Edmunds Corrugated Essay
Essay Topic: Strategy
Paper type: Essay
Words: 1050, Paragraphs: 10, Pages: 5
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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 past is no longer producing the results company would like. Therefore; the company demanded a strategy would make sure it will recover; by way of strategic management, it is efficient to ensure that the company is capable of returning back to the way of its business. The strategic management is the comprehensive collection of ongoing activities and processes that organizations use to systematically coordinate and align resources and actions with mission, vision and strategy throughout an organization (“Management Study Guide,” 2008). The requirements for an ongoing process in strategic management are environmental scanning, strategy formulation, strategy implementation and strategy evaluation.
The first process of environmental scanning or situation analysis; refers to the process of amassing, studying and providing information for strategic proposes. It would help the company analyze the internal and external factors that impact an organization. The company can define strength and weakness; with these two, they can find future risk and opportunities as well (BE Business Education, 2011). This will show Edmunds the opportunities and threat; for example, the ones that had made most other companies go overseas. The second strategy formulation is the process of designing and selecting the most suitable course of action for the achievement of organization goals and objectives and thereby achieving the organization vision (Bushman, M., 2007). This strategy should ensure the company regains it competitive edge.
The third strategy implementation implies making the strategy work as intended or putting the organization’s chosen strategy into action including developing steps, methods and procedures to execute the strategy (Bhasin, H., 2010). The company management should ensure that the implementation of the strategy is cost effective, not disruptive and acceptable by all stakeholders. The final process of strategic management is strategy evaluation. These activities are evaluating internal and external factors that are the root of current strategies, measuring performance, and corrective actions. These processes will give Edmunds some great opportunities; for an example, making quality goods can be used to ensure that they increase their market share and customers will be loyal to their service. 3. Assess which element in the strategy you just described would be the hardest to implement and explain why.
The part that would be the most difficult state in strategic management is the strategy implementation. This is because it involves change. It will require the management to fit the resources, the competencies and the opportunities that the company has in the market. The support of employees and managers are needed in order to successfully implement a strategy. When people do not proactively make the changes that are needed to adapt to the strategy, this will be one of the large difficulties. Moreover, if there is no follow-up to the strategy implementation, this will be one of the largest difficulties.
The strategy implementation is hard and risky if it does not well carry on. All the resources that have been put in place can be wasted if any hitch happens in the process. It may lead to complete closure of the company as well if they will waste their time.
4. Describe what strategies Edmunds could use in the future to reduce potential crises before they happen. There are different methods that Edmunds could use in the future to ensure that the company does not entangle in the potential crises. The first strategy that the company would use is development of research department that will be looking at innovation for the company to guarantee that it is at a competitive edge at all the time. The second strategy is the training to the employees. This will ensure that the employees have the upcoming technology skills and the productively level will increase as well. The last strategy is the employee recruitment. The company has to make sure the employees are ready and competitive; which means the employees are capable of rising upon all challenges. These will be good methods for the company to ensure that they will not complicate any of the crises that it is in today.
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