Running heads: EDMUNDS CORRUGATED PARTS & SERVICES

Edmunds Corrugated Parts & Services Carmen M. Roman Dr. Edwin Quinn JR. Modern Management (MHT-500) November 14, 2012

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Abstract Edmunds Corrugated Parts & Services a company based in Virginia U.S. owned by Larry Edmund, which provided precision machine parts and service to the domestic corrugated box industry. Two decades ago, Larrys grandfather loaned him the money to start the business. Its first factory was a barn that has been the familys Shenandoah Valley farm. Today, he operates from 50,000 square-foot factory located near I-81 just a few miles from that old barn providing precision machine parts and service to the domestic corrugated box industry. Edmundss formidable market share based on its reputation for reliability and exceptional, personalized service. The business allowed him to realize what had once seemed an almost impossible goal; he was making a good living without having to leave close-knit extended family and rural roots. He also felt a sense of satisfaction at employing about 100 people, many of them neighbors. They were among the most hard-working, loyal workers youd fin anywhere. However, Edmunds original employees are nearing retirement and replacing these skilled workers is going to be difficult because young people are much more likely to move away in search of employment than their parents had been. When Virginia-based Edmunds Corrugated Parts & Service, sales surged past the $10 million mark awhile back, he was certain the company was well positioned for steady growth. Today the company still enjoys a dominant market share and is showing a profit, though not quite seen in years past. However, it is no longer possible to ignore the fact that revenues were beginning to show clear signs of stagnation. Besides, the company got a rudimentary Web page, which provided a basic description of the company. Other than that, Edmund didnt fell pressured by the emergence of any new direct competitors.

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Analyze the issues faced by Edmunds and describe what lead the company to this situation. Edmunds issues were the quarterly earnings. They simply were not as they had been in the past. In the past years Edmunds Corrugated Parts & Service Company had seen earnings past the $10 million mark. And now the company is beginning to see clear signs that revenues were becoming stagnated. Mr. Edmunds felt the company did very well up until now. A majority of the workers were neighbors to Mr. Edmunds and had been at the factory since opening but they are getting ready to retire. Edmunds felt it would be hard to replace the skilled, hard-working, loyal employees because the brightest and best young people were much more likely to move away in search of employment than their parents had been. Although, Edmunds did not have any competition and the reputation for being dependable, giving above average and personalized service was still in tack, the increasing cost of steel, the changes in the box industry, the fact that a great deal of the U.S. plants that Edmunds served had closed. More worrying is that consolidation in paper industry had wiped out hundreds of U.S plants that Edmunds once served. So, in this case other company tend to use other alternatives for shipping products like flexible plastic film and reusable plastic containers to replaced boxes. Demands for machine parts from Edmund are decreasing because the manufacturers were investing in higher quality machines that broke down less frequently. The rest of the people who survived opened other branches oversea as joint ventures. This made the business sales turnover to decline significantly with time. This made the company to be dislodged by other manufacturers through the production of domestic and export goods. This is the reason that had made the company currently to be in cross road. Besides, the company got a rudimentary Web page, which only provided a basic description of the company. (Daft, R. 2010).

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Create and describe a strategy for addressing the situation at hand. Looking at the situation that the company ids in at this time, it requires a strategy that will ensure that it will be revived; therefore, through a strategic formulation, it is capable to ensure that the company is capable of returning the company back to the course of its business. 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 companys 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 t 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

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the unique strengths are and develop products that incorporate, or further incorporate these strengths. Conduct an analysis of major activities in the company (such as selling, orders taking, etc.) 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 within or below budgeted levels. Since many of there original employees were now nearing retirement. Edmunds will lack of skillful workers in the meant time. So, in order to have skillful workers that can replace the old one, Edmund should make a back up about the original employees who are nearing the retirement. Under strategy of execution, one of the divisions that should take action about replacing the retirement employees is its human resource. Human Resource of the company should recruit new employees and train them in order to help them understand the purpose and importance of a new strategy, overcome resistance, and develop the necessary skills to implement the strategy. Southwest supports its low-cost strategy by crosstraining employees to perform a variety of functions, minimizing turnover time planes. It is one of the strategies of execution. In order to foster the growth of the company, he should use the Internet role and create its company websites for their marketing plan to promote their products. Below are the advantages that Edmund will have if they market their product through Internet: Improve their product market by not only in US but also they can market their product worldwide and get involve into import and export industries. They can do a survey to compare between their product and the competitors product.

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It also can use the Internet to advertise any of their company products in order to attract investor to invest in their company.

It can sell its products and services online. While ensuring all employees are involved and encourage the employees to come

forward with ideas and proposals to increase efficiency, improve communications, foster cooperation and promote harmony within the company, and between the company and its customers and its vendors (O'Connell, B., 2004). Assess which element in the strategy you just described would be hardest to implement and explain why. The element I think would be the most difficult to implement would be the recruiting of people with the skills and right type personality that will work well with the company and Mr. Edmunds. Because according to Daft, R., 2010, Larry had stated, "replacing those skilled workers was going to be difficult, he realized from experience." Also Larry was familiar with most of the workers because they were neighbors. And, since the town's more educated and talented young prospects would probably leave the town in a desire to search for different types of employment. Therefore, in order to retain some of those young people to be employed at the company, which would probably make Mr. Edmunds feel a little more comfortable that new hires are from the neighborhood, the company would have to come up with a strategy that will allow that to happen (Daft, R., 2010). For this matter Edmunds Corrugated can use son HR strategies like: online job postings, job fairs, employee referrals, and sign-on bonuses. Describe what strategies Edmunds could use in the future to reduce potential crisis before they happen.

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One strategy Edmunds can use in the future to reduce potential crises before they happen is to develop a mission statement and let the statement reflect the mission of the company from this point on. According to Certo, S., 2006, "a mission statement is a written document developed by management, normally based on input by managers as well as non managers, that describes and explains what the mission of an organization actually is." It is very important for an organization to have a mission because it helps management increase the chance of a successful company (Certo, S., 2006). Another strategy Edmunds could use is to perform Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis on a regular basis. According to Certo, S., 2006 a SWOT analysis "is a strategic development tool that matches internal organizational strengths and weaknesses with external opportunities and threats." SWOT analysis is founded on the notion that if managers thoroughly review such strengths, weaknesses, opportunities, and threats, a beneficial strategy for ensuring organizational success will be obvious to them (Certo, S., 2006). A third strategy Edmunds can perform is a critical question analysis. The critical question analysis asks four basic questions. The first question is, what are the purposes and objectives of the organization? The purpose for asking this question is to give managers a feel for what direction the company is headed. According to Certo, S., 2006 "by answering this question during the strategy formulation process, managers are likely to remember this important point and thereby minimize inconsistencies among the organization's purpose, objectives, and strategies." The second question, where is the organization presently going? This will let the managers know if the company is achieving its goals, and if so, whether the stage of development is pleasing. Although, the first question looks at where the company ought to be going the second question focus more on where the company is truly going. Question number

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three ask, in what kind of environment does the company now exist? Certo, S., 2006 states, "both internal and external environments--factors inside and outside the organization--are covered in this question." The fourth and final question in the critical question analysis is, what can be done to better achieve organizational objectives in the future? According to Certo, S., 2006 "it is the answer to this question that results in the strategy of the organization." There is a reason for question number four being the last question and that reason is question number four should only be answered after mangers has had the time to ponder on the answers to the first three question. Certo, S., 2006 states, "managers cannot develop an appropriate organizational strategy unless they have a clear understanding of where the organization wants to go, where it is going, and in what environment it exists."

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References Daft, R. (2010). Management (9th ed.). Mason, OH: Cengage Learning Certo, S. C., (2006). Principles of Management (2nd custom ed.) Upper Saddle River, NJ: Pearson Education, Inc. O'Connell, Brian (2004, October 01). THE TIMES, THEY ARE A' CHANGING. Baylor Business Review, (1), 2, Retrieved from http://elibrary.bigchalk http://www.ehow.com/info_7833324_hr-recruitment-strategies.html