Problem Analysis & Description
Net Sales for International Paper Company (IP) decreased from $23,617 million in 2014 to $22,365 million in 2015 (“Annual Performance Summary 2015”). While these sales decreased overall, there appeared to be a greater decrease in sales for consumer packaging than for any other department. Consumer packaging has seen a dramatic decrease in sales for the second year in a row. According to IP’s 10k, consumer packaging sales are projected to be lower than average for the first quarter in 2016 as well. Operating profit for consumer packaging went from 178 million to (25) million from 2014 to 2015. (“Annual Performance Summary 2015”). According to International Paper’s 2015 10K, the steep decline in consumer
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Another possibility is that the cost of manufacturing consumer packaging goods has increased so much for IP that even an increase in demand for these products does not outweigh the cost.
Insert net sales chart
Income has been declining for International Paper Company in recent years. According to IP’s 10k, their income declined from 2,476 million to (1,332) million to (124) million from 2013 to 2014 to 2015 respectively. The decline in profit is mostly due to the decline in sales in recent years. Sales during the most recent quarter saw a (1.97) growth. Trailing twelve month growth compared to last year saw (7.54) growth. IP’s 4 year growth rate is at a low of (5.38) (“Financial Highlights”). While IP has negative growth, their growth is significantly less than the negative growth than industry, sector, and S&P 500 (International Paper “Financial Highlights”). Since the entire industry of paper mills is facing a steep decline in growth, it is expected that IP’s sales would also decline. The market for paper products in changing, leading to a decline in sales across the board. Paper imports are increasing as well as prices of raw materials and they are projected to continue increasing according to IBISWorld’s projections. Although IP appears to be doing a better job than most of their industry at keeping sales from falling too dramatically due to these factors, their sales and income are still affected negatively by these changes.
Because of the decline in
A firm 's international marketing program must generally be modified and adapted to foreign markets. This international marketing program uses strategies to accomplish its marketing goals. Within each foreign nation, the firm is likely to find a combination of marketing environment and target markets that are different from those of its own home country and other foreign countries. It is important that in international marketing, product, pricing, distribution and promotional strategies be adapted accordingly. In order for an international firm to function properly, cultural, social, economic, and legal forces within the country must be clearly understood.
they are producing, and there is way more demand for the product and they have to supply what
3. Identify and use criteria to determine suitability of the international market based on criteria included in the Marketing Plan and/or included in country profiles on the TTNQ web site. Then based on these criteria, discuss which of the 2 countries that you have researched offers the offers the best potential for TTNQ? Why? Which factors were important in making your decision?
Include a list of information sources that you used and a brief summary of the information provided.
Include a list of information sources that you used and a brief summary of the information provided.
2. Your Assessor may want to discuss written answers with you to get further evidence of your understanding and to check that it is your original work
In this assignment I will select 2 countries as the potential international markets to be targeted by TTNQ.they are india and dubai.
Half-way through the year our volumes remain flat since 2014. Our domestic volume (US customers) is down due to lost business at International Paper. However, our export volume (mainly to Germany)
New government regulations geared towards curbing over-packaging in today’s businesses should be implemented, to prevent and increase the focus on the negative environmental impacts businesses cause as a result of disposable products and packaging. If businesses where to make the change from disposable resources to reusable resources, then businesses would be able to significantly reduce their costs and their environmental footprint. In essence, businesses who are concerned with reducing costs and being environmentally conscious shouldn’t need to worry about the implementation of government regulations. Because, if the government were to implement regulations on the use of disposable materials, then businesses would see a financial benefit from the switch to reusable materials. Furthermore, if these policies had efforts aimed toward curbing over-packaging it would significantly increase the world’s abilities to maintain a substantial living environment in the future. Keeping the future in mind, the need for these kinds of regulations will only continue to grow, because as time passes the amount of packages sent out from companies is exponentially growing.
It is apparent that a growing segment of end users are willing to forgo product quality for a lower price. European firms, in particular, are price conscious and less technically oriented; many firms view packaging supplies as expendable commodities. This has enabled manufacturers of technically inferior, inexpensive uncoated bubble to co-opt AirCap customers with increasing success (Appendix B).
The original formula for Red Bull was developed in 1964; however, the Red Bull company was not founded until 1984 after a merger between Dietrich Mateschitz, marketing guru, and Chaleo Yoovidhya, the owner of the Red Bull formula. Categorized as an energy drink, Red Bull was initially designed to “treat jet lag and boost energy for truck drivers” (Hollensen, 2012). In today's era, Red Bull is commonly used as an energy drink; like coffee, and as a mixer in alcoholic drinks, like Red Bull Wings and the Jägerbomb. This aligns with the company's focus on the younger generations of partygoers and post-secondary students.
As the online world continues to shrink the physical one, fulfilling customer’s expectations is logistically more challenging. It is widely believed that the logistics of shipping and transportation of products purchased through E-commerce channels is a major barrier for businesses wishing to acquire online sales across borders. According to a survey conducted by Ecommerce Europe, 44% of company respondents felt that logistics and distribution was a difficult barrier to overcome. Additionally 15% of companies that only sell domestically do so solely because of high transportation costs (Ecommerce Europe, 2015)
International Paper Company or IP is considered a leader in the packaging, paper and pulp business. IP operates in North America, Europe, Latin America, Russia, Asia and North Africa and also operates 25 pulp, paper and packaging mills, 177 converting and packaging plants, 18 recycling plants and three bag facilities in the US and IP owns and manages thousands of acres of forestland worldwide. The company 's businesses are separated into three segments which are industrial packaging, printing papers and consumer packaging.
The Paper Plus chain being fully New Zealand-owned is the second-largest book retailer in New Zealand (“New look”, 2008). The company operates as a franchise system and has been around for more than 25 years
By using Porter’s Forces for analyzing external factors, the following key factors could be identified that affected profitability of the newspaper industry in general and in Hong Kong in particular: