Issues faced by Edmunds and what lead the company to this situation.
There some issues that Edmunds Corrugated Parts and Services have faced that has made it to be in the position that it is currently. Initially, the company started with a problem of where to put up the industry. Otherwise, Larry’s grandfather was there to offer a barn where Larry would put up his first industry. The industry also had no money initially and therefore it had to start with loaned money from the grandfather (Stodghill, 2005). Through this, it made a break through to what seemed to be a dream at the first time to what it is currently.
The company initially was not capable of employing many people as it had only one hundred employees who were mostly neighbors. Therefore, there were probably not professional. Nevertheless, they were termed as hardworking workers. After the industry grew, the company was suffering from the issue of replacing the current employees who at this time were skilled with the new ones ((Stodghill, 2005). The reason being that they were loyal and they could not have left the company to search for a job elsewhere as the rest young employees would do.
The other issue that the company is succumbing on is the issue of competition. Initially, the company had a market share of 75% but lately, the market share has reduced significantly. This is due to the number of the company that has emerged manufacturing the same products. Otherwise, this has made it possible for the company to diversify their production. An example of the diversification that they have done is the production of the more flexible plastic films and reusable plastic containers. This has increased the customer demands on their products.
The industry also suffered an issue of the losing several industries especially in U.S due to the consolidation that was done by the paper industry. This has made the industry wipe out most of the industries that were served by Edmunds. The rest of the people who survived opened other branches oversea as joint ventures. In addition, the few who were left were making higher quality machines that were rarely breaking up making their customers stay for very long without going back to the company ((Stodghill, 2005). 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.
Strategy for addressing the company 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 (Ansoff, 1965). 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 s8ituation 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 (Ansoff, 1965). Some great opportunities such making quality goods can be used to ensure that increase their market share as the customers will be royal to their service. This can be used t ensure that they still sell their goods at higher prices.
The strategic management that is formed is required to formulate ways in which the recommendation will be offered. These recommendations are supposed to have supporting justifications that will revise the previous objectives of the company and ensure that the required strategies have been offered. These strategies should ensure the company regains it competitive edge. This strategic management requires to be implemented through the resources that are available and it is required to be implemented in a period that is reasonable. The company management should ensure that the implementation of the strategy is cost effective, not disruptive and acceptable by the entire stakeholder to ensure that the current situation is salvaged.
The strategy that would be hardest to implement
The part that has been very hard according to the experience is the element of implementing the recommended change in the strategic plan. This is because it will require the management to fit the resources and the competencies and the opportunities that the company has in the market (Smit, 2000). It also requires fitting the recommended issues with risks and expectations.
What makes this element of the strategy to be more complicated is the issue of making the stakeholders to unite and implement the put recommendation. This requires them to undergo training to ensure that they have what it takes to accept the changes that will be brought about by the changes that are there in the strategy.
The implementation of the strategy is hard and risky if not well carried on. The reason being that if any hitch occurs in the process, all the resources that have been put in place will go to waste. It will be a waste of time and this may lead to complete closure of the company.
Strategies Edmunds could use in the future to reduce potential crises
There are different methods that Edmund can use to ensure that the company is not entangled in the crises that it is in today. Nevertheless, most of them should be amalgamated to ensure that they offer the best results. The first strategy that the company is supposed to embrace is development of research department that will be looking at innovation of the company t ensure that it is at a competitive edge at all time.
This department will be in constantly interact with it environment and bring around feedback that will ensure that the company is always competitive. The second strategy is ensuring training to its employees. This will ensure that they are always at per with the upcoming technology and this will ensure that the productivity level will increase. The training will always make the employee assimilate the innovation that the research department has brought about to ensure that the company is capable of competing appropriately.
Finally, the company should ensure that they recruit employees who are competitive to ensure that they bring on board workers who are capable of rising upon all challenges. This will also make the company have innovative minds in their company who will ensure that they bring about changes.