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This two-page article about the Professional Products, Inc. organization displays best practices of human resources which aids in the journey towards business expansion. This case study likewise relates the company’s growth strategy to the need for the company to improve further how they deal with their current and potential employees. Analysis of the case findings reveals the specific growth strategy that the firm adopted, as well as the advantages of implementing a no-layoff policy during the expansion period. Recommendations that could lead to the long-term success of the organization’s no-layoff policy are also laid down.
Finally, the paper is wrapped up through a very brief summary and a short remark on how well the firm has handled itself in its years of operation.
Review of the Case Professional Products, Inc. has managed to grow from a small firm in the 1960s to an organization planning to expand internationally nowadays. The business venture owned by the Kilbeys boosted its expansion efforts with organizational best practices being implemented within the company.
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They have plans of entering the European market, as well as adding a new infrastructure to aid in medical supplies production.
They do not keep a large inventory as they work based on client requests, and they make most of their own raw materials, eliminating potentially high production costs associated with raw materials expenses. They have displayed dedication to their human resources by never laying off anyone, and although the expansion plans entails some works would be outsourced, the firm guaranteed that no employee contract will be terminated.
However, they do not just hire employees as the nature of the business requires highly skilled people.
Further, the firm seeks to maintain its relations with domestic employees through cross-training them for other jobs. Analysis of Findings. The company’s growth strategy can be described as accumulating additional assets; this will serve to increase production, which in turn would address the expected increase in sales from widening their market reach within the same industry. This strategy adopted by the organization is described by Campbell, Stonehouse and Houston (2002) as related development occurring horizontally, which means that the move aims to result in higher market share within the same markets.
The strategic logic seen behind this expansion is to gain leverage and market power over medical supplies buyers. Organic or internal growth can likewise describe the strategy espoused by Professional Products. This straightforward mechanism of business growth entailed that the company increase their production capacity in its attempt to build the European market as well as develop new products which ultimately results to increased turnover.
The commitment to no layoffs in its expansion is a positive move, as the firm avoids the difficulties presented by having to deal with moral problems of those left in the company with the latter’s high probability of job security fear. Also, the policy can help in making the firm an ‘employer of choice’ which will make employee recruitment a much easier process and allows Professional Products to attract the best workers and enjoy cost-savings in retention rates. Recommendations.
The real long-term success of any no-layoffs policy comes only if the executive team of the organization would successfully apply a set of collateral tools and tactics to help buffer the company in its workforce from the ravages of the business cycle. An HR strategy that the firm might employ to maintain its relationship with domestic employees is by providing them with better incentive and salary schemes and reassuring them that there is security of tenure for all in the face of the changes brought about by expansion.
Summary and Conclusions The firm has handled itself excellently in its years of operation through taking care of their employees and wise asset investment, as seen in its efforts to maintain harmonious relationships with its human resources and well-thought out growth strategy that is fitting for the nature of business that it is in and the set goals of the organization. References Campbell, D. , Stonehouse, G. & Houston, B. (2002). Business Strategy: An Introduction. Jordan Hill, Oxford: Butterworth-Heinemann.
Florida Company Fastens its Sight on Global Growth. (2020, Jun 02). Retrieved from https://studymoose.com/florida-company-fastens-its-sight-on-global-growth-new-essay
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