Birch Paper Company

They are doing very well from a financial perspective. Some of the numbers do not look good to the traditional investor, but that is because Costco is not a traditional company. The current ratio shows that Costco can meet all current liabilities, while liquidity is also high (which means the company can quickly convert assets into cash). Profit is also constantly increased by not having to store inventory.

I would classify Forest Hill Paper Company (FHPC) as a “small paperboard manufacturer that produces a broad line of paperboard in large reels.”

The control structure is the means used to ensure that organization members are doing what they are supposed to do; it describes the nature of and methods for communication in an organization. Due to lack of a structural job design and absence of coordination within departments and lack of autonomy employees are irresponsible and do not perform the task to

In December 2006, Bob Prescott, the controller for the Blue Ridge Mill, was considering the addition of a new on-site longwood woodyard. Two primary benefits for this new addition include eliminating the need to purchase shortwood from an outside supplier and creating an opportunity to sell shortwood on the open market. Also, the new woodward would reduce operating costs and increase revenues. Blue Ridge Mill currently purchased

The design and implementation and objectives of company controls are not adequate to meet the control objectives. The control environment control objective is ineffective. This control objective lacks a written policy on ethical conduct, is lacking oversight from the board of directors and audit committee, lacks a consistent style and philosophy from management, and lacks a strong commitment to competence. The risk assessment control objective is effective but lacks any antifraud program and controls. The information and communication control is ineffective. A virus has been detected and is affecting the files of the company. This control is lacking a strong IT department. The general controls financial reporting control objective is effective but is weak in detecting or preventing material misstatement. The monitoring control objective is ineffective; this control has need of an internal auditor.

Overall Strength: in general, the article provides structure to a concept that is very intangible by: (a) describing the nature and the functions of control; (b) segregating the MCS into categories: core control system, organizational structure, and organizational culture; (c) illustrating how to apply the control model (satisfied my approach) (d) provides a basis for designing and evaluating the system. The manner, in which the model is presented, with its use of figures, further emphasizes the structure of the model. See below on further emphasis on parts (a) -(c).

The second aspect of management used to investigate the issue is Controlling. Control is a concern that is facing every manager in every organisation today. Many businesses continually look to improve relationships between all levels of staff in order for a healthy working environment. To effectively control a business the organisation requires information about

How did the corporation perform the past year overall in terms of return on investment, market share, and profitability?

Mendel Paper Company has been doing relatively well with the sales of computer paper, napkins, place mats, and poster board. With more people eating out, the demand for napkins and place mats have increased. Computer paper and poster boards have slowly increased in demand as well. However, there is concern at the company with the fixed cost of operations. Marlene Herbert, the plant superintendent, said, “As we have automated our operation, we have experienced increases in fixed overhead and even variable overhead. And, we will have to add more equipment since it appears that we need even more plant capacity. We are operating over our normal capacity as it is.” (Case 2B). With the new production costs added in, will

Another strength is the bottom-up structure which allows subsidiaries’ managers to adjust quickly to a changing market. Allowing the operating management to make their own decisions helps the subsidiaries better adapt to new products and demand and leads to speedin up the decision making process.

Forest Hill Paper Company is a small, closely hold paperboard manufacturer that produces a board line of paperboard in large reels.

Birch Paper Company is a medium sized partly integrated company that produces Kraft papers and paperboard. There are four producing divisions and one timberland division which supplies part of the company’s pulp requirements. The divisions are

The price would determine how big of a percentage impact a $.015 per pound premium on paper purchased from dealers would be over scrap paper purchased at loading docks. Using historical information for the spot prices of scrap paper, in the 1979 to 1980 timeframe, spot prices ranged from $20 to $60 per ton. The $.015 premium becomes more of an issue the cheaper paper is available for purchase at the loading dock. At a spot price of $20 per ton or $.01 per pound, the $.015 per pound premium is 150% of the spot price. At this level, management should be focusing on casual purchases at loading docks. At a spot price of $60 per ton or $.03 per pound, the $.015 premium is 50% of the spot price. Rationalizing the premium will depend on which method is used to compute the cost per bale. When using the original cost report formula, the purchased bales were still cheaper after adding the $.015 per pound premium at all spot prices between $20 and $60 per ton. The prices for purchased bales ranged from $9.12 to $15.12 while the prices for formed bales ranged from $10.41 to $19.41. The purchased bales were more expensive at all spot prices between $20 and $60 per ton when computing costs using the formula proposed by the General Manager. Using the alternate cost report formula, total costs ranged from $10.63 to $16.63 per formed bale and $11.79 to $17.79 per purchased bale. Calculations can be found on the attached

Controlling is monitoring the performance of the organization, identifying deviations between planned and actual results, and taking corrective action when necessary. With all these four functions that are involved in the process of management, if all are followed correctly the organization will be properly ran and will have few complications.

Forest Hill Paper Company is a small, closely-held company. Relatively few shareholders own the majority shares of the company. It is most likely a private company.