“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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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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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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System Build Project Baker College MGT 321 System Build Project MGT 321 System Build Project For this project‚ you will design a system for the organization of your choosing. This could be for a current or former employer or some fictitious organization. The system you design might be data storage‚ telecommunications‚ e-commerce‚ accounting information‚ manufacturing process system‚ inventory management
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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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Design-‐Build Project Delivery Method DEFINITION The term “Design-‐Build”‚ is used to refer to the procurement process in which an owner of a project establishes a contractual relationship with a single entity for both design and construction services. The entity‚ or “designer-‐builder”‚ is
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Running Head: DESIGN-BUILD PROJECT DELIVERY METHOD Civil Engineering: Design-Build Project Delivery Method Design-Build Project Delivery Method Due to the economic specialization‚ a new method named The Design Build Project Delivery Method has been developed. This method is found as the best alternative for delivering the public projects (Design-Build E ffectiveness Study‚ 2006). As per the position of the design professional‚ the design build project delivery methods are suitable for
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breached the barrier of its levees. The extent of this catastrophe has triggered fierce debate over how the city should be rebuilt; taking into consideration the city’s population shift‚ economic emergency‚ and continued below sea-level vulnerability. Actually‚ there are some who think that the potential for a similar disaster in the future begs the question whether the city should be rebuilt at all. I personally believe that New Orleans deserves to be rebuilt. As stated before‚ the continued
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THE LEVEL OF IMPLEMENTATION OF MARKETING PRACTICES OF HOTELS AND RESORTS IN NUEVA VIZCAYA AND THEIR LEVEL OF CUSTOMER SATISFACTION: RECOMMENDATIONS FOR IMPROVED MARKETING PRACTICES A Thesis Presented to The Faculty of the School of Business Department of Business Administration Saint Mary’s University Bayombong‚ Nueva Vizcaya In Partial Fulfilment Of the Requirement for the Degree Bachelor of Science in Business Administration By: Krisha Ann N. Pacis Janadriyah A. Logan Phoebe
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