small town posts
FeedPosted Jun 25th 2008 5:10PM by Trey Thoelcke (RSS feed)
Filed under: Products and Services, Consumer Experience, Competitive Strategy, Entrepreneurs
This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.
As with many interstate travelers, the Cracker Barrel is a regular meal stop during my family vacations. Partaking of some comfort food, perusing the country store for toys and foodstuffs we recall from our childhoods, and resting for a spell in the rocking chairs can be just the thing after long hours on the road.
But also like many travelers, I'm sure, I had no idea that the Cracker Barrel came from the small town of Lebanon (pronounced LEB-nun by many natives), Tennessee, the county seat of Wilson County, east of Nashville.
A local spring was the chosen site for the town, and a nearby grove of red cedars inspired the town's biblical name. The town was incorporated in 1819, and Cumberland University opened its doors there in 1842. The town square -- which today features antique and gift shops that bring tourists from far and wide -- was the site of a Civil War battle in 1862. Some 130 confederate soldiers are buried at Lebanon's historic Cedar Grove Cemetery.
The town expanded once the Tennessee and Pacific Railroad came to town after the Civil War, followed by the Lebanon Woolen Mills and the Gulf Red Cedar Company in 1908. General George Patton's tanks passed through the town on their way to Europe, and after World War II, the town expanded again, with the opening of Tennessee's first industrial park, which is the site of Cracker Barrel's corporate headquarters.
Continue reading Big company, small town: Cracker Barrel Old Country Store, Lebanon, Tennessee
Posted Jun 25th 2008 2:09PM by Michael Rainey (RSS feed)
Filed under: Rumors, Products and Services, Competitive Strategy, Entrepreneurs
This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.
Few companies are as strongly associated with their hometowns as L.L. Bean, which has been producing outdoor clothing, sporting goods, and brightly colored preppy wear in Freeport, Maine, since 1912. The company's first product, the iconic rubber boot called the Maine hunting shoe, was manufactured in Freeport, and quickly became a big hit despite the fact that most of the first boots sold were returned due to a design defect.
In the past 95 or so years, both L.L. Bean and Freeport have come a long way. The company store, which began in a basement, grew significantly over the years, despite the fact that most of Bean's $1.5 billion in annual sales come through its ubiquitous mail-order catalog. The store has been open 24 hours a day since 1951, with a few exceptions for the deaths of John F. Kennedy and the founder, Leon Leonwood Bean.
Today, the company dominates the very small town of Freeport, population 7,800. It's much more than just a store, as its multiple buildings, parking lots, and outdoor patios and sculptures define the town itself. L.L. Bean has become more of a campus than a store, with different buildings for clothes, hunting and fishing gear, bikes and boats, and a discount outlet, as well as outdoor spaces dedicated to demonstrations of equipment and live musical performances.
Continue reading Big company, small town: L.L. Bean, Freeport, Maine
Posted Jun 25th 2008 10:05AM by Gary Sattler (RSS feed)
Filed under: Products and Services, Entrepreneurs
This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.
How long does it take to manufacture 100 billion crayons? Well, if you're the developer and foremost manufacturer of the colorful little cylindrical beauties, it takes exactly 93 years, as evidenced by the successful history of Crayola Crayons.
Easton Pennsylvania, sitting at the confluence of the Delaware and Lehigh rivers, has served as the backdrop for the entire glorious history of Crayola Crayons. A small town, covering just under five square miles, and home to fewer than 30,000 inhabitants, what Easton might lack in girth, it certainly makes up for with history. The partnership of cousins Edwin Binney and C. Harold Smith, creators of the Crayola Crayon, probably were located in Easton to take advantage of the town's former status as a railroad hub, its access to raw materials, and its proximity to both Philadelphia and New York City.
While the partnership of Binney & Smith has grown and flourished, the city of Easton Pennsylvania has had its difficulties. While the Crayola empire has continually sought to enhance its offering and involvement in the creative arts by expanding, experimenting and inviting innovation, Easton has sought to remain true to, and thoughtful of its heritage. However, renewed stimulation of Easton's economy over the past decade has been focused on making the city an attractive getaway destination for visitors. This effort involves a deeply thoughtful utilization of the city's cultural, historical, and natural resources, which are being blended and deployed with strategic local focus.
Continue reading Big company, small town: Crayola, Easton, Pennsylvania
Posted Jun 24th 2008 5:10PM by Lita Epstein (RSS feed)
Filed under: Products and Services, Industry, Competitive Strategy, Entrepreneurs
This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.
State Farm is the world's largest mutual property and casualty company, which means its owned by its policy holders. In 2007, State Farm Mutual Automobile Insurance Company paid $1.25 billion in dividends to its mutual auto insurance policy holders. (In the interest of full disclosure, I did get one of those checks.)
The corporate headquarters are based in Bloomington, Illinois, where State Farm was founded in 1922 by George J. Mecherle. He thought farmers were being charged too much for car insurance because they don't drive as much as city folk and didn't incur as many loses. Well, the insurance companies available at the time didn't agree with him, so he started his own car insurance company for farmers.
Today, State Farm has grown into the largest insurer of cars and homes in the United States, as well as the leading insurer of watercraft. State Farm is also a leader in insuring Canadian cars and homes. State Farm serves a total of 77 million auto, fire, life, and health policies in the U.S. and Canada with 67,000 employees and 17,000 agents. About half of its employees are involved in claims processing in one of its more than 390 claims offices.
Continue reading Big company, small town: State Farm, Bloomington, Illinois
Posted Jun 24th 2008 10:10AM by Tom Barlow (RSS feed)
Filed under: Products and Services, Consumer Experience, Competitive Strategy, Employees
This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.
The town of Orrville sits on the northern edge of the Ohio Amish area, and has that same bucolic feel. A friendly town that once was no more than a railroad stop for the agriculture, and a bedroom community for the heavy industries, of Wooster and Massillon, it is now best known as the jam capital of America, the home of the big (and growing) J.M. Smucker Company (NYSE: SJM).
Smucker has more than just its office in Orrville. For over 100 years, it has made jam in its factory right in the center of town. Of the 8,500 Orrville residents, 1,100 currently work for Smucker. It also operates the Simply Smucker's store in town, where visitors can view 350 varieties of Smucker's products, some available for taste-testing.
Since its fortunes and Orrville's are intertwined, it's fortunate for the community that Smucker appears on Fortune magazine's annual list of the top 100 companies to work for year after year, even finishing number one in 2004. The company is also known for its local charitable contributions. This year, for example, Smucker and its employees provided almost half of all funds raised by the United Way of Orrville.
Continue reading Big company, small town: J.M. Smucker & Co., Orrville, Ohio
Posted Jun 23rd 2008 5:30PM by Brian White (RSS feed)
Filed under: Products and Services, Industry, Competitive Strategy, Recession
This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.
Ever taken a road trip in an RV? If you have, there is a good chance that you were inside a Winnebago recreational vehicle. The name Winnebago has been synonymous with the large RV for as long as I can remember. With such a rich history, one would think Winnebago is located somewhere next a major interstate corridor or airport. Otherwise, how would it receive in its raw materials and ship out its finished product?
Winnebago Industries, Inc. (NYSE: WGO) is actually based in Forest City, Iowa, founded in 1958 in Winnebago County (that's where the company's name comes from). From its inception, the company has been involved with travel trailers. It used names from Native American tribes to name its different lines of trailers, and in the 1970s and early 1980s, made smaller trailers as gas prices spiked upward. In fact, come this summer, one of Winnebago's manufacturing plants in Charles City, Iowa, will be closed due to drastic changes in Winnebago's market due to higher gas prices and declining demand. The company has already laid off 200 employees from its headquarters in Forest City.
Unlike many American companies these days, Winnebago still makes the majority of its products in the United States, most of which are built on top of chassis units made by Ford or Chevy. The term Winnebago has made itself, after more then 40 years, into a brand name completely associated with RVs and trailers. Do you blow your nose with a Kleenex or tissue? Drink Coke or a soft drink? Go on vacation in a Winnebago or travel trailer? There's the brand power the company continues to have today, even with the hard times its experiencing.
Be sure to check out more Big Company, Small Town posts.
Posted Jun 23rd 2008 2:28PM by Carol Vinzant (RSS feed)
Filed under: Management, Competitive Strategy, Entrepreneurs
This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.
Eighty Four, Pennsylvania, is such a tiny town -- really unincorporated area in Washington County -- that it barely got a name. Instead, it is charmingly known by a number: 84. (Differing historical theories say it was named after its #84 railway mailbox or the 1884 election of Grover Cleveland.) Joe Hardy III liked the name so much that when he opened a lumber yard here in 1956 with his brothers, he named it after the town, 84 Lumber. (Not that he was that picky with names; his previous venture was Green Hills Lumber in nearby Green Hills.)
Even though Eighty Four is only 20 miles south of Pittsburgh, it is a decidedly rural, mountain town. Just off Route 70, Eighty Four, the town, was chosen so 84, the lumber company, could serve its particular tri-state area: Pennsylvania, West Virginia, and Ohio. Eighty Four itself is too small for anybody to keep track of, but in Washington County in 2006 the average per capita income was $37,000.
Hardy's hardscrabble, blunt management style fit in well with the area and the lumber trade. The stores were notorious for lacking heat (which some now have). The Wall Street Journal described how Hardy fired his son, the would-be heir, when he slowed down with multiple sclerosis. He went with his daughter, Maggie Hardy-Magerko, instead. Battling big-box retailers, she pushed the company successfully toward specializing in pros instead of do-it-yourselfers.
Continue reading Big company, small town: 84 Lumber, Eighty Four, Pennsylvania
Posted Jun 23rd 2008 10:10AM by Lita Epstein (RSS feed)
Filed under: Competitive Strategy, Wal-Mart (WMT), Entrepreneurs
This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.
You probably wouldn't think that the world's largest public corporation is located in a small town with a population of just 29,538 (based on the 2005 Census), but Wal-Mart Stores Inc. (NYSE: WMT) maintains its corporate headquarters in such a town -- Bentonville, Arkansas. Sam Walton opened his first store there in the mid-1940s -- Walton's Five and Dime -- on Main Street as a Ben Franklin franchise. Today that store is Wal-Mart's visitors' center where you can find thousands of company photographs and memorabilia.
Sam Walton's first Wal-Mart Discount City store opened in 1962 in Rogers, Arkansas, and within five years Walton had 24 stores in various towns in Arkansas. In 1968 he opened his first stores outside Arkansas, in Missouri and Oklahoma. Walton incorporated Wal-Mart Stores in 1969 and started selling shares over-the-counter in 1970. The company was first listed on the New York Stock Exchange in 1972. Today Wal-Mart has more than 6,700 stores worldwide and serves more than 176 million customers weekly.
Continue reading Big company, small town: Wal-Mart, Bentonville, Arkansas
Posted Jun 22nd 2008 5:10PM by Gary Sattler (RSS feed)
Filed under: Employees
This post opens our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered. Watch for more Big Company, Small Town posts coming soon.
All across this great country of ours, small cities, towns, and villages have been built in the shadows of major companies that supply work for their local populations. It can be a wonderful situation that cultivates a special kind of community and a deep-seated local pride. However, it can also be a recipe for civic disaster, if the major supplier of a wage base in a locality goes out of business or leaves town. Such was the near disastrous fate of Park Falls, Wisconsin, not so long ago.
The city of Park Falls, which is Wisconsin's most geographically isolated city, was built around its paper mill. At its height, the mill helped to bring the population of the city to nearly 4,000 inhabitants. However, in 2006 the paper mill, which was operating at reduced capacity under ownership from out of state, was shut down almost without any prior notice. The result was immediate and deeply wrenching turmoil. Not only had the paper mill workers lost an excellent source of income, but the collateral damage was jarringly significant also. Loggers had no local market for their pulp wood. Dozens of family-feeding log trucks were idled. Private contractors who did various types of work for the mill were left with thousands of dollars worth of unpaid invoices. Local vendors, retailers, and support businesses almost immediately went slack.
Continue reading When the big company leaves the small town
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