Strategic Mgmt - Growth Strategies

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ASSIGNMENT 07 BU470 Strategic Management Terry Wilson, a seasoned marketing veteran, has recently decided to explore growth options for Tuscan Treasures, an importer of Italian furniture. Profits are declining and Mr. Wilson must decide whether to downsize or expand to improve the situation. You have been asked to advise Mr. Wilson on which growth strategy would best aid Tuscan Treasures should he chose that route. You have also been asked to provide Mr. Wilson with a better understanding of why profits have been down recently, including possible causes of the decline. He also wants to know what he would need to do if he decides to downsize he operation. Part A: Provide Mr. Wilson with three possible growth strategies. Part B: What are the possible causes of his company’s decline? Part C: What are some recommendations for handling a downsizing? Answer Mr. Wilson’s business seems to be suffering. Below is a list of some possible reasons for the slash in profitability , strategies that Mr. Wilson could employ to combat a losing business and a few recommendations for the way forward. Possible Growth strategies 1.) Market Penetration: Italian furniture is a buyer savvy product. It is a luxury product rather than an essential commodity. Mr. Wilson might be pricing his furniture as a premium product. He would however need to look at the current economic condition of his geographical market. He would need to ask himself a couple of questions. How many of his target audience has the buying potential for his product in the current economic situation? And even if they do, would they be willing to spend their buying power on this luxury product. Mr. Wilson will probably have to re-evaluate his target market and his pricing strategy. 2.) Product Development : Perhaps Mr. Wilson is importing traditional Italian furniture and his target market

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