Executive summary
This paper is a report on JM Smuckers strategic management framework. A background study is conducted to illustrate the importance of a firm adopting strategic framework. The importance of formulating effective strategic framework is illustrated. The strategic management framework enables the firm to attain a high competitive advantage. In addition, the importance of communicating the framework to the employees is also highlighted. The strategic management framework consists of the firm’s mission, vision, core values and goals. The mission statement depicts the commitment a firm in its operation.
The vision statement illustrates what a firm wants to establish itself in the market. JM Smuckers intends to establish itself as the leading supplier of food brands both in the domestic and foreign market. The firm’s core values are also identified. The core values illustrate the qualities to be integrated in the daily operation of the firm. The firm’s goals are also identified and analyzed. These goals entail both financial and non financial goals. The report also entails a comprehensive analysis of the firm’s strategic management framework. The analysis entails an illustration of how the firm’s vision, mission, core values and goals will benefit various stakeholders. Finally a, conclusion and a number of recommendations to be considered by the management are also considered.
Introduction
Background to the study
Development of a strategic framework is one of the considerations that the management team of every firm should consider in its strategic management. This will enable the firm to survive in the long-term considering the competitive nature of the business environment. The management team should ensure that the strategy formulation process is comprehensive. In addition, the strategies formulated and implemented should be continuously evaluated to determine their effectiveness (‘The strategic planning process’, 2007, Para. 4).
This is due to the fact that the business environment is very dynamic. According to McNamara (2009, Para. 1), strategic management illustrates the firm’s operational direction for a given duration of time. The framework consists of the firm’s vision, mission, values, action plan and goals that guide the firm. The management team should ensure that its employees understand all the elements of the strategic framework. Susan (2009, Para. 4) asserts that this will ensure that all the firm’s employees are committed towards attainment of the firm’s goals.
According to Susan (2009, Para. 3), there is a high probability of a firm in which its employees understand it’s strategic framework increasing its profit levels with a margin of 29%. A firm’s vision statement illustrates what a given organization intends to become. This means that it shows the direction and shape of an organization’s future. The mission statement describes precisely why an organization came into existence. Every firm has a number of core values that it intends to demonstrate in its operation. Susan (2009, Para 4), defines core value as the qualities or traits which the management team considers most important. Values demonstrate the highest priorities that a firm considers in its relationship with various stakeholders such as suppliers, customers, creditors and the general society. On the other hand, goals refer to the desired position that a firm intends to be. This paper entails a report on strategic framework.
Aim
The aim of the report is to conduct a strategic analysis of JM Smuckers’ mission, vision objectives and goals.
Scope
The report entails an illustration of the JM Smuckers company profile. The firm’s mission and vision statement are also identified and analyzed. The goals that the management team of the firm is pursuing are also analyzed. These relate to both financial and non financial goals. In addition, the report also involves identification and analysis of core values integrated in the process of the firm’s operation. Finally, a conclusion and a number of recommendations are made.
Company profile
JM Smuckers is a public limited company which was established in 1897 within the United States Sauces and Condiments industry. The firm has international operation in Canada with its headquarters located at Orrville, Ohio (Jeffrey, 2007, p. 119).
The firm deals with production of variety of sticky and sweet fruit products. In its operation, JM Smuckers has managed to emerge as the leading products such as jellies, jams, dessert toppings and juice. In addition, the firm has also ventured into production of a variety of specialty products such as Laura Scudder’s, Knott Berry Firm and Smucker’s. The firm also deals with production of a variety of coffee products. During its financial year which ended in 2009, the firm’s experienced a growth in its sales revenue. The sales revenue for during this period averaged US $ 3, 757.9 million (JM Smuckers: company description, 2010, Para. 4).
JM Smuckers strategic framework
Mission statement
In its operation, the JM Smuckers management team is committed towards owning and marketing diverse food brands. The management is also committed at ensuring that the quality of products are supplied to the market is high.
Vision statement
JM Smuckers is committed towards becoming the best supplier of food products brands both in the domestic and international market. The management intends to attain this through acquisition of the leading food brands (Jeffrey, 2007, p.119).
Goals
Financial and non financial goals
The management of JM Smuckers intends to maximize on the firm’s level of profit. During its 2010 financial year, the management team intends to improve on the firm’s growth rate from 48.8% to 55%. The management intends to attain this through venturing into coffee market through formation of mergers. In addition, it is the objective of the management to maximize on the wealth of he investors through an increment in the amount of dividends advanced to the shareholders. The firm is also aimed at increasing the degree of customer loyalty. This is through provision of diverse consumer products which will result into increased customer satisfaction.
The firm is also committed at developing a positive public image through operating in a social responsible manner (Jeffrey, 2007, p. 127).
Core values
The management team of the firm has incorporated the concept of forward looking, dedication and honesty in dealing with its employees, suppliers, customers, consumer and shareholders. These values are manifested on a daily basis during the firm’s operation. In addition, the entire firm’s decision making processes are guided by these principles.
Analysis of the firm’s strategic framework
By pursuing profit and wealth maximization objectives through venturing into production of diverse consumer products such as coffee, the firm will be able to attain a high level of customer satisfaction. On the other hand, incorporation of the concept of corporate social responsibility will enable the firm to develop a good public image. The result will be that the public will perceive the firm as a part of their society. This will culminate into increased customer loyalty and hence an increase in the firm’s level of profitability.
In addition, by pursuing its mission of ensuring that the firm’s products are of high quality, the firm will also be able to attain its profit maximization objective. This is due to the fact that the consumers will be able to obtain value for their money upon purchasing the products. This means that the management team will be able to incorporate the concept of premium pricing in setting the price.
On the other hand, pursuing its vision of becoming the leading supplier of food brands through acquisition, and global expansion, the firm will be able to attain economies of scale in its operation. This means that there will be a reduction in the firm’s production cost. Reduction in production cost will have a trickling effect to the consumers through a reduction in the price of the products. In addition, economies of scale will enable the firm to be able to price its products more fairly. The effect is that the firm will become competitive in terms of pricing.
Conclusion
Strategic management is one of the elements that the management teams of firms should incorporate in an effort of ensuring that their firms survive into the long term. This is due to the fact that a firm should be a going concern entity.To ensures effectiveness in their strategic management effort, the management of firms should ensure that they formulate comprehensive strategic framework. The framework should integrate the firm’s mission, vision, core values and goals. Effective implementation of the strategic management will enable the firm to attain a high competitive advantage in the market.
In its operation, the management of JM Smuckers has effectively incorporated the concept of strategic management. This is evident in the firm’s strategic framework. By implementing its strategic framework, JM Smuckers will be able to attain a high competitive advantage in the industry. In addition, the firm will be able to survive into the future as a going concern entity.
Recommendation
- The management of JM Smuckers should ensure that it conducts a continuous analysis of the various components of its strategic framework. This will ensure the firm identify and control the possible deviations.
- The management team should ensure that it communicates its strategic framework to all the employees. This will ensure that the employees are aware of the framework and hence be committed towards achievement of the requirement of the framework.
Reference list
Hoovers Incorporation. (2010). JM Smuckers: company description. Web.
Jeffrey, A. (2007). 101 mission statements from top companies: plus guidelines on your writing your mission statement. New York: Ten Speed Press. Web.
McNamara, C. (2009). Developing your strategic plan. Web.
Susan, M. (2009). Build a strategic framework: mission statement, vision, values.
QuickMBA. (2007). The strategic planning process. Web.