I. Problem Identification
1. Demand on Edmunds Corrugated Parts and Services products are diminishing. 2. Remote location of its business.
3. High price of ram material.
4. Difficulty of replacing hardworking and loyal existing employee.
1. To keep the company of its current standing in the market in the future.
2. To develop new parts and products that will compete on new trends of shipping products.
3. To find other target market that will increase its market share.
4. To train and develop highly skilled worker at an earlier time to replace the retiring workforce.
III. Analysis and Methodology
The case is being solved on the point of view of Mr. Larry Edmunds the Owner.
Methodology use in analysis â€“ SWOT Analysis
1. More than 2 decades in existence.
2. It has hardworking and loyal workforce.
3. Industry leader with exceptional reputation for reliability. 4. Market share is at 75 percent
1. Location is rural.
2. Products are not up the current technology.
3. Revenues were beginning to show clear signs of stagnation. 4. Current workforces are nearing retirement.
1. Diversification of new and existing products.
2. Has 50,000 square foot factory.
3. Youthful workforce is available
4. Other alternative business venture is emerging.
5. Make use of the internet as a marketing tool.
1. Products are going to be obsolete.
2. Paper industry is being wipeout.
3. Clients are going overseas for a joint venture.
4. Surviving manufacturers are investing on high quality machines that broke down less frequently.
IV. Alternative Courses of Actions
1. Develop new parts and product that will cater the new machines use in manufacturing new shipping products. 2. Make a careful study to branch out the business to other areas to increase its share in the market. 3. Find an alternatives source of materials like durable plastics for shipping products. 4. Hire younger workforce and develop their skills.
V. Conclusion / Recommendation:
The company should always look on the ever evolving market trend on manufacturing and distribution on its industry. The company should adapt quickly to keep its share in market or introduce machines that will keep industry grow and lower production cost through automation.
All of the alternative courses of actions are recommended to keep the company move forward and achieve its goals.