University of Maryland

BMGT 364 – Management and Organization Theory

Week 2 – Discussion
To respond to the Discussion, click on the blue hyperlink in the Topic area.
Discussion Instructions
Please refer to the Discussion Grading Rubric for details regarding how your performance will
be assessed. NOTE: Please be certain to read the entire discussion assignment since, in some
cases, there is more than one question to discuss, respond to, or address. Be sure that you have
answered the entire question!

Initial Post
This week's discussion continues with the Smithfield Custom Furniture case. Your posting
should answer the questions posed using this week's course materials to support your answers. It
is important to write concisely and to follow the detailed instructions provided below. Include
in-text citations and references in a reference list.

Case Discussion
Smithfield Custom Furniture (Part 2)
As a result of its consultants' wonderful guidance in 1901, Smithfield Custom Furniture has
continued to do extremely well financially. It is now 1987, and the company has been headed by
the founder's grandson, Jonas Smithfield III. He has run the company for the past twenty years.
The company now has 247 retail stores. 220 stores are spread throughout the 50 states, and 27
stores are located in England, France, and Germany. Each country has 9 stores. In total, the
company employs 13,000 people. Approximately 40% are manufacturing, distribution, quality
control, design, delivery, administrative, and back-office work. Approximately 60% of the
employees are in retail stores.
It has been Smithfield Custom Furniture's mission to target the wealthiest segments of the
market. The company does all its manufacturing in the United States at six facilities, recently
modernized with the latest equipment. They use the finest and most exotic woods to make
distinctive furniture for their clientele. Much of their work is limited edition, and they try to
ensure demand is slightly higher than supply for each product they make.
For the past 20 years, Jonas Smithfield III has been aware of the financial growth in a large
segment of the workforce, primarily due to more women in the workforce holding full-time and
professional occupations. He knows too that families are moving more often and may not need or
desire the exclusivity of his furniture. His last concern is that his plants may not be working as
efficiently as they could. In other words, he realizes his plants could produce less of the high-end
furniture if the company developed a line of products that was still upscale—aimed at mid-career
professional households.

Your Task for Your Initial Post

In your role as a consultant to Smithfield Custom Furniture, Jonas Smithfield III has requested
you, using this week's assigned reading, to provide to him the following information:
An explanation of what a mission statement requires plus a mission statement for the new
furniture line. Use in-text citations and list references from course readings as required.
An explanation of what a vision statement requires plus a vision statement for the new brand.
Use in-text citations and list references from course readings as required.
An analysis of how Michael Porter's competitive advantage (low cost versus exclusivity) or
competitive strategy (Five Forces Model) applies to both Smithfield's exclusive product line and
the newly conceived, more reasonably priced product line. Use in-text citations and list
references from course readings as required.
A list from this week's course readings, placed in priority order, of the 3 next steps Jonas
Smithfield III should take to enhance his chances for success if he moves ahead with the new
product line. Justify the selection of your 3 priority steps by writing a 2-3 sentence rationale for
each. Use in-text citations and list references from course readings as required.

Format for Your Initial Post

Use the following numbers and headings for each part of your response to a particular issue. You
will also use, as required, in-text citations and a reference list to support your answers.
1. Explanation of Mission Statement Requirements
2. A Mission Statement for Smithfield Custom Furniture's New Product Line
3. Explanation of Vision Statement Requirements
4. Vision statement for Smithfield Custom Furniture's Product Line
5. Application of either of Michael Porter's two strategies --- Competitive Advantage (low cost
versus exclusivity) or Competitive Strategy (Five Forces Model)
6. Priority Order/Justification Smithfield's 3 Next Steps

Two Options for Your Required Replies to Classmates

Option 1 is to 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. You must support your reply 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.

Instructions for Responses to Classmates' Posts

A response posting should be a minimum of one short paragraph. Word totals for these posts
should be in the 75–150-word range. Your response posts' goal 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 references within a reference list.

 How to Do Well in Discussions

 Make your initial post responding to the above questions by Saturday, 11:59
p.m. EST.
 Comment on at least three of your classmates' posts by Tuesday, 11:59 p.m.
EST.
 Posting late may lose you points.
 Respond to the specific questions posed in the discussion.
 Be sure to base your initial post and responses on course materials, and other
scholarly sources.
 Write clearly and proofread; errors can lose you points.
 Quality of posts, citations, frequency, and timeliness of posts all factor into your
discussion grade.
When you join the discussion, click on the Participation Rubric for details
Hello Professor and Class!

Mission Statement
A mission statement for the new furniture line should articulate the purpose, target market, and
distinctive qualities. Drawing on Kotler and Keller's concept, a mission statement requires clarity
on what the company is, what it seeks to accomplish, and how it plans to get there (Lumen, n.d.,
Principles of Management). For the new line, Smithfield Custom Furniture's mission is to
provide high-quality, stylish furniture for mid-career professional households, blending
sophistication with affordability and enhancing everyday living with functional and aesthetic
designs.
Vision Statement
A vision statement should outline the aspirations and long-term goals. Following Collins and
Porras' principles, a vision statement requires a vivid description of the company's desired future
state (Lumen, n.d., Principles of Management). The vision for the new brand is to be the
preferred choice for discerning mid-career professionals seeking a perfect blend of elegance,
functionality, and value in their home furnishings.
Competitive Strategy Analysis
Michael Porter's competitive advantage framework is crucial for analyzing Smithfield's position.
For the exclusive product line, a differentiation strategy emphasizing exclusivity aligns with
Porter's focus on uniqueness and premium pricing. Adopting a cost leadership strategy, the new
product line aims to provide affordability without compromising quality, aligning with Porter's
low-cost strategy (.
Next Steps for Success
Market Research and Segmentation
Conduct extensive market research to understand the preferences and needs of mid-career
professionals. Prioritize market segments based on potential profitability (Kotler & Keller,
2016).
Supply Chain Optimization
Evaluate and optimize the supply chain for the new product line to ensure cost efficiency without
compromising quality. Embrace technology for streamlined operations (Chopra & Meindl,
2019).
Strategic Marketing and Branding
Develop a comprehensive marketing and branding strategy emphasizing the unique value
proposition of the new product line. Leverage digital channels for effective communication and
customer engagement (Kotler & Keller, 2016).
References
Chopra, S., & Meindl, P. (2019). Supply Chain Management: Strategy, Planning, and Operation.
Pearson.
Kotler, P., & Keller, K. L. (2016). Marketing Management. Pearson.
Lumen. (n.d.). Principles of Management: Module 4: Environments and Strategic Management.
Retrieved from: https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/
common-frameworks-for-situational-analysis/

Lumen. (n.d.). Principles of Management: Module 3: Planning and Mission. Retrieved from:
https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/reading-mission-
vision-and-values/