Edmunds Corrugated Parts & Services

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  • Topic: Corrugated fiberboard, Family, Box
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  • Published : February 22, 2010
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Edmunds CorrugateManagement in Practice: Case For Critical Analysis: “Edmunds Corrugated Parts & Services” Resource : Daft, Richard L. MANAGEMENT (8th Edition) Chapter 8 Case
Larry Edmunds grimaces as he tossed his company’s latest quarterly earnings onto his desk. When Virginia-based Edmunds Corrugated Parts & Service 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 seen in years past. However, it is no longer possible to ignore the fact that revenues were beginning to show clear signs of stagnation. More then two decades ago, Larry’s grandfather loaned him the money to start the business and then handed over the barn on what had been the family’s Shenandoah Valley farm to serve as his first factory. Today, he operates from a 50,000 square-foot factory located near I-81 just a few miles from the 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 hi 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 you’d fin anywhere. However, many of his original employees were no nearing retirement. Replacing those skilled workers was going to be difficult, he realized from experience. The areas brightest 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 didn’t seem to have the work ethic Larry had come to expect in his employees. He didn’t feel pressured by the emergence of any new direct competitors. After slipping slightly couple years ago, Edmund’s formidable market share-based on...
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