Edmunds Corrugated
Edmunds Corrugated
1. Analyze the issues faced by Edmunds and describe what lead the company to this situation.
Edmunds Corrugated Parts & Services are a company based in Virginia, U.S. owned by Larry Edmunds; who provided precision machine parts and service for the domestic corrugated box industry. About two years ago, Larry’s grandfather loaned him the money to start the business. It is Larry’s first factory; in a barn on what had been the family’s Shenandoah Valley farm. He operates from a 50,000 square-foot factory located near I-81 just a few miles from that old barn (Daft, R., 2010). However there are some issues that Edmunds has faced with the quarterly earnings. They simply were not as they had been in the past. Firstly, the company was capable of employing about one hundred employees who were mostly neighbors. They were as hard-working and loyal employees. However, many of employees were going to retire. The company was suffering from the issue of replacing the current employees. The other issue the company was holding market share at 75 percent but the market share lately has reduced significantly. It was due to the number of the companies that had appeared manufacturing the same product. This had made it possible for the company to diversify their production with products such as the more flexible plastic films and reusable plastic containers. The last issue faced by Edmunds is losing industries mainly in U.S. due to the consolidation that was done by the paper industry. Some industries that survived opening other branches oversea as joint ventures. This issue had bought Edmunds to the crossroads of what he should do to bring the company revenues back to where they used to be.
2. Create and describe a strategy for addressing the situation at hand.
From the issues the company had faced; the competition was changing, external rules and regulations were changing, and suppliers were changing as well. The strategy that worked well in the
1. Analyze the issues faced by Edmunds and describe what lead the company to this situation.
Edmunds Corrugated Parts & Services are a company based in Virginia, U.S. owned by Larry Edmunds; who provided precision machine parts and service for the domestic corrugated box industry. About two years ago, Larry’s grandfather loaned him the money to start the business. It is Larry’s first factory; in a barn on what had been the family’s Shenandoah Valley farm. He operates from a 50,000 square-foot factory located near I-81 just a few miles from that old barn (Daft, R., 2010). However there are some issues that Edmunds has faced with the quarterly earnings. They simply were not as they had been in the past. Firstly, the company was capable of employing about one hundred employees who were mostly neighbors. They were as hard-working and loyal employees. However, many of employees were going to retire. The company was suffering from the issue of replacing the current employees. The other issue the company was holding market share at 75 percent but the market share lately has reduced significantly. It was due to the number of the companies that had appeared manufacturing the same product. This had made it possible for the company to diversify their production with products such as the more flexible plastic films and reusable plastic containers. The last issue faced by Edmunds is losing industries mainly in U.S. due to the consolidation that was done by the paper industry. Some industries that survived opening other branches oversea as joint ventures. This issue had bought Edmunds to the crossroads of what he should do to bring the company revenues back to where they used to be.
2. Create and describe a strategy for addressing the situation at hand.
From the issues the company had faced; the competition was changing, external rules and regulations were changing, and suppliers were changing as well. The strategy that worked well in the
References: Daft, R.S. (2010). Management. 9th Ed. Mason, OH: Cengage Learning. Management Study Guide. (2012). Step in Strategy Formulation Process. Retrieve Feb. 8, 2013, from http://www.managementstudyguide.com/strategy-formulation-process.htm BE Business Education. (2011, September 6). Importance of Environment Scanning. Retrieved Feb. 8, 2013 from http://business.svtuition.org/2011/09/importance-of-environment-scanning.html Bushman, M. (2007, April 7). The Major Elements of the Strategic Management Process. Retrieved Feb. 10, 2013 from http://voices.yahoo.com/the-major-elements-strategic-management-process-275306.html?cat=3 Bhasin, H. (2010, February 13), Strategy Implementation. Retrieved Feb. 10, 2013 from http://www.marketing91.com/strategy-implementation/