Premium Essay

Atlantic Corp Case Study

In:

Submitted By omenator666
Words 1334
Pages 6
Atlantic Corp Case Study

Atlantic Corporation
One of America’s largest forest products/paper firms with sales of $6.5Billion in 1983 and a net income of $105 million. The case study revolves around Atlantic Corporation’s intention to add linerboard capacity. In order to achieve this goal, they started looking at viable solutions, including purchasing and acquiring mill and box plants instead of through construction and fabrication of new plants and equipment. This included the possible acquisition of Royal Paper’s “crown jewels”, that is, the Monticello mill and the corrugated box plants.
Is the acquisition of Royal’s linerboard mill and box plants a sound strategic move?
One of the solutions was to offer a purchase of Royal Paper’s company assets, including a linerboard mill and box plant. This is a sound strategic move as Atlantic Corporation purchases 150,000 tons of linerboard from its competitors each year which could lead to problems such as lack of supply and increased cost prices. Construction of a new linerboard mill would be time consuming and the opportunity cost of lost revenue from this may exceed the benefits when the mill becomes operational. For Atlantic Corporation, it may face two scenarios: linerboard becoming unavailable or linerboard prices increase. Both these two scenarios will be detrimental to the company’s performance and should be avoided.
As linerboard’s industry sales is less responsive to market movements, signifying that it is less risky, the acquisition of Royal Paper’s mill and box plants will reduce the company’s reliance on economic growth and reduce the overall risk of the company. Considering that Royal’s Monicello mill was ranked 4th in the country and able to produce 661,000 tonnes per year and the ability for expansion for the future, this not only makes the acquisition a sound strategic move but it exemplifies

Similar Documents

Premium Essay

How a City Slowly Drowned

...that would come up the coast into the Gulf. Originally New Orleans was naturally protected by “coastal swamps that helped absorb the energy of storm surges before they reached dry land.” (Stillman 228) At this point Americans were more concerned with the floods that happened annually from the Mississippi River. In the early days, settlers built a mile long levee to block overflows from the mighty Mississippi while landowners constructed their own levees. “In 1879, Congress created the Mississippi River Commission” (Stillman 228) in which they hoped to train the river. Herein lay one of the earliest problems. Congress assigned the Army Corps of Engineers (the “Corps”) to head this newly created commission. The Corps believed they could control Mother Nature however as the video footage from The Lost City of New Orleans: A Case Study proved, “human kind cannot take on Mother Nature”. These engineers did not have the experience however they continued to increase the levees stating this would “confine the rivers for good”. However, “the more the levees constricted the Mississippi, the higher the waters rose”. (Stillman 228) As new plans and projects for the protecting New Orleans from Mississippi floodwaters were enacted, federal government financially backed all of them. The Mississippi River and Tributaries Project was enacted to design levees to protect against an 800 year flood. Controlling the river came with other consequences, it no longer brought natural silt...

Words: 1957 - Pages: 8

Premium Essay

Atlantic City

...ATLANTIC CITY A brief history: Atlantic City was a resort for a working class. With the opening of a railroad and a beautiful boardwalk it was booming town for 50 years. The city was always one-industry town completely dependent on tourists. But when prohibition ended in 1933, there was less reason to come here. Also after world war two things started to decline in terms of number. Atlantic City needed something to draw the crowds back, so in 1976, New Jersey passed a law allowing casinos here. And for a while, gambling worked. Casinos were salvation for the Atlantic City. For years, Atlantic City enjoyed a monopoly on gambling on the East Coast. But that salvation was temporary, in the mid2000s, the city’s luck turned along with the nation’s economy and gamblers abandoned Atlantic City. So what were the possible reasons of the fall of Atlantic City? Possible reasons of the fall of Atlantic City: The important factor contributing to the decline of the Atlantic City is the legalized gambling in surrounding states. At the beginning casinos were restricted to Atlantic City only gamblers had no choice but to travel from far and wide to come try their luck on the boardwalk. Pennsylvania legalized gambling in 2004, this event must be one of the biggest drains on Atlantic City in recent years. Why would New-Yorkers travel 130 miles to Atlantic City after long work week to gamble in Atlantic City when Las Vegas Sands Corp. Sands Casino in Bethlehem, Pennsylvania is...

Words: 1674 - Pages: 7

Free Essay

Research Paper

...HRM16 1. When you are researching in terms of topics related to your subject HRM16, which one do you want to work on/ research on? Check the topic you want to research on: ___a. issues regarding hotels contribution on the income of the place ___b. making a program so that hotels become more profitable ___c. importance of spa, salon, & resorts in promoting tourism of place ___d. is General Santos City’s tourism booming ___e. are personalities from General Santos City brings big income to the city? 2. Cite two-five studies regarding hotel & restaurants management. It could be foreign or local study. Case Study: Restaurant downsizing Sally Smith is a manager at the Butcher Block Restaurant. Due to her extensive background in the restaurant business, she has great influence on the executive management and often makes significant recommendations for changes that are supported. The restaurant was closed two months ago after a news release issued by the regional Health Department claimed that at least twenty people had become ill apparently with the listeriosis infection after eating at the Butcher Block the month before. Listeriosis has been isolated in the feces of healthy humans, sheep, cattle and poultry, and the spread of this disease has been linked to the consumption of contaminated food production. Five of the sickened people had to be hospitalized. Although a thorough restaurant health inspection failed to prove the restaurant was responsible,...

Words: 5539 - Pages: 23

Premium Essay

Sharing Economy

...Sharing corps: Should company build competitive advantage by embracing the sharing economy? SHARING CORPS SHOULD COMPANIES build a new competitive advantage BY embracing the SHARING ECONOMY? ECOVALA - December 2013 1 Sharing corps: Should company build competitive advantage by embracing the sharing economy? Ecovala © 2013 This report was produced by the Ecovala in December 2013. If no other source is specified, the contents of this report are under a Creative Commons Attribution – Non-Commercial - Share Alike 3.0 Unported License. You can find the full text of the license in this website. Ecovala Ecovala provides innovative solutions to private and public organisations to accelerate their transition towards sustainability. The organisation offers a wide range of services around sustainability and system innovation: from companies’ environmental assessment to sustainable strategic design, from new green services definition to effective implementation of CSR management. Based in Finland, the organisation is active throughout Europe, relying on an extensive network of like-minded organisations and sustainability experts. www.ecovala.eu Author Erwan Mouazan is director and founder of Ecovala. He develops and implements innovative sustainability solutions both at private and public level. Erwan owns a Master's degree in economics, with a specialization in international management. In the last 9 years, he has worked at international level in environmental...

Words: 10348 - Pages: 42

Premium Essay

Risk Analysis Method

...a second report. This process continues until all participants reach a consensus. The experts at each stage have a full record of what forecasts that the others have made, but do not know who made them. Anonymity allows the experts to express their self freely, encourages openness and avoids admitting error by revising earlier forecasts. The history of Delphi derives from the Oracle of Delphi. According to Wikipedia, the authors of the method were not happy with this name, because in implies something oracular, something smacking a little of the occult. The Delphi method was developed at the beginning of the Cold War to forecast the impact of technology on warfare. The method was a creation for the report, for the U.S. Army Air Corps on the future technological capacities that might be used by the military. The Delphi method was developed by project RAND during the 1950-1960s by Olaf Helmer, Norman Dalkey, and Nicholas Rescher. It has been used ever since, with many modifications and reformulation, such as the Imen-Delphi procedure. There are steps one must use in the Delphi Technique; Step 1 – Is choosing a Facilitator,...

Words: 1340 - Pages: 6

Premium Essay

Mareketing

...MARKETING COURSE Articles Books & Chapters Cases Course Modules Online Courses Simulations 2012 MATERIALS Harvard Business Publishing serves the finest learning institutions worldwide with a comprehensive catalog of case studies, journal articles, books, and eLearning programs, including online courses and simulations. In addition to material from Harvard Business School and Harvard Business Review, we also offer course material from these renowned institutions and publications: ƒ Babson College ƒ Business Enterprise Trust ƒ Business Expert Press ƒ Business Horizons Magazine ƒ California Management Review ƒ Darden School of Business ƒ Design Management Institute ƒ HEC Montréal Centre for Case Studies ƒ Ivey School of Business ƒ International Institute for Management Development (IMD) ƒ IESE Business School ƒ INSEAD ƒ John F. Kennedy School of Government ƒ Kellogg School of Management ƒ Perseus Books ƒ Princeton University Press ƒ Rotman Magazine ƒ Stanford Graduate School of Business ƒ Sloan Management Review ƒ Social Enterprise Knowledge Network ƒ Thunderbird School of Global Management ƒ Tsinghua University ƒ University of Hong Kong Customer service is available 8 am to 6 pm ET, Monday through Friday. Phone: 1-800-545-7685 (1-617-783-7600 outside the U.S. and Canada) Tech support is available 8 am to 8 pm ET, Monday through Thursday, 8 am to 7 pm ET Friday. Phone: 1-800-810-8858 (1-617-783-7700 outside the U.S...

Words: 5522 - Pages: 23

Free Essay

The Everglades Flood Control and Restoration: a Century of Disaster

...March 2, 2013 – The Everglades Flood Control and Restoration: A Century of Disaster OUTLINE ABSTRACT ……………………………………………………………………………………………… Before drainage of the Everglades began over a century ago, the wetlands of southern Florida were an interconnected hydrological assortment of lavish freshwater lakes and streams, cypress swamps, secluded estuarine lagoons, freshwater sloughs, tree islands, wet prairies, and mangrove swamps spanning 3.6 million hectares. After a century of intrusion, the daunting task of understanding, fixing, maintaining, and regaining a sustainable, natural Everglades-type ecosystem in South Florida is monumental. The area south of Lake Okeechobee now has a human population of over four million people, with greedy agricultural and urban demands for more water and more space. Therefore, several uphill battles have ensued. The conceptual plans for restoring this ecosystem, currently on record, are all extremely expensive to implement. A more thorough definition of the environmental and societal objectives and measures of success are required. How the ecosystem will respond to the return of a more natural hydrological pattern is uncertain, but needs to be addressed as the expected and desired outcome through measures of performance. The critical level of deterioration of the Everglades has created a crisis-management atmosphere instead of a full spectrum response and future prevention methodology. The political and social aspects of the Everglades...

Words: 6476 - Pages: 26

Free Essay

Skywest and the Regional Airline Industry

...families cannot afford to take vacations that require flying. Businesses that are hurting financially will use other means, (such as Teleconferencing) to coordinate nationally and internationally instead of flying. Today, many consumer attitudes towards the entire flying experience range from a necessary nuisance to a nightmare. Flying today in the post 9-11 world, has become an unpleasant experience to say the least. From check-in to baggage pick up, consumers are often confronted with a multitude of unpleasant experiences. Rude employees, lengthy security lines, unexpected baggage fees, late departure times, over booked flights, and lost baggage all contribute to negative consumer feelings toward the airline industry. This case study will examine how Sky West has managed to deal with these issues and still maintain a respectable...

Words: 2806 - Pages: 12

Premium Essay

Hospitality and Restaurant Management as an in-Demand Course: a Survey Study

...| Hospitality and Restaurant Management As an In-Demand Course: | A Survey Study | | Peter Jay Obillo | 10/1/2013 | | CHAPTER I THE PROBLEM Background of the Study In the annual rate of enrollees at Panpacific University North Philippines, The College of Hotel and Restaurant Management takes the place of one of the courses that has a high percentage of enrollments every year in the other courses offered. This result shows that many students are giving interest of taking up Hotel and Restaurant Management course. Hospitality Management is one of the courses that is in-demand in the Philippines and all around the world. The program has a very broad scope of subject and skills to be learned, it may come in many names; these are food and beverage, hospitality management, and travel and tourism business, cruise line and maritime. Here are some factors why Hotel and Restaurant Management course is in-Demand: 1.)Wide Range of Opportunities- Hospitality Industry is very huge. You can find different Hospitality companies anywhere in the globe. Because of this you will Have Unlimited opportunities for your career. You can choose to work in your local or find jobs abroad. 2.)Different Career Path- Graduates who study Hotel and Restaurant Management choose a career based on their expertise or shift to another field related to Hospitality Management. You can be a Restaurant Manager, Hotel Manager or any career that is related in hospitality industry. 3.)High...

Words: 2957 - Pages: 12

Free Essay

Las Vegas Sands Essay

...such as the Venetian retail mall, and its Shoppes at the Palazzo in order to remain compliance with its credit covenants. With this said, there are now in the position to return to profitable operations with its Asian pipeline and its new development project in Europe with the assumption that upon completing these projects it will generate enough revenue to get rid of all their debts. In addition, to their debt issues are the ongoing lawsuits that have brought a threat from government officials questioning how the company conducts its domestic and foreign operations. This is an issue of growing importance especially, for firms competing on a more global basis and have significant profit margins associated with intellectual property in this case it would be in the best interest of the company to play by the rules in order to avoid any disciplinary actions that can jeopardize their license or sub-concession in those countries they operate in. Overall the company has repeatedly demonstrated their ability...

Words: 5541 - Pages: 23

Premium Essay

Mark

...more than nonrefundable ones. Further, the airline began charging $7 for a pillow-and-blanket kit, an amenity usually provided free of charge by other airlines.2 Breaking another low-cost rule, JetBlue moved away from ticket sales through its own Web site and signed up with travel agencies and the Galileo and Sabre global distribution systems in August 2006 and with online travel agencies such as Orbitz in January 2008. Further, it sold approximately 42.6 million shares of common stock to Deutsche Lufthansa, the German carrier, in January 2008 which indicates a move away from its ‗growing alone‘ strategy3 and also forged an interline agreement with Virgin Atlantic. With the interline agreement, passengers on JetBlue will be able to connect through Boston, New York, Washington to catch flights to London Heathrow on Virgin Atlantic. JetBlue customers connecting in Orlando will be able to fly to London's Gatwick...

Words: 5935 - Pages: 24

Premium Essay

Notes

...The University of Illinois Executive MBA July 13, 2004 Tentative Syllabus Managerial Perspective on Financial Accounting Accountancy 401X; Fall 2004 Michael J. Sandretto, 225C David Kinley Hall (217) 244-6410 (office); (217) 352-4832 (home, before 10:30 p.m.) sandrett@uiuc.edu or michaeljsandretto@earthlink.net Texts: Antle, Rick, and Stanley J. Garstak, Financial Accounting, Southwestern (United States), second edition, 2004 (Antle). Palepu, Krishna G., Paul M. Healy, and Victor L. Bernard, Business Analysis and Valuation: Using Financial Statements, Text Only, Southwestern (United States), fourth edition, 2004 (Palepu). Background: Accounting is called the language of business for at least two reasons. First, accounting terms such as sales, revenues, profit, net income, costs, gross margin, expense, and capitalize are widely used in business. Any businessperson is expected to understand those terms. Second, managers rely on accounting to understand an organization’s economic condition at a point in time and its economic performance over a period of time. As a result, they use accounting information to communicate with others. Managerial Perspective on Financial Accounting will help you understand publicly available financial statements for publicly traded companies and financial statements prepared for internal use. It is also an introduction to financial statement analysis and valuation methods. The basic financial accounting methodology...

Words: 2809 - Pages: 12

Premium Essay

Federal Oil and Gas Law

... * Analyze data to provide the basis for formulating reasonable land use alternative, including the types of resources to be developed or protected. * Formulate and estimate the effects of reasonable resources management alternatives. * The Field Manager will then evaluate and identify a preferred alternative, which will then be submitted to the State Director for approval, publication and filing with the EPA. The draft will also be submitted for comment to various federal, state and local agencies and governments of the affected area as well as the Governor of the state involved. * The Field Manager then evaluates all comments and submits to the State Director a proposed resource management plan and environmental impact study for supervisory review and publication. * 30 days after the EPA publishes the environmental impact statement and pending any and protest that may be filed the State Director shall approve the plan. The RMP, once completed and approved, will designate which lands are open for leasing. These lands may then be nominated by the...

Words: 1717 - Pages: 7

Premium Essay

Constructive Discharge

...Fordham Law Review Volume 55 | Issue 6 Article 5 1-1-1987 Constructive Discharge Under the ADEA: An Argument for the Intent Standard Ira M. Saxe Recommended Citation Ira M. Saxe, Constructive Discharge Under the ADEA: An Argument for the Intent Standard, 55 Fordham L. Rev. 963 (1987), http://ir.lawnet.fordham.edu/flr/vol55/iss6/5 This Article is brought to you for free and open access by The Fordham Law School Institutional Repository. It has been accepted for inclusion in Fordham Law Review by an authorized administrator of The Fordham Law School Institutional Repository. For more information, please contact melnick@law.fordham.edu. CONSTRUCTIVE DISCHARGE UNDER THE ADEA: AN ARGUMENT FOR THE INTENT STANDARD INTRODUCTION The Age Discrimination in Employment Act of 1967, as amended 1 (ADEA), prohibits employers2 from discriminating on the basis of age against individuals forty years of age or older.' An employer may not trine of constructive discharge,7 which occurs when the employer creates discharge4 an employee within the protected group based on his age, 5 except as provided by law. 6 In addition, the ADEA recognizes the docworking conditions so intolerable that a reasonable employee would be 1. Age Discrimination in Employment Act of 1967, Pub. L. No. 90-202, 81 Stat. 602 (1967) (codified as amended at 29 U.S.C. §§ 621-34 (1982 & Supp. III 1985)), as amended by Age Discrimination in Employment Amendments of 1986, Pub. L No. 99592, 100 Stat. 3342...

Words: 25744 - Pages: 103

Premium Essay

Convergys Case

...Customer Information Strategy Convergys Case 1. Convergys, a leader in contract-based business process outsourcing services, has been successful in acquiring high-profile customers (e.g. Verizon, FedEx & Starbucks, among others) across a wide variety of industries. Despite Convergys’ impressive customer list, the company has seen its operating margin decrease about 20% over the past 5 years. Key decision makers within the company believe that this decline is due, at least in part, to issues relating to client retention and acquisition strategies. At present, Convergys classifies its customer accounts into 3 tiers: A, B & C. “A” customers are considered to be of highest value, followed by “B” and “C” customers. Although the idea of internally segmenting customers to most effectively allocate company resources (to maximize profit) is sound, the segmentation strategy ought to be well designed and it must incorporate metrics that reflect specific attributes of the industries being served, while at the same time aligning with Convergys’ overall philosophy and business objectives (such as growth, for example). As evidenced by the continuous decline in Convergys’ operating margins over the past 5 years, contrasted with the high quality service it provides and the growth of the specific companies and industries it services, it is apparent that Convergys’ approach to growth is not particularly effective. In this case analysis, we will provide recommendations on strategies Convergys...

Words: 10236 - Pages: 41