...bit desolated. This topic is both scientifically and socially relevant and easily researchable. Since Nokia and Symbian are both big companies, it is easier to find and collect information and references for the background information. The subject is linked to the theoretical framework. This proposal describes how Porter’s five forces are applied to Nokia. As it is said Symbian can be considered as an important external factor, which influences Nokia’s profits. The paper emphasises on the powers of suppliers in the five forces analysis and thus conclusions for the dependency of Nokia can be made. It also illustrates other forces in Porter’s model like the competitors force. The topic of the bargain power of consumers is also described well: Consumers choice is affecting Nokia’s profits since Nokia is missing the target market preferences as consumers lean towards high end phones and not the cheap supply Nokia has. However we think that the threat of new entries should be dealt in more detail. The topic of the research is clear and specific though it focuses a little too much on Symbian as the main factor. The “decreasing innovation and market share of Symbian” can be described in the sub questions. And in my opinion, the group has too many sub questions. It is...
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...Remote and Industry Environments In order to support strategic planning and gain a thorough understanding of Temple-Inland’s remote, industry and operating environments, various analytical frameworks can be applied as the second step of the competitive research and analysis processes. The goal of this research is to gain information about the packaging industry and it’s external factors such as main competitors and external stakeholders. First as an introduction, Temple-Inland’s industry is defined and explained in regards to it’s remote environment, the paper packaging industry. The industry will be explained in relation to time frame and geographic scope of Temple-Inland’s operations. Next, external issues are identified that affect the paper packing industry and Temple-Inland itself. In order to identify these external issues, a STEEP analysis has been used to illustrate the most relevant remote factors. 12 factors will be examined and each fall under the category of socio-cultural factors, technology, economy, ecology and political regulatory forces. Each one of these factors is assessed and then appropriately placed into an Issues Priority Matrix based on its impact on the company and significance of the factor in the industry. Subsequently, Porter’s five forces will be used as another analytical tool that identifies the structural characteristics that determine Temple-Inland’s competitiveness and profitability in the packaging industry. The forces...
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...idle. Company The Dixon Corporation is a specialty chemicals company that supplies primarily to the paper and pulp industry. The company’s products are mainly used by paper companies as a bleaching agent for pulp. Dixon’s principal plant was located in Calhoun, Georgia, and mostly supplied paper and pulp companies in the southeastern United States. The company achieved strong growth with a compounded annual growth sales of 17% for the past 5 years (1974-1979) and improved net margins to 9.5% by 1979 as the sodium chlorate market remained resilient despite the difficult economic situation. Customers The primary customers of the sodium chlorate producers are the paper and pulp industry, which accounts for approximately 85% of total production. As such, growth in the markets will essentially mirror growth in the pulp & paper industry. The 1970s was a turbulent period for the paper and pulp industry, marked by greatly intensified competition, periods of overcapacity (especially in 1976), a deep recession in mid-decade, rapidly rising inflation throughout the industrial world and a decline in the competitiveness of the U.S. economy as a whole. Despite this, the paper and pulp industry remained resilient with growth expected to pick-up by the 1980s as the U.S. economy recovers and the prospect for substantial future growth in the worldwide use of pulp and paper. As such, the outlook for the sodium...
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...Arauco Case Study Question 1 - Do you think it is a good idea for Arauco to build the Nueva Aldea project? In this question we will be using the DCF technique in order to evaluate the project feasibility: Project name: Nueva Aldea Construction time: 3-4 years, we chose a 4 year construction time because we assumed it will take 3 years of direct constructing and a 1 year for extra delays and administrative procedures. We will also assume that the cost of the construction will be divided evenly between the years. Mill life time: 30-40 years, for the sake of this question we will assume a 35 years lifetime. (P.1 L.10) Expected sales: 350$ million per year at full capacity production. (P.1 L.10) Production Capacity: 700,000 tons of pulp. (P.1 L.9) MES of new pulp mill: 665,000. As of 2004 the minimum efficient scale was 95% of maximum mill capacity. (P.12 L.9) Year of producing | 1 (80% of MES) | 2 (90% of MES) | 3 (100% of MES) | 4-35 (100% of MES) | Capacity usage | 532,000 | 598,500 | 665,000 | 665,000 | (P.12 L.7-8) Cost of production: 197$ per ton. (Exhibit 6) Rate of return: 11%.Chile's expected market return is an indication to the company's project return. (P.12 line 10 from bottom) Depreciation: 44$ per ton. (Exhibit 6) Transportation: 38$ per ton. (Exhibit 6) Export: 85% calculated as average between years. (Exhibit 5) Sunk cost: 150$ million. The first phase of the project is already invested and cannot be returned, thus it is not calculated in the...
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...In reviewing the facts presented to me it is my opinion, along with those of my colleagues at WIF Consulting, that your recommendation to horizontally expand the production of market pulp is the better decision when weighing it against the prospect of forward integrating into paper production. After doing an initial calculation, the net present value of the Valdivia project is roughly $3.7 billion (see Exhibit A), which yields a gain of almost $2.6 billion. Below are the key points we’ve identified to support this figure. Existing Competencies Within Arauco’s Contracted Workforce Because Arauco already has over 10,000 employees aiding in forestry and transportation operations under roughly 300 subcontracts, along with a workforce of independent workers operating all of Arauco’s sawmills, it becomes clear that several relationships are already being managed in order to ensure efficiency and effectiveness. By adding another workforce entirely dedicated to the production of paper, Arauco is taking on even more workers that are performing a series of operations that Arauco is not familiar with. Because of this, enforcement costs will be incurred to simply oversee the workforce’s numbers. Additionally, upper management will either need to be trained in a whole new set of competencies, or new employees must be taken on to optimize production performance. Additionally, to take full advantage of the potential sharing activities, will require an unknown amount of resources to...
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...Introduction Paper has become a major product which is used widely in the modern society. Not only used obviouslyby the publishing industry, paper is also involved in specific product manufacturing like tissue, cardboard, etc. Pulp wood plays a significant role as a fundamental raw material. Back in the last decade, Indonesia as the largest pulp and paper producer in South-East Asia ran this industry based on its 141.4 million hectares tropical rainforest covering. However, serious deforestation has occurred due to the over-development of the paper and pulp industry. More and more rare species of animals and plants are becoming extinct, not to mention global warming, water loss and soil erosion. This report will discuss the said deforestation and its effects on Indonesian environment and its community, and also focus on analyzing the role of various sectors, namely thepaper and pulp product buyers, environmental non-government organizations and the Indonesian government,within the paper and pulp industry. Asia Paper & Pulp Group(APP) and Asia Pacific Resources International Limited (APRIL) are used as examples of the paper and pulp manufacturers. The report will be concluded by providing recommendations regarding the issue. Indonesia overview Indonesia maintains the highest rate of illegal logging among other countries, up to 60% of timber production. Corruption has been a prevalent issue in Indonesia, and was even worse after the end of the Suharto government...
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...convenience. In addition only 30% of durian are eatable and the other part are considered as waste such as durian seed and durian rinds. From its fibrous characteristic, durian rinds can be a material for paper making. In the paper making process, pulping process is mainly to increase fibre to fibre bonding in the paper. There are two type of pulping process, mechanical pulping process and chemical pulping process. Using chemical pulp to produce paper is more expensive than using mechanical pulp or recovered paper, but it has better strength and brightness properties. This research are concentrated to chemical pulping which using the Soda-Anthraquinone as a pulping chemical. Soda-Anthraquinone pulping is modified chemical process for wood pulp production with sodium hydroxide as the cooking chemical and anthraquinone (AQ) as a pulping additive to decrease the carbohydrate degradation. The advantages of using the soda-Anthraquinone method are not only having high pulp yield, but also resulting in better mechanical strength properties of the yield comparable to Mechanical pulp along with its environment friendly approach as well as its reduced active alkali consumption. The aim of this paper is to study the characteristics of durian rinds soda-Anthraquinone pulp and paper. The study also...
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...volumes have increased by more than 25% since 1998, while annual sales revenue growth was $81 million—representing a 13% increase—in 2003. Furthermore, market prices for bleached pulp, which consistently accounts for at least 75% of Araco’s pulp sales, have been on an upward trend since 2001, increasing from $402 to $470 per metric ton. Araco has moreover maintained tight control of its inventories, demonstrating that it has not yet faced pressure to sell its pulp at unfavorable market prices. Given the stability of the pulp market, Araco is likely to benefit substantially by expanding its production capacity for pulp. The Iata project shall allow Araco to keep pace with increasing demand for paper, which is primarily derived from pulp. As greater consumption forces production of paper to increase worldwide, demand for pulp shall inevitably rise as well. As a result, by expanding its capacity for pulp production, Araco shall be positioned to take advantage of...
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...yields by 2004. The company had three main product segments which include pulp products like bleached and unbleached Kraft pulp; forestry products like pulpwood; and wood products like lumber and remanufactured wood products. In 2004, the company wanted to invest more to get more development. The company was facing alternatives: one was forward integration moving into paper manufacturing; the other one was horizontal expansion investing US $1 billion to construct a new state-of-the-art chemical pulp plant. 2. Situation According to the case, we can see that the competition in the pulp industry is strong. First, the competition of existing competitors in market pulp was strong. From the case we can get that most of the large companies were involved in backward integration to produce the pulp for their paper themselves. Most major companies had their own forests, pulp mill, paper manufacturing facilities and even their own distributions. These vertically integrated pulp and paper companies produced 142 million tons of pulp out of the 183 million tons produced worldwide. There were some smaller local paper firms that still purchased the pulp from suppliers like Arauco based on their needs. For Arauco, it can only...
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...International Paper, Androscoggin Mill’s central ordering department receives all orders and places them in open slots in their weekly production cycles. The manager of operations control must take into consideration how many machines are available, which ones run what process, and how long each process runs. The production schedule is very detailed but remains flexible to allow for changes. Demand for paper products is cyclical in nature and fluctuates with the economy. A linear program ran each quarter to optimize the schedule. Similar size orders were grouped together to eliminate as much waste as possible. Trucks and railcars also had to be scheduled for shipments. . Tour B: Norcen Industries key production considerations would be scheduling. As a “job shop” they create a wide variety of products to fulfil customer orders. The production manager must make sure the workers were assigned and understood the correct tasks. Assigning the best operator to perform certain tasks help keep costs down and machines running efficiently. On-time deliveries are important to receive repeat orders. Small jobs were given preference to expedite billing. As drops in demand created fewer orders the foreman ran into bottleneck issues. 2. Identify potential bottlenecks (use process flow diagram in text) and discuss possible methods of breaking them. Tour A: International Paper, Androscoggin Mill – Some of the potential bottlenecks could be caused by machine breakdowns, paper breaks...
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...Matt Collins 2/2/2016 Strategic Management Homework 1 Industry Analysis for Arauco Pulp itself, as a raw commodity, can be broken down into one of four main variations based on whether or not it is bleached as well as softwood versus hardwood pulp. From here pulp can be used to make a wide variety of paper products. Associated with the production of pulp are Arauco’s other two product lines, forestry and wood products. Forestry products include pulpwood and saw logs while wood products include things like fitches, lumber, and panels. The pulp industry is a highly fragmented one with the largest players all being fully integrated companies that produced pulp and paper, start to finish. Of the approximately 183 million tons of pulp manufactured in 2003, “142 million tons of pulp were used in the production of paper by vertically integrated pulp and paper companies.” (10) Apart from these fully integrated conglomerates there are some other companies that focus on a particular category of the process of production. Additionally there are a handful of local firms that produce paper based on specific needs of their markets. The top five largest producers of market pulp hold 27% of the market with each producer specialized in a specific category of pulp that they dominate. Historically, pulp production has been dominated by the U.S., Canada, Sweden, and Finland (Norscan). Despite this historical dominance, southern hemisphere pulp producers have been on the rise very much recently...
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...Double A Public Company Limited The company background The company was founded in 1991. It is a leading manufacturer and distributor of pulp and paper in Thailand. There are currently 2 pulp mills to produce pulp for 58000 and 3 paper mills with 600000 tons per year. Over the years, the company has tried to come up with different ways to revolutionize the paper industry by introducing farmed trees concept to be more friendly to the environment. Double A has come out with tree which can be harvested after only 3-4 years in stead of 50 years that the traditional method. The trees are grown on the empty spaces between the rice paddies together with other cash crops. These are Double A’s raw material in producing paper which promotes sustainable development and cause no harm to the trees in the natural forest. These trees are cared by more than 1.5 millions Thai farmers. This offers jobs and income for the local Thai families. Company differentiates its product from any other paper in the market by focusing on its 7 benefits to buy Double A’s product which are 1.Good runability 2.Two-sided copying 3.Printing sharpness 4.Bright appearance 5.Prolong performance of copier 6.Time saving 7.Longer storage period for documents Most of the products are sold internationally with the proportion of 35% nationally and 65% internationally. Main countries that Double A export to are Asian countries which are Bangladesh, Cambodia, China, Hong kong, Indonesia, Korea, Malaysia...
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...GAPS Guidelines GAP.17.5.0 A Publication of Global Asset Protection Services LLC PULP AND PAPER MANUFACTURING INTRODUCTION The modern pulp and paper mill is a complex, high-valued facility. To operate profitably under today’s environmental constraints, a mill must efficiently integrate steam and power demands and chemical recovery systems with the pulp and paper processes. Computer control of all mill processes is the norm. Each step in papermaking — from raw material storage, through stock preparation and papermaking, to finished roll storage — presents special loss prevention challenges. Storage areas pose severe fire loss potentials. Fires, explosions and machinery breakdowns can seriously damage critical process equipment. Pollution control equipment can also cause large losses. Associated with these high property damage potentials are even higher business interruption potentials. In a full process Kraft mill, loss of the black liquor recovery boiler (BLRB) can result in extensive downtime. Continuous digesters and Yankee dryers can also present very large business interruption potentials. This GAPS Guideline describes “full process” pulp and paper mills. Full process mills include pulp, paper and finishing mills, and sometimes converting mills. Figure 1 shows a simplified process flow diagram for a full process mill. Many of the processes described in this section also apply to mills that are not full process. PROCESSES AND HAZARDS Woodyard Operations...
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...During the progressive age, the American people pursued to change dangerous tenements, child labor issues, the unsanitary conditions in the meatpacking industries, and the unfairness of the political bosses. Tenements The cities was overcrowded with industrial workers. Most lived in low cost multifamily housing designed to squeeze in as many people as possible. Several families shared the same apartment. There was few windows and little sanitation and no water or electricity. It was run down, dangerous, and unhealthy buildings. Cites was filthy because of poor sanitation. The streets was littered with trash because there was no garbage disposal system. Horse and human waste dumped in the streets. The use of candles, lanterns, kerosene heaters, and wooded buildings side by side cause big fire problems. Like the Great Chicago fire in 1871. Child labor The percentage of working children ages between ten and fifteen decreased about sixty-eight percent from 1890 to 1920. Children often worked long hours in dangerous factory conditions for very little money. Children were useful as laborers because their size allowed them to move in small spaces in...
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...Case Study – International Paper Company I. Company Profile and Analyses of Industry International Paper Company (IP) is one of the world’s largest manufacturers of paper and paper products. Their products include a wide variety of paper products, consumer packaging materials, industrial packaging materials, and pulp products. In addition, IP collects and recycles recovered paper. History IP began in 1898 as a merger of 17 pulp and paper mills from Massachusetts to New York. IP led the newsprint industry until 1913, when trade regulations revised to promote Canadian imports and later, in 1921, labor conflicts within IP contributed to a decline in IP’s market share. However, IP rallied by creating a Canadian subsidiary, expanding into the South by acquiring and building new mills, consolidating its northern operations, and diversifying its product line from primarily newsprint, to book and bond products, and later, corrugated containers. This diversification aided IP in surviving the Great Depression, and continued through the 1930’s. IP continued to reap profits and expand the company through the 50’s and 60’s, into North American and overseas, eventually expanding into places such as French West Indies, Mexico, and France. The 1970’s found IP divesting itself of several plants and mills, and in 1976, J. Stanford Smith, facilitated a major company reorganization revised the geographic area divisions into business units dedicated to a specific function or product. Over the...
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