Case its culture since in all of
Case Study 2 – Florida Company Fastens Its Sights on Global Growth BMGT 6311 – Lori Davis – October 23, 2011 1. How would you describe Professional Products’ growth strategy? Their growth has been a slow steady growth over the past 42 years to become one of the largest most stable employers in the state. Their plan to grow internationally includes building a new 100,000 square foot building and opening a new sales office for the European market.Their growth strategy is that of a market development strategy (How to Develop a Business Growth Strategy, 2010) targeting new customers in new segments in the international market.
By streamlining production and having vertical operations where they don’t keep a lot of inventory on hand, they are able to fill orders within 4. 5 hours from order to shipment. They also make much of their own components for their products and will outsource some of the work internationally but will not sacrifice any jobs in their growth.
. Why would Professional Products commit to no layoffs in its expansions? Is this a positive move, or could it be detrimental to the company? This commitment is one by the company that helps keep employee morale positive and helps continue its culture since in all of its 42 years it has never had any layoffs. Professional Products recognizes that its people are the number one reason behind the company’s success and without its peoples’ knowledge, skills and abilities the company does not succeed.I believe this is a positive move as there are several hidden costs from layoffs that make it worthwhile to have no layoffs such as severance and rehiring costs, accrued vacation and sick day payouts, pension and benefit payoffs potential lawsuits from aggrieved workers, loss of institutional memory and trust in management, lack of staffers when the economy rebounds, and survivors who are risk averse, paranoid, and political.
It is possible it could be detrimental to the company in the short term but in the big picture and the long term it is more positive for the company than detrimental.The company gains a fiercely loyal more productive workforce, a higher customer satisfaction, a readiness to snap back with the economy, a recruiting edge and workers who are not afraid to innovate, knowing their jobs are safe. 3. In addition to training employees for other jobs, what other HR strategies might the firm employ to maintain its relationship with its domestic employees? The company could offer to move its domestic employees to its international office and bring its international employees to its domestic office for cross-training and job enrichment using the HR strategy of motivation through job enrichment. ‘Best practice’ as a human resource strategy, 2010) The company should also offer diversity and multi-cultural training for all employees to go through so that both domestic and international employees will embrace the new diversity in the organization. They could also create teams of domestic and international employees to keep communication lines open between employees and encourage the creativity among employees.
They should also have a leadership team in place made up of international and domestic management to make sure that all issues that are brought up are addressed. Works Cited ‘Best practice’ as a human resource strategy. (2010, April 23). Retrieved Oct 23, 2011, from Articles Base: http://www. articlesbase.
com/history-articles/best-practice-as-a-human-resource-strategy-2214265. html How to Develop a Business Growth Strategy. (2010, Feb 25). Retrieved Oct 23, 2011, from Inc. Magazine: http://www. inc.