Edmunds Corrugated Parts & Services

1.

There are some issues that lead to the Edmunds Corrugated Parts and Services facing the situation it is currently in. In the initial phase, the company had to face the problem of where to set up the industry, for which Larry's grandfather offered him an old family barn where he would set up the industry. In the absence of the initial capital, the company had to start its operations with the money loaned from Larry's grandfather.

Other issues confronting the company during that time, was its inability to recruit many people and the majority of nearly a hundred employees working with the company at that time, were neighbors. Moreover, most of those employed at the company were not skilled enough to run the operations of the company efficiently. As the business grew, the company started facing issues of replacing the unskilled labor with the skilled ones.

Initially, the company was enjoying nearly 75 percent of the market share, but gradually this share has reduced significantly with the entry of new competitors in the market challenging the competitive advantage of Edmunds. Later, the Edmunds had to suffer from another issue that severely damaged its business operations. The company had to lose numerous industries especially those operating from within the country, the reason being the consolidation of paper industry. This development has resulted wiping out many clients of the Edmunds. Furthermore, majority of those who were left also shifted large portion of their business across the border. All the developments mentioned above led to the steep decline in the company's turnover over time.

2.

Keeping in view the company's current situation, it requires a new business strategy that should be capable of taking the company back to the winning course and getting high turnovers. Therefore, it is of paramount importance ...