership fosters a positive work environment and aligns employee efforts with organizational goals.
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Communication Skills: Clear and effective communication is essential for ensuring that all team members are aware of their roles in the strategic plan. Mr. Gomm needs to relay information and updates effectively to facilitate teamwork and collaboration.