This case study is based on a journal which was published on June 2008 by Institute of Management Accountants (IMA) journal which is titled “Forest Hill Paper Company” and authored by Albright, Thomas. Forest Hill paper is a small size company because it does not produce full range of products and services. It produces a broad line of paper boards in large reels. These roles are used by other industries mostly for making packaging materials. For it to be termed as a medium or large company it shall have to produce wide range of products….
The overheads cost of the company experiences some complexities because the company is capital intensive which requires expensive processing equipments. These expensive processing equipments are also the challenge why the company had not been able to diversify their operations. Because for it to diversify it shall need to invest more on its machinery which are expensive and needs a strategic plan to plan for its long term investments on how it would diversify its products. Its labor cost is high and there are few professionals who are in this field therefore they are much competitive….
For the company to be competitive in the market despite of it reducing on its cost it needs to formulate on its long term strategy on how to diversify on its productions and mostly decide on how they would also include production of plastic products which are cheap to produce and are also preferred by most of the customers. By diversifying and meeting the customer changing needs the company shall afford to remain afloat in the market especially in near future when most of the preferred products will be in plastic. However, if it fails to change now it will be pushed out of the market for producing goods which are absolute in the market.
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