the variety of sawmills distribution channel challenges. Keywords; Typology, distribution channel challenges, research needs, and Swedish sawmill industry 1. Introduction Softwood lumber is in many cases referred to as a commodity product (Roos et al, 2002) and it is thereby produced in general standard lumber sizes (Hansen et al, 2002). Competition amongst suppliers of commodity products is primarily based on price (Shapiro, 1979) and the focus is efficiency
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they make, and draw a graph on paper of the inequality to aid in the writing of the paper. Problem number 46 on page 240 of Elementary and Intermediate Algebra is as follows: “The Ozark Furniture Company can obtain at most 3000 board feet of maple lumber for making its classic and modern maple rocking chairs. A classic maple rocker requires 15 board feet of maple, and a modern rocker requires 12 feet of maple. Write an inequality that limits the possible number of maple rockers of each type that
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Conflicts in Ethical Companies There's a story making the rounds about a consultant who was called into a lumber company. Profits were slipping and management couldn't figure out what was causing it. All of the other performance measures were stable or increasing. The consultant did what consultants do, talking with a large number of employees. He observed several things about this particular lumber company, including the fact that working conditions were somewhat austere and that the dominant leadership
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BUNYAN LUMBER, LLC Bunyan Lumber, LLC, harvests timber and delivers logs to timber mills for sale. The company was founded 70 years ago by Pete Bunyan. The current CEO is Paula Bunyan, the granddaughter of the founder. The company is currently evaluating a 7,500-acre forest it owns in Oregon. Paula has asked Steve Boles, the company’s finance officer, to evaluate the project. Paula’s concern is when the company should harvest the timber. Lumber is sold by the company for its “pond value.” Pond
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The General Environment surrounding the timber industry and Weyerhaeuser is highly reliant upon six different segments. These segments are: demographics, economics, political/legal, sociocultural, technological and global. The environment within which a company operates is directly influenced by what is going on in each segment. Weyerhaeuser must constantly analyze the surrounding environment through scanning, monitoring, forecasting and assessing, to determine the environments changes and its subsequent
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I. Key Issues Overview When Cartwright Lumber Company was originally founded, it was owned by both Mark Cartwright and Henry Stark. However, Cartwright bought out Stark’s interest for $105,000 and became sole owner of the company. To finance this payment, Henry took out a $70,000 loan with an interest rate of 11% secured by land and buildings payable over 10 years at a rate of $7,000 each year. was located in a suburb of a large city in the Pacific Northwest; its operations were limited to the
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Cartwright Lumber Company Local Distributor of Wood Based Products Marketing Analysis Mark Cartwright and Henry Stark opened up Cartwright Lumber Company in 1994. The company is based in a large city in the Pacific Northwest. Most of the company’s distribution was in the local area. Recently in 2004 Cartwright had to borrow money to be able to meet higher sales for the company. However, more money is needed to be able to meet the anticipated sales growth for the future. Cartwright is considering
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FINANCE “Cartwright Lumber” Case Assignment Case: “Cartwright Lumber Co.” HBS Case #9-204-126, Rev 3/04. Main Question: As Mr. Cartwright’s financial advisor, would you urge him to go ahead with, or to reconsider, his anticipated expansion and his plans for additional debt financing? • He should take the LOC and use trade discounts o Satisfies fund requirement o No collateral o More flexible trade credit limit Additional Questions: 1. Why does Mr. Cartwright have to borrow
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Cartwright Lumber Company was founded in 1994 as a partnership by Mark Cartwright and Stark. In 2001, Cartwright incorporated the business. The business was located in a large city in the Pacific Northwest and operated in retail distribution of lumber products such as plywood, moldings, sash and door products. We think that there are four key factors involved in their success. First is competitive customer policy, they offered their customers by quantity discounts and credit terms. Second is their
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For Cartwright Lumber case: a. Why does Mr. Cartwright have to borrow so much money to support this profitable business? The company does not have enough funds, it has a cash flow problem, and cash from operating activities are negative in the past few years. He purchased the business with debt and is relying heavily on debt financing ever since. AR and Inventory turnover days are too long and that is not effective on an operational stand point. b. Do you agree with his estimates of the company's
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