Essay about CASE ANALYSIS

Submitted By Badrinr
Words: 743
Pages: 3
Open Document
BIRCH PAPER CASE BY: BADRI VENKATARAMAN (1445646)

1. For each of the three alternatives, diagram the potential cost flows, per thousand boxes, among all of the parties in the case: Southern Division, Thompson Division, Northern Division, Erie Papers Ltd, and West Paper Company.

Ans:

2. Which bid should be accepted? Justify your answer.

Ans: James Brunner decides the transfer price after being given the operational control of Thompson division, and so, Kenton should accept the bid of the Thompson Division (TD). As shown in the calculations below, Northern should accept the bid from Thompson division as it has the lowest cost. Incurring the lowest costs would also enable Birch Paper Company to earn the highest profits possible.

West Paper Company
Variable cost to Northern Division of sourcing the boxes from West Paper $ 430.00

Thompson Division
TD’s variable costs excluding transfer price $ 120.00
Variable Cost of Southern Division (Transfer Price) $ 168.00
TOTAL VARIABLE COST: $ 288.00

Eire Papers,Ltd. Variable cost incurred by Northern Division in sourcing box from Eire $ 432.00
Net Profit incurred by Southern Div by providing materials for Eire $ (36.00)
Net Profit incurred by TD by printing for Eire $ (5.00)
TOTAL VARIABLE COST: $ 391.00

3. Which alternative is in the best interests of Birch Paper Company as a whole? Provide the appropriate analyses to support your answer.
Ans: The best alternative for Birch Paper Co. would be to go with Thompson Division since it represents the lowest cost for Birch Paper. As can be seen from the calculations above, it is the most profitable option.

4. Discuss the alternatives from the perspective of the managers of the Southern, Thompson, and Northern divisions. Which alternative is best for each division? Do you think a compromise can be reached across the three divisions? Explain whether or not you think each division would be willing to accept a compromise.
Ans: Managers should be in a position to stick by their divisions while knowing what is best for their organization. They should be able to in-source or go for other options based on the cost effectiveness. But going by porter’s model, these ‘other options’ are competitors to their own division. So, Birch Paper Company should select its own division instead of going for competitors. This is because buying within the company ensures cash flow remains within the organization. 5. Should the commercial vice president intervene? If so, how? If not, why not?
Ans: Whether or not the VP intervenes is ambiguous since it has its own pros and cons. If the VP does get involved in the bidding process, he may end up undermining the autonomy of the division managers and if he doesn’t, he may lose the money saved by sourcing to Thompson. A VP need not involve himself in a situation where ‘the volume represented by the transaction in question was less than five percent of the volume of any of the divisions involved’. But, we
Show More

Related Documents: Essay about CASE ANALYSIS

Case Analysis Of Kellogg's

would be very interesting to do a case analysis on it. Currently, the company stands in a good healthy position of steady sales growth because of constant new products. However, current corporate management is facing some tough issues such as the rebranding of its famous marketing character Tony The Tiger, appealing to the new generation, and competing with the new cereals induced with fiber that are increasing market share every year. Kellogg strategic analysis can be broken down into two different…

Words 771 - Pages 4

Case Management Case Analysis

Case management is responsible for patients whom have both acute and critical conditions. Patient consultations, pre-admission, and referrals to hospitals are provided by a case management team. They also coordinate post-surgical follow up, and prepayment approval of specified referred services. Case management is also responsible for the monitoring, coordination, and relocation of all care on behalf of the member who is within a contracted health program (Davis, 2014). Case management revolves…

Words 343 - Pages 2

Case Analysis: Venezuela

Bernie Terron Case Analysis # 1 Over the past years Venezuela has been one of the countries that has been showing the potential to become a powerful country, if they had the right leaders. Unfortunately, this isn’t the case. Under Chavez, Venezuela was in order, being this said with Chavez Venezuela wasn’t as prosperous as they should be with the resources they have. Now, that Chavez currently passed away almost a year ago I will be looking at Venezuela’s new aspect with the tools we learned…

Words 1193 - Pages 5

Case Analysis Essay

Hasan Nizami (260472486) Sean Park (260497399) James Chan (260518302) Rona Hunter (260518074) Sean Stapley (260524697) Fahad Syed (260528433) Case Analysis: Marriott Corporation: The Cost of Capital (Abridged) Problem Marriott Corporation must determine the appropriate annual hurdle rates at each of the firm’s three divisions in order to accurately value and determine whether they should partake in an investment project. Options  Maintain the current capital structure  Change their current…

Words 1727 - Pages 7

Essay Case Analysis

CASE ANALYSIS Contents |ABSTRACT…………………………………………………………………… |3 | |1 Macro-Economic Conditions ……………………………………………… |4 | | 1.1 Basic information…………………………………………………… |4 | | 1.2Macro-environmental Risk……………………………………………

Words 7977 - Pages 32

Case Analysis Essay

Case Analysis of Lotus development Corporation: Spousal Equivalents “Authority for Social Issues” Jimiah Williams Berry College Introduction In 1989 Russ Campanello, Vice President of Human Resources at Lotus Development Corporation, faced a difficult, managerial decision that would radically affect the company’s employee benefits policy. A few months into his occupancy, Campanello is addressed by an ‘Extended Benefits Task Force’ advocating that the corporate benefits given to spouses of married…

Words 1122 - Pages 5

Utiliscan Case Analysis

Case Analysis II: Utiliscan Webster University Abstract: “Human resources (HR) issues commonly experienced by employers today include diversity, productivity, training, benefits and outsourcing. How each business deals with its specific human resources issues depends on the HR manager or director as well as company policy”(wiseGEEK, n.d.). Utiliscan is currently facing challenges similar to those of other companies. Some of their challenges include hiring, compensation, advancement opportunities…

Words 1488 - Pages 6

Case Analysis Apple

Case Analysis Template Note: Use additional page(s), if needed, for any of the following sections . . . Dawn Argese Apple Inc (There seemed to be less ratios this time. Am I correct or did I miss something?) Important facts in this case (company, industry, competition, etc)?The company dropped “computer” from its name in 2007, reflecting its role as a consumer electronics powerhouse.Apple generated approximately $625 of revenue from each of the 40 million iPhones it sold in 2009. It generated…

Words 1632 - Pages 7

Case Analysis Essay

Case Analysis M5A1 Closing the Deal Pamela Phillips BUS 523 Dr. Moore April 5, 2015 Section 1: Introduction and situational analysis: When taking on the job of a salesman for a living it can raise some questions of ethical behavior and guilt upon the person trying to make the sale. The level of guilt and anxiety can be that much higher if the salesman has a quota to meet or his or her salary is based on the sales alone (i.e. Commission based). The salesman feels obligated to their family…

Words 1461 - Pages 6

Case Analysis Essay

Seungwoo Chung November 20, 2014 MGMT 210 Professor Elsass Case analysis 1. Analyze the Schlitz organization from a subsystem perspective. What are the inputs and outputs? Can you identify some of the major subsystems of Schlitz? Input in general is the people, material and information. In this case, the people are anyone that associated with the Schlitz’s company, like the managers, employees, stockholders, retailers, wholesalers, etc. Materials are the ingredients that are used to produce the…

Words 823 - Pages 4