Group 6
Section 5
Professor Bruce Wilson
Case 12
Paper Products, Inc.
Group Case 1
Prepared by:
Vaccarezza, Andrew M
Jiang, Benson X
Longcrier, Emily N
Benson, Brooke E
Kalachik, Tatyana
Konkel, Meghanne B
Lay, Tiffanie N
Skinner, David
March 21, 2007 TABLE OF CONTENTS
Introduction 1
Executive Summary 1
Major Relevant Issues 2
Central Problem 2
Implications 3
Alternative Solutions 4
Recommended Solution 5 Introduction
For this case study our group, Group 6, has decided to review Case #12 dealing with Paper Products, Inc. This case study concerns the company PPI and its biggest client, Office Center, Inc. We will begin by considering the major relevant issues in the case and then identify what the problem is. Once the problem is identified, we will outline what some of the implications are if PPI should decide to honor OCI’s request or deny their request. Finally, we will recommend a solution which is believed to be in the best interest for PPI to consider.
Executive Summary
Paper product, Inc. (PPI) is a high quality manufacturer of paper products. PPI’s products can be found nationwide and they distribute their array of products through stationary suppliers. The relationships among these stationary suppliers are all governed by a strict corporate policy which ensures fairness between businesses and helps guarantee the success of PPI. In turn, PPI’s business operation is currently very successful.
PPI’s present sales volume is 40 million dollars a year. Within their sales volume, 40 percent of their sales can be attributed to 10 regional stationery suppliers, 30 percent to Office Center Inc., and 30 percent to more than 40 local stationers. Due to the sales brackets being broken up in large sections between various companies, each specific company is important to PPI. At this time OCI, which again counts for 30 percent of PPI’s sales volume, has forced PPI to question their