SEMCO Company Strategy Essay Example | Topics and Well Written Essays - 2000 words

SEMCO Company Strategy - Essay Example As a conservative business strategy, many companies feel that employing more personnel in the same setup will increase their costs and this would reduce their profits at the end of a trading year (Mazzucato, 2002:34). However, this was a strategy that helped SEMCO to improve to greater heights of quadrupling their profits.When there is an increase in the number of employees, it is obvious that the cost for labour will increase. However, SEMCO did not reflect on the negative side of having an increase in the cost of labor. SEMCO reflected on the side of better services and products that are supplied to the customers. In essence, the company noticed that their products needed a greater increase in their value (Bruce and Langdon, 2000:55). This led to production of high quality goods that would be appreciated in the market. With such a manoeuvre, most of the market was dominated by the products that are produced by SEMCO.With an increase in the number of employees, a company is defined to have more manpower and labour. In such a position, a company may decide to concentrate in various production models. According to the schools of strategy by Mintzberg, when a company has maximum labour, it is in a position of investing in a wide variety of services. This includes investing on other services that it has not been producing. SEMCO decided to strategise on this point by increasing its output. Since it had enough labour, it only had to increase its resources and start other services in the market.