MacTara

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

CMSA is a non-profit forest industry association providing inspection and education services in relation to lumber quality standards in BC’s forest products companies. Mr. Beatty was on the board of directors and held the position of Executive Director responsible for overseeing the

Lorman Lumber is a publicly traded company with widely held shares. Its Yamica location in rural Oregon is one of the company’s largest. The purpose of the plant is to process and treat wood, which it does through a number of facilities. The Sawmill began producing lumber products in 1947, which it does by peeling, milling, and chipping raw wood. Lorman has a known record of producing good profits, and will often pay out generous performance-based bonuses to executives. Although the Yamica plant is somewhat outdated, it is still considered to be efficient and profitable. Starting in 1968, the company began using new methods to condition and pressure-treat wood products through the

The company is weakened mainly by its lack of technological advancement in every area of production. For example, if the company chose to modify their equipment to produce their “Atherley” model as well, it would be able to lower production costs of this model, in turn increasing the profits of this model further. In addition, the Atherley Furniture Company greatest threat is the decreased market for their “Parkdale” model. The “Parkdale” model has the most time consuming and costly production. With lack of a market for this model, the company stands to continue to lose profits. In conclusion, if the company wishes to continue to operate their chair division profitably as well as efficiently, the above issues need to be addressed and corrected.

David C. Shaw prepared this case solely to provide material for class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The

By planning to open 200 more stores in the near future, IKEA Group will strain their current sustainability practices and wood sourcing standards. According to IKEA Group’s Chief Sustainability Officer, “Worldwide economic activity, if left unchecked, is already on track to consuming 150% of planet earth’s resources” (Rangan, 2017, pg.1) The amount of lumber IKEA will need to procure is rising, but the amount available that fits their standards isn’t rising at the same rate. IKEA’s push to double sales and open the 200 stores will need to be met by a push to create or procure lumber that fit their standard. The options before IKEA are the following: to drive higher procurement targets and standards, to use more recycled wood, to own more forests,

This haevily disguised case is set in the “nature “woodstoves business in 1986. It is not based on The Vermont Castings Company. The issue is product line strategy based on product line profitability.

Marriot’s growth objective is to be the preferred employer, preferred provider and the most profitable company within the chosen line of businesses – lodging, contract services

  Timber has been extensively used over the past century for many residential  constructions, furnishings, frames, floorings and facades. It’s been a strong component in  architectural developments and with such use, it’s recognized in the availability,  renewability, environmental friendly, strength, weight, price, and durability.1 Within  Australia, 90 percent of their housing frames are made from timber due to its sustainability  and energy required to produce it.

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

In other way, has a few markets considering by Ryan to determine which market to develop including as restaurant, marine, and industrial market. From the different market have a different strategies determine by Ryan such as selling method, channels of distribution, pricing, promotion, patent and trademark, and selling requirement.

Bodie Industrial Supply, Inc is a full service distributor of top line, brand name, new and used certified machine tools, maintenance parts and related equipments for the construction, utility and farming markets. The demand for equipment is relatively cyclical, with Bodies having a slight increase in sales to farming markets in the summer. Bodie’s has seen a huge sales growth increase in 2003-2004 of 72% and 29% in 2004-2005. This is mostly due to an increase in net sales and keeping a constant level of costs of goods sold.

3. Identify and discuss the strategy used by Forest Hill to compete in a commodity market.

Production  and  distribution  channels  that  provide  a  contribution  margin  of   at  least  40%  over  the  next  5  years   4. Financial:  Requires  fewer  units/revenue  to  break-­‐even  and  provides  the   highest  profit.