Running head: STRATEGIC MANAGEMENT: EPSEN HILLMER GRAPHICS
Strategic Management: Epsen Hillmer Graphics
Amy Carver
University of Phoenix
Strategic Management: Epsen Hillmer Graphics
Keeping 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 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 Background
Epsen 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 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 Foodservice labels,
Dannon Whips labels, and Seminis Seed labels. Silkscreen is often used on shampoo
products, such as Alberto-Culver 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 labelsare 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
dont allow for a lead time of 3-4 weeks before their labels are even shipped.
Problem Definition
