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The European Proceedings of
Social and Behavioural Sciences
EpSBS
www.europeanproceedings.com e-ISSN: 2357-1330
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DOI: 10.15405/epsbs.2020.12.37
TIES 2020
International conference «Trends and innovations in economic
studies»
THE ECONOMIC GOALS OF DIGITAL BUSINESS
TRANSFORMATION
Elena Yu. Golovina (a)*, Malika V. Evloeva (b), Jan Yu (c), Liu

Kylie (d)
*Corresponding author
(a) Irkutsk National Research Technical University, 83,
Lermontov str., 664074, Irkutsk, Russia,
[email protected]
(b) Irkutsk National Research Technical University, 83,
Lermontov str., 664074, Irkutsk, Russia, malika-
[email protected]
(c) Irkutsk National Research Technical University, 83,
Lermontov str., 664074, Irkutsk, Russia
(d) Irkutsk National Research Technical University, 83,
Lermontov str., 664074, Irkutsk, Russia, [email protected]
Abstract
The feasibility of adapting modern business to current changes
in the world economy is explained by the
ability of digital technologies to ensure optimal operation of e -
business. But despite the fact that many
companies around the world are undergoing the process of
digitalization, some of them believe that this
process is a threat to their business. Problems such as
information insecurity, shortage of personnel, cost
of the latest equipment, etc., remain unresolved. Yet fewer
industries remain unaffected by the digital
revolution. Digital transformation changes the very nature of
modern business, thus creating a special
ecosystem. In order to successfully transform and further
develop business in the current era, companies
need to change the way they do business. It is important to note
that the terms "digitalization" and "digital

transformation" are in one case a means of making high profits,
in another case a process of transforming
the enterprise according to the latest changes in the economy.
For the purposes of this article, the authors
conducted a thorough research of the problem on the economic
goals of digital transformation of
business, since the main subject of research is “digitalization”
and “digital transformation” of enterprises.
The fundamental works of foreign and domestic authors in the
field of the digital economy were also
considered. According to the results of the study, the authors of
this article presented the Roadmap of
digital architecture and the author's concept of digital
transformation.
2357-1330 © 2020 Published by European Publisher.
Keywords: Digitalization, digital transformation, information,
business processes.
http://creativecommons.org/licenses/by-nc-nd/4.0/
mailto:[email protected]
https://doi.org/10.15405/epsbs.2020.12.37
Corresponding Author: Elena Yu. Golovina
Selection and peer-review under responsibility of the
Organizing Committee of the conference
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1. Introduction
We live in a modern society and cannot imagine our life without
technologies. The creation of a
worldwide Internet was the highest point of the next
information revolution’s wave. Thus, the exchange
of information on a global scale became possible. In the 1970s
the theorist and publicist Daniel Bell
(1973) predicted the entry of humanity into a new stage of
development characterized by the growth of
the tertiary sector of the economy. The author of the “Third
Wave” Alvin Toffler had a similar point of
view (Platonov, 2019).
General Business Principles are changed by technology. Digital
technology is the result of the
human development’s process. Indeed, according to many
economists, digital technologies are new
information technologies, which allow ensuring the optimal
operation of e-business structures in the
current economy. The process of digital transformation itself
can be called as the era of dramatic
changes. The role of digitalization is increasing every day, and
the result is an economic processes’
simplification. Digital transformation goes ahead. This is an

irreversible process which helps to increase
business efficiency and accelerate sales revenue growth thanks
to new and innovative digital business
models.
2. Problem Statement
Companies all over the world go through a digital business
transformation because this leads to the
ability to quickly adapt the business to the new challenges of
digitalization. This allows you to expand the
boundaries of organizations, increase the speed of making
management decisions, by replacing or
transforming business processes and creating an environment
for digital business.
An enterprise using digital technology can take advantage of
convergence opportunities in which
product data is available at all stages of its life cycle – from
development to maintenance. That’s why the
management of the enterprise can make more informed
decisions, carry out transformations for “quick
implementation” in the aspects of entering the market,
flexibility, quality, security and operational
efficiency, as well as creating new business opportunities
(Gribanov, 2017). At the same time,

accelerating technology adoption can harm established business
models.
Digital transformation has both positive and negative sides, and
therefore it is important to ensure
information security on the Internet, in corporate and local
networks through which digital data is
transmitted. Since the Internet is publicly available, hackers
can take advantage of this and further
implement a number of threats:
- theft of personal data;
- information theft;
- change or destruction of data, etc. (Samuylov, Begishev,
Moltchanov, & Andreev, 2019)
Such digital transformation’s problems as information security,
staff shortages, lack of the ability
to purchase expensive equipment, etc. are the main (Figure 1):
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Figure 01. Key problems in digital transformation
According to the research in this area 25 % Russian companies
and 31 % in the world consider the
digital revolution as a threat for their business. Risks arise due
to the new born digital companies can
bring down traditional strong players from the leadership
position. In the Russian Federation a quarter of
respondents said that changes occurring due to the influence of
ubiquitous digitalization threaten their
business. In the world 31 % of company representatives made
such a statement.
Companies showing the best financial results see a threat in
actual changes in the global economy
due to digitalization. 64 % of representatives reported this
while this statement was supported by only
27 % of the respondents in general.
Despite the problems and difficulties, the topic of digital
business transformation remains the
most relevant today. The scale and digitization’s rate confirm
this. Fewer industries remain unaffected

by digital change. Transport, fuel and energy complex, housing
and communal services sector,
construction, medicine: almost all industries are involved in this
process. Digitization influences easier
on trade, the financial sector, and government.
It should be particularly noted that the state as a service is the
prospect of the next five years. Even
today about 4 thousand information sources, 93 thousand
organizations are digitizated in the context of
the Russian State business system of housing and public
services. The Federal Treasury develops the
public procurement system, processing about 220 million
transactions per day.
Thus, due to the implementation of the Smart Grid concept,
Russian energy complex will enter a
new phase of existence, which will be characterized by
harmonious interaction with the environment,
improvement of the quality of life and general economic
recovery. Smart Grid networks are upgraded
power supply channels using communication and information
technologies. The essence of Smart Grid
technology in the electric-power engineering is data collection
of electricity production and consumption.
This allows distributing energy resources correctly, ensuring

reliability of their consumption and
efficiency of use.
Nowadays utilities deal with enormous challenge. However,
they are simultaneously active in an
industry where digital transformation can lead to huge cost
savings, new offers, alternative pricing
Digitization
problems
Сompeting
priorities
Digitization
problems
Understandin
g success
Complexit
yLack of
financial
opportunities
Staffing
issues
Сultural
changes
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models, optimizing customer experience and even radically new
ways of “doing business” interacting
with customers and their business model itself.
From a technological point of view, the Internet of things, big
data and everything connected with
the smart play a key role. In addition, investment and
innovation in informing customers about their
consumption and enabling them to control it in invisible ways
expand many opportunities in areas such as
ecology / environment and changing supply chains.
The insurance industry also has numerous opportunities for
using transformational technologies.
Most consumers, for example, would like to have a sensor
attached to their car or home if this
leads to lower premiums. However, there are problems to the
degree that technology offers tremendous
opportunities that are increasingly being used by insurers. An

important role is played by the changing
expectations of policyholders and other consumers. In addition,
there is a lot of work in core business
processes, such as managing insurance claims, customer service,
and following changing rules.
The digital transformation of healthcare, in particular, is due to
the problem of aging / population
growth, increasing chronic diseases, increasing costs and
changing people's expectations and behavior as
a result that digital healthcare is playing an increasingly
important role.
Thus, digital transformations provide new opportunities so that
enterprises can create new values
using old assets. Digital transformations are changing the
nature of a modern enterprise by changing the
scale of activity, the product and organization life cycle.
Consequently, digital technology creates "digital
value." Network effects are rapidly spreading throughout the
business ecosystem, shaping pricing policies
under the influence of data on consumer behavior. Global
Consulting and Research Company Gartner,
Inc. suggests considering any business as a set of platforms
with open borders, and not as a closed system
with assets (Sologubova, 2019).

3. Research Questions
The formation is a key resource in the modern world. Every
second, mankind generates huge
amounts of digital data which not only occupy a place in storage
but also help companies doing business.
To take full advantage of the available information, it is
necessary to accumulate, structure and analyze it.
The main subject of this research is the digitalization and
digital transformation of enterprises,
further developed thanks to innovative technology, for example,
Big Data (big data) or Artificial
Intelligence (AI, artificial intelligence). They are aimed to
analytics workflow on the basis of which it is
possible to make decisions, adapt offers to specific clients and
predict their behavior.
When explaining the terms “digitalization” and “digital
transformation”, it is necessary to
understand that:
1. in the first case, it is an art of process of the targeted
outcome vide licet flexible production,
bringing excellent results to customers, and higher profit to
owners. The term “digitalization” is

used to describe a transfor mation that goes further than simply
replacing an analog or physical
resource with a digital or information one. Revealing the
concept of “digitalization”, we should
talk not only about the software and hardware complex and
tools, but also about the methods of
work adopted by the company and the stimulation of innovation.
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2. and in the second case, this is the process of transferring an
enterprise to a “flexible” state from
the current, from the point of view of the main areas key for a
sustainable business. These key
areas can be identified using key elements of the business value
chain, such as:
• Product Lifecycle Management
• Production and product management

• Business intelligence
• Integration and data management
• Safety and reliability
• Corporate culture and the people behind it
• Process and technology measurements
Actually, the goal of digital transformation is not to replace
technologies or adopt new models of
interaction, but to rethink the enterprise itself and its business
processes.
4. Purpose of the Study
The purpose of this study is to clarify the nature of
digitalization and the digital transformation of
business in modern economic conditions. The materials of this
article allow not only understanding what
exactly is changing dramatically in industries and in their
business, but also how these changes will affect
how they evaluate their activities. That strengthening the
competitive positioning of successful firms does
not depend on the technologies they adopt. What should be the
nature of subsequent IT investments.
It is necessary to show that digital transformation is a deep
transformation of business and

organizational activities, processes, competencies and models
for the full use of changes and the
possibilities of combining digital technologies and their
accelerating impact on the whole society in a
strategic and priority way, taking into account current and
future changes.
The development of new professional qualities depends on the
ability to be more flexible, people-
oriented, innovative, customer-oriented, orderly, effective and
able to stimulate / use opportunities to
change the existing situation and use new information and
service revenues. Digital transformation
efforts and strategies are often more relevant and are present in
markets with a high degree of
commodification.
5. Research Methods
As the main research methods were applied:
• experimental-speculative methods: analysis of registered
statistics, published results of the
work of research institutions and Fitch Ratings, information
provided by periodical
business and scientific publications, including the Internet, in

research materials performed
by independent analytical organizations, legislative and
regulations governing
entrepreneurial, innovative and scientific-technical activities in
the Russian Federation,
studies of international organizations;
• general scientific principles of a systems approach;
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• quantitative and qualitative studies of the main trends and
directions in the formation and
development of digital business transformation;
• analysis methods – logical, comparative, strategic, managerial,
etc
6. Findings
Digitalization sets the vector by which socioeconomic systems

of all levels will develop for the
long term. This is necessary for scientific process of digital
business transformation (Gribanov, 2017).
To understand the studied problem many authors addressed to
fundamental works of such foreign
authors as Parker, Alstyne Marshall, and Choudary (2016), Bell
(1973), and etc.
The development of business structures and their
transformation within the framework of the
socio-economic system as a whole including in connection with
the development of digitalization
processes are studied in the domestic authors’ works such as
Gribanova (2017), Kapustina, Kudryavtseva,
Shishkin, and Shishkin (2012), Avdeenko and Aletdinova
(2017), Babkin, Burkaltseva, Kosten, and
Vorobyov (2017).
The study of this issue made it possible to determine that the
digitalization of processes is relevant
not only at the level of individual enterprises: entire industries
choose this development path for
themselves as the only opportunity to meet the rapidly changing
conditions of the surrounding world. As
the result the digital transformation of industry, retail, the
public sector and other areas are already

changing the lives of every person and every company.
According to the international analytical agency
International Data Corporation (IDC) which is studying the
global market for information technology and
telecommunications, by 2018, global spending on digital
transformation amounted to $ 1.3 trillion, and by
2021 this value will approach $ 2.1 trillion.
The penetration of digital technologies in all business sectors
was due to the fact that this
transformation accelerates interactions and all business
processes, transferring them to real-time mode
enhances the mutual influence of all factors, thereby creating a
special ecosystem of the enterprise. The
enterprise ecosystem is a complex of business development
factors. It dictates a completely new
algorithm of action
However, in the digital world not every organization is able to
form its own ecosystem because in
this process the strategy, goals, age, level of development of the
organization, etc. But there are also
“ambidextra companies” that go through the digital
transformation process without any problems
(Sologubova, 2019).

We must not forget that the fundamental role in digitalization is
not so much artificial intelligence
as the human mind.
Every year, large companies such as Forbes Insights, Hitachi
Data Systems and others make the
research to understand the cost-effectiveness of digital business
transformation. A survey of more than a
hundred IT managers of the largest companies from various
sectors of the economy revealed the main
goals of digital transformation (Figure 2).
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Figure 02. Primary targets of business transformation
Today we have connected digital technologies as pervasive
widespread smart devices, the

industrial cloud computing and almost ubiquitous Internet
connection. They are powerful enough in
combination to unleash that well-known economist Carlota
Perez calls the shift of techno-economic
paradigm.
Currently "maturing" the digital enterprise is focused on the
integration of digital technologies
such as social, mobile, analytical and cloud service all
conversion processes of the enterprise. In other
words, the connected digital technologies require a complete
rethinking of what we consider enterprise.
Less Mature digital business is focused on the solution of
discrete business problems with the use of
individual digital technologies, which in our opinion is not
quite correct.
According to the authors, the ability to digitally rethink a
business is determined primarily through
a precise strategy, implemented, as a rule, by the top
management promoting the digital culture. The
peculiarity of digital transformation is that dealing with risks is
already becoming the rule, as more
digitally mature companies strive to gain stable competitive
positions. To this end, it is necessary to
attract competent performers who can organize the correct

processes for working with data, control their
quality and usefulness, in order to ultimately benefit from the
introduction and use of digital technologies.
Below we can see the highlights of the author's findings:
1. Digital strategy leads to digital maturity and the formation of
a digital business model. Only
15% of companies are in the early stages of what we call digital
maturity - an organization where the
presence of digital business processes, the involvement of
competent performers speak of a well-thought-
out roadmap. Digital business model is a vivid articulation of
the digital landscape of the enterprise
developed through digital transformation and defined as the
target operating mode of the enterprise
(ETOM).
2. The framework for digital transformation is the framework
for change that clearly defines the
activities and tasks an organization needs to manage digital
transformation. According to many IT
specialists, the specificity of digitalization is such that it forces
businesses to constantly scale their
Primary targets
of business

transformation
Customer Satisfaction
Outlet level’s upgrading
Expansion into
new markets
Line extension
Efficiency improvement of
current processes
Business caseы’
transformation
Cost saving
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activities. Digital transformation allows you to do this in a
flexible and timely manner, each time taking
into account the unique characteristics of the managed projects.
Digital orientation is usually shaped by

the goal of transforming the business as a whole.
3. “Ripening” digital organizations build skills for
implementing the strategy. Companies that
have reached the digital maturity level provide their employees
with the necessary competencies and
knowledge more often than organizations that are at the initial
stage of digitalization. Our overall
conclusion is that the ability to understand the transformation of
the corporate world through the creation
and implementation of new IT technologies is a skill that many
companies lack.
4. Risk is becoming a cultural norm. Organizations that have
reached digital maturity are more
inclined to take risks than their peers in the early stages of
digitalization. To mitigate risks, business
leaders, together with their employees, need to perceive the
difficulties that arise as a path to victory,
increase competitiveness and growth of the business as a whole.
5. The digital strategic structure, where the digitalization policy
is conducted vertically from
above is the strategy development structure that defines the
digital evolution of the organization and plans
for a successful digital transformation. In maturing
organizations, IT professionals are almost twice as

likely to lead digital transformation. It is important to
understand that the main thing is not technology,
but people who are engaged in their implementation and who
are able to correctly state the importance of
digital technologies for the future of the company. In other
words, it is a clear roadmap for digitalization
combined with culture and competence.
6. Digital Architecture Roadmap’s Formation is a short map
describing the “direction of
movement” for the digital journey enterprise, designated as a
series of achievable goals.
Next, we present the statistics on the digital transformation of
the business according to research
in this area. Most respondents are IT executives and
professionals:
• 87 % say digital transformation is a competitive tool
• 88 % say they are in a digital transformation stage
• 96 % of organizations consider digital transformation critical
• 50% of executives say they have a clear roadmap for
digitalization
• 39% believe digital transformation has made progress in
securing real-time transactions; 32

% say this helped them to leapfrog solution in improving the
efficiency of operations; 28 %
said it helped them to gain new customers, 25 % said it helped
them to leapfrog solution in
accelerating product development.
• 45% of respondents are confident that digitalization will
increase business income
• 25% of respondents believe that digital will provide an
opportunity to establish more fruitful
relationships with customers.
• 87 % of companies are confident that digitalization will
positively affect the experience of
employees in the company as well as on employee productivity
• Companies that have already gone through the digital
transformation claim that: increased
market share – 41 %, there was an increase in customer
involvement– 37 %, more favorable
working climate – 37 %, more, web and mobile technologies –
32 %.
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• 44 % of CEOs say business knowledge and the ability to
understand the transformation of the
corporate world through the creation and implementation of new
IT technologies is a skill
that many companies lack.
Based on the above we line that key challenges for businesses
thinking about digital business
transformation are:
1. Digital strategy – what to do?
2. Digital transformation – how can we do it?
On the basis of analytical reports scientific articles, opinions of
experts, the authors offer the
following definition of "digital transformation". It is a cultural,
organisational and operational change in
the organization, industry, or economic system through
appropriate integration of digital technologies,
processes and competencies at all levels and functions in a
phased manner. Digital transformation using
technology to create value for different stakeholders (clients, in

the broadest sense of the word),
innovation and adaptation to changing circumstances.
Thus, the digital transformation of the corporate world is the
transformation of business models,
processes, services, activities and competencies for using the
opportunities offered in the two directions
of global change: globalization has the free movement of
people, ideas, goods, equipment and money in a
dynamic global economy (the boundaries are blurred between
old markets and new markets); in
combination with digital technology innovation – joint to
stimulate the creation of new business models
that generate growing streams of data and revenue from new and
desirable products and services.
Globalization and technological innovation at the same time
generate new digital industry, the
markets and the economy is the evidence of geopolitical and
economic paradigm shifts changing all
aspects of society.
7. Conclusion
The article examined the most important aspects of digital
business transformation as a deep and

accelerating transformation of the corporate world. In other
words, it is the use of technology to radically
increase productivity. In almost all spheres of activity, they use
the achievements of the digital world,
such as analytics, artificial intelligence, big data, the Internet of
things, augmented and virtual reality, etc.
in order to improve the efficiency and competitiveness of the
business. Data and information have
become major assets, sources of income and essential support
tools in the information age.
To succeed in the digital age, it is unnecessary to turn into the
new Amazon, Google, or Netflix.
However companies may have to change their methods of work
in order to create a solid base for the
development of their business. There are likely to be obstacles
along the way, but it is not about money,
about lack of time and not even about the scarcity of resources.
It is about the attitude to digital strategy.
Digital transformation projects most often fail because the
organization is not ready for the scale of
the changes that are necessary for success. To harness the
power of new technologies, the corporate
world needs to be prepared to accelerate evolution, business
agility, customer focus, and all forms of data

analysis.
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References
Avdeenko, T. V., & Aletdinova, A. A. (2017). Digitalization of
the economy through the improvement …
1
5
SMITHFIELD CUSTOM FURNITURE CASE STUDY
Sean Radovanovic
1. Explanation of Mission Statement Requirements
A mission statement is a descriptive goal that speaks about what
your company wants to achieve now. The Mission statement
and Vision Statement are very similar. The key difference is the
mission statement will speak more to consumers on what
exactly your company has to offer. A good example of a mission
statement is "People working together as a global enterprise for
aerospace industry leadership.”(Boeing Mission Statement |
Boeing Mission & Vision Analysis, 2021) You can see based

on this Mission statement how people matter to the company
and that they are in the aerospace industry.
2. A Mission statement for Smithfield Custom Furniture's New
Product Line
The Smithfield Custom Furniture that has been growing and
expanding with a long history of success should speak to what
makes them different from any other furniture company.
Therefore I have designed the following Mission Statement:
Create unique furniture from the finest wood making highly
desirable limited edition products. This Mission statement will
speak to the over 86 years of furniture building focused on high
end, one of a kind furniture that makes it very valuable and
keeps it in the wealthy sector of stores.
3. Explanation of Vision Statement Requirements
A Vision Statement is what you want your company to be in the
future. It is not so much what you are doing as it is a non-
measurable goal that speaks to what your company would like to
achieve. Your Vision Statement should be a reflection of your
mission and be a way for you to achieve mission success. An
example of a Vision Statement would be Tesla's Vision "Create
the most compelling car company of the 21st Century by
Driving the world's transition to electric vehicles."(Cuofano,
2021) As you read the Vision Statement there is no way to
measure how compelling a car is but it is a hope for this
company to not only be compelling but also eventually lead
world transition to EV's.
4. Vision Statement for Smithfield Custo m Furniture's Product
Line
When trying to find a Vision Statement, the first question to
answer is, where and who do you want to be? Give thought to
the future and then derive a Vision Statement from what you see
your company being in the next 10-20 years that supports the
Mission Statement. Using this methodology I have created the
following Mission Statement: Be the Top Choice for people
who want distinctive furniture you won't easily run into
anywhere else.

5. Application of Porter's Competitive Strategy
Porter's Five Forces is a strategy tool that can be used by
management to help understand what risks can be associated
with competition in a certain industry. Every industry has a
risk of losing its competitive edge, by utilizing a tool to
understand your risks and where they come from you can better
plan to avoid losing profit in the future. The five forces that
Porter discusses in terms of areas of concern are the following:
Bargaining Power of Suppliers, Bargaining Power of Customers,
Threat of New Entrants and threat of substitute of products.
The Fifth concern is rivalry with other industries however the
difference is the fifth concern also has to be concerned with the
first four. (Lumen Learning, 2021)
We can break down each area and see where the concerns would
lie with the exclusive line and the new proposed line. First the
bargaining power of the supplier simply means how much
influence does Smithfield Furniture have over its customers into
getting the better deal. With a Unique Line that offers high end
products the company has the ability to have higher prices even
more so because the furniture is limited in new designs.
However your market that you speak to is for more wealthy
individuals. If you were to start selling new products that are
cheaper, you would reach more households however, you could
lose your influence. This could affect the price and brand of
your more unique items in the future. Second, the bargaining
power of buyers is the ability for a customer to influence the
buyer. In this regard, how much are you willing to lose to make
the customer happy. This isn't much of a concern for limited
edition furniture, but for furniture that is more modern you are
going to have to find a way to connect to the customer without
using discounts or taking profit losses. Third, the threat of new
entrants, how easy is it for a new company to emerge and start
making the same products you do. Limited edition furniture
with exotic materials is not easy to replicate. However, middle
range furniture could be easily replicated. Fourth is a threat of
substitute products. Given the furniture business this is a threat

for both high end and for middle range furniture builds.
Examples include hammocks, bean bags, at home project
builds. The key to overcoming this competition is the quality
you would get from using your company's products. Last but
not least is rivalry with industries. As already expressed the
hardest thing for another company to copy is unique and diverse
limited edition builds. Your company's world-wide influence
and long standing history of craftsmanship is what your new
competitors will have to try and overcome.
6. Priority Order/Justification Smithfield's next 3 Steps
If Mr. Smithfield III would like to continue his pursuit of his
new product line these are the first 3 steps that need to happen:
Step One: Strategic Objectives and Analysis
Now that you are opening a new line, your focus will no longer
be Top of the line furniture. Your company will now be
producing two different types of furniture and for the first time
in the company's history the target industry will be adjusted. In
order for this new line to be successful a new Mission Statement
and Vision Statement will need to be created. Who are you
now? That is the best question to answer to succeed in a new
mission and vision for the company. (Lumen Learning, 2021b)
Step Two: Strategic Formulation
With a new Mission and Vision in place for your company, the
next step is to set SMART goals. Specific, Measurable,
Achievable, Realistic, Time-focused goals that will focus on
strengthening your companies advantages and improving its
weaknesses. Given the goal of the company is changing,
creating new objectives and milestones to reach these goals will
be the difference between success and failure. (Lumen
Learning, 2021b)
Step Three: Strategic Implementation
After the goals have been made, the milestones set, and the plan
created, it's time to execute. This step in development focuses
on action. Now that Upper Management knows the future of the
company it's time to get the buy-in to every employee across
every country. From the Craftsman to the Salesman it's

important the workers are motivated behind this new vision and
support the new mission. This is where middle management and
front line supervisors need to pay attention to resources needed
and look for areas of improvement with the new line.
I believe these first three steps will be huge in having success.
If it was my company I would not suggest moving into a new
line of business. The possibility of brand name loss is too high,
not to mention the possibility of the company losing its
identity. Instead I would have performed a strategic Evaluation
and looked at the external and internal conditions. Using this
and the SWOT method I would have attempted to find a better
resolution to keep the focus on limited edition furniture.
References
Boeing Mission Statement 2021 | Boeing Mission & Vision
Analysis. (2021, January 27). Boeing Vision and Mission
Statement Analysis. https://mission-
statement.com/boeing/#:%7E:text=Boeing’s%20mission%20stat
ement%20is%20%E2%80%9CPeople,critical%20element%20of
%20this%20company.
Cuofano, G. (2021, February 21). Tesla Mission Statement and
Vision Statement In A Nutshell.
FourWeekMBA. https://fourweekmba.com/tesla-vision-
statement-mission-statement/
Lumen Learning. (2021). Common Frameworks for Evaluating
the Business Environment | Principles of
Management. https://courses.lumenlearning.com/wmopen-
principlesofmanagement/chapter/c ommon-frameworks-for-
evaluating-the-business-environment/
Lumen Learning. (2021b). Stages and Types of Strategy |
Principles of
Management. https://courses.lumenlearning.com/wmopen-
principlesofmanagement/chapter/stages-and-types-of-strategy/

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