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Evans Glass Company Case

Essay by   •  October 5, 2012  •  Case Study  •  982 Words (4 Pages)  •  1,083 Views

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Introduction

Evans Glass Company is a fifty year old family business that is being run by second generation owner Bill Evans, Jr. Bill, Jr. has doubled sales over the past five years and wants to continue growing the company and make it the dominant glass company in the Middle Tennessee market. At the same time, Bill, Jr. is fifty five years old and would like to gradually pull away from daily operations and make the company self-sustainable. Bill, Jr.'s definition of self-sustainable is pulling away from the daily operations and have the business produce enough income for his personal needs into the future while providing a good salary and benefits for his employees.

The following will describe the situation by examining the opportunities offered and constraints posed by reviewing the overall situation. As Bhide suggests , to understand the overall situation it is necessary to evaluate the company's external and internal sustainability and the entrepreneur's personal goals.

External Sustainability

Evans Glass Company operated in a niche market for custom glass that allowed them to pursue premium pricing. However, the glass industry was changing as more owner operators were entering the market increasing competition. An additional competitor could come from a large national company or new entrepreneur entering the market and competing directly with Evans Glass. Other competitors were similar to Bill, Jr., they were getting older and wanted to pass on the ownership or sell. The company had a strong customer base that was loyal to the company. People in the Middle Tennessee area recognized the pink trucks and thought they were getting good service at a fair price.

Options for Evans Glass to address these issues could be expansion and/or forming a joint venture or acquiring a rival. The company could expand to the entire state or to the east or west. Expansion could increase their customer base allowing the company to not be somewhat dependent on their long term customers. Expansion could be achieved through a joint venture or acquiring another company. Or Evans Glass could acquire another Middle Tennessee competitor to further lock down their current market in Middle Tennessee.

Internal Sustainability

The nature of the small company inherently depends on a few individuals. The company currently had eighteen employees, including Bill, Jr. With a small employee base, one would assume most problems or decisions flowed to the top to get solved. Most of the employees had been with the company for a number of years and it would be safe to assume they shared in the company's goals.

In order for Bill, Jr. to gradually pull away from the daily operations, he will have to either promote from within or bring in an outsider for a senior position. For a small organization such as Evans Glass, it might be better to promote from within the organization

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