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Table of Content

Acknowledgement 2
Executive summery 3
Introduction 4
Case analysis 7
Conclusion 10
Reference 10

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Acknowledgment

In performing my assignment, its a successful one I had to take the help and
guideline of some respected persons. First of all I would like to thank my parents who
gave me strength to accomplish my assignment. I would like to thank my gratitude
Ms. Shamini Perera, Lecturer, Institute of Personnel Management Sri Lanka for
giving me a good guideline.

I would like to thank Institute of personnel management Sri Lanka. Finally I would
like to thank all my colleagues for their cordial cooperation. Actually it was not
possible for me to complete a severe task without such a help.

I have gone through various websites and books to get the accurate information for
analysis and tried to find the best conclusion.

Imbulana I.A.G.D

PQHRM/120/56

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Executive summery

The following report has been written with the intention to consider current
management strategy of Edmunds Corrugated Parts & services Company. I have
drafted a new strategy for Edmunds Corrugated Parts & services Company. To give a
high productivity and sustain and grow in the filed more is the objective of this case
study.

Following analysis I concluded that in order to survive, the Edmunds Corrugated


Parts & services has to become more profitable. I believe that building a successful
organization Internet portal, having sound management strategy, is important both for
globalizing the brand and for managing the different business through one platform.
Furthermore, I believe that Edmunds Corrugated Parts & services Company should
finance its expansion to managerial structures through to become more successful.

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Introduction to the management case study

Edmunds Corrugated parts and service

Laddy Edmund grimaces as he tossed his companys latest quality earnings onto his
desk. When Virginia-based Edmunds Corrugated Parts & services co.s sales surged
past the $10 million mark awhile back, he was certain the company was well-
positioned for steady growth. Today the company, which provided precision machine
parts and service to the domestic corrugated box industry, still enjoys a dominant
market share and is showing a profit, though not quite the profit seen in the years past.
However, it is no longer possible to ignore the fact that revenues were beginning to
show clear signs of stagnation.

More than two decades ago, Larrys grandfather loaned him money to start the
business and then handed over the barn on what had been the familys Shenandoah
Valley farm to serve as his factory. Today, he operates from a 50,000 square-foot
factory located near I-81 just a few miles from that old barn. The business allowed
him to realize what had once seemed an almost impossible goal: he was making a
good living without having to leave his 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 find
anywhere. However, many of his original employees were now nearing retirement.
Replacing those skilled workers was going to be difficult, he realized from
experience. The areas brightness and best young people were much more likely to
move away in search of employment than their parents had been. Those who
remained behind just didnt seem to have the work ethic Larry had come to expecting
his employees.

He didnt feel pressured by the emergence of any new direct competitors. After
slipping slightly a couple years ago, Edmunds formidable market share-based on its
reputation for reliability and exceptional, personalizes service was holding steady at
75 per cent. He did fell plagued, however, by higher raw material costs resulting from
the steep increase in steel prices. But the main source of concern stemmed from
fluctuating with manufacturing output. Now alternative shipping products were

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beginning to make their appearance, mostly flexible plastic films containers. It
remained to be seen how much of a dent theyd make in the demand for boxes.

Most worrying, consolidation in the paper industry had wiped out hundreds of the US
plants that Edmunds once served, with many of the survivors either opening overseas
facilities or entering into joint ventures abroad. The surviving manufactures were
investing in higher quality machines that broke down less frequently, thus requiring
fewer of Edmunds part. Still, he had to admit that although the highly fragmented US
corrugated box industry certainly qualified as a mature one, no one seriously expected
US manufactures to be dislodged from their position as major producers for both the
domestic and export markets.

Edmunds was clearly at a crossroads. If Larry wanted that steady growth hed
assumed he could count on not so long ago, he suspect that business as usual wasnt
going to work. But if he wanted the company to grow, what was the best way to
achieve that goal? Should he look into developing new products and services,
possibly serving industries other than the box market? Should he investigate the
possibility of going the mergers and acquisitions route or look for a partnership
opportunity? He thought about the companys rudimentary webpage one that did little
beside give a basic description of the company, and wondered whether he could find
ways of making better use of the internet? Was it feasible for Edmunds to fine new
markets by exporting its parts globally?

All he knew for sure was that once he decided where to take the company from here,
he would sleep better.

Required

What role does you expected the internet to play in the corrugated box
industry? What are some ways that Edmunds could better use the internet to
foster growth?
What would the SWOT analysis look like for this company
Which of Porters competitive strategies would you recommend the Edmunds
follow? Why? Which of the strategies do you think would be least likely to
succeed?
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If you are the corporate management strategy consultant, how do you
determine whether it should formulate a growth strategy or a stability
strategy? What factors should you take into consideration? What kind of
information should you collect?

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Case Analysis

Use of internet
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.

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

SWOT Analysis
STRENGTH

-Company is a Market Leader with high skilled and loyal employees.

-High reputation for reliability and personalized services

WEAKNESS

-Revenues showing signs of stagnation.

-Workers nearing retirement age and new skilled workers are not easily available.

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OPPORTUNITIES

- Efficient use of internet to move into the new markets and increase visibility.

THREAT

-Increase in price of raw materials

-Industry is not recession resistant

-Consolidation of U S Paper industry which led to swipe out many existing customers.

-Surviving manufacturers investing in high quality machine, requiring less of his


services.

-U S manufacturers of corrugated box industry are dislodged, in both domestic and


international market.

Strategy
One strategy Edmunds can use in the future to reduce potential crises before them
happens to develop a mission statement and let the statement reflect the mission of the
company from this point on. 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.

Another strategy Edmunds could use is to perform Strengths, Weaknesses,


Opportunities and Threats (SWOT) analysis on a regular basis. 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.

Formulation of growth strategy


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

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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 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 (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 their 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 backup 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 cross-training employees to perform a variety of functions,
minimizing turnover time planes. It is one of the strategies of execution.

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Conclusion

The company should always look on the ever evolving market trend on manufacturing
and distribution on its industry. The company should adapt quickly to keep its share in
market or introduce machines that will keep industry grow and lower production cost
through automation. All of the alternative courses of action are recommended to keep
the company more forward and achieve its goals.

Reference

Books

Doing Business Strategy by Robert Galavan

Maintenance Strategy by Anthony Kelly

Websites

http://www.dphu.org/uploads/attachements/books/books_5997_0.pdf

http://www.managementstudyguide.com/business-policy.htm

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