Lorman Lumber Case Study

In the 1800s the lumber industry was very big thing. A man named Frederick Weyerhaeuser and one of his business partners started investing money in the lumber industry. He started by buying up a lot of timberland in Wisconsin to harvest. Once all of the white pine in Wisconsin was gone, he moved his business to Minnesota, and the industry boomed!

Austin Wood Products should also define their organizational structure more clearly in terms of its centralization, functions and duties especially in terms of the production department. Where in the purchasing agent reports to the VP of Finance, but it is supposedly under production since it is highly involved in this.

At first glance, Clarkson Lumber appears to be a healthy company. However, despite rapid growth and increasing sales Clarkson Lumber finds itself searching for additional funding to compensate for a shortage in cash to fund its expanding business. Clarkson Lumber is in this situation for a number of reasons.

Pacific Lumber Company, founded in 1869, oversees the careful maintenance and logging of the world’s most productive timberland. Pacific Lumber holds the last private forest of old-growth Redwood. In addition to it’s unique hardwood, the Redwood forest hosts an ecosystem supporting virgin ground never logged, and the endangered Marbled Murrelet. After being purchased in 1985 by the Maxxam firm and it’s owner Mr. Hurwitz, Pacific Lumber tripled logging volume and looked to log the previously privately protected Redwood forest. Due to the use of junk-bonds for financial backing, Maxxam Inc. needed to dramatically increase revenue streams to make interest payments which resulted in the

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

Our journal for the third week of class was to watch the movie A Civil Action, since we would not be in class. This movie was interesting because Jan Schlichtmann who was originally a greedy personal injury lawyer decides to take on case due to the potentially large settlement involved. Unfortunately, the case eventually bankrupted him and his staff. At the end of the movie, the viewer is able to see that he did not continue the case for the money once he began understand the entire situation. This movie chronicled the progression of Schlichtmann accepting the case to becoming broke. Because the movie carefully showed the underlying issues of water contamination in Woburn, Michigan. This allowed the viewer to understand that there is a fair amount of meetings and negotiations that happen behind the scenes in the legal system. Despite the fact that he was a talented lawyer who could negotiate. It was awfully apparent that in the short term the legal team with the most money and power would win the case, but not in the long run. When Schlichtmann decided to hand the case to the EPA they were able to out power and outspend Beatrice foods, Riley Tannery and chemical company W.R Grace; the companies involved in the water contamination issue.

There is certainly not enough space to examine all twelve stories presented in Lerner’s book in this paper, and they are all shocking—both in terms of the level of exposure to toxic chemicals and the questionable choices of corporate and government officials—but a few stories stand out.

DuPont was aware of the harmful effects this chemical had on animals and people but ignored the issue in accordance of high profit. Not only were people affected in the local community, but people in surrounding areas were also affected. Thousands of people and large amounts of property were inflicted with poor air quality and poor drinking water. DuPont had later discovered that there were dust fumes emerging from the factories that were unhealthy for people to inhale, and later found it in the drinking water. DuPont also found an astonishing key of evidence, they had found PFOA in the water, and it was twice the amount of what was allowed, and could cause some serious issues. They had known about the levels and did not notify any workers or anyone in the community due to the fear of loss of profit. Men and women were coming home with a fever, nausea, diarrhea, and vomiting. These workers endured injurious experiences, and were never notified about the condition in which they were working. DuPont was named as not trustworthy, and at times known to practice illegal activity. After going through the experiences of which they just endured, they might go through the process of mental thinking or what they just went through was not right and should not have happened to me. That process is known as

DO YOU AGREE WITH MR. WILSON 'S ESTIMATE OF THE COMPANY 'S LOAN REQUIREMENTS? HOW MUCH WILL HE NEED TO FINANCE THE EXPECTED EXPANSION IN SALES TO $ 5.5 MILLION IN 2006 AND TO TAKE ALL TRADE DISCOUNTS?

1. Productivity of the crew would be below standard. I believe for the productivity to be below standard because they were sent to this crew because of their lack of work. Just because they have been assigned to another crew, does not mean that they will begin to work well right away. When compared to the Equity Theory, I believe there to be positive inequity for the three men assigned to the new group. For being assigned to the group due to lack of work, it is unfair to have a higher pay grade than those who have been in the company for a longer period of time and who are doing their job correctly. This may cause issues with subprofessionals being motivated to work to their full

Gene Denning, an employee of Welco Lumber Company, decided to run a study by videotaping a sample size of 365 logs being processed. However, actual data provided proved that it was a true sample size of only 362 logs, as data for logs # 30, 123, and 127 are missing from his report. He videotaped 3 operators, April, Sid, and Jim, marking the logs, how each log was broken down and the degree to which the cants were properly centered. Gene then did a comparison of what the cost was of the log in its current condition (actual value), to what would have been the correct value of the log if the cut had been

In The Last Stand, David Harris shows that the "old" Pacific Lumber practiced "selective cut" and "sustained yield" forestry as opposed to "clear cutting". Under the "old" management, "selective cut" and "sustained yield" were seen as beneficial and a more practical way to manage lumber and timber. When the "new" management took over the company, the process of "clear cutting" was taken into effect. Now in charge of Pacific Lumber, Charles Hurwitz played a major part in the debate on how Pacific Lumber should operate.

1. Review the case and the three Power Point presentations. Which external environmental issues/considerations should Tad take into account when evaluating the three deals?

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.

As the chief operating officer of Brantford Manufacturing Co, I have enclosed an appropriate case analysis to effectively resolve the issue with the pollutants disrupting business activity. Two distinct solutions are provided along with a final recommendation to the board of directors in hopes of satisfying both parties beyond expectations.