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Organizational Strategy Analysis
Encore Wire Corporation is the leading manufacturer of a broad range of copper electrical wire for interior wiring in industrial and commercial buildings, apartments and homes, and in manufactured housing. Encore, according to its management team is highly focused on keeping a high level of customer service while keeping the production cost low along with product innovation (Business Wire, 2015). There has been a boom in the construction business, especially in North Texas, which has led to an increase in the company’s revenue i.e. it increased to $940.7 million as of 2016 (Stricklin, 2017). For the company to remain competitive it is essential that they analyze their current internal organizational strategy and see that how it is affecting their performance and operations.
The corporate mission of Encore Wire is to “Exceed Expectations Every Day” (Encore Wire, 2018). The mission statement can be viewed on the company’s website’s main page. The statement defines what the company is and what its position is and where it wants to be, simply put it defines the purpose of the company and it also serves as a foundational guide when it comes to the company’s strategy and objective. The focus of the corporate mission is to provide its customers with all their wire needs at one place. The company uses state-of-the-art and expansive warehouse facilities so that they can keep their inventory level deep and broad while making sure that they are able to maintain a goal of 100 percent fill rate. The company is extremely driven by its traditional (old-fashioned) values and they try their level best to exceed the expectations of all their customers, employees, distributors, and other partners. The mission statement of Encore Wire Corp. directly links the company with its corporate strategy and as well as their marketing one.
Strategy (Corporate Level and Business Level)
After collecting information about the company, we have come to the conclusion that the company at the moment is using a Low-Cost Provider Strategy. A low-cost provider strategy can be defined as when a company offers a low price for its product in the market. low-cost providers aim the product at the broad market, in this case, the industrial and commercial buildings, apartments and homes, and in manufactured housing, so that they can attract as many customers along with achieving high sales (Arbuckle, 2018). The low-cost production strategy of the company is based on its efficient plant design and its highly incentivized team of workers (Encore Wire, 2016).
Encore Wire is not a high growth company but it is a consistent one. In the cyclical upturns and downturns of the construction industry, the company has remained profitable and this is all because of its low-cost production structure. For example, due to its strategy the company has reported sales of $292 million and EBITDA of $20 million in the 3rd quarter (Seeking Alpha, 2018). Encore Wire has a vertically integrated business operation that has helped the company to achieve higher margins in comparison to its competitors in the market (Seeking Alpha, 2018). The vertical integration has helped the company to secure the supplies it needs to produce its product and sell it in the market, even when the prices of copper had increased.
To achieve this particular strategy the company has focused on its manufacturing, i.e. it has automated its manufacturing facility. The residential wire manufacturing lines of the company have been integrated in such a way that the handling of the product has decreased substantially throughout the production process.
Organizational Culture and Core Values
The organizational culture and its core values are based on its tradition. The company, make sure that it focuses on service, stewardship, and professionalism every day. Therefore, the company tends to encourage everyone to do the right thing under any sort of circumstances and to live by the Golden Rule of the company, which is that they need to treat others the way they want to be treated by others, i.e. they need to respect each other (Encore Wire, 2018).
|Culture and Values|
|Service||· It is important that all the employees seize every opportunity that is available to them (Encore Wire, 2018).|
· It is essential that all the employees need to show 100% positive attitude
· Working as a team is better and highly efficient
|Professionalism||· Everyone needs to be prepared for their actions and decisions|
· It is essential that everyone lives by the Golden Rule
· It is essential that all the employees represent the company with class and integrity
|Stewardship||· It is essential for all the employees to take pride in their work and workplace|
· It is essential to pay attention to every little detail
· Safety is crucial; therefore, it is important that everyone takes safety measures (Encore Wire, 2018).
Daniel Jones, the CEO of Encore Wire Corporation, strongly believes that the company and its employees come first. He strongly believes in the wellbeing of his employees, because if the employees are happy then the company is going to perform well. Therefore, Jones has brought in Marketplace Chaplains (which is a corporate wellness initiative) as an employee assistance program. This program is going to let the employees know that the company cares for them and their wellbeing (Stricklin, 2017).