Strategic Management: Epsen Hillmer GraphicsStrategic Management: Epsen Hillmer GraphicsRunning head: STRATEGIC MANAGEMENT: EPSEN HILLMER GRAPHICSStrategic Management: Epsen Hillmer GraphicsAmy CarverUniversity of PhoenixStrategic Management: Epsen Hillmer GraphicsKeeping up with technology can be difficult for any company, but especially one that is unsure about its future. Maintaining technology amongst great competition may be the only way a company can survive. Assessing Epsen Hillmer Graphic’s external environment, including both the competitive and the general contextual factors (Pearce-Robinson, 2004), shows that the company needs to take advantage of advanced printing methods. Computerized printing without the use of plates will allow Epsen Hillmer to produce labels with less color variation, shorter lead times, and less overhead.
Situation BackgroundEpsen Hillmer Graphics, once a leader in the label printing industry, needs to find a way to regain a presence in the domestic market. Currently, they are struggling to stay competitive with other private label manufacturers, the top five each generating total label sales of at least $100 million (Freedonia, 2000). Epsen Hillmer Graphics has been struggling since the strike of the Litho Union and subsequent sale of the litho division.
Epsen Hillmer needs to take advantage of better technologies in the label printing industry. Currently the company provides litho, flexo, letterpress, silkscreen, and combination plate printing with varnish and lamination capabilities to meet the needs of their current custom label customer base. Litho printed labels are found on juice bottles such as Apple Tree and Langer’s Juices. Flexo printing is often used to print simple labels such as meat, bakery, and deli merchandising labels; EHG stocks many of these labels. Letterpress is used in a great deal of four-color process work (4CP), this would include Campbell’s Foodservice labels, Dannon Whips labels, and Seminis Seed labels. Silkscreen is often used on shampoo products, such as Alberto-Culver’s labels, to provide a pop to the label. These are all plate printing methods, which are often used to reduce overall costs for the customer; however, the plates wear out and break and need to be maintained for best print capabilities. When the plates deteriorate they can be greater color variation in the labels, which makes customers unhappy because these labels are their product image. The steps that need to be taken to prepare a plate job for print can take a great deal of time, which can be detrimental to Epsen Hillmer Graphics because many of the customers work in just-in-time (JIT) and don’t allow for a lead time of 3-4 weeks before their labels are even shipped.
Problem DefinitionEpsen Hillmer Graphics (EHG) is facing many business problems and most likely will not survive if they are unable to meet customer demands through the use of better technology. In the past 7-10 years, EHG has pinned all its hopes on the roll label division, which did not provide the revenues that the litho division has in the past. The company has no strategic advantage, and relies heavily on customer loyalty to stay afloat. A strategy reflects a company’s awareness of how, when, and where is should compete; against whom it should compete; and for what purpose is should compete (Pearce-Robinson, 2004). The opportunity here for EHG is to evaluate their long-term objectives and determine whether it is in their best interest to invest in advanced printing methods.
Risk Assessment and MitigationEpsen Hillmer Graphics would face risk by attempting to capitalize on this opportunity. Computerized printing, when compared to plate printing, looks flat so there is a potential that customers will be unhappy with their labels. In order to negate this EHG could provide samples of both printing methods and perhaps have the customer sign a memorandum of understanding that the labels will not look as three-dimensional when computerized printing is used. A large push for the use of computerized printing is the reduced lead times, however, this may not happen as the finishing department would become backed up. After running through a computerized printer the labels still need to be die cut and the matrix (waste area around the label) still needs to be stripped. A way around this would be to
Risks
One of the biggest issues that the printing program has of late has been getting to grips with the concept of human contact and/or with how people interact with each other. There are currently 4,700,000 computerized printed labels as of 2011.
Although printed labels are clearly not the biggest issue, they could be a major issue for the printing program and could have the consumer negatively affected by their lack of print quality and a lack of trust.
With digital-printed labels the chances of people doing well are slim. However with printed labels there is simply a chance that print quality and value are not where they should be.
One of the biggest challenges in using digital labels is what to label with them.
When a graphic is printed on paper, it is always a hard part not to label with a combination of white, red, green or blue. This creates a strong impression of a “mixed image” as different shades of brown, orange, and red color schemes, like the one shown below, work together.
If this had been not for the printed labels, the resulting logo would be somewhat bland in appearance, and a negative impression of the product. The process of labeling each image can be very time consuming depending upon what you choose to print on. However, there are other possibilities that could be used to create a memorable design, like for example, a large logo on any other type of display.
Another consideration that is often debated is whether the design of digital labels is “unreadable”. This may be a very important component of a printed design, having the label at all.
What are the potential pitfalls of using Digital Machines and their ability to deliver more accurate and accurate packaging for your product?
What you might not know about digital machines is that they are very easy to use and very cheap and easy to implement.
On the other hand there are a few other things about digital machines that other manufacturers have overlooked.
The fact of the matter is digital machines can work in certain situations and may not have such a limited functionality. Also if there are certain manufacturing schedules and conditions of your product they may not be able to deliver your product the way you originally intended.
One of the great features of the digital machines is that it makes it easy for you to easily create your own personal designs online.
However you may not have access to a computer and your own design computer will need to be built, built using the same principles that are present in print-quality printers and some of our best product designers. The best way for a product designer to reach the satisfaction of the consumer is when they’re able to create and assemble their own products online.
Digital machine manufacturers usually have a hard sell and as a service they create a reputation as “better than your PC. A great way to promote your company is to create brand awareness and brands on your website. Most of your website will ask for your permission to use your images in the form of graphics, logos or artwork. However there are other great options for consumers that allow them to design and make their own logos, fonts or banners if they find a way to get the word out.
The most important thing is whether the image used