Accounting
1.1
Value Chain Analysis Applied to the Timber and Timber Products Industry. Exhibit 1.A below contains a depiction of the value chain. The links in the value chain are as follows:
1. Timber Tracts: Plant and maintain timber tracts (Weyerhaeuser) 2. Logging: Harvests timber (Weyerhaeuser) 3a. Sawmills: Cut timber into various grades of wood (Weyerhaeuser) 3b. Pulp and Paper Manufacturing: Grinds timber into pulp and converts the pulp into various grades of paper and cardboard (International Paper) 4a. Intermediate Users of Wood: Engage in construction and furniture manufacturing (Masco) 4b. Intermediate Users of Paper: Manufacture containers and packaging (Owens-Illinois) and various commodity and specialty papers (Georgia-Pacific) 5a. Retailers of Lumber and Wood Products: Sell such products to the final consumer (Home Depot) 5b. Retailers of Paper Products: Sell such products to the final consumer (Office Depot).
Exhibit 1.A
Value Chain for the Timber and Timber Products Industry
Retailers of Lumber and Wood Products
Intermediate Users of Wood
Sawmills
Timber Tracts
Retailers of Paper Products
Intermediate Users of Paper
Pulp and Paper Manufacturing
Logging
1.3
Economic Attributes Framework Applied to the Specialty Retailing Apparel Industry.
Demand. Firms attempt to compete on design, colors, and other product attributes, but apparel is largely a commodity. Demand is somewhat cyclical with economic conditions; customers tend to delay purchases or trade down during economic downturns. Demand is seasonal within the year. Demand grows at the growth rate in population, which suggests that apparel retailing is a relatively mature market. To the extent that retailers can generate customer loyalty, demand is not highly price-sensitive. However, given the similarity of product offerings across firms, firms cannot price their goods too much out of line with those of their
Value Chain Analysis Applied to the Timber and Timber Products Industry. Exhibit 1.A below contains a depiction of the value chain. The links in the value chain are as follows:
1. Timber Tracts: Plant and maintain timber tracts (Weyerhaeuser) 2. Logging: Harvests timber (Weyerhaeuser) 3a. Sawmills: Cut timber into various grades of wood (Weyerhaeuser) 3b. Pulp and Paper Manufacturing: Grinds timber into pulp and converts the pulp into various grades of paper and cardboard (International Paper) 4a. Intermediate Users of Wood: Engage in construction and furniture manufacturing (Masco) 4b. Intermediate Users of Paper: Manufacture containers and packaging (Owens-Illinois) and various commodity and specialty papers (Georgia-Pacific) 5a. Retailers of Lumber and Wood Products: Sell such products to the final consumer (Home Depot) 5b. Retailers of Paper Products: Sell such products to the final consumer (Office Depot).
Exhibit 1.A
Value Chain for the Timber and Timber Products Industry
Retailers of Lumber and Wood Products
Intermediate Users of Wood
Sawmills
Timber Tracts
Retailers of Paper Products
Intermediate Users of Paper
Pulp and Paper Manufacturing
Logging
1.3
Economic Attributes Framework Applied to the Specialty Retailing Apparel Industry.
Demand. Firms attempt to compete on design, colors, and other product attributes, but apparel is largely a commodity. Demand is somewhat cyclical with economic conditions; customers tend to delay purchases or trade down during economic downturns. Demand is seasonal within the year. Demand grows at the growth rate in population, which suggests that apparel retailing is a relatively mature market. To the extent that retailers can generate customer loyalty, demand is not highly price-sensitive. However, given the similarity of product offerings across firms, firms cannot price their goods too much out of line with those of their