Project Genesis | Atlantic Corporation | ACE Consulting Group | “A service we provide with excellence“ | ------------------------------------------------- Executive Summary The purpose of this report is to assess the viability of the acquisition of Royal Paper Corporation’s (Royal) Monticello mill and box plants by Atlantic Corporation (Atlantic). This will be conducted through the evaluation and analysis of whether this project is profitable and also if this is a sound strategic move. In making our final decision, we have undertaken extensive qualitative and quantitative analysis. Such factors we have taken into consideration are the future trend of linerboard prices, the …show more content…
Moreover, this further supports our recommendation for Atlantic to proceed with this acquisition as it will obtain one of the best mills for a cheap initial cost ($319m compared to the construction cost of $750m). Will Atlantic-Royal’s combined linerboard and box mill operations be better or worse than the industry overall. Atlantic’s forest product industry is very much tied to the performance of the overall economy, in particularly to changes in interest rate fluctuations. In contrast, the fortunes of the linerboard industry is more protected from the adverse impact of interest rate instabilities and swings in economic activity, and better controlled to gain significant advantages from the upsurge in economic activity. Currently Atlantic’s existing Ohio linerboard mill produces 780 tons per day of linerboard, which represents a mere 1.8% of the nation’s linerboard capacity. This is far below the 150,000 tons of linerboard that Atlantic purchases every year from its competitors. Consequently, with such a tight market, linerboard could either become unavailable or available at very expensive prices. If Atlantic pursues their acquisition strategy in purchasing the linerboard mills from Royal, this could help greatly in strengthening Atlantic’s linerboard capacity and ensure to retain their box plants profits. With Royal’s current Monticello mill producing kraft paper and linerboard, this would require $140.8 million to convert all of the mill’s kraft capacity to
Target Corporation uses an interesting capital-budgeting system. Projects are proposed using Capital Project Requests (CPRs) and must be approved before money can be spent. The level of approval needed depends on the amount being requested. For projects requiring less than $100K, lower management can approve, but anything above this amount goes to the Capital Expenditure Committee (CEC) which is comprised of 5 executive officers. For projects requiring greater than $50 million, the Board of Directors must approve.
Although the West Paper Company looks at first to be the best choice, the truth is to be the Thompson Division as it has the lowest cost if we assume that all transfer prices within the company were calculated at costs. The lowest costs that associated within the company would make Birch Paper Company to earn the highest profits and revenues.
Canadian based company, Saralyn Mills, is in need of a new marketing strategy to repair the current shortage of sales in Quebec, Canada. According to the case study, the Quebec and Ontario markets account for 69 percent of the company’s sales in Canada. Currently, Saralyn Mills does not have an effective strategy in place for the market of Quebec. The company’s current goal is to implement a global standardization strategy, which is focused on keeping a set marketing strategy the same for every location. It is up to the marketing manager, Nicole Vichon, to come up with a new and separate marketing plan for Quebec. Even though this would be a major policy change from the current global strategy of Saralyn Mills, case facts prove it could be very effective.
This particular case depicts the history and issues faced by a relatively small company active in the custom architectural millwork industry for the past 25 years. The new owners wanted the newly-acquired company to grow even further.
1. Assume ParaWorld was eventually ordered to cease and desist due to IP infringement. What category of IP has ParaWorld most likely infringed? Explain the actions that constitute such an infringement. (5 Marks)
Even in spite of the economic recession in 1991, Nucor still appeared to be one of the fastest growing steel companies in America, even considering the spending levels regarding disposable income among Americans. This is especially true since September 11, attacks, because economic levels in America have tended to exhibit a slight disability. After the attacks on 9-11 markets, as well as the overall financial climate of the United States took on immediate hits. Yet, after President Bush’s tax cuts made in 2002, the country rebounded from a mild recession which dated back to the Clinton administration and has since sought to recover. The steel industry worldwide was mired in one of its most unprofitable periods ever when 9-11 hit. The recovery from the recession, as well as an attempt to pull through current financial hard times due to the war in Iraq have added extra strains on Americans and their ability to spend, which in turn affects the steel industry.
Active growth has forced Blackmores to divide it’s manufacturing and distribution operations beyond a number of independent facilities. New efficiencies and supply chain savings are some of the benefits realized by combining these services at warriewood side along technology enhancement. Streamlined processing and quality assurance system, enhanced logistics and supply chain are adopted for enhanced productivity leading to handling, storing, picking and despatching goods more efficiently than before by the operation
Wriston’s Detroit plant is no longer a viable operation due to long-term capital underinvestment and product-process mismatch. It is recommended that the plant be phased out of operations over a five-year period with production and staff gradually shifted to a new plant to be built in the Detroit area. Further, it is also recommended that division accounting procedures and evaluation mechanisms be modified to allocate revenues/costs allowing for the synergistic benefits of Detroit’s products, and to recognize inherent manufacturing complexities, respectively. Issues Detroit’s production is unique when compared to other Wriston plants. Runs are typically lowvolume, involve significant set-up time, and vary significantly due to the sheer
Next to first-hand experience, case studies are one of the best ways to learn project management skills. In The Crosby Manufacturing Corporation case study, Harold Kerzner reports on the executive-level exchange between the company president and other department heads regarding a new Management Cost and Control System (Kerzner, 2009). This paper will give a synopsis of the case, analyze the case study communications issues and risks, and evaluate Livingston’s selection of a project manager. It will also discuss the possible reactions from the employees, the impact on the cost and time on the
1.What do McRae and Costa mean by introversion and extraversion? Is Subira introverted or extraverted? Find examples in the case to support your answer.
1. Is the acquisition of Royal’s linerboard mill and box plants a sound strategic move? Consider the short- as well as long-term outlook for linerboard prices and the profitability of the linerboard industry. Furthermore, what basis, if any, is there for expecting AtlanticRoyal’s combined linerboard and box mill operations to do better/worse than the industry overall?
Furthermore, HMC employed a compensation system that not only helped to attract and retain some of the most adept portfolio managers in the market, but also permitted to align the economic objectives of portfolio managers with those of the university. In other words, the structure and compensation system of HMC was designed specifically to achieve its objectives and to maintain the real long-term value of Harvard’s endowment
It would also be in the best interest of the staff and faculty if they were involved in promoting a “team concept” by soliciting feedback down to the lowest level in the evaluation of newly implemented systems.
Being the world’s largest paper maker indicates having a larger inventory, more current assets (esp. since it owns timberland and several facilities), and higher cost of goods sold than other paper makers. The inventory for Company J (10.9) is larger than the inventory for Company I (8.8); the current assets for Company J (32.6) are higher than that for Company I (27.2); and the cost of goods sold for Company J (82.9) is higher than that for Company I (75.3). We also expect that, as the world’s largest paper maker, their products will move on the marketplace better than a smaller producer of
Answer: In our judgement, PepsiCo did not have a moral obligation to divest itself of all its Burmese assets. The reason being: