Growth Strategies and Handling a Downsizing: As

Growth Strategies and Handling a Downsizing: As a seasoned marketing veteran, Mr. Terry Wilson has decided to examine growth options for an importer of Italian furniture known as Tuscan Treasures. This imitative by Mr. Terry Wilson has largely been fueled by the recent decline in profits for the company. As part of his examination, Mr. Wilson seeks to identify the possible causes of the decline and whether downsizing or expansion could be the most suitable measure to improve the situation. Possible Growth Strategies: If Mr.

Wilson and Tuscan Treasures choose to either downsize or expand the business, some of the possible growth strategies would include: Evaluation of the Core Business: As one of the customer-focused growth strategies, the evaluation of the overall performance of the core business involves analyzing and benchmarking profitability, revenue growth rate, and the company's reputation with the most important customers (Liabotis, 2007). The evaluation of the core business usually focuses on the company's products, channels, service, customers and areas that generate huge profits and revenue.

The process would result in renewed commitment to operational efficiency and necessary changes to the core business. Creating High-Impact Value Propositions: This growth strategy is based on the company's existing customers with the view of customers through different perspectives as its main foundation. The strategy is initiated to help managers to obtain fresh insights into the needs and preferences of customers through identifying undeserved customer groups and unknown growth opportunities.

It basically involves sub-segmenting the current customer groups depending on identified needs, developing innovative and high-impact value propositions, testing the propositions, and scaling-up. Adjacent Businesses: Since its strongly linked to the core business, adjacent businesses is normally attractive when core business functions effectively, approaches full potential, and generates surplus re-investment cash. However, this growth strategy can also be initiated when the future potential of the core business is weak.

It involves the creation of alternative channels, entering new markets, joint ventures, serving different customers, and redesigning the value chain of customers. Possible Causes of Tuscan's Decline in Profits: The decline of many companies either occur through huge changes in the external environment or inefficiencies that are linked to the firm's internal operations. Some of the possible causes for Tuscan's decline include reduced or huge workforce, lesser market share, lack of customers, fierce competition, and organizational infrastructure that doesn't promote successful execution. Handling a Downsizing: If Mr.

Wilson chooses downsizing as a measure of improving the situation at Tuscan Treasures, there are several recommendations that could be beneficial. First, he must determine whether the downsizing will take the form of reduction in workforce, restructuring or elimination of certain positions (Jennings, 2008). Secondly, since process requires total consideration and respect.