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Trees

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Submitted By maikokenneth1
Words 539
Pages 3
Introduction

Statement of the Problem
The company conducted the operation without reliable research. As the company operates for a short time, it is found out that the gathering of raw materials used in pulp and paper industry turned out to be so expensive that makes the production process unprofitable. The type of wood that was used in production has a high silica content that damages the machine.

Objectives * To develop an efficient and effective way to provide cheap and reliable raw material for production process * To make the best use of available resources of the company * To make sure that the company operation will be profitable
Strengths of the company 1. The company has an easy access of capital 2. The company has a wide range of area for production process 3. The company has a lot of raw material, a certain plant which they can use in production if studied further 4. The company has trained personnel that there’s no problem in the quality of production 5. The location of the factory is in the area where the major raw material abounds
Weaknesses of the company 1. Lack of research on the quality and production cost of materials that will be used 2. Poor quality of raw materials used that damage machines 3. High raw materials cost which makes the production unprofitable 4. High energy cost because of the machines that will produce fiber 5. Continuous cutting of trees which is the major source in producing paper
Opportunities of the industry 1. Growth of paper in local consumption because of population growth 2. Cheap price compare to other competing product 3. More cities are complying to total plastic ban in the Philippines which means mostly paper will serve as carrier bag 4. Paper is one of the fastest way used to give information 5. Most paper serves as food container because of its safe composition
Threats of the industry 1. There environmental requirements are getting more stringent 2. Increasing competition in other competing materials 3. Innovation of materials in other industry happened while paper retained its traditional uses throughout decades 4. Paper quality is weak that it cannot hold heavy materials 5. The sources of raw material are only limited and may take time to produce
Alternative Courses of Action 1. Create own source of wood pulp (through industrial plantation and recycled papers)
Advantages
* Environmental friendly * Improve country’s wastepaper recovery and recycling rate * Low cost in long term benefits
Disadvantages
* It takes time to wait for trees to be used in production (5-7 years) * Reforestation would be costly * Costly because another large area of plantation will be needed * Additional labor cost for plantation process * Poor quality of paper will be produced

2. Look for supplier of wood pulp that has good quality
Advantages
* Pulp will be readily available for use
Disadvantages
* Having a supplier can delay the process of production if supplies are not delivered on time * Transportation cost will be incurred * The price of raw materials cannot be controlled

3. Improve the raw materials use of the company
Advantages
* Less transportation cost * The company’s resources will be utilized
Disadvantages
* Machines in improving the quality and gathering of raw materials will be needed
Conclusion and Recommendations
References

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