MGT 500 – Modern Management
Dr. Brian Collins
August 12, 2012
Analyze the issues faced by Edmunds and describe what lead the company to this situation.
The issues that Edmunds Corrugated Parts and Services have been faced with all lead the company to be in position that they are in. This company issues could be sum up as employment and competitor advantage. The employee issues started from the beginning of the company. According to the case Larry, the owner and operator, was not only given a loan but also a barn to start his business. Which was a great start for Larry because he was able to employee about 100 people which many of them were his neighbors. Just as in any company Edmunds Corrugated Parts and Services was face with the fact of replacing employees because they were nearing retirement. As time change the younger generation sought to move away and not stay local so Larry was face with a potential unemployment issue in his company.
The other issue that Edmunds was faced with was the fact that they were losing several industries in the United States. According to the case consolidation in the paper industry had wiped out hundreds of the U.S plants that Edmunds once served, with many of the survivors either opening overseas facilities or entering into joint ventures abroad. This was causing the loss of business for this company. Especially when the manufactures were investing in higher quality machines that broke down less frequently. This was the beginning of companies not utilize Edmunds parts because the parts were not needed. This issue was halting the growth and the even the potential to keep the company at the standing they were in for the past years. Create and describe a strategy for addressing the situation at hand. There are various ways of address the two situations at hand. As for the employee issues that they would be facing it is as simple of being proactive. Since the younger generation is leaving the area than there must be incentives for them. The New York Times reported that a Midwest Independent Transmission System Operator, known as Midwest I.S.O was faced with a similar problem. It was even reported that the jobs are so complex that summer interns and college graduates can’t step right into them. Just as the problem of the younger generation moving away and not wanting to stay both companies had similar issues. One of the first things we did was to enhance our employee referral program. Employees now have several opportunities to make money by referring candidates. First, we give any employee who refers a candidate a scratch-off card with a discount for coffee, food or a movie, and we enter their names into a monthly drawing. The monthly winner gets $300, even if we don’t hire the person who was recommended (Begley 2008). When employees refer new employees that general means that the current employee is vested and want to see the company succeed. When the new employee performs below standards than that reflects the current employee and they generally will police themselves. This would allow the current employee to essential hire their replacement and the company could continue with its business. As far as the other issue of growth and losing clients there are many ways that Edmunds could fix it. Edmunds could look into a joint venture. A joint venture or strategic alliance is a form of partnership where businesses come together to share knowledge, markets, and profits. Joint ventures can take on various forms. Small companies can band together to take on the goliaths of their industry. Big companies can form alliances with quicker and nimbler small businesses. And small companies have the opportunity to forge strategic alliances with big name companies for expanded geographic reach (Zarhorsky 2012). This strategy could help them serve the companies that they had lost. If they are in a partnership with the company that services the newer...
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