Summary: Arauco(A): Forward Integration or Horizontal Expansion. Conclusion There is an obvious need for transformation in this company to protect its debt holders‚ shareholders‚ and employees. Concentrating on products that will have a growing demand such as toilet paper‚ tissue paper‚ and magazine paper would aid in stabilizing the company’s earnings. Having over 50% of revenues derive from pulp sales increases risk of instability. Attempting to first reduce costs and pay outstanding
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new entrants. Government policies and regulations control forest harvesting and can sometimes act as a disincentive for existing competitors. Competitive and Strategic position of Celulosa Arauco (See Exhibit 3) The biggest competitive advantage for Celulosa Arauco is its cost advantage. Celulosa Arauco has been successful to maintain high production efficiencies by investing into Research and Development and Forest Management. It also uses economies of scale to negotiate prices with paper buyers
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VRIN Framework Resources | V | R | I | N | Explanation | Software | iTunes‚ continuation of current strategy. | | | | | iTunes still holds the majority of the market share‚ showing positive effects. However‚ becoming less rare as similar software is produced‚ which allows synchronization of the apple product without iTunes‚ such as Copy Trans. | | iWork‚ invest in redeveloping product | | | | | Redeveloping the product would certainly increase the value and demand for the products
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“Arauco (A): Forward Integration or Horizontal Expansion?” Arauco is an important Chilean forestry company formed in 1979. The company has three main product segments which are wood products‚ pulp products and forestry products. In 2004 the CEO was experiencing a decisional problem concerning whether it was better for shareholders to develop a horizontal structure already existing by building a new pulp plant‚ or to focus on a vertical integration and enter into the paper production. The approach
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------------------------------------------------- “Arauco: Forward Integration or Horizontal Expansion” Case Arauco is a major Chilean producer of pulp and wood products. In order to increase its capacity‚ the company has launched in 1980‚ an aggressive expansion plan by purchasing lands‚ plantations and installing new technology equipment. Arauco is today considered as one of the world biggest forestry company with 1.2 million hectares of plantation. Its global strategy is aimed at strengthening
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Should Arauco own both forests and pulp production facilities? Does the Alto Paraná project help you answer this question? According to the information of the case‚ clearly Arauco should own it own forests and facilities‚ because the benefits from Vertical Integration are bigger than it costs. The first case is‚ even when‚ the ownership of both kinds of sources can decrease the efficiency of the entire business‚ it can create an increasing in the location efficiency (because you can locate the
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Galvarino From Wikipedia‚ the free encyclopedia Jump to: navigation‚ search For the Chilean municipality‚ see Galvarino‚ Chile. Galvarino Galvarino (died c. November 30‚ 1557) was a famous Mapuche warrior during the early part of the Arauco War. He fought and was taken prisoner along with one hundred and fifty other Mapuche‚ in the Battle of Lagunillas against governor García Hurtado de Mendoza. As punishment for insurrection‚ some of these prisoners were condemned to amputation of their
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【Department】: International College - Tourism 【Class】: Sophomore 48201 【Course type】: Required course 【Course title】: Tourism Marketing 99458 【Credits】: 3 credits for spring semester 【Course info.】: Friday 9:10 to 12:10 / Classroom CC505 【Instructor】: Dr. Hsuan Hsuan Chang Email: changtzu@mail.mcu.edu.tw Office: P316 / Q518 Telephone: 03-3507001 ext 3581 / 3441 Cellar Phone: 0966056149 Office Hours: Tuesday / Wednesday / Friday Work in Taipei: Monday / Thrusday Course Goals This
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After applying the VRIN criteria to the resources given in the case‚ 3 key intangible resources have been identified in helping Banyan Tree (BT) achieve strategic competitiveness and above-average returns. The analysis is summarized in the below table. Resources | Valuable? | Rare? | Inimitable? | Non-substitutable? | 1. Brand | Yes – BT has successfully tapped into its target market segment because of its strategic brand positioning and image. | Yes – The only resort targeting the luxury premium
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Google SWOT Analysis: Strengths Google Search Engine- The number one search engine‚ hard to replicate. Strong Brand Value Ancillary Service- Gmail‚ YouTube‚ Google Hangout Robust Research and Development Opportunities Weakness Click fraud Piracy and copyright issue Not a leader in social media space Opportunities Growing demand of online video Growing demand of Android OS Threats Competition from Microsoft‚ Yahoo‚ Apple and smaller competitors Rapid Technological changes Strengths: Google
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