Edmunds Corrugated Parts

Assignment 3

"Edmunds Corrugated Parts and Service"

Ronitha Burns

Modern Management - MGT500

Dr. Deborah Hill

5/19/13

ABSTRACT

This critical analysis case of Edmunds Corrugated Parts & Services is based on circumstances of a once highly profitable company now at a crossroad in the strategic decision making process in how to best go forward in implementing changes for growth for the company. The owner has a clear understanding that the business is not where it used to be twenty years ago in having record breaking profits. Now, Edmunds Corrugated has to determine how the business will function with the reality of long term employees leaving due to retirement with no available skilled applicants to hire. In this case study we note that the business owner will have to make choices on how the business will survive by several ways with implementing new business strategies such as developing new product, new services, new service industries of their product, partnering, global expansion of his parts product line, and possibly a more viable Internet presence. In this case study we will explore the company's issues and how with corrective solutions, the business can possibly with implementing the new strategies from new hires to innovation and can once again achieve greater profits with new innovative products, highly skilled staff and services.

1. Analyze the issues faced by Edmunds and describe what lead the company to this situation

Larry Edmunds is the owner of a company that provides precision machine move and service to the corrugated box industry. Recently, Edmunds frowned upon his company's latest quarterly earnings expecting it to be a definite profit over past sales, which surged over the $10 million market (Daft, 220). Fortunately, the company still holds a dominant piece of land of the market and is still profiting. However, the company is not profiting in a way it has been in past years and revenues are theme to show signs leading to stagnation. During the years, Edmunds and his company were best known for reliable and personalized services. However, the demands of the box industry changed with the alternative products being shipped, as well as, the cost of steel increasing. Additionally, more businesses were beginning to merge by either opening overseas or go in into joint ventures abroad. The remaining manufacturers were buying machines of higher quality that stony-broke down less frequently and thus, not needing Edmund's parts and services as often. From the start of the business, it was not clear of employing many people with nearly of them being from the neighborhood. Within the business, they were considered the most loyal, hardworking employees. Unfortunately, many of them were nearing retirement and to replace them with employees of the area with unanimous work ethics would be extremely difficult. The area's best and stronger employees were moving and finding work elsewhere to spy themselves in a niche opposite of their parents.

2. Create and Describe a Strategy for Addressing the Situation at hand

Therefore, it is paramount to ensure that there is strategic management that will comprise three phases to ensure that the company is back on it course and ensure that it achieve its goals and objectives. These phases in the strategic management are diagnosis, formulation and implementation. This is required to be an ongoing process to a point where the company will be in a position to be revived. In the first phase, the diagnosis of the company environment is required through performing a situation analysis. This will ensure that the company current mission is identified and formulated; strategic objectives are put in place to ensure that the current situation of the company is solved. This will give results that will look at the major strength and weaknesses of the company. The analysis of the company's environment will look at the major opportunities and threat for example the ones that have made most of the company that Edmund was working to be taken and go over sea. Some great opportunities such making quality goods can be used to ensure that increase their market share, as the customers will be loyal to their service. This can be used to ensure that they still sell their goods at higher prices. The first implementation to address the situation at hand is to evaluate new opportunities in the market in terms of acquisitions, new products or services, collaborations with others, etc. The next thing would be to examine every technology the company employs and identify ways to reduce cost. Introduce new or improved technologies internally that will improve the functioning of the organization. Identify and adapt new technologies to better meet the needs of the customers. Determine what the unique strengths are and develop products that incorporate, or further incorporate these strengths. Conduct an analysis of major activities in the company to identify ways to increase speed, reduce cost, eliminate unnecessary steps, and improve quality. Also, insure there are systems for every activity. Determine whether the company can innovate any new systems that will further improve performance. Determine if there are systems successfully employed by other companies that could be used by Edmunds Corrugated Parts & Service Company. Determine if the company is exploring and taking advantage of every conceivable source of finance to make the business grow meant while keeping expenditures