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Edmonds Corrugated

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Submitted By jamila5791
Words 1116
Pages 5
Introduction
Edmunds Corrugates Parts & Services is a company that provides machine parts and services to the domestic corrugated box industry. The once lucrative company has begun to see a decrease in profits. While Edmunds doesn’t worry about competition, the company recognizes the need to maintain a competitive advantage to increase profits. Edmunds has identified the need to alter some of the current business practices in effort to increase profit margins. Companies often increase profits, and market share in various ways. Through strategic planning, advances in technology and diversification most companies have successfully rebounded from decreased profits. Essentially, technology and diversity will play a critical role in the company’s growth and sustainability.
Analysis
Larry Edmunds of Edmunds Corrugated Parts & Services has transformed his small business into a leading company in parts and services for the corrugated box industry. Although the company has seen enormous profits in the past, profits have since declined and become stagnant. (Daft 2010, p.207) This is partly due to the lack of business strategy. Without the necessary strategic planning the company has suffered. Larry has not adequately prepared the company to maintain a competitive advantage. The company has lost business due to industry changes in the consolidation of the paper industry which resulted in a loss of hundreds of businesses that Edmunds once served. Edmunds has seemingly overlooked this fact by neglecting to address this issue to preserve the company. The increase in the cost of raw materials has also negatively impacted profits, while there is also a clear lack of workforce planning that is a crucial element to sustaining the business. This company will fail if the current business practices continue.
Strategy
To address this situation a clear strategy must be developed

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