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A Short Note On Folding Carton Industry And Specializes Essay

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Staff Analysis Statement of the Problem Carded Graphics (CG) is a medium-sized competitor in the $160 billion U.S. folding carton industry and specializes in smaller, highly customized orders. CG, along with other players, grew to dominate the small-order niche very early in its lifespan due to its ability to provide a seamless information infrastructure linking client specifications to final products and its speed to market and quality. Despite its early success, CG saw growth stymied from 2007 to 2008, with the tightening of margins that resulted in a reported loss for the year. By 2009 sales had exceeded 2008 sales levels and operating margins had returned to the 2007 level, however, net income had not improved at a pace proportionate to sales. Now, in 2009, to alleviate this stagnation and to exploit efficiencies, CG is determining whether to augment its current sheeting process with a new sheeter that has higher capacity. Until the 1800s, product packaging was rudimentary at best and was used for only a select number of items on the market. Today, it is rare to find any product without some form of folding carton packaging. Thus, demand for cartons is driven by commercial activity. To stay competitive in their pricing, folding carton companies must take advantage of operational effectiveness, focusing R&D primarily on greater production efficiencies. Along these lines, CG operates two parallel systems, a paper and information process, which ensures a high degree of
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