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  • Essay / Strategic Management: Epsen Hillmer Graphics - 1061

    Keeping up with technology can be difficult for any business, but especially for one that is uncertain about its future. Maintaining technology in the face of high competition may be the only way for a business to survive. Evaluation of Epsen Hillmer Graphic's external environment, including competitive and 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 enable Epsen Hillmer to produce labels with fewer color variations, faster delivery times and lower overhead costs. Situation Background Epsen Hillmer Graphics, once a leader in the label printing industry, must find a way to regain its presence in the domestic market. Currently, they are struggling to remain competitive with other private label manufacturers, with the top five each generating total brand sales of at least $100 million (Freedonia, 2000). Epsen Hillmer Graphics has been struggling since the Litho Union strike and the subsequent sale of the litho division. Epsen Hillmer must leverage the best technologies in the label printing industry. Currently, the company offers litho, flexo, letterpress, screen printing and combination printing with varnishing and laminating capabilities to meet the needs of its current custom label clientele. Lithography printed labels are found on juice bottles such as Apple Tree Juice and Langer's. Flexo printing is often used to print simple labels such as meat, bakery and deli labels; EHG stocks several of these labels. Typography is used in many four-color process (4CP) jobs, including Campbell's Foodservice, Dannon Whips, and Seminis Seed labels. Screen printing is often used on shampoo products, such as Alberto-Culver labels, to give the label a pop. These are all methods of plate printing, which are often used to reduce overall costs for the customer; however, plates wear and break and need to be maintained for best printing capabilities. When the plates deteriorate, there may be greater color variation in the labels, making customers unhappy because these labels are the image of their product. The steps involved in preparing a plate job for printing can be time-consuming, which can be detrimental to Epsen Hillmer Graphics because many customers work on a just-in-time (JIT) basis and do not allow this. for a delay of 3 to 4 weeks before their labels are even shipped. Problem Definition Epsen Hillmer Graphics (EHG) faces many business problems and is unlikely to survive if it is unable to meet customer demands through the use of better technology..