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Covington

In: Business and Management

Submitted By kimssaq1
Words 442
Pages 2
Summary of the case:
Covington provides machine parts and services to the domestic corrugated box and paperboard industry. Covington has quarterly earnings of $10 million, lead owner, Larisa Harrison, then thinks that the company is doing well and ready for continuous growth. There is roughly 150 employees from the local community at Covington. Most of these employees are a little bit older and more than likely coming to the age of retirement.
Due to the unstable economy and rapid competition from other businesses has the company facing a rough time. Covington was losing hundreds of smaller plants that they once served. With that happening, the company would have to find other ways to grow. Larisa is getting offered advice from some high level employees and hoping they can solve the problem.
The issue of the case: The issues of this case has to deal with the company not being able to employ many people. The near 150 employees are mostly neighbors and almost all from the same community. The company is suffering from issues that have to do with hard-working employees nearing retirement. Now, they have to deal with replacing all the employees.
The other issue that is happening is the market share. The company had a market share of roughly 70%, but is being reduced on a significant level. Also, many other companies have emerged and started to manufacture the same products that Covington does. The company has started losing several industries in the United States because of the bad economy and increased competition.
The concepts to be used in doing the analysis of the case:
The concept that could be used to help do an analysis for this case would possibly be using the Four Approaches to Effectiveness Values. According to Daft, “Goal, resource-based, internal processes, and strategic constituents are the Four Approaches to Effectiveness Values” (p. 83). This concept is being used throughout this case and will help complete the analysis of it. These four approaches will need to go in depth in the analysis to get a better understanding of why this concept makes sense for the case. Daft states the following, “The goal approach to organizational effectiveness is concerned with the output side and whether the organization achieves its goals in terms of desired levels of output. The resource-based approach emphasizes the input into an organization. Internal process approach, effectiveness is measured internal organizational health and efficiency. This approach does not consider the external environment. The strategic constituents approach measures effectiveness by focusing on the satisfaction of key stakeholders, those who are critical to the orgs ability to survive and thrive” (p. 83).…...

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