Create A Mission Statement For Chester Inc. ✓ Solved

Create a mission statement for Chester Inc. that addresses w

Create a mission statement for Chester Inc. that addresses what sets the organization apart from competitors, the markets served, and other stakeholders. State a specific target date by which Chester will achieve 30% market share in each of its three target markets. Describe corporate objectives, business objectives, and functional goals (including product launches and customer awareness targets). Summarize corporate policies and current market scope. For corporate governance, specify board committees and which members sit on each, explain how nominations and elections for board members are handled, and analyze the board's size, balance, and missing expertise. State plans to address board weaknesses. Describe top management challenges and propose actions to improve leadership teamwork, communication, and alignment with strategy.

Paper For Above Instructions

Executive mission statement and strategic targets

Mission statement (proposed): "Chester Inc. designs and manufactures industry-leading precision sensors that enable manufacturers to create safer, smarter, and more efficient products. We differentiate through relentless R&D, superior product lifetime, compact design, and customer-focused partnerships that create measurable value for clients, employees, suppliers, and communities." This mission explicitly names what sets Chester apart (R&D-driven differentiation, lifespan and size advantages), the markets served (high-end, size-focused, and performance sensor markets), and primary stakeholders (customers, employees, suppliers, investors, and communities) (Collis & Rukstad, 2008; Freeman, 1984).

30% market-share target: Chester will aim to attain 30% market share in each of its three target markets (high-end, size, performance) by the end of the 2029 fiscal year (five-year strategic horizon). The target is ambitious but feasible when combined with prioritized R&D, focused go-to-market investments, and selective M&A, guided by measurable KPIs (Kaplan & Norton, 1996).

Objectives and functional goals

Corporate objectives: (1) Achieve sustained profitability and positive ROI within three years; (2) Increase market share to 30% in each target market by 2029; (3) Institutionalize innovation via R&D investments equivalent to at least 8% of revenue.

Business objectives: Optimize resource utilization (reduce manufacturing variance by 12% year-over-year), restore positive net income, and cultivate human capital through structured career paths and training programs tied to performance metrics (Barney, 1991).

Functional goals: Launch two new sensor lines (one miniaturized size-optimized sensor and one high-end performance sensor) within 18–24 months; achieve 85% unaided customer awareness in the performance market segment (brand “Cyber”) within 36 months through targeted marketing and distributor partnerships; improve product yield to industry benchmark levels within 12 months (Kaplan & Norton, 1996).

Policies and market scope

Corporate policy: Prioritize R&D-led value creation; maintain rigorous quality and ethical standards; invest in employee learning and supplier development to protect IP and ensure sustainable supply chains. Innovation policy will be operationalized through stage-gate development, cross-functional product development teams, and protected resources for exploratory projects (Christensen, 1997).

Market scope: Chester currently operates domestically; strategy calls for phased international expansion after consolidation of domestic market leadership and completion of product certification/regulatory readiness in target export regions (OECD, 2015).

Corporate governance: board structure, committees, and election process

Board composition (current members): William H. Donaldson (Chair), Sean Flores, Seleen Cruz, Robina Hufman. To strengthen governance and meet best practices, formalize a board of 7–9 members including independent directors with expertise in finance, legal/compliance, and international markets (Yermack, 1996; Tricker, 2019).

Committee structure (proposed):

• Audit & Finance Committee: Chair an independent financial expert; members: Sean Flores (financial knowledge), one external CFO/expert; responsibility for financial reporting, external audit oversight, and risk management (OECD, 2015).
• Nominating & Governance Committee: Chaired by an independent director; members: Seleen Cruz and an external governance expert; responsibility for nominations, board evaluation, and governance policies.
• Compensation & Human Capital Committee: Chaired by an independent director; members: Robina Hufman (technical HR link) and one external remuneration specialist; responsibility for executive compensation, succession, and human capital development.
• Technology & Innovation Committee: Chaired by Robina Hufman; members: Seleen Cruz and one external R&D leader; responsibility for product roadmap, IP strategy, and R&D oversight.

Nominations and elections: Establish a formal nomination process managed by the Nominating & Governance Committee. Candidates may be proposed by existing board members, the CEO (with clear conflict-of-interest rules), or shareholder nominations. The committee conducts competency assessment, background checks, and conflict screening; recommended candidates are voted on by shareholders at the annual meeting with staggered three-year terms and a maximum of three consecutive terms to ensure renewal (Tricker, 2019; OECD, 2015).

Board analysis and remediation plan

Analysis: Current board is undersized and overly internally appointed, with limited independent oversight. Expertise gaps include independent financial governance, legal/compliance, international markets, and independent chairing of audit and nominating functions (Yermack, 1996; Tricker, 2019). Reliance on CEO appointments weakens board independence and shareholder confidence.

Remediation plan: Over 12–24 months recruit 3–5 independent directors prioritized for financial, legal/regulatory, and global market experience. Create formal committee charters, implement annual external board evaluations, staggered terms, and stricter independence criteria. Consider adding a lead independent director if the chair remains closely tied to management (OECD, 2015).

Top management challenges and recommended actions

Challenges: Current top management exhibits personality clashes and communication gaps that hinder cross-functional execution. Silos between R&D, marketing, and production risk misaligned product launches and missed time-to-market windows.

Recommended actions: (1) Conduct an executive alignment program (facilitated offsite) to clarify roles, decision rights, and escalation paths; (2) Implement a balanced scorecard to align metrics across finance, customers, internal processes, and learning (Kaplan & Norton, 1996); (3) Appoint an internal chief operating officer or program manager to coordinate cross-functional product launches; (4) Use team diagnostic tools and psychological-safety interventions to improve collaboration (Edmondson, 1999); (5) Provide coaching and 360-degree feedback for senior leaders, and tie short-term incentives to cross-functional KPIs to reduce silo behaviors.

Conclusion

By adopting the mission statement above, operationalizing clear strategic targets, strengthening board independence and expertise, and addressing top management collaboration issues, Chester Inc. can move from a struggling profitable business to a high-performing, differentiated firm in its target sensor markets. These steps align governance, strategy, and human capital to support sustainable growth and innovation (Freeman, 1984; Collis & Rukstad, 2008).

References

• Collis, D. J., & Rukstad, M. G. (2008). Can You Say What Your Strategy Is? Harvard Business Review.
• Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Cambridge University Press.
• Kaplan, R. S., & Norton, D. P. (1996). The Balanced Scorecard: Translating Strategy into Action. Harvard Business School Press.
• Yermack, D. (1996). Higher Market Valuation of Companies with a Small Board of Directors. Journal of Financial Economics, 40(2), 185–211.
• Tricker, B. (2019). Corporate Governance: Principles, Policies, and Practices. Oxford University Press.
• Christensen, C. M. (1997). The Innovator's Dilemma. Harvard Business School Press.
• Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120.
• OECD. (2015). G20/OECD Principles of Corporate Governance. Organisation for Economic Co-operation and Development.
• Edmondson, A. C. (1999). Psychological Safety and Learning Behavior in Work Teams. Administrative Science Quarterly, 44(2), 350–383.
• Kaplan, S. (2008). Strategy and the Board: The Role of the Board in Strategy Oversight. Harvard Business Review (supplementary governance material).