The issues faced by Edmunds and their causes
As described in the article, Edmunds Corrugated Parts and Services Company has enjoyed a dominant market share in the US. In the past, the company has surged its sales past $10 million mark. However, the current company’s returns are dormant, worrying about the company’s owner. With the change in the box industry, the company is currently experiencing economic challenges threatening its future. According to the article, several factors have led to the company’s stagnant growth and reduced sales. Among these factors are the rigidity of the company’s management, increase in competition, diminishing markets, and the emergence of new direct competitors. Notably, most of the company’s customers have relocated outside the country due to stiff competition in the local markets.
A strategy for addressing the situation
To regain a steady growth and economic stability, Edmunds Corrugated Parts and Services Company should re-engineer and restructure its organization (Agarwal, 2010). Through this strategy, Edmunds’ company will not only be required to investigate dysfunctional behavior among its employees but also required to focus on developing new products and services other than boxes. Similarly, through this strategy, Edmunds will be able to address the external and internal challenges threatening the existence of his company. As shown in the article, the company only depends on the elderly to run its operations. This implies that the young, who are the brightest, are not involved in running the company’s affairs. By restructuring the organization, the company’s stakeholders should appoint young and charismatic leaders in its top management (Snider, 2001). To attract these young intellects in the company, the company should put in place incentives that would attract the youths in the neighboring community preventing them from seeking employment elsewhere.
As illustrated in the article, the company has been experiencing a drop in its volume sales due to changes in the box industry. By restructuring itself, Edmunds Corrugated Parts and Services Company would be able to look into the possibility of developing new products and services. By doing so, the company should focus on manufacturing products they are gifted in. Thus if the company specializes in the production of these new products and services, it will improve its long-term economic condition.
The element in the strategy that is the hardest to implement
In its efforts to adopt the above strategies, Edmunds Corrugated Parts and Services Company will experience some challenges. During the restructuring process, the company’s stakeholders must change their company’s top management. Similarly, the company should be able to identify who in the organization is delivering against its objectives and who is not. Through this process, those performing against the aims of the company should be fired. It is obvious that most employees would resist this move. Ultimately, the initiative may affect the employees’ morale leading to a further drop in the company’s returns. To avoid affecting the operations of an organization, during the restructuring process, the company should inform its workforce about the aims of the changes.
Strategies Edmunds could use in the future to reduce potential crises before they happen
In the future, Edmunds should keep a close eye on the market dynamics to avoid a repeat of the situation. Through this, he should be able to monitor the performance of his competitors, be ready to merge with other companies, and be customer-focused (Bibeault, 1982). By keeping a close eye on its competitors’ performance, the company’s management can understand the dynamics of competition in the current markets. By being customer-focused, the company’s management will ensure that they attract new customers and retain existing customers.
References
Agarwal, O. P. (2010). Turnaround management with business process re-engineering (Rev.Ed.). Mumbai India: Himalaya Pub House.
Bibeault, D. B. (1982). Corporate turnaround: how managers turn losers into winners.. New York: McGraw-Hill.
Snider, M. (2001). Human relations management in young, growing companies: a manual for entrepreneurs and executives . Westport, Conn.: Quorum Books.