Edmunds Corrugated Parts & Services: Critical Analysis

Edmunds Corrugated Parts & Services: Critical Analysis

Introduction

Edmunds Corrugated Parts and Services is a company based in Virginia serving firms operating in the domestic corrugated box industry and serving the occupant firms. It once used to enjoy prominent position in the corrugated box industry with the sales surpassing $50 million mark. However, with the succeeding changes that occurred during the operations, Edmunds Corrugated Parts and Services became vulnerable and its weaknesses and threats started to become more apparent. This is precisely due to Larry Edmund underestimating newer competitors emerging in the field. Although, competitors did impact significantly market share of Edmund's firm, but this along with the rising raw material cost posited threat to Edmunds Corrugated Parts and Services.

Discussion

Larry Edmund avoided change and failed to implement it. Change is inevitable and the signs that Larry needed to embrace change first appeared when he realized that majority of his original workers; who were hardworking and loyal, are soon to retire. Employees are the most important asset for any company and as a result of this realization; Larry Edmund should have used proactive approach so as to start hiring new employees in order to train them extensively, which is imperative to have them match the standards of the employees who are about to retire.

The need for change as indicated by the requirement of newer employees and strategies to counter among rising costs of raw materials due to elevated costs of steel among others is effectively reflected in the declining revenues. The company needed change in products; as indicated by rising raw material for firms corrugated boxes costs and since corrugated box industry was never recession proof, in addition to technologies being used along with people as well as the culture that was embedded in the organisation. When the economy was struck by recession, manufacturing output in the manufacturing industry declined thereby directly impacting the demand for the corrugated boxes (Whelehan, 1995).

This let numerous corrugated box firms to shut down while others either entered into joint venture or moved abroad to tackle the situation, and consequently Edmund's Corrugated Parts and Services lost hundreds of its clients it was serving in the corrugated box industry. The other issue faced by Larry was the retirement of its employees for which Larry Edmund never actually prepared himself and the firm, thus in a way Larry depended upon his limited employees, regardless of the fact that one day they will be retired. This style of management is ought to fail the corporation as it is quite obvious.

As a result of the ineffective and inefficient change management strategy, Larry Edmund failed to change the technology that was becoming redundant in the wake of widespread changes across the corrugated box industry. The production processes changed as alternatives for corrugated boxes; as flexible plastic films as well as reusable plastic containers, started to become more common for the purpose of shipment, and despite this fact Edmund did not devise strategy to effectively embrace ...