Florida Company Fastens Its Sights on Global Growth

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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.

2. 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...
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