Strategic Management

1. Erin Harland Sunday, July 3, 2011 Strategic Mgmt - MGMT 4710 U50 – 20115054503 Strategic Management

2. Introduction Who is Xpedx?

3. What is unique about Xpedx’s logo? The logo is the same even if the truck was to flip upside down!

4. **NEW** Xpedx Strategy Announced 2011 “We are building an organizational structure that will help our xpedx business have a lower ‘cost to serve’ than today, with higher concentrations of in-market inventory and shorter average delivery distances to markets with the highest customer demand. As we continue to focus on our day-to-day efforts and work to optimize our distribution network, we will be able to improve service to our customers by consistently meeting our xpedx commitments.” -John Biscanti, Executive Vice President

5. Vision and Mission Present: Future:

6. SWOT Analysis Xpedx Approach to evaluating Strengths, Weaknesses, Opportunities and Threats to gain a Competitive Advantage Is the business Low profile, no growth or High volume, growing… Or somewhere in between? If it is Low profile, no growth or somewhere in between performing a SWOT analysis is mandatory. http://www.xpedxworkshops.com/impr_financia_cont/Improving_finaincial_Contribution9.htm

7. Examining the Internal Environment:Resources, Capabilities, and Activities What are the Key Drivers?: • People Development • Be an exciting and satisfying, place to work • Customer Focus • Preferred supplier • Operational Excellence • Improve process and reduce costs

8. External Environment:Macro and Industry Dynamics Sustainable Operations Strategy: • Increase Recycling by 10% over the next three years • Increase use of CoC certified paper for marketing to 80% • Certify eight of the larger locations with ENERGY STAR • Promote ENERGY STAR Pledge Drive • Maintain Chain of Custody Certifications http://www.xpedx.com/company/SustainabilityStrategy.aspx

9. Business Strategy “Cost Leadership is a strategy, by which a business offers an average product at a low cost to the broadest possible market. Economies of scale result in cost savings, partially passed to consumers. (e.g. Wal-Mart)” • High speed • High Volume • High Quality • Evolving Technology http://freelancerconsulting.com/business-frameworks/positioning-strategy-scope-cost-differentiation-focus.html

10. Dynamic Contexts Xpedx exhibits a High-End Disruption Strategy • Redefine the business model for existing market by giving the customer more services in house rather than from multiple vendors • Significant Growth and High Profits • Industry Leader

11. Corporate Strategy • Continue to invest in capital equipment: printing presses, binding, finishing and mailing equipment. • Opens up new ways to serve its customers http://www.inplantgraphics.com/article/xpedx-increases-commitment-capital-equipment-strategy-pi-news-403593/1#

12. International Strategy • “We work internationally with IP, and Geodis and Antalis in Europe and Asia. We have expanded outside of North America to service customers and we continue to pursue opportunities that benefit us by strengthening relationships and increasing service levels where our customers are doing business. It is not part of our strategy to invest outside of North America but we will follow customers in a structured way.” Xpedx intranet memo from the CEO.

13. Alliances and Cooperative Strategies Merchandising Expertise meets Logistics Expertise • Streamlined • More Cost Efficient Partnerships: • Boeing, FedEx Express, DaimlerChrysler, Apple, Target and Lowe’s Home Improvement http://www.xpedxworkshops.com/impr_financia_cont/Improving_finaincial_Contribution9.htm

14. Mergers and Acquisitions • Grown through acquisition • Alling & Cory Co. (Rochester, New York), founded in 1819 as the first paper merchant in the United States • Bulkley Dunton (New York, New York), opened for business in 1833 and continues to operate under that name • International Paper entered the distribution business in 1986 with the acquisition of several merchant companies, and in 1998 created xpedx to serve this important market. http://www.xpedx.com/Company/default.aspx

15. Organizational Structure, Systems,& Processes Functional Structure (Organized Activities) • Corporate Headquarter • Graphic Imaging • Printing Paper • Packaging Solutions • Facility Supplies • Design • Supply Chain Services

16. Balanced Scorecard Tangible and Intangible Performance Metrics “Built Customer Service Balanced Scorecard around Customer Focus, Operational Excellence and Accuracy, including Customer Survey, sales and margin results.” -Inside Sales Manager at International Paper, xpedx

17. New Ventures and Corporate Renewal • New Technology = New Ventures • Idea > Opportunity > Plan/Financing/Launch

18. Most Important Strategic Issue • Can Xpedx become too large? • Do what we do and do it well… or don’t do it at all! • Risk of the array of products becoming too vast. • Fast Moving Technology does not wait for you to catch up!

19. References Xpedx Information Exchange. (2011). Retrieved 19 June, 2011 from http://ipnet.ipaper.com/xpedx/index.html Prime Consulting Group. (2011). Retrieved 19 June, 2011 from http://www.xpedxworkshops.com/impr_financia_cont/Improving_finaincial_Contribution9.htm Xpedx Sustainability. (2011). Retrieved 19 June, 2011 from http://www.xpedx.com/company/SustainabilityStrategy.aspx Freelancer Consulting. (2011). Positioning Strategy: Differentiation, Cost Leadership, Focus. Retrieved 26 June, 2011 from http://freelancerconsulting.com/business-frameworks/positioning-strategy-scope-cost-differentiation-focus.html