Family Owned Paper Company: New England Paper Tube

Enron had the largest bankruptcy in America’s history and it happened in less than a year because of scandals and manipulation Enron displayed with California’s energy supply. A few years ago, Enron was the world’s 7th largest corporation, valued at 70 billion dollars. At that time, Enron’s business model was full of energy and power. Ken Lay and Jeff Skilling had raised Enron to stand on a culture of greed, lies, and fraud, coupled with an unregulated accounting system, which caused Enron to go down. Lies were being told by top management to the government, its employees and investors. There was a rise in Enron 's share price because of pyramid scheme; their strategy consisted of claiming so much money to easily get away with their tricky ways. They deceived their investors so they could keep investing their money in the company.

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

In the case of Mendel Paper Company which produces four basic paper products lines at one of its plants: computer paper, napkins, place mats, and poster board. Although the plant superintendent, Marlene Herbert is pleases with increased sales he is also concerned about the costs. The superintendent is concerned with the high fixed cost of production, the increases in fixed overhead and even variable overhead. He feels that the production of place mat should be discontinued. His reason for the discontinuation is that the special printing is driving up the variable overhead to the point where the company may not find it profitable to continue with the line. After reviewing the future predictions of the

While it was foreseen that the company would initially take financial setbacks because of the reorganization, it was not believed that the financial risks would be drastic. However, the impending report that Mr. Elesser has to present to the board will detail a net income that will be nearly 26 million dollars in the red for 2004 (see exhibit 2)3. The blunt force restructuring met resistance on numerous fronts. First of all, the various components of the company did not operate under the same uniformed leadership objectives. Each division was set up to look out for their own interests and markets. When the restructuring plan that focused on a more centralized management process, many of the things that worked for one division did not necessarily work for other divisions of the company. This left some divisions at a severe disadvantage. Another obstacle that worked against the restructuring was the employee unions in which the company had to deal. The unions were not on board with the various downsizing and restructuring methods. In addition, the company had to deal with a couple of different unions which posed a problem with negotiating tactics. Benefit costs were also a significant investment that did not hold up well under the auspice of restructuring.

In 2001, the Tulsa, Oklahoma, Williams Company was in financial distress. The primarily energy-industry company was struggling with a shrinking energy trading market, which was marked by distressed entities such as Enron’s broadband unit and Global Crossing. Williams also suffered internally with a floundering telecommunications division and a plummeting stock price. These issues led credit rating agencies Moody’s and

Clarkson Lumber Company’s biggest problem by far is the fact that Mr. Clarkson had agreed to buy out Mr. Holtz for $200,000 with semi-annual installments of $50,000. It wasn’t necessarily a bad idea for Mr. Clarkson to buy out Mr. Holtz altogether, but the $100,000/year of payments is an unrealistic amount for Clarkson Lumber at this point in time. Between 1993 and 1995, there hasn’t been a year where they have realized more than $77,000 in net income, so the payment of $100,000/year is clearly unrealistic and a sure problem for the company. Another problem, which isn’t nearly as important as the former, is that net income is growing

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

One of America’s largest forest products/paper firms with sales of $6.5Billion in 1983 and a net income of $105 million. The case study revolves around Atlantic Corporation’s intention to add linerboard capacity. In order to achieve this goal, they started looking at viable solutions, including purchasing and acquiring mill and box plants instead of through construction and fabrication of new plants and equipment. This included the possible acquisition of Royal Paper’s “crown jewels”, that is, the Monticello mill and the corrugated box plants.

"After the Layoffs, What Next?" is a case study involving the aftermath of the downsizing of Delarks, a Midwestern clothing store chain. In this case Harry Denton, the architect of the downsizing, is able to orchestrate a considerable financial turnaround, but in so doing he alienates most of Delarks' remaining employees and most of Delarks' upper-management. Denton is an inexperienced CEO whose management experience rests solely in managing a national chain's flagship store in New York. Though Denton's restructuring of Delarks' business model will cause Wall Street to take notice and toast Denton's efforts, his inexperience may in the end eventuate in Delarks' collapse. Delark's downsizing was done in a rather abrupt way in which most laid-off employees were entirely unaware that they were about to lose their jobs. The problem Denton unknowingly faced was that the employee-pool at Delarks was very tight-knit where members felt as if they belonged to one big satisfied family, and the unexpected lay-offs caused great distress within the company.

The evening of December 11, 1995, was a special time for Aaron Feuerstein, CEO of Malden Mills. A small surprise 70th birthday party quietly was held in his honor at a local Boston restaurant. But Feuerstein’s life took a dramatic turn that evening for a different reason: A boiler at his company’s plant exploded, setting off a fire that injured 33employees and destroyed three of the factory’s century-old buildings. Malden Mills was a privately owned firm, with Feuerstein owning a majority share. The firm was located in a small Massachusetts town, Methuen, and employed nearly 3,000 people in the economically depressed area. The fire was a devastating blow for the community. According

Late in February 1993, Colin Power, majority owner of Athlete's Warehouse and a number of other companies in Grand FallsWindsor, and a human resource consultant from the Small Business Centre were seated in Colin's office in the back of Athlete's Warehouse. Cohn was speaking to his brother Ed on the phone. "'Sorry I can't run with you today, I'm all tied up. How about tomorrow morning at 7:00?" Hanging up the phone Colin exclaimed to the Small Business Centre consultant "for the last year I haven't had time to turn around. Every day it is just a rush from one store to another, phone calls all day long and never enough time to do the things that need to be done. I need someone else to help run things, but I don't

The largest paper company in the world sits right here in Memphis, Tennessee, International Paper Company. They manufacture in North America, Europe, Latin America, Asia and North Africa. International Paper was established in 1898 and has grown to house 113,000 employees. The company achieves their success from the goals they stand for: “Good corporate governance is the foundation upon which we build and achieve our goals. We create an awareness of the importance of diversity, ethical behavior and personal integrity, which are our foundation. We support hundreds of community-based educational, civic and

First of all, there is the layoff of Eric Dale, the financial analyst. We can see a comparison with Lehman Brothers when bankers leave the company with a case under arms and the telephone line were cut instantaneously. While Dale is being escorted out, he gives Peter a USB memory stick with a project he had been working on, telling him to "be careful" just as he boards the elevator.

1. How would you classify Forest Hill Paper Company in terms of size and ownership?

1. How would you classify Forest Hill Paper Company in terms of size and ownership?