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The Company
ElevenWest Screen Printing Studios (ElevenWest) of Radford, VA,
has been operating for over twenty years. The company employs 17
and provides screen-printed and embroidered leisurewear for colleges
and businesses in a regional market including some international
sales. A secondary product line is imprinted and personalized promotional
products.
The Situation
Even though the company has remained profitable, profit margins
in recent years have declined. The owners felt they had adequate
staff and equipment to meet production. The quality of work was
not an issue or concern. The owners of ElevenWest felt that they
had lost the direction of their business. They envisioned a goal
for their company that would focus first on improving profitability
and second on increasing sales volume. They also wanted to improve
the business to enhance their personal financial security and provide
for future retirement. GENEDGE ALLIANCE was invited to facilitate
the development of a strategic plan. This strategic plan would map
a course to ensure the future success of their business.
The Response
GENEDGE ALLIANCE approached the task of developing a strategic plan
by using a four-step process. First, the project manager, working
with the key management personnel, developed a profile of the current
situation at ElevenWest. The purpose of this profile was to define
the company's strengths, weaknesses, market opportunities, and market
conditions making up the business environment. Secondly, a vision
statement was produced describing how the company would look in
five to seven years. This vision encompassed factors such as business
profitability, employee growth, and community visibility. Included
in this vision was the personal financial picture of each owner
and their personal goals. Thirdly, the management team worked with
the project manager to establish the objectives and goals necessary
to reach the future vision of the company. Fourth, the strategies
and the measurement milestones were defined for the implementation
effort. In this phase, the action items necessary to achieve their
goals were assigned to members of the management team.
The Results
During the first six months of 2000, the company showed a sales
increase of 6% - at an annualized rate, and profit margins increased
by a factor of 5.
Management's Comment
"By the use of strategic planning, we were able to refocus our energies
and priorities in order to build a stronger company", said John
Giesen, ElevenWest Vice President. "The implementation process has
been a valuable learning tool for all - from the top down. This
has forced us to take the time to stop and to look at the big picture
for the future. We owe the successful turnaround of our company
not only to GENEDGE ALLIANCE, but to Jim Tate, GENEDGE ALLIANCE
Project Manager, for guiding us."
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